Vending Machine Business PlanHow do you compare two potential machine locations?
Compare retained contribution after route and fixed location costs, then check capacity and funding. A high-sales placement can be worse when its commission and servicing burden are larger. Use the same period, unit definition and stock-cost basis for both.
This packaged-goods example uses a 28-day period, $2.50 net price, $0.80 landed item cost and 98% saleable yield. Card share is 80%, processing is 3% plus $0.10/transaction, with 1.25 items per card transaction. Both locations have enough capacity to deliver the entered sales; this table does not prove those demand assumptions.
| Input or result | Location A | Location B |
|---|---|---|
| Dispensed items | 600 | 500 |
| Net sales | $1,500.00 | $1,250.00 |
| Consumed stock including writeoffs | $489.80 | $408.16 |
| Card processing | $74.40 | $62.00 |
| Commission rate / dollars | 15% / $225.00 | 5% / $62.50 |
| Contribution before route / fixed costs | $710.80 | $717.34 |
| Allocated paid route / vehicle cost | $200.00 | $100.00 |
| Fixed location / maintenance | $50.00 | $50.00 |
| Placement operating contribution after listed costs | $460.80 | $567.34 |
Location A’s after-listed-cost result is $460.80, while B produces $567.34. B retains $106.53 more despite selling 100 fewer items. Company overhead, depreciation, interest, taxes and unpaid owner work are excluded; this is a placement comparison, not total business profit or cash.
Find the condition that changes the decision
Before route cost, A has $660.80 after its $50 fixed charge. With B unchanged, A’s route cost must fall below $93.47 per 28 days to beat B. That is the useful negotiation threshold: can access, service frequency or route sharing reduce A’s cost enough without losing sales?
Alternatively, with A’s $200 route cost unchanged, the required extra sales depend on A’s own contribution per item, approximately $1.1847. Use the pricing and break-even tools before assuming a lower commission or higher sales target solves a stock constraint.
Collect evidence before signing
- Ask for paid-vend records by machine and day, refunds and unavailable periods. Foot traffic alone is not sales.
- Verify placement access, power/network availability and responsibility for damage or removal.
- Document commission base, fixed charges, contract length and termination terms.
- Measure stock capacity, product mix, realistic refill times and vehicle access.
- Compare equipment condition, repair history and acquisition cost separately from operating contribution.
Download this completed location worksheet and replace the illustrative inputs. Run each location separately in Vending Profit when demand, fees or servicing differ. Its identical-cohort input is not a heterogeneous route optimizer.
