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Do vending machines make money?

Updated By ProfitDrawer

Short answer

Some do, and the location decides it. In ProfitDrawer's vending machine guide example, a bag of chips costing $0.50 sells for $1.75; after about 6% card fees and a 10% location commission, about $0.97 is left. At 250 items a month that is about $242, or about $228 after a 20 mile restocking route. The same machine in a quiet spot can barely cover its trips. These are example numbers, not averages; real results depend on traffic.

The guide's per item example (example numbers only):

Line Amount
Selling price $1.75
Product cost ($15.00 for a 30 pack) $0.50
Card fees, about 6% $0.105
Location commission, 10% $0.175
Profit per item before travel $0.97

250 items a month x about $0.97 is about $242. A 20 mile monthly route at $0.70 a mile as a rough running cost is $14, leaving about $228 a month for that machine.

Compare that with the guide's example startup budget of $2,200 to $9,400 for one or two machines: at $228 a month, a $2,200 start takes almost 10 months to earn back, before taxes and repairs.

What makes the difference: busy sites with long stays and few food options, a commission that still leaves you a margin, a working card reader, and swapping slow sellers. Track sales per machine so you can move a weak one, and prove one location before buying the next machine.

Source: How to Start a Vending Machine Business (ProfitDrawer guide) · Updated

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General information, not tax, legal or financial advice. Check the rules for your state and your situation.