Category: vending industry

 

The Top 5 Locations for Vending Machines for 2023

Vending machines can be an excellent source of revenue in the modern-day consumer ecosystem. The public loves the convenience vending machines provide for them to purchase their favorite snack or beverage and vendor operators love the profitability high-foot traffic areas provide for them to sell these products.

Despite the evident advantages of a vending business, not all new ventures succeed. But success can be achieved if you have the right plan in place from the outset. This article covers five ways that can help vending businesses take a victory march. 

Create a business plan

A marketing plan is a document that outlines your goals and how you intend to achieve them. It details how you will measure your efforts and your success. Creating such a plan can be as detailed or simple as you like, as long as you have a written plan. The more you commit to paper, the more likely you are to follow through with your plans.

A typical framework of your plan may include: – 

  • Where to place vending machines?
  • What services and value will I provide to the location?
  • The prices for the products you will be selling and the value proposition  
  • Deciding on the products that you would be selling through the vending machine
  • Where will I get vending machines?
  • Your target market and customer behavior in the chosen market
  • Marketing and promotions
  • Competitive analysis and preparation
  • The payment methods to be incorporated
  • The hours of operation for the vending machine
  • Evaluating the sales generated by your vending machine
  • And the steps to be taken if the result is not as anticipated.

Hire the right staff

You might assume that your vending machine business does not require any staff. However, if you have many vending machines, you might need the support of additional staff members to manage these machines. Moreover, you may require a helping hand to address inventory management for your vending machine, which may include restocking the machine or managing reorders for high-selling products. Finding staff that will be reliable, hard-working and have the same values you do is important to the success of your business. Making sure someone is the right fit for your team can be a difference for you keeping important locations.  

Vending machine maintenance

One of the biggest challenges vending machine owners face is the maintenance of their equipment. Having a regular schedule for cleaning and maintaining your machines can help you avoid big problems in the future. We recommend purchasing a machine built in America, from a company that has a trusted history of manufacturing reliable vending equipment and that has replacement parts readily available.

Vending machines require professional maintenance and care. You must regularly clean and service your vending machines to ensure they remain in good condition. This will reduce breakdowns, increase customer satisfaction, and thus give you more profits. Purchasing a brand new, reliable vending machine may cost more than an old used machine, but can cost less over the time you own the machine because you won’t need to keep spending money to fix it.

Keeping your exterior well-maintained will definitely attract more customers. You may start by cleaning the housing and exterior of your vending machines regularly. This includes wiping away any dirt, dust, or grime that may have accumulated on the machine. You can also wipe down the machine with a cleaning solution (such as warm water and soap) from time to time.

Increase your product range

Growing your vending business may not just mean scaling your operations or installing new machines but even adding new products to your fleet. There are several ways in which you can do this. It can be as simple as swapping one product for another. You can introduce premium, higher margin products to your machines. It may be helpful to ask your locations what they would like in the machines or ask them if they would be interested in some of the more expensive products you are considering. If your sales do well or if you have a large building, you can also install another machine. 

A road paved for success

The sky’s the limit for you growing your vending machine business. But as is the case with most businesses, launching and growing your business comes with its own challenges. It requires hard work, smart planning, dedication, and a sound strategy. eVending has vending experts to help guide you on your journey toward increasing your profit.  Contact us today!

The Top 5 Locations for Vending Machine Trends for 2023
The Top 5 Locations for Vending Machines for 2023
By

  Vending machines can be an excellent source of revenue in the modern-day consumer ecosystem. The public loves the convenience vending machines provide for them to purchase their favorite snack or beverage and vendor operators love the profitability high-foot traffic areas provide for them to sell these products. Despite the evident advantages of a vending

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saving Strategies with Section 179 Deduction

Unique tax-saving deduction for up to 1,080,000 dollars!

It’s that time of year again when business owners try to project what taxes will look like at year-end. Purchasing vending machines from eVending.com this year helps you benefit from a fantastic expense deduction plan.

The U.S. Section 179 of the IRS Tax Code provides eligible businesses an excellent opportunity to maximize their purchasing power. Section 179 (in the US tax laws of 2022) allows for a 100% percent deduction on vending equipment purchases this year. 

This plan facilitates a more extensive initial expense deduction than the standard depreciation method. This benefit, in turn, reduces the tax burden of your company. Remember that Section 179 deduction doesn’t lead to a net loss.

 What Exactly is Section 179?

