20 to 50 dollars, depending on the location, type of product, and type of consumer traffic. High-traffic locations and regular updating of high-demand items will increase revenues.
What’s Inside
A capsule vending machine is a small, automated merchandise vending device that sells various small toys, candies, and collectibles placed in plastic capsules. These products are all varied and inexpensive, thus often attracting children, teenagers, and even adults to buy them. Normally, the types of products in a capsule machine change with the targeted age group and consumption habits. For instance, capsule machines for children may include simple plastic toys such as bouncy balls or character models of cartoons. The machines might upgrade to target teenagers or adults with things like limited-edition anime figurines, phone accessories, and mini collectibles.
The choice of product would directly impact consumer purchasing decisions. High-quality, limited-edition, and collectible items raise sales significantly. These items encourage multiple purchases, especially in the case of some products whose items are randomly placed within the capsule machine. A consumer can buy several times to have a full set. However, though low-purchasing-price, throwaway items yield lower single-turn revenues, they tend to sell big and are thus fit for the children’s market. It is also evident through market research that constant product type changes, the introduction of new styles, or the inclusion of current-trend toys will help sales.
The seasonal factor and regional preference also play an important role in product selection. For example, there are relevant holiday or seasonal goods that are selling well during some holidays or seasons, and in different countries or regions, consumers with different cultural backgrounds may prefer different products. It is important to conduct regular market research and adjust the product accordingly to increase the revenue from the capsule machines.
How Much Per Turn
The pricing of a capsule vending machine normally depends on the value of the products to be sold and the purchasing power of the target market. Charges for the capsule machines range from 0.5 to 2 dollars for each turn, mainly depending on the product quality and market positioning. Many supermarkets and shopping malls, among other places with lots of people passing through, usually set the standard charge for the capsule machines at about 1 dollar. That would be a fair and cheap enough price to afford for most consumers, especially kids and their parents.
In some high-end shopping malls, theme parks, or tourist attractions, the price will be higher. For capsule machines selling limited editions, custom-made, or brand-authorized products, it goes up to 5 dollars per turn. Most of the time, consumers are willing to pay higher prices just because these items have greater collectible value and because purchasing expectations in these specific venues tend to be greater. Indeed, it has been indicated through research that with regard to purchasing, people are more likely to impulsively buy at these kinds of entertainment venues, for which the randomness and fun of capsule machines fit their consumer psychology perfectly.
With the use of more advanced technologies, increasing numbers of capsule machines are now capable of supporting digital payments such as credit cards and mobile phone payments. This adds convenience to the transaction and the possibility of increasing sales of higher-priced products. In particular, younger consumers would be more capable of spending more money making multiple attempts to get the items they want, finding themselves in a situation where earning money is difficult.
Flexibility in the pricing strategy is the capsule machine’s revenue source. In accordance with the different target market positioning, pricing strategy, and forming of the consumption habit, an operator can decide on a proper price for the product and then introduce promotions during a specific period to increase purchasing appeal. By reasonably pricing control, achieve maximum revenue.
Daily Revenue
Capsule machines make different amounts of money daily based on the location, products sold, and target market. An average daily revenue for a capsule machine would be around 20 to 50 dollars at any regular shopping mall or supermarket. Machines placed at busier areas—for example, children’s amusement parks, movie theaters, or theme parks—can rake in upwards of $100 in daily revenues.
It is one of the most important factors to bring in daily revenue. Capsule machines put in places with heavy consumer traffic attract unplanned purchases. Since these are placed near fast-food restaurants, arcades, and schools where kids and teenagers are more frequent, the need for small toys, snacks, or collectibles is very high. Moreover, during special periods such as holidays, promotions, and festive seasons, the sales from capsule machines can increase manifold. Research proves that capsule machines on Children’s Day or any other Christian holiday do up to 2-3 times the day’s normal sales.
In addition to the flow of consumers, product selections also have a great influence on revenue. Suppose the machine products are popular IPs or even limited-edition collectibles. In that case, consumer enthusiasm will promote daily sales. Still, more ordinary or low-value items can bring lower single revenues, and their high purchase frequencies also guarantee a decent income every day.
The operators will be in charge of tracking daily sales based on consumer preferences and adjusting the type and quantity of inventory. Reviewing the sales data from another location allows for the optimization of the machine’s layout to place it in the best location to maximize its daily performance further.
Monthly Profits
The capsule vending machine’s revenue will be influenced by its products and maintenance expenses. Usually, a capsule vending machine can reach as high as 50% to 70% in margin due to the low product costs and very minimal actual maintenance expenses.
With that being said, if the average daily revenue for a capsule vending machine amounts to 50 dollars, then the monthly revenue would be approximately 1,500 dollars. The cost of the product, assuming 40%, will be 600 dollars, and the remaining 900 dollars for gross profit. After deducting a little for machine maintenance, rental, and operational costs, the net profit will come out to around 700 to 800 dollars, which is pretty good. The same case applies to most operators of the capsule machine products. Of course, this is with respect to just one machine, but for those operating more than one capsule machine, the total would obviously be much higher.
