Austvending U-Turn business model belongs to the Bulk Vending category within the vending industry.
Bulk Vending gets its name from the fact that you are buying stock in bulk and selling it in small portions (handfuls) through the U-Turn machines. By doing this you are able to achieve great profit margins on the products from 300% up to 800%.
As a U-Turn machine, bulk vending business owner, you will own and operate a number of U-Turn machines installed inside commercial businesses in a specific area of operation. Your “job” as a U-Turn machine business owner is to visit your machines every 4 to 6 weeks on average, collect your money and refill the stock on each machine.
This “job” is called servicing a machine. Servicing is a very simple and quick activity and an average U-Turn machine owner can service up to 25 machines in a day, however 20 is the number of machines that most will service in one day. At Austvending we do a lot of planning and a careful selection is made when sourcing your vending machine locations. They must be both profitable and should be located relatively close to each other in order to make the business cost-effective to operate. A group of closely located machines is called a “cluster of machines”.
The “secret” of this successful business model comes from the great margins on the stock sold through the U-Turn machines. A good example is the best-selling M&M’s Plain®, which as a business owner you will buy in bulk, paying around $10 per kilo and will sell through the U-Turn machines at $50 per kilo.
Some other popular products like Gumballs will cost around 13 cents and sell for one dollar!
In order to properly understand the potential earning capacity of this business model, look at the table below. It is based on a machine portfolio of 100 U-Turn machines (it makes the numbers round and easy) and it work on the dollars per day sold on average across the whole portfolio.
With the U-Turn having four different products and being sold at either $2 or $1 per handful, it is conservative to estimate sales on average of $3 per day across the whole portfolio of 100 machines. This assumption then translates into a great Gross Profit per year. There are still expenses to consider and the net profit may not be as “bulky” (pardon the pun) but we have a fantastic level of cash flow to be achieved through this business model.