As with any business, cost is an important factor in determining how well your business will do. For most people, their coffee drinking habit makes up a large part of their daily budget. By offering paid services for coffee, you can create a new revenue source or additional income.
In this article, we’ll be talking about some different types of coffee vending machines and what each one costs to buy! So, let’s get started!
If you are looking into buying a new machine, there are several things you should know before investing money in one. What kind of vender make and model is best for your business depends on your needs and growth.
I have organized this information by price range to help you determine which type of vendor fits your budget better! Also, I will include pictures and links to helpful resources as needed.
Labor costs
The other major cost of owning a coffee vending machine is labor, or having people make your drinks for you. This can be expensive if you do not have anyone in your organization that is able to make good money doing it. Most professionals earn at least $20 per hour and some even more than that!
Most baristas are paid an hourly wage depending on how many customers they serve and what kind of drink they mix for them. Some employers will pay extra for excellent service but this is very rare. Because most baristas need frequent re-training due to changes in equipment used to brew the beverages, most companies hire professional trained barists so as to keep up with the trends.
The average cost of hiring someone to prepare your morning espresso shot is around $7-$10 an hour.
Rent or lease costs
While some vendors may offer free coffee for buying a large amount, this is not common at all. Some will ask you to purchase a monthly membership in their coffee vendor program, which can add up very quickly!
Mostly what people are paying for when they pay more for espresso-style drinks is the machine used to make the drink. This includes the type of brewer, grinder, milk frother, and flavorings such as hazelnut syrup or caramel.
The cost of these components alone can run several hundred dollars.
Advertising costs
A large cost of owning a coffee vending machine is how much it takes to advertise it! Most vendors will require you to have your own website, use their software or shopify to update social media posts, and even pay for advertising on their site.
Most companies also offer professional looking logos that they can use for their advertisements which looks better than using your company’s logo! Some even charge per tweet or like on their page!
This seems expensive at first but I would say that this is not very high compared to other business owners in the market. Many make far more money off their websites so investing in yours isn’t too crazy.
Business licenses
For just about any business, whether it is making coffee or not, you need to have a license to operate. This includes anything from having a food permit to open up a restaurant, to operating as an alcohol seller or distributor. Licenses are specific to your area and can cost anywhere from $50-£1,000 per year depending on what kind of license you have.
Some states require a seller’s license for selling alcoholic beverages, while other states don’t. There may also be additional fees for each individual item such as a brewer’s certificate for those who want to make their own coffee. All of these things contribute to how much money a company has to start off with.
There are many ways to earn extra income in our increasingly digital world, including starting a side hustle or even retiring early! People are constantly coming up with new ideas for businesses that we could get involved in and help profit from.
Coffee machine licenses
Licenses are required to operate any kind of coffee vending equipment, including espresso machines and drink making systems. These licenses vary depending on what type of business you run and how many employees you have.
In some cases, it is enough to be an employee in order to get a license. In others, you must also hold a seller’s permit or buyer’s licence in addition to your employment license.
The cost for these licences can add up quickly if you are buying on your own or opening multiple businesses. It is best to check out the regulations and see whether one–time licensing costs apply before investing in expensive equipment.
Product costs
The average cost of a new espresso machine is around $1,000.00-$2,000. A decent size cup maker can go up to about $3,500. This includes all additional components such as steam wand, milk frothing device, capping mechanism, etc.
The price difference between an inexpensive espresso machine and a high quality one comes down to three main factors: raw material, production, and packaging.
Raw materials are what makes up the internal parts of the espresso making equipment. These include stainless steel, plastic, glass, and other ingredients that are mixed and pressed into usable products.
Production takes place in dedicated factories that use heavy machinery to shape and assemble each part of the product.
Packaging is also important since these machines will be sitting out exposed until they are sold or rented to users. Some companies design their own packing which could add to the overall price.
There are many different vendors who make similar products so it’s hard for buyers to compare prices directly.
Creative marketing
As mentioned earlier, not every coffee shop is an expensive addition to your daily life. In fact, some may even feel like a waste of money if you do not purchase any drinks!
There are several reasons why this is the case. One being that most cafes offer their patrons free tea or milk, which can be consumed without paying for anything else.
Another reason is due to the large amount of advertising that many cafes use. Many have background music set up as well as large overhead signs promoting new products. All of these add to the cost of buying a drink.
A third factor comes down to personal preference. Some people prefer iced beverages while others enjoy hot beverages. The price difference between the two is quite significant!
Overall though, drinking good quality coffee is very affordable. If you need a quick fix before work or school, there are plenty of places to go around town.