The kind of products sold also affects profit margins. If the items being sold in the capsule machine are high-value collectibles or limited editions, higher margins can be achieved, as high as 80%, whereas for ordinary small toys, it may be relatively lower.
In many places that have high traffic, such as big shopping malls, amusement parks, or tourist attractions, the monthly revenue from the capsule machines could be even more impressive. According to some reports, in such places, monthly revenues for a single capsule machine can top 3,000 dollars. This will open up possibilities of increasing the monthly income and profit by regular adjustments of the product offerings, optimizing placements, and adopting promotional strategies.
Best Locations
This makes location one of the most important determinants for the success of a capsule vending machine. Consumer traffic and the concentration of target customers ensure direct impacts on the performance of revenue. In general, a capsule machine should be placed where there is high foot traffic and concentration of target consumers to maximize exposure and sales.
Malls and supermarkets are among the top options when one considers a location for a capsule machine. Parents and their children are generally the biggest users of capsule machines. Those placed near the entrance and exit points of supermarkets and shopping malls, and near children’s areas, usually have many casual buys. Parents often try to please their kids with small changes, and this can make impulse buying a huge revenue source for the capsule machines.
Other ideal places are movie theaters and amusement parks. While people wait for the start of movies or in queues for rides, they will patronize these capsule machines. These really provide immediate entertainment to kids and teenagers with shorter attention spans. People would be more at ease to spend a little in these places.
Other popular and lucrative spots for capsule machines are schools and children’s activity centers. Right after school, students love to spend pocket money on small toys or other fun stuff. In these areas, there are customers with strong purchasing power and frequent patterns of consumption, which provide good revenues for the capsule machines.
Fast-food restaurants, family dining establishments, and large chain restaurants are also good locations for capsule machines. People often make small purchases of toys or souvenirs after meals, and parents who want to please their children are more apt to spend extra money on items from the capsule machine.
Tourist spots and museums are the most accessible areas where people can shell out more money for souvenirs or seasonal items. It is not only that these places have reaped major income from capsule machines, but they generate repeat purchases with the offer of unique items.
Popular Prizes
A capsule vending machine will be successful or not, depending on what is inside. Operators must continuously update and change the types of products to meet market demand and attract more consumers.
In a capsule machine, the most popular products are usually collectibles or limited editions. These items are rare and may activate the collecting urge of consumers. The character figurines of anime movies or film merchandise will also attract teenagers and adults. This is because, for a complete set of items in a limited edition, buyers will make many purchases, thereby increasing the frequency of the repeat purchase rate of the machine.
Products of popular culture, such as superheroes, video game characters, or other viral toys, are also extremely popular. These change with trends, and operators need to be abreast of current trends in order to introduce items that appeal to younger consumers.
Mini cars, spring toys, and bouncy balls, though simple, are very interactive. Thus, they are always in great demand in the children’s market. These items are moderately low-priced, thereby drawing more attention among kids. Due to their simplicity in operation, children love to play with them many times.
Novelty and personalized items are also part of the role in capsule machines: keychains, bracelets, and phone charms. Such products, due to their relatively inexpensive value, fall into fashion statements or personal expressions that especially resonate among teenagers. They have a particular appeal to female consumers.
Regular updating of products with new or seasonal thematic prizes keeps consumers interested and attracts more returning customers.
Maintenance Tips
Although capsule machines require relatively easy maintenance, you can still run a capsule machine with regular upkeep in order to ensure that your revenue stays stable for the long term. The key to success with any capsule machine is regular restocking. Operators must regularly replenish product stock in order to ensure multiple varieties of products and enough stock. If the consumers notice that the machine has run out of stock, there’s a chance for their interest in purchasing to fade away; thus, full stock and a variety of products will lead to higher sales.
Keeping the exterior of the machine clean can attract more customers. The capsule machines are generally placed in public locations, and their outer cleanliness has a direct impact on the consumer’s purchasing decision. By cleaning the machine frequently, especially the transparent capsule display windows, consumers will clearly see what is inside the machine, and this might stimulate the need to buy.
The capsule machine, indeed, operates on the very pivot of the coin slot system. Failure of the coin slot or product delivery would lead to unsatisfactory customer experiences that tarnish the good reputation of the machine. Regularly checking if the coin slot system operates smoothly guarantees that a machine functions well and should be repaired when needed.
Operators should also regularly test the overall functionality of the machine, whether the handle turns smoothly and the delivery system works. These are important details that need constant checks and maintenance. Any malfunction should be repaired immediately so that the sales will not be affected.
Wear and tear may occur in certain parts when capsule machines become old, which would affect efficiency. Operators are supposed to replace the old machines over time, so that they can have a continued stream of revenue generated stably. While initial costs might be incurred to replace such machines, newer machines result in fewer breakdowns and better customer experiences in the long run, thus yielding higher returns