Most people think Section 179 deduction is some strange and complicated tax code. It isn’t, and you’ll see why in this blog post. Section 179 allows businesses to deduct, for the current year, the total purchase price of new and used equipment or software (financed or leased). 

You must use your purchased vending machines, equipment, and properties in service the same tax year that the deduction is taken. So, you must place the equipment in service between January 1 and December 31 for the year that the Section 179 deduction is taken. Well, we can read your mind. You are considering how much savings you can see in your year-end planning with this deduction, aren’t you? Read on to find out. 

 Is Your Equipment Eligible?

Most equipment businesses purchase or lease qualifies for the Section 179 deduction. Here are some common types of equipment that you can use for the deduction: 

  • Office equipment 
  • Office furniture 
  • Most business vehicles 
  • Tangible personal property utilized for business 
  • Computers and software 
  • Equipment (machines, and so on) bought for business use

Section 179 Highlights – 2022 

  • The maximum amount for deduction – $1,080,000 (which is a $30,000 increase from the previous year) 
  • The maximum amount of purchased equipment (taking the full deduction) – $2.7 million 

Section 168(k) allows bonus depreciation (100% expensing at present) on eligible property and equipment, allowing accelerated depreciation with a lessened tax burden. It is similar to Section 179, and organizations can use both Section 179 as well as bonus depreciation allowances. However, the Section 179 deduction has to be applied first. 

So, you can take any eligible property purchased above the $1,080,000 limit in bonus depreciation. Therefore, this policy is great for businesses that spend more than the spending limit of Section 179. Bonus depreciation will phase out during the next seven years according to the schedule (refer to the table below). 

Date Placed in Service Bonus Depreciation (In Percentage)
September 28, 2017 – December 31, 2022 100
January 1, 2023 – December 31, 2023 80
January 1, 2024 – December 31, 2024 60
January 1, 2025 – December 31, 2025 40
January 1, 2026 – December 31, 2026 20
January 1, 2027, and afterward 0

 

How Does Section 179 Work?

In the past years, when a business bought qualified equipment, it usually wrote off a little at a time with depreciation. In other words, when a company spent $50,000 on a machine, it could write off $10,000 annually for five years (to quote an example). While this is better than no write-off, business owners might prefer to write off the whole equipment purchase price for the year of purchase.

And this is exactly what Section 179 is all about – it allows your company to write off the complete purchase price of eligible vending machines and other business equipment purchases for the present tax year (up to $1,080,000). This gives a significant advantage for many companies (and the general economy). Businesses are using Section 179 to buy needed equipment right now, without waiting.

 Who is Eligible for Section 179?

All businesses that purchase, finance, and/or lease new or used equipment in the tax year 2022 qualify for Section 179 (assuming their purchases are less than $3,780,000). Most tangible goods that American businesses use, including “off-the-rack” software and business-purpose vehicles (with restrictions) qualify for this deduction.  

For guidelines on what property is included in the Section 179 tax code, click here. Also, to qualify for Section 179, the software and/or equipment bought or financed must be put into service by December 31, 2022 to implement Section 179 for 2022..  

In 2022, assets worth $1,080,000 can be expensed; this amount dispenses dollar for dollar when $2,700,000 of qualified equipment is put into service. 

Limits of Section 179 

Section 179 deduction does come with limits – and there are caps to the total purchase amount to write off ($1,080,000 for the year 2022), and limits to the total purchase amount of equipment ($2,700,000 for 2022).  

The deduction is eliminated on a dollar-for-dollar basis after a particular business spends $2,700,000. Thus, the whole deduction goes away when a purchase amount of $3,780,000 is reached.

 “More Than 50% Business-Purpose” Requirement of Section 179

In order to have eligibility for Section 179, the software, vehicle(s), and/or equipment should be used for business purposes above 50% of the time. Just multiply the equipment, software, and/or vehicle(s) cost by the business-use percentage to find out the monetary value eligible for the Section 179 deduction.  

For more details, please click here. The tax incentive may be subject to changes in 2023, so now is the right time for organizations to take advantage of this expeditious deduction. So, what are you waiting for? Hurry and benefit from the Section 179 deduction for the purchase of your vending machines and other business equipment. 

