Most vending machines earn less than per week. However, a well-placed Vending Machine can earn far more than that, potentially exceeding 0 per week or even hundreds of dollars per day. Vending machine earnings vary widely based on many different variables.
The average vending machine earns less than $5 per week.
As a whole, vending machines are a profitable industry. According to the National Automatic Merchandising Association (NAMA), there were 5 million vending machines in the U.S. in 2015. These 5 million vending machines produce an average of $20 billion in sales each year.
Although it can initially seem like stocking a vending machine with expensive items is the way to maximize its profits, this is not necessarily the case.
Luxury vending machines in Beverly Hills and similar locales stock items like caviar and escargot, but these items are expensive for the vending machine owner and have a short shelf life. To turn a profit on high-end items like these, the vending machine has to be in a highly visible location where it will regularly attract buyers. If a machine like this is not set up to be successful with its target audience, it will not turn a profit. A gumball machine in a bus station, despite selling a much less expensive product, could potentially generate a greater profit than a vending machine selling caviar because of its lower cost to the owner and greater accessibility to consumers.
How much money a vending machine business generates for its owner depends on a lot of factors, including:
Gross income is not net profit. To determine vending machine earnings, the owner must subtract her business expenses from her gross profit. Everything left over once the business expenses are subtracted is her profit.
For example, a soda machine on a college campus might offer 20-ounce bottled sodas for $2 apiece. At an average of 10 sales per day, the machine’s gross income is $20 per day. But the sodas cost the vending machine owner $1.50 apiece, which means his profit is only 50 cents per bottle. This brings his profit down to $5 per day.
With the cost of renting space for the vending machine and day-to-day expenses like driving to campus to restock it, the owner’s vending machine income goes down even further. This is before the taxes he has to pay, which include sales tax and self-employment tax. In this scenario, the vending machine earnings are less than $150 per month.
A vending machine business is not like most other types of business. Vending machine income is passive income, which means that it is income a business owner earns without actively managing the asset generating it. In contrast, earnings from a family-owned diner are usually active income for an owner because in this type of arrangement, the diner’s owner is often its manager or its cook – or both.
If you are considering starting a vending machine business, it is important that you start your business with a clear budget and business plan in mind. Draft a business plan that covers all of the following:
Although a vending machine business is a passive-income venture, it requires planning and budgeting on the business owner’s part. Your plan needs to include registering your business with the state and obtaining the vending permits you need, which vary from state to state and sometimes city to city. Find out which permits you will need on your state commerce department's website.