How to Run a Vending Machine Business in Australia: Costs, Profitability & Buying Guide
Vending machines are an easy way to earn extra money in Australia. They are simple to run, and people always want snacks and drinks on the go. You can sell drinks, snacks, or both. This guide will help you understand the costs, profits, and how to start a vending business.
One or two machines are sufficient to begin with. Being able to add more, you know how it works. The machines can be situated at offices, gyms, schools and hospitals. Having the right strategy, you will be able to receive a stable income without leaving your working activity inflexible.
Why Start a Vending Machine Business in Australia?
There are several reasons why vending machines remain a popular choice for entrepreneurs in Australia:
Low Overhead Costs
Unlike traditional retail stores, vending machines don’t require rent for a full shopfront, reducing ongoing expenses. You only need to pay for the machines, stock, and occasional maintenance.
Flexibility
A vending business allows you to work on your own schedule. Machines can be placed in multiple locations, and once stocked, they require minimal daily attention.
Growing Demand
Australians love convenience. Workplaces, schools, gyms, and hospitals are always in need of solutions to snacks and drinks, and vending machines are an attractive alternative.
Scalability
Begin with one or two machines and increase as you get to know the business. Diversification can be done in the form of drinks, healthy snacks or even specialty.
Understanding the Costs of a Vending Machine Business
Initial capital is required to start a business of a vending machine; however, the cost will differ with the type of machine and location. The following table will break down typical costs:
1. Vending Machine Purchase
The cost of machines is the largest upfront expense. Prices depend on the type, brand, and features:
Drink Vending Machines: $3,000 – $8,000
These machines are able to dispense cans, bottles or even cold beverages with high cooling devices.
Snack Vending Machines: $2,000 – $5,000
Ideal for chips, chocolates, and packaged snacks. Some modern machines accept cashless payments.
Combo Machines: $5,000 – $10,000
Serve both beverages and food on the same machine, and this gives the customer greater choice.
2. Stock Costs
Stocking machines require ongoing investment. Typical costs for initial inventory:
Drinks: $100 – $200 per machine
Snacks: $50 – $150 per machine
Regular restocking depends on the popularity of the items and traffic at your location.
3. Location Costs
Securing a high-traffic location may involve a commission or rental fee:
Commission: 10% – 20% of sales paid to the site owner
Rental: Some locations may charge a flat monthly fee instead
High-traffic areas like offices, schools, and gyms typically yield higher sales, even if the commission is slightly higher.
4. Maintenance & Repairs
Vending machines require occasional maintenance:
Cleaning: $10 – $30 per visit
Minor repairs: $50 – $200
Major repairs or replacement parts: $200 – $1,000
Regular servicing ensures your machines stay functional and hygienic, keeping customers satisfied.
5. Business Setup Costs
ABN registration: Free through the Australian Business Register
Business insurance: $300 – $600 annually
Accounting & bookkeeping: $500 – $1,000 annually
How Much Can You Make? Profit Insights
Your earnings depend on machine type, location, and sales. Drink machines sell at a price of $2- $3 per unit and have the potential of making between $800 to $1500 dollars every month. The usual profit is 30% -50%, including the cost of stock, location, and maintenance.
Snack machines are sold for between $2 and $4 dollars each and generate earnings between $500 and $1200 dollars monthly. Profit is 25% to 40%. It is all about being in a strategically located place and selling something everybody wants. Well-placed machines earn much more than hidden ones.
The most profitable are combo machines which price beverages and snacks. They can make between $1,500 to $3,000 per month in profits of 35% to 50%. Even a few machines in the right location can provide you with a constant income.
Choosing the Right Locations
Location is critical for success. Here’s how to choose wisely:
High Foot Traffic
More customers equal higher sales. Offices, schools, gyms, hospitals, and shopping centres are excellent options.
Accessibility
Machines should be easy to access and visible to attract impulse buyers.
Demographics
Customise your products to the target market. Gyms can be an example of a place that provides healthy snacks and beverages, whereas schools can be more inclined to follow the trend of popular soft drinks and desserts.
Security & Permissions
Get a safe place and other required permissions to prevent theft or fights with property owners.
Tips for Managing Your Vending Machine Business
Regular Stocking
Empty machines frustrate customers. Schedule consistent restocking to maintain sales.
Offer Cashless Payments
Australians increasingly prefer card payments or mobile wallets. Modern machines with cashless options often boost sales.
Monitor Sales
Use machines with telemetry systems to track sales and reduce unnecessary trips for restocking.
Diversify Products
Combine popular snacks with healthy foods and beverages in order to attract a larger client base.
Maintain Cleanliness
Wash equipment with clean machines frequently to keep recurrent clientele and have a professional appearance.
Buying Guide: Picking Your First Vending Machine
Select the kind of machine depending on what you wish to sell, be it drinks or snacks or both. Check cashing facilities; cashless machines tend to sell better. Take into account size, capacity and whether the machine will fit where you are.
Search for good machines that are reliable and have reviews and local support. Check warranty and servicing possibilities to prevent breaks. A great machine is economical, lasts longer and satisfies customers.
Final Thoughts
Vending machine is a simple business to start in Australia and make additional income. It provides you with flexibility and the opportunity to develop in the long run. You can make consistent profits with a few machines by being aware of the costs, by making good choices of location and by taking care of your machines.
Ready to get started? Contact All Round Vending today to find the right drink, snack, or combo machine for your business and start earning money!