Vending machines
- Thread starter fredo
- Start date
There were a couple of places at the Investment Expo selling them on the weekend.
But check out The Age, under businesses for sale......there are usually a couple in there. Or I suppose other "businesses for sale" publications.
You can also do a search on the Rich Dad Forum.....they have a bit of discussion on vending machines over there.
Ruby
But check out The Age, under businesses for sale......there are usually a couple in there. Or I suppose other "businesses for sale" publications.
You can also do a search on the Rich Dad Forum.....they have a bit of discussion on vending machines over there.
Ruby
The vending machines are small and hold 3 varieties totalling 99 cans
I spend no time filling them, I am guaranteed 20% gross return on my investment The way it works is Vendinvest selects suitable sites eg panel beaters, joinery shops etc and locates a machine on the premises. Cans sell for $1.00 so the y walk out the door
He is able to buy Coke 30 pack for $14.65
That equates to approx 50 cents profit from each can he gets 30c and I get 20 cents per can
I have 3 machuines and get $93,0 per mth
If he sells 30 cans or 3000 I get the same amount
I can provide details of the vendor if you are interested He is in Mt Waverley Melb
Regards Fredo
I spend no time filling them, I am guaranteed 20% gross return on my investment The way it works is Vendinvest selects suitable sites eg panel beaters, joinery shops etc and locates a machine on the premises. Cans sell for $1.00 so the y walk out the door
He is able to buy Coke 30 pack for $14.65
That equates to approx 50 cents profit from each can he gets 30c and I get 20 cents per can
I have 3 machuines and get $93,0 per mth
If he sells 30 cans or 3000 I get the same amount
I can provide details of the vendor if you are interested He is in Mt Waverley Melb
Regards Fredo
Are you saying you get the same $93 per month regardless of how many cans the machine sells, or that you get the same amount per can regardless of how much the machine sells?
Vending Machines....
Gday Lissy,
Hope this helps you, i picked up a brouchure at the recent expo.
They were selling packages of machines as follows...
Special 1:
Drink Machines
10 x AVI 120M $26K
10 x AVI 120E $38K
Special 2:
Bulk Candy Machines
30 x U-Turns $29,990
Special 3:
Snack and Drink Machines
5 x FAS $44,950
10 x M-Combo $79,500
They also have some hot drink machines but no prices in the brouchure.
The guy on the stand said the best machines for Melb tended to be the combo machines as cold drinks tail off a fair bit in the winter months.
These guys run some sort of program for 16 weeks where they support you and if the location turns out to be a dud they relocate it for free from memory, you might want to confirm that.
You have too service the machines yourself they estimate 20 machines can take as little as one day.
You collect your profits within 2-4 weeks, they have a professional location service to find suitable sites. They had about 20 sites listed on saturday afternoon that wanted various types of machines, which they would match to buyer.
They have a website.... www.austway.com or by phone on 1300 76 99 67.
As always you need to do the due dilligence, let us know how you go.........
Cheers
watto
Gday Lissy,
Hope this helps you, i picked up a brouchure at the recent expo.
They were selling packages of machines as follows...
Special 1:
Drink Machines
10 x AVI 120M $26K
10 x AVI 120E $38K
Special 2:
Bulk Candy Machines
30 x U-Turns $29,990
Special 3:
Snack and Drink Machines
5 x FAS $44,950
10 x M-Combo $79,500
They also have some hot drink machines but no prices in the brouchure.
The guy on the stand said the best machines for Melb tended to be the combo machines as cold drinks tail off a fair bit in the winter months.
These guys run some sort of program for 16 weeks where they support you and if the location turns out to be a dud they relocate it for free from memory, you might want to confirm that.
You have too service the machines yourself they estimate 20 machines can take as little as one day.
You collect your profits within 2-4 weeks, they have a professional location service to find suitable sites. They had about 20 sites listed on saturday afternoon that wanted various types of machines, which they would match to buyer.
They have a website.... www.austway.com or by phone on 1300 76 99 67.
As always you need to do the due dilligence, let us know how you go.........
Cheers
watto
I just revisited this thread as I was thinking about it lately.
Fredo states he gets a 20% gross return per annum.
What is the typical lifetime of such a vending machine?
If based on the lifetime of the vending machine we factor in depreciation then what is the return then?
