Considering Vending Machine Franchising
Its enticing right?
Getting into something quick, low investment and easy to run. No employees! No head aches.
But is it worth it?
Does vending actually make you money?
Let’s explore.
Note – we are making assumptions based on public averages posted online.
First reference we will make is to this web page by Naturals2Go in 2013 labelled Vending Industry Market Research.
The average revenue per machine at the time in 2013 was $9,336 according to Naturals2Go.
Nowadays, though, what’s the revenue? Healthy You claims that their machines on average rake in $1,000 – $1,500 per month per machine. Let’s take $1,200 and multiply by 12. That gives us $14,400 per year per machine. That’s not beating inflation by much between the spread.
So be careful about market trends.
Again these are averages…
Let’s keep going on our hunt to see if vending machine franchising is right for us…
If you procured 4 machines (minimum for Naturals2Go) or 5 machines (minimum for Healthy You) that’s – $57,760/yr in sales for the 4 or $72,000/yr for the 5.
Investment on N2Go is around $53K and $60 for Healthy You.
We asked Chat GPT common margins on vending machines. Chat GPT gave us a range of 20% – 40%. Gitnux says 40% – 60%. Vending Locator says 20-% – 25%.
So let’s call it 30%. 30% gross margin on sales.
So we’re at roughly $17,328/yr in profit for 4 machines and $21,600/yr for 5.
Breakeven gets point for both business takes about 2.5 to 3 years.
Average life of a vending machine is 10-15 years. That means 7 years at least of $17K – $21K/yr of cash directly into your pocket.
Roughly $120K – $147K profit for 4 to 5 machines over a decade ON AVERAGE.
For 4 to 5 hours of work a week. 2,600 hour of work over the life span of 5 machines.
Is that right for you? Only you can answer & as you know you can perform below and above averages!
For the most accurate and current figures, direct consultation with vending machine distributors or operators is recommended.
We can only do so much with the data publicly available!
Breakeven gets point takes about 2.5 to 3 years.
Average life of a vending machine is 10-15 years. That means 7 years at least of $17K – $21K/yr of cash directly into your pocket.
Roughly $120K – $147K profit for 4 to 5 machines over a decade ON AVERAGE.
Wait, Should I Just Buy a Vending Machine Instead of Franchising One?
Well thats a good question. Why go through an option to Naturals2Go or Healthy You?
Reasons –
- The support system. Don’t do it alone. Have someone who knows best practices.
- Systems a processes acceleration.
- Training and lifetime coaching.
- Cashless payment vendors and connections to wholesalers/vendors.
- Location procurement services to help locate and figure out “renting a space” for your machine.
All in all these are helpful ways to increase your odds in success and offer a quicker path to profitability.
Want to explore other possible options – check them out at upflip.
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