What Factors Determine The Value Of Vending Machines?

When talking about the value of vending machine equipment

, you are talking about more than just its market value. Market value is important but is by no means the only important factor in determining the value of the machine. When you are trying to determine the machines true value you need to look at it from many different factors:

1.Storage value

2.Collector's value

3.Scrap value

4.Parts value

5.Operational value

6.Market value

Each of these items is significant to the true value of the machine. Lets look at each one in a little detail.

Storage value: Machines that are in storage are considered to be a liability as they are costing you money to store them and not making money by dispensing product to paying customers. Even if you store them in a facility that you own such as your garage you are still having to deal with the inconvenience and risk of having the machines just sitting around not doing anything. This makes them a liability no matter how you look at it.

Collector's value: Collectible machines have a value all on their own, a very old vending machine or one that has logos or coloring from a brand that is very popular or maybe out of production can be highly favored among collectors. One way to find out what the value of such a machine is would be to call the product distributor if they are still available and find out what the collectible market for their merchandise is looking like these days. Another option would be to have the item looked at by experts in the field of brand collecting or to check out some of the many websites on brand collecting and collectible branded merchandise that are online.

Scrap value & Parts value: Old vending machines have a value of scrap and parts as well. If the machines are similar to those currently in use then they can often be parted out to other machines that you have in your fleet for use when something breaks; this trickle down system can keep some machine alive for many more years even if the parts that they need to have replaced are out of production. Also remember that the basic components of a vending machine have changed much in the last 25 years or so and vary only slightly from one manufacturer to another. So, if you have a machine that is being parted out then there is a good chance that another machine in your fleet can use a part from it even if they are seemingly totally different systems. If all else fails and you cannot use anything else from the machine then you can always sell it for scrap and recoup a little bit of your investment as a final deduction of its cost.

Remember that you also have to bear in mind the operational value as well as the market value of the machine when trying to ascertain how much the machine is actually worth. Be mindful of the machines value at all times, it's the one true thing in your business that can make or break you real fast. Machines will move from one category of high value to another as they age and progress though their lives, this is normal so you will need to reevaluate the machines in your fleet on a regular basis to stay on top of how much your fleet of vending machines is really worth.

by: Joe Nichols

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