Vending machines can provide a variety of functions for customers.
Because of its availability to entry-level entrepreneurs and the customer desire for the capacity to purchase things quickly and easily in an on-the-go world, having a vending machine, or a network of vending machines, has become one of the most appealing business endeavors recently.
The path to having started a vending machine business is so simple and appealing—after all, who wouldn’t want to be able to make money without having to leave their house?
Here are some popular vending machines
|Name||Features||Best Use||Payment Mode||Capacity Upto||Price|
|Wendor Mini||Ambient||Mask, Sanitizers, Cigarette, Electronics, Condoms,Cosmetics, Medicines or any small items||Cash, Card, Cashless and RFID||150||Know Price|
|Wendor Ambient||Ambient||Mask, Cosmetics, Sanitizers, Cigarette, Electronics, Condoms,Cosmetics, Medicines or any small items||Cash, Card, Cashless and RFID||500||Know Price|
|Wendor Slim||Combo and Refrigerated||Snacks, Beverages, Dairy Products, Cosmetics, or any packaged items.||Cash, Card, Cashless and RFID||200||Know Price|
|Wendor Atlas||Combo and Refrigerated||Snacks, Beverages, Dairy Products, Cosmetics, or any packaged items.||Cash, Card, Cashless and RFID||500||Know Price|
|Wendor Titan||Combo and Refrigerated||Snacks, Beverages, Dairy Products, Cosmetics, or any packaged items.||Cash, Card, Cashless and RFID||400||Know Price|
|Wendor Nova||Non-Elevator, Combo and Refrigerated||Snacks, Beverages, Dairy Products, Cosmetics, or any packaged items.||Cash, Card, Cashless and RFID||400||Know Price|
|Wendor Nova Plus||Elevator, Combo and Refrigerated||Glass Jars, Fresh Food, Fruits & Vegetables, Mobile, Phones, Cosmetics, Dairy products, Delicate Products and High Value Products||Cash, Card, Cashless and RFID||400||Know Price|
|Wendor Frozone||Elevator and Frozen||Frozen Foods, Ice-Cream||Cash, Card, Cashless and RFID||400||Know Price|
The vending machine business can be hugely profitable, but it is just like any other industry in that you must put in the effort to succeed.
The specific cost of doing business in the vending machine industry will be determined largely by the type of machine(s) you select and the number of devices you run.
How Much Does A Vending Machine Cost (Detailed Comparison)
1. One Time Costs Related To Vending Machine
1. Machine Cost
The cost of a vending machine varies on the different specifications the owner is looking for.
It depends on the size of the machine, the built quality, the number of items to be displayed, whether the machine is refrigerated or not, and also on whether it is operated by coin, cash, or cashless mechanism.
A coin-operated Sanitary Napkin Vending Machine would cost from ₹5,000 to ₹10,000. An Automatic Coffee Vending Machine would be worth under ₹1,00,000 and a refrigerated, cash-accepting vending machine with a variety of items to be displayed would range anywhere over ₹1,25,000.
Also, There are various types of vending machines available. So you can choose the right vending machine for yourself.
2. Vinyl or branding
Sporting your Vending Machine Business on the machines isn’t as expensive as it sounds. You can make minimalist, customized logo vinyl for less than ₹1000.
In reality, the branding costs can become insignificant if the space is used for advertising. Vending Machine advertisements can generate substantial revenue for the business owner which would easily cover the branding cost within one cycle.
Since vending machines are heavy and bulky machines, their cost of transportation can be pretty hefty. If the machine is ordered from an overseas manufacturer, the cost of transportation can be as much as the cost of the machine itself, if not more.
However, this aspect of investment shouldn’t be a deal-breaker because of the abundance of local vending machine manufacturers like Wendor. Besides, many online sellers of vending machines offer free delivery in select cities in India.
2. Recurring Costs To Run A Vending Machine
1. Online system cost
This expense is optional, based on whether the business owner is looking for an app-based online system for their business brand. Developing an app can cost more than ₹3,00,000 and wouldn’t be as profitable if the business owner isn’t looking to expand the vending machine business to a very large scale.
For a local, average-scale vending machine business with low investment and high returns, it would be more profitable to use pre-existing software.
Vending machine manufacturers like Wendor have developed their own user-friendly apps that make the process of running a vending machine business smooth and hassle-free.
2. Per transaction cost (zero for UPI)
Transaction cost refers to the charges that the bank incurs on both, the buyer and the seller, for use of its services such as card payments and net banking.
Credit cards usually charge around 4% transaction fees. Unlike Net Banking, there are no additional costs for carrying out transactions through UPI.
