start a successful vending machine business Australia

Are Vending Machines profitable? How much can a vending machine earn?

In the business of vending machines, location is everything! The vending machine’s weekly, monthly, and yearly earnings will depend on the location’s quality. The amount of personnel, visitors, residents, guests, or contractors on-site daily, the number of days and hours per week people will have access to the vending machine, and the positioning of the vending machine are just a few of the elements Royal Vending considers when choosing a location.

Earning potential is unlimited and is based on how many vending machines you are able to operate, how much revenue you want to make and whether you want to do this part time or full time.

The advantages of a vending machine business?

One of the main advantages a vending machine business has over traditional businesses is the flexibility to start a business based on the budget that you have available.  Some of our clients begin with as little as 1 vending machine package and we have others that commit to 50+. Other advantages include:

● Semi passive revenue.

● High return on investment compared to other assets and investments.

● Security – the ability to move vending machines to different locations if needed makes this business model quite resilient.

● Vending machines at locations retain high resale value and are easy to resell if desired.

● Flexibility – You have the flexibility to set a flexible schedule (When to buy stock and refill your vending machine).

● Low overheads (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.

invest in vending machines With the Royal Vending sales revenue Guarantee!

At Royal Vending, we are happy to assist individuals looking to create a successful vending machine business by positioning machines at quality locations. We provide each client with a written guarantee of the minimum revenue when the vending machine is at its final performing location. If the vending machine does not meet the revenue guarantee, we will find a new location for free and relocate the machine at no additional cost.

 Frequently asked questions

What happens if the location closes down or no longer wants the vending machine?

From our experience, most locations are happy to keep a vending machine once they agree to have it if the service is good. However, occasionally, a change in management or company policies can result in the vending machine no longer being required in its current location. If this happens, Royal Vending has you covered! If you lose the location through no fault of your own within the first 6 months, Royal Vending will find you a new location at no extra cost.

Are there any ongoing fees to be paid to Royal Vending?

Generally, there are no ongoing fees to be paid to Royal Vending. However, occasionally an opportunity may arise to place a vending machine with one of our national clients. In such cases, we have a licensing system in place to maintain quality control. These locations often perform exceptionally well and incur a small license fee to cover associated management costs. If an opportunity like this arises, it will be presented to you so you can make an informed decision. The majority of locations have no ongoing 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 keep the vending machine at a location. Occasionally, a location and Royal Vending may agree on a small percentage of sales to be paid to the location, to keep the vending machine on-site. In such cases, Royal Vending  assesses the location to confirm whether the commission is justified and will only accept the location if it is still considered it is likely to meet the revenue guarantee after commissions are paid (Although we never know if a location will perform, this is why we have the revenue guarantee). If a location requests a small percentage of sales, it will be factored into the end-user pricing to ensure the vending operator maintains good margins.

How much profit should a vending machine make?

The profit a vending machine makes depends on the purchase price of the products and the selling price. We work with each potential location to negotiate the best possible pricing to ensure sales and maximise profit margins. Based on Royal Vending’s sales data from the 2019 to 2020 financial year, the average profit margin from the four most popular selling item categories (soft drink, energy drinks, chips, and chocolate) was 59.6%.

What products should I place in the vending machine?

The ideal products for each vending machine depend on the location type, requested products, local demographics, and other factors. We use our experience and data to help you with product planning, making the process simple and maximising sales. Once the machine is on-site, products can be adjusted as needed based on what is and isn’t selling.

Where do I purchase stock from?

We will introduce you to the industry suppliers servicing your area. Our partnerships enable buyers operating multiple vending machines to purchase stock at discounted rates. However, you are not obligated to use specific suppliers and are free to choose whoever offers the best prices and service. Additionally, we have a communication group of vendors who assist each other with stock questions and sales updates.

Who will set up the vending machine when it’s on site?

Once the vending machine is on-site, we will provide you with all the guidance needed, including training, stock information, supplier lists, setup videos, and guides. This will allow you to prepare everything and be ready to fill and set up the vending machine for the first time. We can also assist you on the day if needed. Our vending machines are known to be user-friendly and are some of the easiest to navigate on the market.

How often will the vending machine need to be filled?

This depends on the sales volume of the vending machine. The busier the location, the more frequently it will need to be filled. Based on average sales of $235+ per week, the vending machine typically needs 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 throughout the year, you can adjust the product mix to maximise sales and extend the time between refills. The vending machine business model offers great flexibility, and if set up correctly, can generate a good semi-passive revenue and flexibility.

How long does it take to fill a vending machine?

This depends on the volume of sales the vending machine has made between each visit. Based on average sales figures, the general fill time is roughly 25 minutes per vending machine. This includes some light upkeep to maintain the machine’s longevity, as well as considering the prior preparation of stock.

Does a vending machine require maintenance?

Maintenance for the Royal Vending range of machines is minimal and easy to perform. We provide simple tips to follow during refills, such as wiping the vending machine for a clean appearance and cleaning the coin mechanism and note reader to ensure a high acceptance rate. Additionally, we recommend cleaning the ventilation every few months, which takes about 5 – 10 minutes. This simple task is demonstrated in our maintenance video and guide.

HOW LONG IS THE WARRANTY ON A VENDING MACHINE?

The warranty on a vending machine varies depending on the company and the trust they have in the product they supply. Our machines come with a 12 to 24-month warranty on the vending machine itself and a 24-month warranty on the payment systems, except for the coin mechanism, which has a 12-month warranty.

Things to keep in mind when starting a vending machine business

Some important factors to consider when starting a vending business include:

• Finance – The money needed to start the business, which depends on the quality of the vending machines, locations, and expected return on investment.
• Working Capital – Funds set aside to purchase stock and change for the coin mechanism float. We recommend approximately $150 in coins and $400 in initial stock to fill a large machine.
• Time – The time required to replenish the vending machine, arrange stock, and occasionally respond to client requests.
• Equipment – Cleaning supplies, basic tools, a small foldable trolley, a step ladder may be required and the ability to transport stock to the machine’s location. A standard sedan can hold a foldable trolley and stock for 5 machines per visit when prepacking. Each location may also have specific requests for safety equipment, such as steel cap boots, a fluro vest and specific work uniforms.
• Storing Stock – A suitable place to store stock once purchased from the wholesaler. Typically, 5 machines require about 2 square meters of storage space, such as in a spare room or garage.

The Royal Vending Advantage!

• Simplicity – We have the leading system in the vending machine industry, making the process simple and enjoyable.
• Support – Ongoing support to ensure your success.
• Success – Our primary goal is to help you succeed.
• Long Warranties and Sales Revenue Guarantee – We back our belief in writing (Long warranties and Guarantees in writing).

    THE NEXT STEP…

INquire below to receive your free information pack which goes through the different options available!

You will receive an email with the information pack sent to you immediately.

If you are interested in getting started or if you want to speak to one of our friendly team members, you will be able to schedule a call with us via the booking link sent to your email at a time available that suits you best.

We only take a limited amount of orders at a time to make sure that our customers are happy and orders are filled in a timely manner, so book in a time to see if we have slots available in your area!

“Success is not a big step in the future, success is a small step taken right now.”