Keywords: year-end planning, year-end tax-saving strategies

Opportunities for Year-end Tax-saving Strategies with Section 179 Deduction
saving Strategies with Section 179 Deduction
By

  Unique tax-saving deduction for up to 1,080,000 dollars! It’s that time of year again when business owners try to project what taxes will look like at year-end. Purchasing vending machines from eVending.com this year helps you benefit from a fantastic expense deduction plan. The U.S. Section 179 of the IRS Tax Code provides eligible

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evending.com

A starting vending machine business is a great way to see hard work pay off and doesn’t require a specialized skill set. Such a business can be run full-time or be a part-time hustle. When more individuals, particularly family members, are involved, it becomes considerably easier to manage. Vending machines are oftentimes used to provide customers and employees with a quick snack or beverage in your store or workplace. Researching different machines, products and locations are helpful places to start for those interested in diving into the industry.

The Profit Statistics of a Vending Machine

A single vending machine is unlikely to produce life-changing earnings. However, a few well-positioned devices might provide a steady revenue stream. According to Brandongaille.com, the typical consumer spends about $27 per year on products from vending machines. In addition, the average transaction costs $1.71. Vending machine spending in the United States continues to improve, with total annual expenditure surpassing $7 billion. 

The industry insider reports state that the worldwide vending machine market is expected to grow to $25.25 billion by 2027. This corresponds to a compound annual growth rate of 6.7%. According to industry experts, this projected growth is because of increased demand for vending machine customization and touchless transactions.

Top 5 Profitable Vending Machines For Your Business

  1. Vending Machines for Food and Beverage

When was the last time you visited a public location with no vending machines for food or drinks? To think of one is difficult. Snack and drink machines are extremely popular and may be installed in any location with high foot traffic. Even though snacks have a lesser markup than candy, the margins on snacks are generally significant overall. Snack machines are loaded with savory and sweet delights like chips, and chocolate bars, while cold drink machines are stocked with Pepsi, Coca-Cola, or other soda drink products, water, and iced tea.  Accounting for over 30% of the vending machine industry in the United States, these goods bring in high-profit margins. 

Consider including some healthy vending options in your snack and drink machines. Trend experts predict that the demand for healthier options in snack vending machines will only increase in the future. 

  1. Ice Vending Machines for All-Year-Round Profit

The success of an ice vending machine is entirely dependent on its placement. If you can secure an ideal location, the rest is quite simple. With an ice vending machine, there’s no need to worry about which items will sell better than others. Also, ice has no expiration date, and many people buy in bulk for parties and holidays or to fill up a cooler. Although demand for ice is year-round, summer is undoubtedly the peak season.

Despite the necessity for regular frozen refrigeration, operating an ice vending machine is not extremely expensive. Utility prices vary by location, but an approximate estimate for water and power expenditures is $0.25 for 100 pounds of ice.

Buying the right ice vending machine may need a lot of research if ice is the correct vending product for you. Fully factory refurbished used vending machines may be a good alternative for lower upfront expenses.

  1. Vending Machines for Cold or Frozen Food

Refrigerated vending machines serve ready-to-eat, frozen, or re-heatable goods such as salads, sandwiches, burritos, breakfast dishes, and whole meals. It is important to check to make sure your machine comes with a health safety feature to protect fresh food from unintended higher machine temperatures.

eVending cold food vending machines come with a soft finish glass that provides an unrivaled level of transparency to display all available goods. These machines work well with cold food products since they give consumers a more personalized experience when they choose their meals. 

  1. Vending Machines for Coffee

A fresh cup of coffee at work can make all the difference. As per an e-import report, an average American coffee drinker consumes about 3.1 cups of coffee a day. Although operating a lucrative coffee machine involves some strategic planning, it is a possibility.

There are locations where coffee machines won’t sell much, such as shopping centers. They operate effectively in office buildings, vehicle dealerships, medical centers, schools, and other areas where people are waiting or performing tasks they may need an extra boost of energy for. Pricing coffee involves understanding what a particular market will be willing to pay. 

  1. Vending Machines for Retail

In addition to selling snacks and drinks, vending machines can store a broad range of products, including personal protective equipment (PPE), over-the-counter (OTC) medications, gadgets, and items catering to specialized businesses such as laundromats and car washes. With technology enabling vending machines to take cashless payments and interact with smartphone artificial intelligence (AI), the vending business has a bright future. Higher priced products can increase your machine’s profitability with the right planning, inventory acquisition and equipment.

How eVending Helps You Run A Profitable Vending Machine Business?

