Are you a fresh entrepreneur in the vending machine business? Wondering how much money will you make from your vending machine? Want to master the tricks and trades for maximizing your income?
Well, you have landed at the perfect place to get all the answers you want.
World over, there is a massive growth in the vending machine business. This in itself shows that significant profits are being made in this industry. However, as a new entrepreneur, you should have a detailed understanding of how much money a vending machine makes on average.
This article will also help you to know about the factors that impact your income from your vending machine and ways to increase the same.
How Much Money can you make through a Vending Machine Monthly:
With the right strategy and appropriate planning, plenty of money can be made in the vending business.
While it is difficult to estimate an average income from a vending machine, given there are multiple factors influencing the income; we can still try to gather a general idea.
For instance, if you have vending machine located at the right point and fully filled with snacks and beverages, you can easily make Rs 20,000- 30,000 in a month. In fact, if you have several popular, well-placed machines, your profits would be well worth the work.
Hence, the vending machine business can be very profitable. You might wonder why this industry is blooming so well! What are the secrets to these high-profit margins! Well, there are more reasons than one.
Firstly, the low startup costs and the possibility of involvement of family in business increase the possibility of high-profit margins. Secondly, you have a high scope of scalability also in this business.
Thirdly, in the case of India, it is still a new and unexplored venture. This offers big opportunities for expansion. Finally and most importantly the tax-free income is the biggest attraction point of several entrepreneurs.
In India, Wendor can provide you with the most trustworthy options of vending machines.
Way to Increase Profits from a Vending Machine
Multiple factors will impact the amount of money you will be earning from your vending machine. For instance- where the machine is placed, the products that you are putting into the machine, and other recurring business expenses.
Taking these main factors into consideration will place you in a good position to make a healthy profit from your machine.
1. Location –
The place where you locate your machine, in a high or low traffic area, is the biggest factor to consider.
For instance, a single vending machine in an extremely busy hotel with no restaurant could bring in a fortune every day. However, if your vending machine is fixed away in a remote and deserted food stall, you might get disappointed with your monthly income.
2. Products –
Your task does not simply end with choosing the right location. Placing the right product as per the location is the second important point for consideration.
For instance, items of a vending machine located at a hospital will be significantly different from the one situated in a high school compound or in a college campus. The right area with the right product is key to a high-yielding vending machine.
Healthy snacks, energy drinks, fresh filtered water, or even face masks are some of the good options to have in a vending machine, in general.
3. Pricing –
Pricing of items should also be strategic in order to make good money.
Let’s say you operate a cold beverage machine and sell products for Rs 10 each but the machine is in a less-than-ideal location and only gets 10 sales per day. That machine’s net income is Rs 100 per day. Hence, to make your profits worthwhile, you will have to own hundreds of machines in much better locations. Thus, items should be chosen carefully, ensuring high-profit margins.
A notable point here is, offering split pricing can attract more customers. e.g. buy a drink and get a snack at half price.
4. Payment Options –
These days, many people don’t carry a lot of cash and sometimes they carry no cash at all. The point-of-sale purchases and UPI have enabled such a trend. Hence vending machines should be digital-payment friendly. This will broaden the customer base and increase the profit ratio.
5. Inventory Management –
Nothing hurts sales more than vending machines that are low on stock. Hence, it is absolutely essential that your machine stays stocked at all times.
6. Working With a Franchise –
Partnering with an already blooming vending machine company, as part of a franchise or franchise-like system, is also a safe and certain way to make good money.
Such companies also provide you with an initial knowledge set such as location selection, ideas for marketing, product selection, etc. Although, you might have to invest capital in the beginning but your income is assured right from day one.
7. Miscellaneous –
• Good customer support can enhance the user experience at the machine, in case they encounter any difficulty.
• Good management of a vending machine is yet another vital area. An untidy machine gives an impression that the stock is old and expired, which is a big setback for the machine’s sales.
• Regular refilling of fresh items with a short shelf life will have a great impact on higher sales and better prices.
So, now you know that vending machines can give you a very safe, very profitable monthly income. You also know the 7 steps secret for multiplying your income.
In this multi-billion business of vending, you can carve out a space for yourself, with the right guidance.
People will always have a need for food and drinks on the go. And so the money from your vending machine must be flowing.