Let's further assume that your location is a health club that is open 7 days a week and vends approximately 20 products per day, which is the average for quality locations in the vending industry.
Scenario #1: h.u.m.a.n. Operates Vending Machines for You
Based on the above scenario, if you have h.u.m.a.n. vending operators maintaining and stocking the machines for you at your location (only paying you sales commissions), you'd likely make around $60 per month, which is 5% of gross revenues or 15% of net profits. These percentages can vary significantly between locations, but 15% of net profits is standard. Remember, every location is very different! As a non-operating location, you'd also make about $40 per month from advertising revenues if your location is conducive to our digital advertising program. This places your total profit level, when advertising revenues are included, at about $100 per month per machine. Remember this is for GOOD or BETTER locations!
Scenario #2: You Operate Your Own h.u.m.a.n. Vending Machines
Considering the same scenario above, if you lease and operate your own h.u.m.a.n. vending machines, at 20 vends per day, that's $20 of profit per day. For many locations the sales volume is much higher (especially at schools, health clubs, and other large businesses with either a great deal of transient traffic or many static employees). Assuming that your location is open seven days per week, this amounts to $140 per week. If you're paying $40 per week to lease the machine, this equals a profit of $100 per week or $400 per month per machine.
But that's not all! With our digital advertising program, you can make an additional $120 per month operating your own machines by doing nothing extra! This places your total per-month profits at $520 per month per machine.
The amount of money you can make via our advertising program is highly dependent on whether or not our partner product companies want to advertise their products on h.u.m.a.n.'s digital LCD screens at your location. We make every effort to maximize advertising revenues at every h.u.m.a.n. vending location, but make no revenue guarantees. We simply do the best that we can!
The best thing about this is that it's pure profit and requires minimal hassle! Certainly a heck of a lot easier than maintaining coolers, employees and counter top displays! You don't have to pay someone to conduct transactions, deal with customers, or constantly rearrange product placements. Rather, you simply keep the machine stocked and let it work for you without the worry of theft! It's a perfect solution for so many locations.
Comparison of Two Scenarios
To keep things simple, let's assume your location is NOT conducive to advertising for the sake of this example (it's always better to be conservative when making projections). In this instance, by operating your own machines, you'd be making about 7 times what you'd make if h.u.m.a.n. operated the machines for you. In this scenario, instead of making $4800 annually per machine operating your own machines, you'd be making $720. And this difference only gets larger the more sales your machines experience. For most locations, making 7 times the amount of profit is pretty significant and is enough of a reason to lease and operate the machines themselves. But again, each situation is unique, and you have to decide how important food service profits are for you and your location.
In addition to making you significantly more money, leasing and operating your own machines gives you other significant benefits - such as large tax reductions - which lead to more money for your organization or more money in your pocket.
To learn about the 4 Ways Leasing Can Reduce Your Tax Liability by leasing and operating your own machines, CLICK HERE.
If you're a School, learn about how our special educational leasing program can help you leverage your budget, overcome budget freezes, and get more for less by CLICKING HERE.
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