How To Start A Vending Machine Business In South Africa

What is vending machine?

A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes, and lottery tickets to consumers after cash, a credit card, or other forms of payment are inserted into the machine or otherwise made.

How To Start A Vending Machine Business In South Africa

Step 1: Consider Your Possible Products

Food vending machines are popular and simple, but there are also options for vending machines that vend items in bulk or vending machines that provide specialty products.

If you’re starting food vending machines, you can choose a theme for your machines. Providing healthy snacks in schools could be a good road to go down because schools want to provide students with good nutrition. In general, you can tailor your offerings to the market space you want to break into.

Step 2: Find the Right Location

Depending on what kinds of machines you have, you can start to find space in commercial businesses and craft a route. Since it will be you or an employee refilling and repairing the machines, you’ll probably want them to be not too far away to start. As you expand your business and bring on more employees, you can start to cover more territory.

Placing vending machines in local businesses means you’ll want to start making connections with local business owners and talking up your services. If you’re looking for a contract with a school district or a business that has several locations, you’ll want to get in touch with a regional manager or whoever does larger-scale location management projects.

Step 3: Choose the Right Type of Machine for Your Business

There are three types of machines: bulk, electronic and mechanical. Bulk machines hold a single product in bulk and dispense a certain amount for a quarter or a dollar. You often see this in restrooms, dispensing sanitary products for example. These can cost $50 to $200 to start.

Mechanical machines are the classic break room vending machines. They provide multiple products and cost about $2,000 initially. However, they do have higher profits than bulk machines.

Finally, the most sophisticated version is an electronic vending machine. These cost at least $3,000 per machine, often have touch screens and can take credit card payments easily. The more drinks and food offered, the higher the cost of the machine. They are incredibly reliable and intuitive, and the ability to use a credit card often means they receive a lot of business as fewer people carry cash and coins—just make sure you choose a payment gateway that doesn’t charge exorbitant fees.

Step 4: Find the Right Market

Your vending machine should be in an optimal place for the kinds of customers you want to serve. For example, vending machines with microwavable foods and other meal-like offerings do well in places where people are spending a lot of time and don’t have the ability to cook, like offices, hospitals and universities.

Snack vending machines are also great for offices. However, vending machines that dispense novelty trinkets or small candies can do well in specialty small businesses, if you are interested in making those connections.

Finally, vending machines that dispense medicine or electronics are great to place in airports, highway rest stops or train stations. These are necessities for travelers and these machines could therefore have a high profit margin.

Step 5: Stocking Products

For food vending machines, some states mandate a certain percentage of healthy options to be included. Be sure to have sources for healthy snacks if this is the case for your region.

When looking into food stocking in general, you should make connections with wholesale suppliers so you can get the lowest cost per unit. Saving money on the upfront costs of food will help you get more profit from your vending machines in the long run.

Repairs and Maintenance

Since vending machines are in public spaces, they are subject to vandalism and occasional theft. You can work this into your business plan, even though it’s frustrating.

Even if you bought your vending machines new instead of used, they require regular spot checks just to be sure. Any downtime in your vending machine will be lost profit. Working a regular checkup of your machines in your schedule will also lead to better profits in general.

The best spots are:

Entrances
Exits
Lunchrooms
Near other vending machines
Waiting rooms
Factories
Hospitals
Schools
Universities

Frequently Asked Questions (FAQ)

How much does a vending machine make in South Africa?

The typical vending machine generates over R1132.55 of revenue each week and over R4530.18 per month. Some vending machines generate much less than this, while some vending machines generate much, much more.

Is vending machine business profitable in South Africa?

The vending machine business has proven to be a lucrative business avenue for over 100 years, and continues to be so. Vending machines are a perfect business opportunity if you’re looking to start your own business, or you’re trying to set up a second income. Vending is an excellent option and is quite affordable.

How much money can you make off owning a vending machine?

Are vending machines profitable? Yes, vending machines can be profitable. The average vending machine earns $35 a week, but vending machines that are well-stocked and placed in safe, high-traffic locations can generate over $400 a month.