We shouldn't forget that despite getting a 20% gross return the plant itself is depreciating to zero value.
And (just to maintain a connection to Real Estate), if the machines were purchased with 80% OPM (other people's money), what would the returns be like then?
Fredo states he gets a 20% gross return per annum.
What is the typical lifetime of such a vending machine?
If based on the lifetime of the vending machine we factor in depreciation then what is the return then?
We shouldn't forget that despite getting a 20% gross return the plant itself is depreciating to zero value.
And (just to maintain a connection to Real Estate), if the machines were purchased with 80% OPM (other people's money), what would the returns be like then?
My guess you could get 20% depreciation a year over 5 years?
I gueess you could get a 100% loan ( personal loan ) and depreciate the loan costs over 5 years or the life of the loan and claim the interest
After 5 years you would get a taxable 20% return unles there is cpi rises built into the lease which would be a nice thing.
Just waiting to collect some cash I am owed before I contact the guy who runs them.
If these machines had a useful life of only 5 years, thereby providing for a 20% straight-line depreciation, then my numbers suggest that this is a pointless investment.
The return you are receiving from the machines is only enough to cover the "capital erosion" resulting from the depreciation.
In order words, three machines for $5400 returns $1080 "income". After 1 year, the machines are now worth (on paper) $5400 - 20% = $4320. You earned $1080 of income only to have your machines now worth $1080 less.
This suggests to me that these machines must have more like a 10-15 year lifespan, if not longer, in order to make the deal worthwhile.
Kevin.
The return you are receiving from the machines is only enough to cover the "capital erosion" resulting from the depreciation.
In order words, three machines for $5400 returns $1080 "income". After 1 year, the machines are now worth (on paper) $5400 - 20% = $4320. You earned $1080 of income only to have your machines now worth $1080 less.
This suggests to me that these machines must have more like a 10-15 year lifespan, if not longer, in order to make the deal worthwhile.
Kevin.
Kev,
The machines would serve longer than 5 years, but ATO gives effective life of 5 years allowing 20% straight-line depreciation.
Also, as I understand, the business is more profitable than 20%. I have done a bit of research but was not able to find any credible statistics. I was told that BIS Shrapnel produced a report on vending in Australia, which they sell for $15,000. In vending business (like in RE) the most critical aspect is location. Large players such as Coke take the best sites.
Say cheese
Lotana
The machines would serve longer than 5 years, but ATO gives effective life of 5 years allowing 20% straight-line depreciation.
Also, as I understand, the business is more profitable than 20%. I have done a bit of research but was not able to find any credible statistics. I was told that BIS Shrapnel produced a report on vending in Australia, which they sell for $15,000. In vending business (like in RE) the most critical aspect is location. Large players such as Coke take the best sites.
Say cheese
Lotana
Dear guys,
The Entrepreneur Business Centre has some interesting reports. You can get sample of the report which has three worthwhile and factual pages for free about the Vending Machine Business.
File is too big to attach and it unfortunately doesn't allow a direct link to the file however it you are interested it is on the www.ebc.com.au website under the business guides section.
One excerpt:
High Net Profit Before Taxes $55,320
Average Net Profit Before Taxes $37,800
Mininum Startup Investment $47,000
Average Startup Investment $82,000
Stability Good
Risk Factor Low
Industry Growth Prospects Good
Absentee Ownership Potential Yes
Only catch is that they are proactive in following up inquiries. Be warned that if you give your name and telephone number you may get a followup phonecall them.
Cheers,
Sunstone.
The Entrepreneur Business Centre has some interesting reports. You can get sample of the report which has three worthwhile and factual pages for free about the Vending Machine Business.
File is too big to attach and it unfortunately doesn't allow a direct link to the file however it you are interested it is on the www.ebc.com.au website under the business guides section.
One excerpt:
High Net Profit Before Taxes $55,320
Average Net Profit Before Taxes $37,800
Mininum Startup Investment $47,000
Average Startup Investment $82,000
Stability Good
Risk Factor Low
Industry Growth Prospects Good
Absentee Ownership Potential Yes
Only catch is that they are proactive in following up inquiries. Be warned that if you give your name and telephone number you may get a followup phonecall them.
Cheers,
Sunstone.
