Are Ice Vending Machines Profitable? Ice Vending Business Cost & Profit
Vending machines are among the most popular means of making passive income out there. The business is fairly profitable, and scalable, and comes in a wide range of options.Â
You can find vending machines for just about anything from soda to candy and even ice machines.
So, are ice vending machines profitable?
Yes, an Ice Vending machine can be profitable and you should expect a well-established ice vending machine to earn anywhere between $2,800 to $3,500 or more per month.
However, the profitability depends on various factors, ice vending machines are generally profitable primary or side business.
If you want to find out more about ice vending machines, how they work, and how to make the most profit out of them, keep on reading this guide.
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How Do Ice Vending Machines Work?
While most vending machines have a common concept of working, ice vending machines can be a little different.
The machine usually has ice machines that make and store ice cubes in a storage compartment inside the machine. The machine will also have a few agitators to keep the ice cubes separated and easy to dispense.
When a customer puts enough money in the machine, he or she can simply get an ice bag from the machine and put it at the ice chute opening, then press a button when they’re ready to get fresh ice cubes in the bag.
How Much Does an Ice Vending Machine Cost?
The upfront costs of a vending machine are often one of the machine’s highest costs, and ice vending machines are no exception to this rule.
For that reason, if you want to know more about the profitability of the ice machine business, the first thing that you need to consider is the cost of the machine.
There are few ice machine suppliers out there, and Ice House America (IHA) is among the most popular ones.
This company makes a wide variety of ice vending machines to suit different budgets and with different operational capacities.
According to the IHA website, the most affordable vending machine is the Ice Merchant, which costs around $43,000 while the most expensive ice vending machine can set you back up to $150,000.
The price here varies depending on the size and features of the machine you’re going to buy. Of course, there is plenty of cheaper ice vending machines on the market.
These can cost less than $30,000, but they’re generally provided by less popular brands and don’t stay in service for as long as premium ones. (A good quality one should last for around 10 years without drastic maintenance or part replacements)
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How Much Does the Upkeep of an Ice Vending Machine Business Cost?
Another aspect that you need to keep in mind while investing in an ice vending machine is the recurrent costs of keeping the machine in an optimum state to make you more money.
Ideally, the upkeep costs of a vending machine include a variety of tasks, and not all of them cost money.
For example, tasks like collecting the coins and bills won’t require any additional costs if you do it on your own.
You also need to clean the coin and bill acceptors to make sure that they function properly and lubricate some essential parts of the machine every few months.
If you hire a vending machine handler in order to take care of the maintenance, you should be looking at about $250 to $300 a month.
Another major aspect to consider is renting a spot or getting permission to place your machine in businesses.
Some businesses may charge very little for rent while others may charge anywhere between $300 to $500 or even a percentage of earnings a month for the spot, which depends on the traffic and profitability of the location.
How Much Money Does an Ice Vending Machine Make?
Although ice vending machines can be a little pricey, ice bags can be absolutely necessary for many places. You should also keep in mind that most ice vending machines can also sell cold drinkable water, which generates a lot of income.
Ideally, the cost of an ice bag depends not only on its size but also on where you’re selling it. Typically, most vending machine owners set a price of $0.5 to $3 per a vend.
How Profitable are Ice Vending Machines?
If you set a typical price for the vend (around $2 per 10 lbs of ice and $0.35 per 1 gallon of water) and get an average of 40 to 50 customers a day for ice and water each, you’re looking at a monthly revenue of about $3,000 to 3,500, which translates to a net profit of $2,800 to $3,000 a month.
Tips to Increase the Profitability of Your Ice Vending Machine
As you can see, ice vending machines can be pretty profitable, but you can make them even more profitable by following some of these tips:
- Pick a suitable spot for the vending machine, such as near marinas and national parks
- Install a card reader for cashless purchases
- Make sure that the ice vending machine is always maintained for maximum reliability and performance
- Provide suitable sized bags for collecting the ice
- Use advanced management software to monitor the machine and keep it at maximum productivity
- Avoid buying a cheap ice vending machine that doesn’t offer a good repair service and breaks down frequently
Final Thoughts
There you have it! A brief guide that walks you through everything you need to know about ice vending machines and whether they’re worth the investment.
As you can see, ice vending machines can be quite profitable, and a well-placed one can easily land up anywhere between $3,000 to $4,000 a month, despite only costing you a few hundred bucks of maintenance.
If you’re interested in establishing an ice vending machine business, make sure that you follow the tips provided so that you can increase your ice machine profitability and make the most out of your investment!
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