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.
Hugh works in a specialised IT area and sometimes has gaps between contracts. Hugh was looking for an additional income that is flexible enough to fill in the gaps in his time and income. With nearly 650 vending machines Hugh has achieved his objec
Melissa was looking for an income with a flexible base so she can work around the important task of carer of her 3 lovely children. She had 4 or 5 hours a day to commit to her own vending business, and still manages to practice as a Registered Nurse
Tony has had his own vending business with AustVending for over 5 years, first based out of Darwin and now in Mildura, regional Victoria. He was looking for a business he could run on a part time basis whilst maintaining his successful career of 27
A friend referred Edward to AustVending. Edward is a successful Factory Manager based in Adelaide. He wanted some additional income now and to prepare for retirement with a reliable part time income. Let Edward tell his AustVending story.
Geoff has been with AustVending for 5 years now. He has built his business to nearly 400 vending machines. When he was 60 years old, and after 20 years in the software game, he was looking for a retirement income where he could be his own boss and h
Austvending launches video channel on You Tube. We have gathered all the different videos that we have produced over the years and now they are all available in one place, the Austvending You Tube Channel. Click here to go to the new video channel a