Buying items for sale in bulk also need storage space. This can cut into the profits as a recurring cost. A way to eliminate this cost entirely could be to purchase wholesale products at the time of replenishing the vending machines.
This method would not be suitable for most business owners since the profit is mainly dependent on the profit margin, which is only profitable when bought in bulk.
You can read our article How To Manage Your Vending Business With Full Peace Of Mind to get a much better idea about managing a vending machine business.
Purchasing the products, replenishing the vending machines, and collecting the cash are time and energy-consuming tasks. A business owner of multiple vending machines will have to hire an employee to carry out all of these tasks.
Even if you are doing these activities by yourself, it is important to take into account of your labor into the business cost.
4. Transportation of goods
Recurring transportation costs are incurred at two levels. The first is to transport the wholesale purchase of goods to the warehouse. The second is the transportation cost of refilling individual machines every time they run out of items.
Having an app-based vending machine system that lets you know when and which items the vending machine has run out of, a lot of time and transportation costs can be saved, increasing the gross profit.
5. Repair and Maintain (lesser than people think)
The best way to save up on repair and maintenance charges is to invest in a vending machine where the manufacturer takes care of the maintenance.
As for repairs, the only part of a vending machine that is prone to damage is the keypad or the touch screen which can get worn with use. These parts can easily be replaced, and can even fall under warranty.
To know in detail about the types of Vending Machines, You can check out our page on – Browse vending machines.
The ROI On A Vending Machine
ROI stands for Return On Investment from a business. In simpler words, it is the net profit, compared to the total cost of investment. A higher ROI reflects greater efficiency of the business since the business would pay for itself in a shorter time.
On average, a vending machine business has an ROI of about 20%, annually. This means that the profits would exceed the initial investment in 4 years.
Since vending machines have a lifespan of 12 to 24 years, the business would make at least a three-fold profit on the investment, excluding any improvements or additions to the business.
Variable Costs Vs Fixed Cost On Vending Machine
Fixed cost refers to the cost that remains constant. In the context of vending machine business, the rent of the location and power consumed by the vending machine would be the fixed cost that does not change with the fluctuation in sales.
Variable costs in a vending machine business would be the wholesale purchase (which could increase with an increase in sales) and the transportation cost for driving to the vending machines (which would increase with the increase in the frequency of restocking).
Number Of Machines Required To Break Even
Every profitable business reaches a break-even point. This is the point when the total fixed cost (investment) becomes equal to the gross profit.
A profitable vending machine business has an ROI of about 20%, annually. This means that the profits would exceed the initial investment in 5 years.
More machines do not always mean greater profit because the investment is so large it still takes time to reach the break-even point.
Gross Profit From Each Vending Machine
The amount of money a vending machine business makes relies on a number of things, such as the location of the machine, the machine’s items, and expenses that occur on a regular basis in the business.
Net profit is not the same as gross profit. The business owner must reduce the expenses of the business from the gross profit to calculate vending machine profits. The profit is whatever is left over after business expenses are deducted.
Types Of Vending Machines Available In India
There are 3 types of snack vending machines you should know about. First one is known as an “Ambient Machine” which means there is no refrigeration in the machine.
These types of machines are used for selling products that don’t require refrigeration such as snacks like chips, biscuits, chocolates, and other eatables. These machines are also used for selling electronics(mobiles, earphones, USB’s etc….), books, cigarettes, apparel, footwear, medicines, and the list goes on.
The second one is called “Combo Machine” which means this machine has both refrigeration and non-refrigeration parts. Snacks including cold drinks, juices, and other drinks/beverages which require refrigeration can be sold in these along with chips, and biscuits.
The third one is called the snacks vending machine. This is fully refrigerated and mostly used for selling beverages.
There are further categories like Elevator vending machines and Refurbished vending machines. Elevator vending machines are costlier and generally used for fresh food products and all those products which when fall would break or get spoilt.
Refurbished vending machines are old machines which are already been used before and hence are cheaper to buy than new ones.
Location really matters a lot in vending machines. So once you have your target audience and your location in mind then you can choose which vending machine suits you best.
1. Some Specifications:
These machines generally have 5 trays. Depending on the product and product size 20-40 selections or varieties of products can be put in the machine. The total number of products in a machine is in the range of 200-500 products depending on the product size.
2. Vending machine Payment methods and add-ons:
There are multiple payment methods that can be integrated with these machines. Cash payments, online payments through credit card, debit card, net banking, Paytm, RFID, Sodexo, UPI through Google Pay, Phonepe, BHIM etc all can be integrated with the vending machine.