The vending machine business can be highly profitable if you properly weigh your choices and judge their practicality based on the location’s accessibility and the amount of ROI you expect. 

eVending is committed to offering its clients exceptional customer service. We offer a large selection of beverage, snack, combo, and retail vending machines. Whether you are establishing a vending business or looking for a vending machine for your office, eVending can assist you in finding machines that fit your budget and business plan. Call us at 1-866-958-4501 today for more information.

The Most Profitable Vending Machines – An overview
evending.com
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A starting vending machine business is a great way to see hard work pay off and doesn’t require a specialized skill set. Such a business can be run full-time or be a part-time hustle. When more individuals, particularly family members, are involved, it becomes considerably easier to manage. Vending machines are oftentimes used to provide

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evending.com - Financing Options for Your Vending Business – An Overview

Financing a vending business

Like all businesses, vending needs investment in capital and operating expenditure. Buying a vending machine and the first stock is a capital expense that you need to make upfront before making money from your machine. For a small business looking to expand or a first-time investor, the capital expense can be prohibitive. This is where financing helps. Working with a reliable financing partner can help you get the vending business going or drive its growth without worrying about cash for capital. But that is just the tip of the proverbial iceberg. Financing can do much more for your vending business.

Leapfrogging the capital hurdle

Financing options democratize the vending business. As discussed earlier in this article, It empowers small or individual investors to enter the vending industry. Small businesses can leverage finance to accelerate growth. Such broader participation in the vending business results in a perfectly competitive market driving value for all stakeholders.

Scalability translates to profitability

The vending industry is a numbers game. The more the machines, the more significant the number of transactions and the higher the cumulative profits. Under ordinary business circumstances and similar installation locations, investors can multiply their earnings by deploying multiple machines. Financing can help achieve that.

Liquidity in vending equals success

Like all businesses that experience a quick capital turnover, in the vending business, “cash-is-king.” Liquidity drives the risk appetite of the business owner, allowing novel products, promotional campaigns or any other initiatives that can catapult the business to the next level. Financing options help prevent locking up valuable cash in capital expenditure.

Driving customer experience

The primary value that a consumer derives out of a vending machine is convenience. Operators who continuously invest in delivering the best experience for customers stay ahead of the competition. Upgrading the machine with peripherals like touch screens, cashless payment systems, UV disinfection systems and components that guarantee successful transactions can improve the customer’s experience. Such components can be procured and deployed using financing from reliable partners without choking under the weight of capital requirements.

Cost of ownership

Vending machines are electro-mechanical equipment with several moving parts. Such pieces of machinery undergo wear and tear over their life. Maintaining the machines through timely replacement of parts and replenishment of consumables is essential for the long life of the machine. Technology keeps evolving over the life of the machine. Investors need to manage obsolescence by investing in contemporary technology. All such maintenance and upgrades can drive up the cost of ownership. Financing can help tide over challenges due to the cost of ownership.

Finding the right financing partner

The benefits of financing your vending business are clear. From buying to owning and even upgrading vending machines, financing can help make business decisions that drive growth and profitability. However, the key to realizing the full benefits of financing is working with the right financing partner. A financing partner who understands vending is more likely to realize the potential of the business they are funding.

The partner needs to be a reliable firm that can work with your vending machine manufacturer to ensure timely disbursal. This will ensure that you can buy and deploy machines on time and realize profits quicker. Lastly, your financing partner who is willing to finance beyond just the procurement of machines can make a big difference. Partners who can help you upgrade and maintain your machines throughout life can help your business go a long way.

Financing options with eVending

When buying machines from eVending, you can leave financing worries to the experts. eVending and Inland Finance share the 90+ years of legacy and reliability of The Wittern Group. Together, they help you select the best machines, finance their purchase and commission them.

You can download a printable application form and fill it out and fax it to apply. Digitally savvy business owners can also apply online here. Our financing team will process your credit application and suggest flexible finance tenures ranging between 6 and 48 months. You can choose to hold payments for the first 90 days and invest cash from your business back into it. With so many attractive features, making your first steps or growing your existing vending business is such an easy decision to make.

To know more about how we can help you finance your vending business, call us at 1-866-958-4501 or visit us here.

Financing Options for Your Vending Business – An Overview
evending.com - Financing Options for Your Vending Business – An Overview
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Financing a vending business Like all businesses, vending needs investment in capital and operating expenditure. Buying a vending machine and the first stock is a capital expense that you need to make upfront before making money from your machine. For a small business looking to expand or a first-time investor, the capital expense can be

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Evending - BLOG

 

Industry trends

The vending industry growth curve is set to break free in 2022. The country is wading out of a couple of years of constrained social and business activity. Public spaces are opening, and travel is slowly returning to normalcy. There is a growing need for convenient access to products or supplies. This, combined with novel applications and emerging technologies, make vending an attractive industry to be in.

