Operating costs for vending machines

Operating costs and follow-up costs of vending machines: A comprehensive overview

Regardless of whether you are dealing with snack vending machines, drinks vending machines, candy vending machines or vending machines for different products in general - the installation and operation of these devices incurs running costs that you should take into account.

These running costs are often overlooked or underestimated when starting out in business, which can lead to unexpected costs in the long term. In this article, we therefore give you an overview of the most important follow-up costs that you should keep an eye on.

As vending machines are constantly connected to the power grid in order to be available around the clock, electricity costs represent a significant part of the operating costs. Energy consumption depends heavily on the type of vending machine:

• Coffee vending machines, drinks vending machines, meat and sausage vending machines consume more energy as they use heating or cooling mechanisms.
• Snack vending machines, candy vending machines and secret pack vending machines usually have lower electricity costs, unless they have integrated cooling systems.

A typical vending machine consumes around 100 to 500 kWh per month, depending on the model. With an average electricity price of around €0.30 per kWh, this results in monthly electricity costs of between €10 and €100. Energy-efficient vending machines can help to reduce these costs.

Example: Drink machine

Consumption: 510W

Summary:

• Assumption appliance running time: 10 hours per day at 510 watts
• Assumption standby time: 14 hours per day at 45 watts
• Assumption electricity costs: €0.30 per kWh
• Daily energy consumption: 5.73 kWh
• Monthly energy consumption: 171.9 kWh
• Daily electricity costs: €1.72
• Monthly electricity costs: €51.57

This calculation shows the electricity costs for a meat vending machine that is in operation for 10 hours a day and in standby mode for 14 hours.

Regular maintenance is crucial to ensure the smooth operation of the machine. Wearing parts such as motors, coin validators or display modules must be serviced or replaced to prevent breakdowns. Maintenance costs can vary greatly depending on the complexity of the machine and the frequency of use.

• Regular inspections: A service contract for regular maintenance can cost between €20 and €50 per month, depending on the provider.
  
• Repairs: Unforeseen repairs, such as the replacement of electronic components or coin systems, can incur additional costs ranging from a few hundred euros to higher sums. It can also make sense to keep bill acceptors and coin changers in stock to prevent longer downtimes.

Another ongoing source of costs are the filling products offered in the vending machines. Prices vary depending on the type of vending machine and the products on offer:

• Snacks and drinks: here you have to refill products regularly. Depending on the products and the location of the vending machine (with high or low customer traffic), the refill costs can vary considerably.

• Coffee vending machines: Costs are incurred here for coffee beans, milk, sugar and possibly disposable cups.

• Secret Pack machine: Here you have to refill Secret Packs regularly

• Egg vending machine: Here you have to refill eggs regularly. However, these are often from our own production, which results in very low costs

• Meat and sausage vending machine: Here you have to refill meat and sausage regularly. Here you have to pay particular attention to hygienic packaging, which also incurs costs. The production here is also often in-house and there are lower costs for the filling products in percentage terms

Good stock management is crucial here to ensure that the vending machine is always full without causing unnecessarily high stock levels.

An often overlooked follow-up cost item is the insurance of the vending machine. Depending on the location (public area, company building, etc.), it may make sense to insure the vending machine against vandalism, theft or damage.

Many modern vending machines offer the option of accepting cashless payments by credit card, EC card or mobile payment systems such as Apple Pay or Google Pay.

The payment systems from Nayax are common and the payment modules cost €600-700. In addition, there is a monthly fee of around €14 plus VAT, which is charged for the use of Nayax's telemetry and payment processing services. The cost for credit card transactions is 2.5% per transaction.

The integration of cashless payment systems therefore increases convenience for customers and boosts sales, but also means additional ongoing costs due to transaction fees.

If you set up your vending machine at a public or commercial location, location fees or a profit sharemay be payable to the operator of the location. This depends heavily on the location:

• Fixed rent: Some locations charge a fixed monthly fee for the space, which can range from €50 to €200.
• Profit sharing: Alternatively, a profit share can be agreed, whereby a percentage of turnover is paid to the location operator (often between 5% and 20%).