How Much Is A Vending Machine Cost? A Detailed Guide

Don’t you ever sigh in relief upon seeing a vending machine?

We all do, especially in places where such facilities are unexpected.

Well, it explains why running a vending machine business is profitable. According to Spherical Insights, the global industrial vending machine market is growing rapidly, and by the year 2030, it will become a $5.40 billion market.

Starting a vending machine business without proper information often seems like a simple yet achievable goal. Just like any oblivious entrepreneur, I had the same notion. But, the ground realities are quite different than what we think.

How Much Does A Vending Machine Cost?

If you want a simple and straight answer, in 2023, the most expensive vending machine is for $38000.

An average price range to finance a vending machine will be around $3200 to $10,000. But how will you decide which vending machine will be justified for you?

So, in this article, We will discuss the following things to make starting a vending machine business easier merely by explaining the “expected cost of a vending machine.”

Here is what we have in the room for you.

• What do we mean by the cost of running a vending machine?
• Factors affecting the initial cost of vending machines.
• Buy, lease, or take on rent. What is better for the vending machine business?
• New or used machine: Which can make your vending machine business profitable?

These four sub-topics will help you discern the actual cost of a vending machine. However, apart from that, your business plan is also a deciding factor, which will be discussed later.

What Do We Mean By The Cost Of Running A Vending Machine?

Before we probe into the factors that cause variation in its price, it would be better to categorize the aspects that form the “actual cost of running a vending machine business.”

You do not just place these machines anywhere you want. Just like any other business, it also requires some brain work.

Here are the primary aspects that collectively:

• Purchase price.
• Installation cost.
• Operational cost.
• Return on investment.
• Stocking cost.

Purchasing Price: The Initial Cost Of A Vending Machine

According to a rough estimate, a new combination machine will be around $7000, while in the refurbished category, you might get one below this range but not less than $4000.

But we cannot solely depend on it as the initial purchasing price of a new machine further relies on several factors discussed below.

Factors Affecting The Initial Cost Of Vending Machines

It will be nearly impossible to get an accurate estimate without considering factors that directly affect the price of vending machines.

As per our research, the following factors will be crucial in deciding the “price of vending machines.”

1. The brand.
2. The capacity of the machine.
3. Condition of the machine.
4. Technology.
5. Type of the machine.

Brand Of The Vending Machine

When financing your vending machine business, the first thing you will see is this enormous number of electronics/tech brands claiming to have the best machine for you.

That is the time when our research can help you decide.

We all know a snack vending machine company enjoying a good reputation will cost more than a new or unknown brand. Now, what should a novice vending machine business manager do?

There can be two scenarios.

1. You have a hefty amount for investment.
2. You have a limited budget.

In the first case, we suggest choosing the “famous brands” for your vending machine business. However, for the latter one, it will be wiser to go for the newest brands. Such brands might give you discount offers too.

To sum it up, a vending machine business primarily relies on the quality of the machine. Therefore, it is preferable to pick trusted brands that keep updating the technology and offer reliable customer care.

Moreover, a famous vending machine-selling brand may sell for more than the average price. Thus, in that case, you should keep a $5000 or above in mind.

Size Of The Vending Machine

Here, we follow the rule of thumb. A bigger machine will cost more than a smaller one. If someone plans a small business, he might not need to invest a hefty amount.

Otherwise, larger vending machines are needed for malls and hospitals, and they will certainly fall into the expensive category.

Purpose And Type Of Vending Machine

If you are a frequent airport traveler, you might have seen various vending machines there. Some popular types of vending appliances are;

Coffee Vending Machine

A coffee vending machine is entirely different from a snack vending machine. The technology used in both these machines will be poles. Therefore, the type of vending machine is also a primary cost-deciding factor.

Snack Vending Machine

The most common machines are beverage vending machines or dry edibles vending machines. But, in some localities, combo vending machines are also in demand.

