This is what it costs to keep the machine working and selling products. Operating costs include:
Rent to the location owner – for example, a convenience store. This may be a flat fee per month, or a share of your sales.
Electricity costs if your machine is not purely mechanical – some location owners may bundle this into the rent.
Stock – this is wholesale price of the products you sell and any shipping charges and taxes you may need to pay.
Servicing – if you’re not good at mechanics, you will probably need to pay a service agent or repairman from time to time to keep your equipment operating at 100%.
Insurance – you’ll need equipment insurance to protect against theft, vandalism and other unpredictable events. You will also need public liability cover to protect you from lawsuits that customers may bring if they claim your machine or the products it sells has harmed them or their property.
Upgrades – the way we buy things is changing rapidly. Older, cash-only vending machines are being phased out by devices that take payment from cards and smartphones. Even coins and dollar bills are periodically updated. Depending on the age of the equipment you buy, you may need to upgrade your machines to accept new ways for customers to pay.
Permits and licenses – some states and cities may require you to buy a permit or license to operate each machine.
Taxes – you may have to collect and pay state and city taxes on your sales. This cost will vary according to the location of your machines.
Management costs – this is things like the gasoline and other travel costs you incur to keep your machines stocked and collect the cash they make, plus control costs, such as Vending Machine software to maintain your inventory.