Estimate the monthly profit for a single vending machine at one location by providing key inputs related to location, sales, and recurring costs.
Monthly Foot Traffic:
5200
Monthly Items Sold:
1040
Monthly Revenue (USD):
0
Monthly Cost of Goods Sold (USD):
Monthly Commission (USD):
Estimated Restocks Per Month:
6
Monthly Restocking Cost (USD):
60
Electricity & Connectivity (USD):
15
Other Fixed Expenses (USD):
Total Monthly Expenses (USD):
75
Monthly Profit (USD):
-75
Profit Margin (%):
Estimated monthly profit: -75 (0% margin). At current settings, the machine is -75 > 0 ? 'profitable' : 'not profitable'.
Estimate monthly profit by combining expected sales volume, selling price, product cost, and monthly operating expenses.
Formula: monthly_profit = (monthly_items_sold × price) - [monthly_items_sold × cost + commission + restocking_cost + electricity + other_fixed]
monthly_profit = (monthly_items_sold × price) - [monthly_items_sold × cost + commission + restocking_cost + electricity + other_fixed]
Example inputs: 300 daily traffic, 26 days, 0.2 items/customer, $2.00 price, $0.70 cost, $10 restock, capacity 200, 5% commission.
Conclusion: Use this to test locations and pricing; small changes in price, conversion, or commission can materially affect profit.
Estimates depend on the accuracy of your inputs (traffic and conversion). Treat outputs as projections, not guarantees.
Either works — average items per customer can represent conversion × items per buyer. Use whichever you can estimate more reliably.
Restocking adds both direct cost per trip and labor; optimizing capacity or restock frequency lowers per-item restocking expense.