Beverage/Drink Vending Machines

A beverage vending machine is slightly more expensive than a snack machine for the following reasons.

• Complex technology.
• Heating features.
• Brewing features.
• Higher energy consumption.

Combo/ Bulk Vending Machines

Lastly, the “combo vending machine” is the most expensive type. It combines beverage and snack machines, and for obvious reasons, it is far more expensive than the former two types.

For further clarification about the most expensive and cheapest type of machine, here is a classification for you. All the prices mentioned are for new machines.

Condition Of A Vending Machine

Most people assume a new vending machine will cost more than a used one. That is not the case, as it all comes down to its condition.

A refurbished machine that works well might cost more than a new one. You may get a discount on a used but in good condition vending machine.

However, it is understandable that new models will cost more than used ones except in a few cases. The good news is that you can purchase a vending machine at cheaper rates to run your business, thanks to the ever-growing vending industry.

The Technology Of The Machine

Every day, the world is experiencing new technologies, and every new tech is more advanced than the previous ones.

These machines generally have machine learning, IoT connectivity, and computer vision technologies.

The more advanced and modern some technology is, the higher that machine will cost. However, for a profitable business, it is better to go for the one with better tech.

Thus, we can safely assume that a new, advanced, and combination machine will be the most expensive option for any business owner.

On the other hand, for an affordable initial price, buyers may look for refurbished or snack/coffee vending machines.

Installation Cost

As I already said, starting a vending machine business is not child’s play. Once you are done purchasing, the next level is finding the right place to install it and estimating the installation cost. Also, the installation cost will vary for different vending machine types.

The installation cost will depend on the following factors.

• The rent
• Licensing
• Insurance

Installing a vending machine at a touristy spot will require a higher rent. The rent to install it can vary between $100 to $300 per machine. The machine locations play a critical role in this.

Then comes the licensing part, which would cost you nearly $50 to $700, depending on that area’s location and business policies. There is a huge difference in licensing costs in America alone from state to state.

For instance, in Kentucky, it’s $225; in New York, it’s $150; on the cheaper side are Hawaii and Alaska, which cost around $50.

The third on the list is “Insurance”; as a vending machine set-up does not require any vending machine operators around, the only safe way to secure your investment is insurance. There are several insurance types, each with a different price label.

But, the good part is most insurance companies do not charge much; the monthly insurance rate will vary between $20 to $35. You can only start your own business after calculating all these installation costs.

Operational Cost

The third cost would be the “price you pay to run that machine”. We will further categorize the operational cost in;

• Maintenance and repairs cost.
• Power supply cost.

Starting with the maintenance cost, just like any machine frequently used several times daily, a vending machine is also liable to damage.

Then certainly, all such machines require electricity, so there will be some price to that, too. For the power supply, business owners can go for a separate UPS, or if the space owner allows them, they may go for solar-powered vending machines.

The repair and power supply cost will be around $60 to $100 a month for any vending machine.

Stocking Cost

Choosing the right location and the right products will determine its stocking cost. The cost to fill a vending appliance will be a main headache to running your business peacefully.

Moreover, products with longer shelf life will not need frequent restocking; thus, you may save a bit. A combination machine will have the highest stocking cost compared to other machines installed in the same location.

However, a packed food vending machine can be expensive at a remote location. Thus, there is no straight answer to that, but stocking and restocking costs will be an influential factor for the overall cost of running a vending machine.

Return on investment

This is the most important and decisive part of any business. Finding the return on investment will clarify much about the vending machine business and its profitability.

According to surveys in developed countries, where people are well aware of the use of vending machines, the ROI is almost 20-25%.

However, it varies, as the revenue and the cost of investment also depend on the location, the type of items, and the purchasing price of the machine.

For instance, the packed items vending machine comes with a GP of 50%. But again, this alone cannot decide the net profit.

Buy, Lease, Or Take On Rent. What Is Better For The Vending Machine Business?

