How to start a successful vending machine business? NOT a business that may or may not be successful, but one that is guaranteed to be successful! – The Royal Vending Way
How much can a vending machine earn?
It’s all about location! The quality of the location will determine how much the vending machine will earn on a weekly, monthly and yearly basis. Some of the factors Royal Vending look for when determining a location include; amount of staff, amount of visitors, amount of residents/ guests or contractors on site on a daily basis, the amount of days and hours per week people will have access to the vending machine and positioning of the vending machine, just to name a few.
Royal Vending Average
The average for the vending machines set up by Royal Vending in 2019 to 2020 financial year is as follows;
- Weekly average: $235.00+
- Monthly average $1018.00+
- Yearly average $12,220.00+
Royal Vending Guarantee
At Royal Vending we are happy to assist people looking to create a successful vending machine business with vending machines positioned at quality sites. In doing so we give each person a guarantee in writing on the minimum their new vending machine should earn. If the vending machine does not earn above that amount we find you a new site for free and relocate the vending machine for you for free.
What happens if the locations closes down or no longer wants the vending machine?
From our experience most locations will be happy to have a vending machine stay at their location once agreeing to it if the service is good. Although on occasion a change in management or company polices can result in the vending machine no longer being required in its current location. If this was to happen Royal Vending will have you covered! If you lose the location to no fault of your own in the first 12 months Royal Vending will find you a new site at no extra cost for you to move your machine to.
Is there any on going fees to be paid to Royal Vending?
Generally there is no on going fees to be paid to Royal Vending. Although from time to time an opportunity will become available to place a vending machine with one of our national clients. In this instance, we have a Licensing system in place to provide quality control. These locations tend to perform extra ordinary and incur a small Licensee fee to cover associated management costs. If there was an opportunity to arise like this, it would be presented to you to make an informed decision. Majority of locations have no on going fees.
Do we have to pay rent or a commission to keep the evening machine at the location?
Generally no rent or commission is paid to have the vending machine at the location. On the odd occasion though a location may request a small percentage of the sales to keep the vending machine on site. In these cases, Royal Vending carefully accesses the site to confirm it can justify the commission and will only accept the site if it still considers it to be a quality one after commissions are paid. In the instance where a location would like a small percentage of the sales from the vending machine it would be worked into the pricing to the end user to make sure the vending operator generates good margins.
How much profit should a vending machine make?
The amount of profit a vending machine makes will be determined by the price the products are purchased at and the price the products are sold at. We work with each potential location to negotiate the best pricing possible to guarantee sales and the highest profit margins possible. Based on Royal Vending sales data from 2019 to 2020 financial year the average profit margin from the four most popular selling item categories ( Soft drink, Energy, Chips and Chocolate.) was 59.6%.
What products do I place in the vending machine?
The products best placed in each vending machine will depend on the type of location, the requested products from the location, the demographics at the location and a number of other factors. We will utilise our experience and data to assist you in the process of product planning to maximise sales and make the process simple. Once the machine is on site products can be adjusted as needed according to what is and isn’t selling.
Where do I purchase stock from?
We will introduce you to the industry suppliers that service your area. Our partnerships allow us to help buyers operating multiple vending machines to purchase discounted stock. It is important to note that you are not obligated to use any particular suppliers, you are free to use whoever you gives you the best prices and service. To support you even further we have a communication group made up of other vendors who help each other with stock questions and updates on sales.
Who will set up the vending machine when its on site?
Once the vending machine is on site we will have provided you with all the necessary tools (Getting started training, stock training, suppliers lists, set up videos and guides.) So that you will be able to prepare everything and be ready to fill and set up the vending machine for the first time. We will also be able to assist you on the day if needed. The vending machine range we supply is so simple and straight forward to navigate. Our vending machines are known to be the most user friendly machine on the market.
How often will the vending machine be filled?
This will really depend on how many sales the vending machine makes. The busier the location the more often it will have to be filled. Going off the average sales of $235+ per week, the vending machine tends to be filled every 7 days in summer and every 9 days in winter. As you become familiar with a location and how the machine performs during different seasons you can adjust the amount of popular products in the machine to maximise sales and time between replenishing. The vending machine business model allows great flexability and if set up right will create a good semi passive income and time freedom.