Add-ons need to be purchased along with the machine.
These add-ons include Cash Machine( if you want payments in cash ), Coin changer, Cashless payments module, RFID integration, Inventory Management, sales analytics etc.
If there is any customized requirement then Wendor can make customized software as per your requirements.
In today’s time, we don’t recommend buying any machine(if not a rare case) without cashless payments, inventory management and remote monitoring through a dedicated dashboard.
These add-ons increase your overall sales, reduce your operational costs and save time.
Based on our data with existing customers and research, having cashless payments increases consumer spending by 32% which overall increases sales. So it is always recommended to have cashless payments in your machine.
3. Choosing between a Refurbished vending machine and a New vending machine:
This is also one of the most commonly asked questions as people get confused about which machine to buy.
We always recommend buying a New machine over a refurbished vending machine because we have seen over a period of time in this industry that refurbished vending machines cost less at the start but have more operating costs moving ahead.
They require more maintenance, can break down anytime, result in more loss of sales of products, and therefore are a headache to own.
Unless you are on a very tight budget and cannot buy a new one then only should go ahead with the refurbished one.
4. Price range of a vending machine:
As there are a lot of factors influencing the cost of the vending machine, the price range is between 1.5 lacs to 2.5 lacs depending on the type, size, features, custom, mission, add-ons, etc.
5. ROI of a vending machine:
Depending on the products sold, your target audience, and your location, it takes around 1.5 years to 2 years to recover the cost of the machine. It can be less than 1.5 years also depending on your sales. If buying a new machine, the life of the machine easily is around 9-10 years. If maintained well it can go on for 12-15 years also.
Direct passive income opportunity for a long period of time makes owning a vending machine business a highly desirable one.
We have a separate blog on “How to start a vending machine business in India”, which gives more details on ROI. Make sure you have a look at it.
6. Where can you get them:
You can get machines from distributors who buy a lot of machines in bulk from the manufacturers. You can find these distributors in various cities all over India easily. These distributors provide after-sales service which is a very important part of this industry.
You can also buy machines from the manufacturer which are very limited across the country. These manufacturers usually don’t provide after-sales service, which creates a burden on the buyer who then has to go looking for other service providers hence incurring more costs and time.
Keep in mind that you’ll have to provide great customer service, so partner with a company that can provide great after-sales support.
7. The machine on a rental basis:
This is also one of the commonly asked questions about whether to buy or rent a vending machine. The rent of good, well-maintained snacks vending machine or a new machine is in the range of 6k to 11k per month depending on the type, features, add-ons etc. If you want to know further details kindly feel free to call us @XXXXXXXXXX.
Wendor provides limitless possibilities for aspiring entrepreneurs seeking both freedom and opportunity as they enter the vending industry.
Wendor has also partnered with local retailers, educational organizations, and healthcare facilities to provide excellent quality vending machine solutions and outstanding aftercare support.
Our experienced staff aims to provide consumer-focused, smart, and efficient solutions, backed by years of industry experience.
Discover more about Smart Vending solutions at Wendor.in to learn more about starting a business with the least amount of money upfront.
Frequently Asked Questions
Q: A refurbished or used vending machine is better than a new vending machine?
A: Generally, refurbished or used vending machines can be purchased at a lower price than investing in a brand-new one. However, older machines lack the technology that the new machines provide. From this point of view, refurbished vending machines will grow obsolete much sooner.
A mid-way could be to purchase a used vending machine and upgrade it with a new-age solution like Wendor Touch.
Q: Where to buy vending machines from?
A: Choosing the ideal vending machine company to source your machines needs to be a well-thought process. Partnering with a company goes beyond just the one-time purchase of vending machines.
The companies have an important role to play during the installation of the equipment as well as checking back on the machines for timely servicing and other repair needs. Some companies have a no-cost servicing policy while others have warranties on specific parts of their vending machines.
Since vending machines are heavy and bulky machines, their cost of transportation can be pretty hefty. If the machine is ordered from an overseas manufacturer, the cost of transportation can be as much as the cost of the machine itself, if not more. Local vending machine manufacturers like Wendor.in offering a wide variety of options to choose from.
Q: Can I rent a Vending machine?
The cost of the vending machines itself eats up a huge chunk of investment. For someone who is running low on investment capacity, a more viable business option would be to rent vending machines from the manufacturer or another business owner.
Although the profits are shared, the business owner can gain a greater advantage by setting up more vending machines. Renting a vending machine ensures fewer, but immediate returns.