Do you want to know how much vending machines make on average weekly or yearly? If YES, here is an in-depth analysis of how much vending machine make a month.
Vending machines are quite common; we see them everywhere. The average amount of money that vending machines generate is not consistent. It is dependent on some factors such as the type of item that it dispenses and its location.
A Vending Machine is a very good example of a passive income generator, because the owner of the Vending Machine does not really need to be at the site of the Vending Machine in order to make his money.
How Much Do Vending Machines Make a Month?
A single vending machine earns a relatively small profit each month. So it is safe to say that a vending machine operator who owns multiple Vending Machines will make more cash. Depending on location, a vending machine can earn as little as $5 or up to $100 on a weekly basis based on the amount of traffic that visits the location the machine is sited.
Another important factor that can influence the amount of money you take home from your Vending Machine is the overhead cost of the product you are selling. For example, a chewing gum that is dispensed from a candy machine may have a cost price of $0.03 and can be sold for $0.25.
Soft drinks from a soda machine, on the other hand, might cost $0.30 and be sold for $1.00. When you compare the two, it would seem that the chewing gum has a higher profit percentage but the soft drink generates more actual revenue.
If you find out that your Vending Machine is under performing in terms of funds, you can improve this by moving the machine to a new location with better traffic in order to increase sales and ultimately revenue. Also, research has proven that blue collar workers are more willing to spend money on vended products than their white collar counterparts on average (at about a ratio of 2 to 1).
The general rule is you can expect $2.00 per week per white collar employee and $4.00 per week per blue collar employee as an average. This just goes to show that a vending machine in a blue collar environment will fare better than in a white collar dominated background. Also you can alter the price of your commodity so that it can attract more customers and generate more revenue.
Is a Vending Machine Business Profitable?
You have probably seen an advert that promises that you would make a large amount of money with no sweat if you start a Vending Machine Business. But are the adverts just too good to be true or can a Vending Machine really be that profitable?
Even though you may have heard that Vending Machines are quite profitable, it is good to note that like any other business, it requires planning and hard work. A profitable Vending Machine business goes beyond installing a machine and then sitting back to collect lots of money. With time, people who start the business come to realize that it simply doesn’t work that way irrespective of the cozy pictures that commercials paint.
But still, a vending machines business can be very profitable if you plan contentiously. Starting a Vending Machine Business is one of today’s fastest growing businesses. In fact, every day, 7 out of 10 people do business with a Vending Machine. In the United States, $79,000 is spent every minute in Vending Machines.
According to statistics from The National Automatic Merchandising Association, 18 percent of vending-machine operators make between $1 million and $5 million a year. Good news right? Well yes and no. The Better Business Bureau warns of scams, and a search of “vending machines” on the Federal Trade Commission’s website will show you a plethora of fines and lawsuits. So to answer the question, yes, Vending Machine Business can be profitable if well handled.
A Vending Machine Business can get you a lot of income in a month if your machines are at locations that are not too far from each other. This will allow you or an employee of yours to easily service your route in one day. It will also make it easier to load the goods into the machine and collect your cash.
You can also make a lot of money if you have a lot of Vending Machines. 10 to 15 machines in choice locations around the city can fetch you up to $2000 on a daily basis.