Industry reports indicate strong growth in revenues from the vending industry in 2022. This report from a leading analyst places the estimated revenue for 2022 at $8.9 billion. As the mobility constraints from 2020 are being released, the industry has nowhere to go but up. This is evident from the graph.

Another report states that while the industry will grow at 0.8% year over year since 2017, players have increased by about 3.5%. This is a clear indication that small single machine owners have increased. With low barriers to entry and minimal bandwidth requirements, the vending industry has become a neat side hustle for many.

Evending - Industry Trends

10 Technology Trends in 2022

The vending industry is not just growing in revenue in 2022. Still, it is also expected to further the progress in technological advancements. Some of these technological advancements are discussed in this section.

Contactless and Cashless

We may return to handshakes and hugs with people we know sometime in the future, but interacting with vending hardware has been forever changed. Users want minimal contact with surfaces. This is not just about hygiene any longer. The convenience of cards, digital wallets, and NFC payments means a lesser need for liquid cash. This also eliminates the chances of misplacing, losing, or stealing money. Growing disposable income in the hands of millennials will translate to increased cashless transactions. Vending machines must be ready to receive them.

Electronic payment systems come with added benefits. Solutions like Greenlite Vending consolidate transaction summaries to analyze machine sales. Users can use the tool to check machine status and run over-the-air updates for software. Such solutions also trigger alerts about machine health and transaction details. They not only allow the user to transact without contact, but they also allow the operator to manage the machine remotely.

Hygiene

Contactless payments can reduce the chances of physical interaction with the machine, but one still needs to select the product and collect it. UV systems can irradiate the contact areas before and after a transaction to ensure 99.9% of the viruses and bacteria are killed or inactivated.

eVending uses UVend Technology to disinfect touch panels, delivery doors and payment interfaces with ultraviolet rays. Its proximity sensors ensure clearance for user safety before initiating irradiation. Ultraviolet light is not in the visible spectrum, so UVend Technology uses blue light to alert users that sanitization is in process.

Versatility

As the number of small players increases, there will continue to be a demand for machines that can sell anything. Combo machines that can sell beverages and snacks are preferred over single product machines. Configurable machines that can sell products of different sizes, shapes, and weights will become the rage.

The growing awareness about personal protection and social hygiene is shoring up the demand for PPE equipment and supplies. The challenge will be in the form-factor of these products. A latex glove box will be very different in shape and form from an alcohol based sanitizer bottle. Super-conscious users will continue to drive the demand for versatile machines selling PPE supplies. eVending helps this issue by offering PPE supplies through our Sani-Center PPE Vending Machine.

Remote Monitoring

Machine owners can optimize their visits to restock the machines if they have prior information on what has been sold and what has not. Remote monitoring features on the machine can help achieve that. They can also find out about machine breakdown and other “machine status” related information as it happens.

Responsible and Sustainable Refrigerants

The refrigerants in vending machines selling snacks and beverages are changing fast, too. R290 or Hydrocarbon based systems are quickly replacing the R410A systems. R32 systems are not as energy-efficient and eco-friendly as R134a making the latter a more economical option.

Retrofit

All the technology advancements discussed earlier are not just for new machines. Leading vending machine manufacturers have developed modular systems that can also be retrofitted to legacy equipment. This can modernize your existing machines without spending on an entirely new machine. Of course, not every feature can be retrofitted. Please contact your sales representative if you have any questions.

Conclusion

2022 is going to be an exciting year for the vending industry. It is not just because people are going to be more mobile and interact more with vending machines. It is more so because the emerging technology trends will level the playing field. First-time machine owners and small vending businesses can now invest and differentiate faster than established businesses. On the other hand, established companies will have to consider buying new machines, upgrades, and retrofits to stay relevant in a dynamic market.

If you are excited about carving your slice of success in the vending industry or growing your vending business in 2022, eVending can help. If you want to know how we can enable your success in the vending business in 2022, call us at 1-888-979-9858.

Vending industry outlook for 2022
Evending - BLOG
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  Industry trends The vending industry growth curve is set to break free in 2022. The country is wading out of a couple of years of constrained social and business activity. Public spaces are opening, and travel is slowly returning to normalcy. There is a growing need for convenient access to products or supplies. This,

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