The vending machine cost is highly dependent upon the functions and customer requirements.
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 recently become one of the most appealing business endeavors.
The path to starting a vending machine business is so simple and appealing – after all, who wouldn’t want to be able to make money without leaving their house?
But the question arises, how much does a vending machine cost? Well, here is the detailed answer.
Here Are Some Popular Vending Machines In India
| 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 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 by the type of machine(s) you select and the number of devices you run.
How Much Does A Vending Machine Cost (Detailed Comparison)
One-Time Costs Related To Vending Machine
1. Machine Cost
The vending machine’s cost varies depending on the 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 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 various items to be displayed would range anywhere over ₹2,25,000.
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 ₹10,000.
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.
3. Transportation
Since vending machines are heavy and bulky machines, their cost of transportation can be pretty hefty.
Also, moving vending machines from one place to another is very tricky.
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 investment aspect shouldn’t be a deal-breaker because of the abundance of top vending machine manufacturers like Wendor.
Besides, many online sellers of vending machines offer free delivery in select cities in India.
Recurring Costs To Run A Vending Machine
1. Online System Cost
This expense is optional, based on whether the business owner wants an app-based online system for their 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 large scale.
Pre-existing software would be more profitable for a local, average-scale vending machine business with great ROI.
Vending machine manufacturers like Wendor have developed user-friendly apps that make running a business smooth and hassle-free.
2. Per transaction cost (zero for UPI)
Vending machine supports a wide range of payment system. Each payment system includes some payment processing fees called transaction costs.
Transaction cost refers to the bank’s charges on both the buyer and the seller to use 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 transactions through UPI.
3. Warehouse
Buying items for sale in bulk also needs storage space.
This can cut into the profits as a recurring cost. A way to eliminate this cost could be to purchase wholesale products when replenishing the vending machines.
This method would not be suitable for most business owners since the profit mainly depends on the profit margin, which is only profitable when bought in bulk.
It is always important to manage the stock of top-selling products so that you never run out of stock.
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.
4. Person
Purchasing the products, replenishing the vending machines, and collecting the cash are time and energy-consuming tasks.
A business owner of multiple vending machines must hire an employee to carry out these tasks.
Even if you are doing these activities by yourself, it is important to consider your labor in the business cost.
5. 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 whenever 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.
This saves a lot of time and transportation costs can be saved, increasing the gross profit.
6. Repair and Maintain (lesser than people think)
The best way to save on repair and maintenance charges is to invest in a vending machine where the manufacturer manages the maintenance.
As for repairs, the only part of a vending machine 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 investment cost.
A higher ROI reflects greater efficiency since the business would pay for itself quickly.
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 span 12 to 24 years, the business would make at least a three-fold profit on the investment, excluding any improvements or additions.
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 sales) and the transportation cost for driving to the vending machines (which would increase with the increased frequency of restocking).
Number Of Machines Required To Break Even
Every profitable business reaches a break-even point.
This is when the total fixed cost (investment) equals 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 several things, such as the machine’s location, the machine’s items, and regular expenses in the business.
Net profit is not the same as gross profit.
The business owner must reduce the business’s expenses 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.
The first is called an “Ambient Machine, ” meaning no refrigeration exists.
These machines sell 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, etc….), books, cigarettes, apparel, footwear, medicines, and so 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.
There are further categories like Elevator vending machines and Refurbished vending machines.
Elevator vending machines are costlier and generally used for fresh food products, which, when fall, would break or get spoilt.
Refurbished vending machines are old machines already used before and are cheaper to buy than new ones.
Location matters a lot in vending machines. So once you have your target audience and location in mind, you can choose which vending machine suits you best.
Some Specifications Related To Vending Machines
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.
Vending machine Payment methods and add-ons:
Multiple payment methods 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 per your requirements.
Today, 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 operational costs and save time.
Based on our data with existing customers and research, having cashless payments increases consumer spending by 32%, increasing sales overall.
So it is always recommended to have cashless payments on your machine.
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 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.
The price range of a vending machine:
As many factors influence the vending machine’s cost.
The price range is between 1.5 lacs to 2.5 lacs depending on the type, size, features, custom, mission, add-ons, etc.
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, depending on your sales. If buying a new machine, the machine’s life is easily around 9-10 years.
If maintained well, it can also go on for 12-15 years.
Direct passive income opportunity for a long period makes owning a vending machine business highly desirable.
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.
Where can you get Vending Machine?
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 an important part of this industry.
You can also buy machines from the manufacturer, which are very limited nationwide.
These manufacturers usually don’t provide after-sales service, which burdens the buyer, who then has to go looking for other service providers, incurring more costs and time.
Remember that you’ll have to provide great customer service, so partner with a company that can provide great after-sales support.
The machine is on a rental Basis.
This is also a commonly asked question about whether to buy or rent a vending machine.
The rent of a good, well-maintained snacks vending machine or a new machine ranges from 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 at +918448808364.
Final Thoughts
Wendor provides limitless possibilities for aspiring entrepreneurs seeking freedom and opportunity as they enter the vending industry.
Wendor has partnered with local retailers, educational organizations, and healthcare facilities to provide excellent 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.
Frequently Asked Questions
Ques 1: Is a refurbished or used vending machine better than a new one?
Ans: 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.
Ques 2: Where to buy vending machines from?
Ans: Choosing the ideal vending machine company to source your machines must be well-thought.
Partnering with a company goes beyond just the one-time purchase of vending machines.
The companies have an important role to play during the equipment installation and check 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.
Ques 3: Can I rent a Vending machine?
Ans: The vending machines’ cost consumes a huge chunk of investment.
A more viable business option for someone running low on investment capacity 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.