How much is a standard vending machine?

The first and most important startup cost is the cost of the machine. Generally, the price of buying vending machines depends on machine type, brand, size, and customization. On average, you’ll spend $2,000-$3,000 on a mechanical machine and $3,000 or more on an electronic type.

Can you start an ATM business in South Africa?

Below is How to Become An ATM Vendor South Africa

Locate good retail locations such as gas stations, convenience stores, bars, malls, and nightclubs. Negotiate an agreement to provide an ATM. Buy ATM. Install machine.

How do you stock a vending machine?

When you stock your products, you should place smaller, lighter items at the front such as single serve soups, gum, and candy. Next, consider chip trays and then other nut and meat snacks. Also, try to keep most visible your best-selling items.

Can I put a vending machine anywhere in South Africa?

You probably could technically place a vending machine anywhere, but it’s not quite so simple. First and foremost, you cannot legally place a machine on someone else’s property and use their utilities without their permission or a contract.

Is an ATM a vending machine?

Think of an ATM as a cash vending machine. An ATM Vending Machine is really just a vending machine that dispenses cash instead of snacks or soda. It sits by the door, waiting to be used just like any other vending machine.

How much do vending machines make a month in South Africa?

On average, a single vending machine generates more than $75 in revenue. So, how much do vending machines make? On a monthly basis, an individual vending machine can make more than $300. That’s a pretty decent business for those who invest in several machines over the long term.

How much does a vending machine make a day?

Most vending machines earn less than $5 per week. However, a well-placed vending machine can earn far more than that, potentially exceeding $100 per week or even hundreds of dollars per day.

How much does a vending machine weigh?

The vending machine likely weighs between 400-900lbs empty and is much too heavy to do solo or without proper equipment. You’ll want to ease the weight by emptying the machine of treats and money inside before the movers arrive.

Are vending machines profitable in South Africa?

On average, a single vending machines investment can generate AUD $700 per month, making the yearly earnings AUD $8,400

How many items can you fit in a vending machine?

Large Snack Vending Machines can hold a maximum of around 617 items. How big is a Large Snack Vending Machine? Large Snack Vending Machines are typically around 76 3/8” | 194 cm in height, 40 3/4” | 103.6 cm wide, and 31” | 79 cm in depth.

Can you put a vending machine in front of your house?

You can technically put a vending machine outside. However, besides the fact that most vending machines require an electrical outlet to run and should be placed under a roof to protect from rain damage and other weather damage, there are many reasons why not to place a vending machine outside.

Do vending machines give cash back?

The first United States vending machine sold gum on New York City train platforms starting in 1888. Long ago, you often needed to have exact change to use a vending machine. Today, though, vending machines accept coins, paper money and even credit cards. They can also give back change in the form of coins and bills.

How many rows are in a vending machine?

In high volume machines, you can have rows of mixed product that are remainders from the 9 count rows. Learning how to do the math of cases you have versus spaces you have in your machine will also aid in your ability to inventory the machine the correct way.

Can you lay a vending machine on its side?

Vending machines should always remain upright while being moved. Laying them down could cause issues with the refrigeration unit or other delicate parts. Attempting to load or transport a vending machine on your own could result in property damage or even personal injury.

How many Coca-Cola vending machines are there in South Africa?

The company, Japan’s largest beverage vending machine operator, is making the Coke ON Pass service available at 340,000 of all 880,000 Coca-Cola vending machines nationwide that are compatible with the firm’s Coke ON Pay electronic payment function.

Do you need an ABN for a vending machine?

Vending machines are no different than any other business. You’ll need to decide how you want to register your business, as a sole trader, partnership or company. Whichever structure you choose, you’ll need to apply for an ABN. You should also consider insurance for your business.

How much money can a vending machine make you in a month?

Who loads the vending machine?

As the owner of the machine you are responsible for loading the machine or having a 3rd party load drinks or items into the machine.