How long does it take to fill a vending machine?
This also depends on the amount of sales the vending machine has made between each visit. Going off the average sales figures, the general fill time would be roughly 25 minutes per vending machine. This would also include some light up keep to sustain longevity for your vending machine and also keeping in mind the prior preparation of stockfor the vending machine.
Does a vending machine require maintenance?
The maintenance on the Royal Vending range of machines is very minimal and simple to complete. We have some simple tips to complete when filling the machine (Wiping the vending machine so it looks clean, wiping the coin mechanism and note reader so they continue to have a high expectance rate.)We also recommend cleaning the ventilation every few months which takes about 5 minutes (This can be simple clean can viewed on a maintenance video and in our maintenance guide.).
Usually how long is the warranty on a vending machine?
The warranty on a vending machine varies depending upon each company and the trust they have in the vending machine they are supplying. Our vending machines come with 24 months warranty on the vending machine and 12 months warranty on payment systems.
Things to keep in mind when starting a vending machine business?
Some of the important things to keep in mind when starting a vending business include;
Finance – The money needed to start the vending machine business. The cost will depend on the qaultiy of the vending machines, quality of the locations and return on investment.
Working capitol – You will also need to keep money aside to purchase stock and change for the coin mechanism float. We would recommend approximately $100 in coins and $400 in initial stock to fill a large machine.
Time – The time you will need to replenish the vending machine, arrange stock and the odd occasion you may need to respond to a client’s requests.
Equipment – Cleaning accessories and ability to transport your stock to the vending machine site and when at the vending machine site (Generally a standard sedan can hold a foldable trolley + stock for 5 machines comfortably per visit when prepacking your stock.).
Storing stock – The necessary place to store stock once purchased from the wholesaler (Most people store the stock for their vending machines in a spare room or a garage. 5 machines would require up about 2 meters squared in space.).
The advantages of a vending machine business?
Semi passive income.
High return on investment compared to other assets and investments.
Sited vending machines retain high resell value and are easy to resell if desired.
Flexibility – You have the flexibility to set you own schedule (When to buy stock and refill your vending machine.).
Low over heads (No staff costs, no rent and tax effective, just to name a few.).
Scalability – The simplicity of the vending business to grow.
Simple business model that is easy to grow and adjust as desired.
The Royal Vending Advantage!
Simplicity – We have the leading system in the vending machine industry for you to follow which is simple and will make your experience enjoyable.
Support – Ongoing support.
Success – Our goal is to see you succeed.
Proof – We are strong on results and can prove it.
Long warranties and Guarantees – We back our belief with proof (Long warranties and Guarantees in writing.).
What are the advantages of Royal Vending’s method compared to buying a 2nd hand vending run?
We sell on the basis of a guaranteed minimum not a possible maximum. – Established runs are sold on what they are said to be doing in revenue. Unfortunately, these are not hard to over exaggerate or distort even when showing reported sales data provided from the machine. They also not usually sold with a guarantee that the site will maintain performance or remain viable. Royal Vending’s model does not promise a ‘best case scenario’, instead it promises a minimum guarantee that means the vendor has assurance that they will get a viable return on their investment even with a ‘worst case scenario.’
Our vendors use the same type of machine on all their sites – unlike with most established runs that have a whole range of different branded machines, all with their own quirks, issues and problems, parts and user manuals (if you get your hands on some of them).
Vendors that utilise our services have become very familiar with the machine that is now fast becoming the industry’s go to standard that not only makes the experience enjoyable for you, but a great experience for customers buying from the vending machine.
What I need to start a vending machine business?
You will need an ABN (Australian business number.).
Bank account linked to your ABN and business name to receive card payments.
Desire to succeed.
How to get started?
Once you are ready to get started in the vending machine industry and have a desire to succeed fill in the form below and one of our friendly team members will be happy to assist on your journey to success!
“Success is not a big step in the future, success is a small step taken right now.”