How to make profit in vending machine business in India

How to make profit in vending machine business in India

One of the fastest-growing industries in the world, the vending industry is one of the most promising and exciting industries to get into. In the United States, there are over two thousand vending machines across the country, with thousands more being installed every year. It is simple to get some figures in profit in vending machine

 In India, the country’s vending industry is an emerging powerhouse, with millions of dollars in revenue and millions of transactions in revenue. The industry is also one of the most profitable industries in the country, with some companies making as much as $250,000 in a single day and some companies being able to turn a profit as quickly as three months after getting into the industry.

In this blog, we will see how to make a good profit in the vending machine business in India. 

But before this, we will learn about some aspects related to the vending machine business in India.

First, let’s discuss the different types of vending machines.

Ambient Vending Machines 


ambient vending machine

In this type of vending machine, the products are dispensed from that vending machine, which doesn’t have refrigeration, so you can put snacks like chips and biscuits in the vending machine. Along with this, you can also put other products like newspapers and books. 

Combo vending machines

combo vending machine

So this type of vending machine has a refrigerator inside. Some trays have been installed in the vending machine with a refrigerator inside, while some trays have been installed without a refrigerator. So you can put snacks like chips and biscuits in the vending machine. Along with this, you can also put other products like soft drinks, beverages, juices, and cold coffee.   

Beverage vending machines.


beverage vending machine

By the name itself, you can think of this type of machine as a full-fledged refrigerated vending machine, so you can put soft drinks, beverages, juices, and cold coffee in it. 

Elevator vending machines


Elevator vending machine

You have probably seen in most vending machines that products fall down from the top and you have to pick them up. Now, if you are vending an electronic product or a bottle of wine, Then they may break at the time of dispensing the product. This vending machine has been installed with an elevator inside, and this elevated section will safely elevate your product and dispense it for you. You can put items like groceries, vegetables, and fragile items in there.  

So now you have seen the different types of vending machines and their various uses. It is important to note that vending machines generally have 5-7 trays in which you can put 40-50 products at a time, so, in this way, your vending machine can have 200-350 products in total. 

Investment is the key to get a profit in vending machine business

Just like you need a key to start your car, similarly, you need some investment for your vending machine business to start. Let’s look at the investment perspective. 

So If you are planning to partner up with a technical aggregator, then it is important to know that you need to pay him/her a nominal monthly subscription fee for the services. To make the math part easy, let’s assume the purchase price of a vending machine is Rs.1,00,000/- and you are able to earn your ROI of 15% – 18% so in this way you can cover the purchase price of the vending machine in one year. 

This will be music to your ears. 

Just like a car can’t run without fuel, your vending machine won’t run without products, so you need to put products in. 

Let’s assume the average price of a product is Rs.30/- then for 200 to 300 products, you have to fill the inventory of your vending machine with Rs. 6000/- to 9000/-. This means you have to keep this amount of money in your hand so that you can purchase the products and refill the inventory weekly. 

Profit in vending machine are based on:

Well, A vending machine’s profitability is directly proportional to its location. The sale of a product depends on the location of the vending machine. According to a study by IBIS World, vending machines are mostly placed on office premises, and the least placed in bars and clubs. You have to fill the vending machine inventory according to the location of the vending machine with the proper mix of products. 

profit in vending machine business 2

The more products you have in the vending machine, the more profit you will make. since your vending machine is attracting more customers. 

Profit in vending machine vary.

According to Hustle Magazine, profit margins in the vending machine business vary from  43% to 86% depending on the type of product, so after doing the math, you can earn Rs. 8400/- to Rs. 21,000/-  monthly as profit.

We have done the research and, in the same research, we have found that the margin on soft drinks and beverages goes up to 40%. Whereas for chips and chocolates, the profit margin goes up to 25-35%. 

Let’s assume you have only chocolates, chips, and cold drinks in your vending machine, and your machine is doing 30 transactions per day in which you are selling 8-10 chips, 8-10 chocolates, and 9-11 cokes. 


profit in vending machine business 3

If the price of a packet of chips is Rs. 40, the price of chocolate is Rs. 40, and the price of a bottle of coke is Rs.35/- then you are making a revenue of a whopping Rs.32,100/- and this way your profit will be Rs.9100/- per month. 

If we talk about vending machine products, then you can also put some other products in the machine like pizza, shoes, books, toys, newspapers, medicines, flowers etc. 

The vending machine business is all about automating the retail process in the most efficient way possible. It is also about the right product for the right audience at the right time.

Ask yourself, is your business model doing the same?

I hope you found this article useful. Do tweet out your thoughts by tagging us on Twitter or you can also leave your comment. 

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