The vending machine industry has spawned numerous businesses with high profits, but machine placement--a process and expense known as location--can quickly eat into the income produced. With some knowledge about the vending industry and a professional approach, a proper vending machine location contract can be created to ensure profitability for all parties involved.
Some Locations Require Fixed Fees
In some locations, particularly hospitals and office buildings, managers or facilities personnel who approve the installation of a vending machine require a fixed monthly or quarterly fee to pay for "rental" of the machine's location. This fee varies depending on the type of machine installed, but typically ranges from around $5 per month for simple stand-alone machines, such as gumball machines, to as much as $50 per month for coffee and snack vending machines that require electricity or water.
Some Locations Take a Percentage
While some locations require payment of a fixed monthly fee, other locations are somewhat more flexible and will accept a predefined portion of the proceeds collected by the machines. Depending on the environment and type of business, the required percentage typically ranges from 15 percent to 25 percent of the machine's gross income. In some exceptional cases, a location owner may accept a percentage as low as 10 percent of the machine's gross income, though most location owners expect at least a 15-percent compensation.

Charity Sponsorships Can Reduce Expense
To help reduce the expenses paid for a vending machine location, some vending machine business owners secure a charity sponsorship. In a charity sponsorship, the vending machine owner makes a small donation--typically around $1 to $2 per month per machine--to the charity; in return, the charity organization provides a sticker for the machine proclaiming that a portion of the machine's income is donated to charity. While some business owners may still charge a location fee for charity machines, many charge a significantly reduced fee while others simply donate the space. This arrangement works well for all parties involved, as the vending location owner is perceived as donating to charity, the location expense is greatly reduced for the vending business owner, and the charity organization receives a much-needed boost in income.

Read more: How Much to Pay for a Vending Machine Spot |

Tips for Home-Based Businesses

Vending machine business is one of the home-based business. Running a business from your home offers many benefits, but there are pitfalls as well. Distractions abound, and family and other responsibilities can intrude on business time.

But the productivity lessons you learned in the outside world still apply to a home-based business like vending business. A well-organized and well-managed business is a productive business. Here are some tips to help you make the most of your time and keep work and home life separate.

1. Prioritize your tasks ahead of time. By scheduling your tasks in order of importance, you can devote more attention to your most pressing tasks. You can prioritize your day so that you do not spend five hours answering email, while the rest of your duties slide and make some maintenance for your vending machine.

2. Set goals for your day. As you plan your day, set the goals that you want to accomplish. Although you may not get through your entire to-do list, try to set and meet reasonable goals each day. It's will make your vending business more focus and can grow more quickly.

3. Instruct your family. "Family interference" is one reason some home-based businesses are unproductive. Your family must realize that even though you are at home, you are still “at work.” Sit down with your family and make sure they understand you need this set amount of time each day to run your vending machine business.

A lot of people believe that profit is difficult to make in vending machine businesses and the earnings are not good enough. Basically, the sale of the machine significantly depends on its usage, traffic and the place you put it. You need to have a business permit or a license to be able to set your vending machine in the right location.

The start up cost for businesses for instance in the vending machine industry varies depending on kind of vending machine that will be used. In most cases, individuals normally begin with just one or a couple of small machines just like a candy machines. These machines are more affordable but they produce plenty of vending machine income. You will need to consider the price of the machine and the cost of the candy.

If you opt for a new combo vending machine, it will surely cost you around 300 bucks plus a container of jawbreakers which include 850 pieces which will cost 50 dollars. If you vend the jawbreakers for only 25 cent per piece, the sum of your vending machine sales will be 212.50 dollars. Take away the percentage that you will have to distribute to the person who owns the location. This is how you monitor your profits for this vending machine business and stay profitable..

The remaining income is going to be yours. Hence, after you take away the price of the candy, your income will be 127.50 dollars. You can get that from a single vending machine. So now, if you select a second hand or a used vending machine, it will not take a lot of time before the profits become pure income. This also call passive income and can be also your passion income.