Minimum 10 machines for a vending company to be profitable?The costs of vending

HOSTELVENDING.com 01/16/2018.- The main agents in the sector consulted are clear: vending is a business that works by volume. With a single machine it is difficult for a business of this type to give us a living from it, however, it can be profitable by providing regular income, even if it is minimal, if the investment is recovered within a reasonable period of time.

But if we talk about setting up a company to be our main source of income, things vary. This is a circumstance that many entrepreneurs consider when it comes to joining this sector, a sales channel that has proven to be very dynamic and that continues to offer a wide variety of possibilities.

We are talking about vending companies that can only manage free standing machines, others dedicate themselves mainly to OCS, resort to mini-vending (which deserves a separate detailed study and which we are going to offer you soon), set up a 24-hour store or make several of them compatible. these models. In any case, from Hostelvending we have always wanted to create a bridge between the infinity of existing business models and those entrepreneurs who want to immerse themselves in the world of automatic distribution, which is why we have established a directory of machines to help choose the best option. and contribute our grain of sand.

If revenue is determined by the number of machines we are able to operate, most of us wonder how many to start with at the very least. Well, although in the headline we venture to say that ten, this round number does not always have the key. What's more, the location of the machine matters so much for its collection that with less it would also be possible to run a company and live from it, especially if we do not go to the minimum needs.

And what are those minimum needs? Rafael Curbasí, manager of the Catalan Vending Association explains it to us. "We would start from reduced expenses with an investment in basic machines -with the possibility that they were second-hand to begin with or at least some of them- and the payment of the self-employed and the minimum expenses that being a self-employed worker entails."

To this is added the purchase of the product, leaving the possibility of having stock and consequently a place for its storage, civil liability insurance that can be around 100 euros and what we need to have a vehicle with its corresponding insurance also and the expense that transport will generate.

It would be a low-cost company but with which you could start operating.

If the location is important, the sale price is not less so. Margins in this business vary greatly and can range from 5% to 40% in some cases. "If we have 50 machines with coffee at 0.50 euros capable of providing 50 daily services, profits are assured," warns Curbasí. It is not for less, since we are talking about 1,250 euros per day!

It is a hypothetical case, but it is also a round number to start from to get an idea, because if those 50 machines stay at 10 but we continue to get those 50 coffees a day, we are going to 7,500 euros per month, enough for a worker autonomous that deals with ten machines, "since we must take into account that the total cost, including amortization of the machine, vehicle, diesel and technical service, should be around 0.25 euros per coffee".

The problem is reaching those 50 services per day and the number of locations that are currently available. Good spaces are more than covered and it is not easy to reach companies or even public vending and maintain that constant every day, month after month.

As the ACV representative reminds us, we must not lose sight of VAT, which can make the difference between what you earn and lose depending on whether you buy or sell at 21% or 10%, charges that in the case of sales they are included.

Not long ago we published the numbers taken from the 30 main operating companies in our country that pointed to an average income of 375 euros per machine. Translated into services (in the case of coffee) they mean 25 drinks at 0.50 euros, something more realistic and that multiplied by 10 machines would give a very fair average income to face expenses and earn a decent salary.

Depending on the needs of each one of us, we find ourselves at the barrier of what can be a complement or a business from which to grow. The basic and continuous expenses are not excessive, except for the investment in machines, since we are talking about equipment that can range from 2,000 to 5,000 euros.

But, the most important thing is to be clear that to amortize them we have to set our sights on a company with at least 20 or 30 workers, since with a lower number it is difficult for us to reach those 25 drinks.

If we go down to the OCS to see how many machines we could be autonomous with, we go to examples like the one Seferguer puts up. With a profit per capsule of 0.30 euros and a consumption of 15 capsules per day, we stand at around 100 euros per month per machine, so there is no more to calculate what salary we want to have to know how many pieces of equipment to buy.

Minivending, a totally different business

Without going too deep, the small mechanical machines that make up the minivending deserve a detailed study.

As Cristóbal Alonso, manager of Cají Export, explained to us at the time, we are dealing with machines that with little activity can provide 20 euros per month, but with a good turnover the income can go up to 300 euros. The big difference is the initial investment, since they are machines with an infinitely lower price, whose maintenance also has a lower cost.

The treatment is different from what we are going to find in vending coffee, but it is a segment in which there is a great variety of operators who can earn a good salary with 20 or 30 machines with products as varied as those related to the personal hygiene, sex or tobacco.

Here the margins also make the difference since where more money is earned is in everything that is not food, as Aldryn Rodríguez, manager of Madelven, has told us on more than one occasion.

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Five reasons to trust Hostelvending

1. Because we are specialists in the sector

At Hostelvending we are specialists in the vending sector in Spain. We know the channel and we have contact with all the companies related to it, from machine manufacturers to distributors and manufacturers of food and beverages. We have extensive experience of years working side by side with companies and for companies.

2. Because we are the main media in the sector

Hostelvending has a recognized track record as the main means of communication in the vending sector in Spain with thousands of visits per month in its online and printed version. We cover the main vending events in Spain, we carry out in-depth reports on the latest news and technologies and we analyze the situation of the sector with the most exhaustive data.

3. Why our advertising is the most effective

Having a specialized audience makes trusting in Hostelvending the best option to publicize your business in the world of vending. Whatever your market niche is in the channel, our products and services are aimed at satisfying it. And with the most competitive rates to get the most out of it and the greatest number of impacts. Our newsletter is received by hundreds of people with decision-making power every week.

4. Because our directory is the most complete

At Hostelvending we have the best list of companies in the vending sector in Spain. We cover all channels and offer the most detailed and specialized information to quickly find what our users are looking for. Our comfortable search engine allows you to find all the commercial information of any company with a single click.

5. Because we advise on the best business opportunities

At Hostelvending we offer a complete advisory service for companies. From legal and regulatory aspects to the best business strategies, going through the most appropriate business opportunities for each type of company, regardless of its size or objectives. We create synergies between companies to generate new business opportunities.

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