When searching for a reliable machine, you will come across two situations. You may get the latest machine by paying the full payment or renting it.

In a developing country with severe risks for this business, vending machine owners often use their machines as a source of rent.

Because of the constant risk of loss, a new business owner prefers investing in a rented machine instead of a new one.

One can get it on rent for nearly $10 to $50 a week. It again depends on the locality, the type, and the technology of the machine.

The second best option for a small capital venture will be getting it on lease. This should be opted for when you cannot find the most robust machine that is not available for rent.

In short, buying a vending machine is the ideal way to earn the most from the vending machine industry. Moreover, a new machine might have a low maintenance cost, thanks to the warranties. Although there is no direct answer to it, paying rent or lease every month/week will affect your earnings in the long run.

New Or Used Vending Machine: Which Is Better For Your Vending Machine Business Plan?

Such questions will come up when you are about to buy the machine, and it is normal if you feel confused.

Here is a thing: a refurbished vending machine in great condition with robust features is always better than a new one.

Here is what you must ask the seller when purchasing a used machine.

1. When did he last repair it?
2. How much energy does it consume?
3. Are there any fixed parts?

A used machine will be an affordable option for a small business with a minimum budget.

But, if the buyer cannot find or buy a used machine in reliable condition, it will be wise to pick the latest model either on rent or lease.

SUMMARY:

How To Start A Vending Machine Business With A Profitable Investment?

Considering the above discussion, we can safely say that if you have made the right decisions while choosing a vending machine for business, you will break even within a few months.

If, on average, a combination machine gives a 25% return on investment, it means that a machine costs around $10,000; an installation, license, insurance, rent, and stocking cost of around $500 will cost you around $1125. But in the end, it all depends on the vending machine sales.

Estimating the price of the vending machine depends on the close analysis and research on the expected expenses such as power consumption, space rent, restocking charges, etc.

Frequently Asked Questions

Which Type Of Vending Machine Is The Most Profitable One?

Bulk and candy machines can make the most money. But, its location and technology also play a part in increasing the profit margin.

Why Is Insurance Important For Vending Machines?

There are multiple reasons for this. Number one is the physical damage to the machine, and then someone might hack it. Similarly, it may not have the demanded products, and the customer would need a payback, so for such situations, insurance is essential.

How Much Does It Cost To Maintain A Vending Machine?

For a new model, you might not need to pay any fee for maintenance as they mostly come with a warranty.

Contrastively, a used one will cost around $30-$80 a year for a refurbished one.

What Things To Check To Buy The Best Vending Machine?

You must check the brand, the condition, and the technology installed in that machine. Checking the warranty can also help.

How Much Does It Cost To Move A Vending Machine?

It depends on the area and the distance; in developing countries, it will cost around $10, while in America, it might cost around $15. Plus, the labor required to lift the machine will also count.

Which Machine Is Best Among The Different Types Of Vending Machines Available?

The best one is the bulk and combination machines. However, it is very subjective and depends on your business plan.

What Is The Average Stocking Cost To Fill A Vending Machine?

Your choice of the items for sale will decide the average cost. However, the average cost for a combination machine will be $150 to $200.

What Are The Five Factors That Determine The Cost Of A Vending Machine?

1. Brand.
2. Location.
3. Operational cost.
4. Rent of the space.
5. Technology and type.

Why Is Coffee Vending Expensive?

The coffee vending industry requires more capital because the technology used in those machines is a step better than the regular machines. Furthermore, it requires a heating system too.

FINAL WORDS:

Running A Vending Machine Business Is All About Strategy

One can only ascertain the cost of a vending machine by calculating the additional costs attached to it. If you ignore the additional expenses, the bought vending machine might not fall in a profitable range.

The vending industry is undoubtedly blooming, but machine owners will get into a loss without the right strategy. Overlooking any of these factors can result in a great setback, especially for small business owners.