Well, that’s the short answer anyway. There are millions of vending machines being operated throughout the world, and that’s because profits are being made.
We operate over 2,000 units and a further 30,000 via our licensed operators and these numbers are constantly growing.
But it’s not fool proof
A vending franchise is a solid base you can build your own business from, with the help of a proven business model and help and advice from your franchisor. But that doesn’t mean profits are guaranteed.
While vending machine businesses are profitable, they have to be managed properly. Success in vending requires the same virtues as in any enterprise: an understanding of the industry, commitment, patience, enthusiasm and determination. To find out how Tubz can support you in your in a franchise venture, read our ‘Why Choose Tubz‘ page.
What are the costs involved?
– Your start up franchise investment
Franchise costs vary significantly but range from around £3000, right up to the tens of thousands.
– The machines
Thankfully vending machines are one of the cheapest ways to invest in a start up business. However, you need to find out whether they are included in your investment, and if so, how many? You can find this out easily by speaking with the franchisor.
Tubz Vending Franchise offer 10 machines with their basic business bundle, which costs £3995 + VAT, with no ongoing costs.
– Restocking your machines
Restocking your machines is another cost to consider. This of course depends on how many machines you have.
It’s essential to leave adequate funds for restocking when you first decide how many machines you can afford to invest in.
But With Tubz Brands business bundles, stock is included so you are off to a flying start.
– Repairing your machines
The cost of repairs will depend on the kind of machines you have. Large electrical devices such as can vending machines could incur substantial costs if something breaks, cutting into your profits. Simpler, mechanical devices are usually cheap and relatively easy to repair, meaning they can be back in location and making money again.
Tubz machines are simple, non-electrical mechanical devices and have interchangeable parts which cost from 60p up to £25. However you won’t have to worry for the first 2 years because Tubz Brands new vending towers all come with a 2 year guarantee.
– Storing your machines
Do you have to store your machines before placing them? Do you have space to do this or will this incur storage costs?
– How long until you will see the money coming in?
When considering a vending franchise you must find out how long you should expect to wait before you see any return on your investment. If it could be weeks or months before you see any significant income you will have to plan for the period before the cash starts to arrive.
With a Tubz Vending Franchise operators see money coming in from day one and on average a full return on investment within 6 months.
What locations offer the most profit
Considering where to put vending machines is very important to make the most profit possible. A generic, popular product will allow you a wider range of suitable locations and a greater potential customer base.
Research which vending products are the most popular and offer them in the busiest locations you are able to. Most franchisors will be able to give you lots of information and advice on finding the best, most profitable sites. With Tubz Brands business bundles, sites are included in the initial price so there is no selling involved.
How many machines do you need to make a healthy profit?
It’s fairly obvious but the more machines you have, the more money you will make – as long as you sell popular products in a relatively busy location. Different products may be more popular in different locations, so you might need to tweak the quantities of the different products you offer.
So how much do vending machines make? Based on average figures in 2016 10 Tubz vending towers making 10 sales a week would bring an annual turnover of £5,200. 20 sales a week would mean a turnover of £10,400 and 30 sales a week would mean a turnover of £15,600. And of course these figures increase substantially if you have more units, though sales can’t be guaranteed because a successful operation does depend on many factors.
|Towers||10 Sales Per Tower Per Week||20 Sales Per Tower Per Week||30 Sales Per Tower Per Week|
You can see more predicted average turnovers based on unit numbers on the business bundles page.
It may seem like there is a huge amount of things to consider regarding vending franchises, but remember that this business model is already successful and profitable, with a proven track record.
If you want to know more simply contact the franchisor and they will be happy to provide you with information, advice and data, so that you can get a clearer picture of how much profit you could make, and the best ways to make that happen.
And if you want more evidence of successful Tubz Brands operations, take a look at our many testimonials.
– Franchise Direct wrote this useful piece on Vending Machine Franchise Tips and Benefits
– Find out a bit more about Tubz Brands; what we do, how we support our franchisees, and how we can support you in building a successful business!