Sunstone,
Thank you for the link. I just downloaded the guide and must say that it does not contain any valuable information - just describes the content of the document you can buy. For example, the Market Research chapter of the free doc simply says:
"This chapter investigates how to identify your market and how to cater for that market needs. It also looks at the methods used to do this and the reasons why market research and planning is so important, especially in the start-up phase."
That's it and off to the next chapter. I think this is a bit too generic and can be applied to any other type of business. Well, you get what you pay for.
Say cheese
Lotana
Thank you for the link. I just downloaded the guide and must say that it does not contain any valuable information - just describes the content of the document you can buy. For example, the Market Research chapter of the free doc simply says:
"This chapter investigates how to identify your market and how to cater for that market needs. It also looks at the methods used to do this and the reasons why market research and planning is so important, especially in the start-up phase."
That's it and off to the next chapter. I think this is a bit too generic and can be applied to any other type of business. Well, you get what you pay for.
Say cheese
Lotana
Vending in Sydney
I have a contact with someone in Sydney who is deploying 60-80 machines per month.
Remember the gst is claimable
20% income paid monthly.
From memory this includes insurance.
Depreciation is over 5 years.
Useful life is about 10 years or more.
Location done for you.
I am puting together a unit trust for vending machines at the moment.
I wont be gearing with the trust itself but if people are it works a bit better as the interest offsets other investment or PAYG income.
I have also found a couple of lendors that will do 100% lend on vending machines with no additional security up to 50K.
Although at the interest rate 8.2%. 40% LVR seemed to work best to maintain positive cashflow.
Anyone has any questions, let me know.
I have a contact with someone in Sydney who is deploying 60-80 machines per month.
Remember the gst is claimable
20% income paid monthly.
From memory this includes insurance.
Depreciation is over 5 years.
Useful life is about 10 years or more.
Location done for you.
I am puting together a unit trust for vending machines at the moment.
I wont be gearing with the trust itself but if people are it works a bit better as the interest offsets other investment or PAYG income.
I have also found a couple of lendors that will do 100% lend on vending machines with no additional security up to 50K.
Although at the interest rate 8.2%. 40% LVR seemed to work best to maintain positive cashflow.
Anyone has any questions, let me know.
Hi people,
We run 10 Vending Machines in Industrial areas in Brisbane and also have an IP, I like the IP better as I dont have to go there every week, which I Have to do with the machines.
Maintainence is not too bad, parts are needed from time to time and if you cant get parts it can seriously limit your income.
However we net around $450 p/month from the machines which i guess is pretty good for a small invesment of 16k.
I am looking to sell though in the near future and I am considering purchasing a Laundromat instead.
We decided to get into it to learn about business from another quadrant other than the e side, I guess it's an s business but we wanted to learn with a relatively small investment risk.
I would recommend buying the machines in an existing run or buy the machines from a manufacturer and site yourself, as I think the package deals are loaded quite well.
Cheers
Mitchmakhan
We run 10 Vending Machines in Industrial areas in Brisbane and also have an IP, I like the IP better as I dont have to go there every week, which I Have to do with the machines.
Maintainence is not too bad, parts are needed from time to time and if you cant get parts it can seriously limit your income.
However we net around $450 p/month from the machines which i guess is pretty good for a small invesment of 16k.
I am looking to sell though in the near future and I am considering purchasing a Laundromat instead.
We decided to get into it to learn about business from another quadrant other than the e side, I guess it's an s business but we wanted to learn with a relatively small investment risk.
I would recommend buying the machines in an existing run or buy the machines from a manufacturer and site yourself, as I think the package deals are loaded quite well.
Cheers
Mitchmakhan
If anyone else is interested in vending machine investments i believe our company can help.
We currently have Drink Machines (Daquiris) returning guarenteed 22% Min Gross return PASSIVE.
Cost of machine is $5,700 + GST
If you are interested in more details please contact our Business Brokerage Division on (07) 3857 1336 or johni@johnmcandrew.com.au
SOrry for the advertising but it does seem relevant and informative in this thread.
We currently have Drink Machines (Daquiris) returning guarenteed 22% Min Gross return PASSIVE.
Cost of machine is $5,700 + GST
If you are interested in more details please contact our Business Brokerage Division on (07) 3857 1336 or johni@johnmcandrew.com.au
SOrry for the advertising but it does seem relevant and informative in this thread.
