How much can you make from claw machines? Have you ever thought about owning and operating vending machines? Can they be profitable? Here is a brief look into the world of vending machines.
Claw Machine Facts
A claw machine is considered a fairly passive income source once it is up and running, since you will only need to check on it about once a week. This weekly checkup will be to ensure that it is operational, is full of prizes, and to empty the money out of the unit.
These machines are customizable to your needs, as you can set the prizes, the price to play, and the grip strength of the claw to alter the win percentage.
Expect to pay at least $5000 for a unit and up to $30,000 for a premium machine.
Your earning will vary but expect to target adults who have young children. The average take can be anywhere between $200 and $500 a week depending on location. You’ll want to select weather protected locations that have electrical outlets available and high pedestrian traffic. An area with 24/7 access is ideal. Prizes are fully customable but selecting themes such as local sports teams often yield higher play rates.
Things to Consider
You will most likely be subject to a rental fee to have your claw machine in a space of a retailer or public place. Fees will vary by location, and you could be paying either a flat rate or a percentage of the profits you generate. You will need to research these fees and negotiate with the owners of the space you want to place your machine.
As already stated, expect to pay between $5000 and $30,000 for a machine. Also, don’t forget about the cost of refilling the machine with prizes and costs associated with repairs. Parts are readily available, but unless you want to do the work yourself, you’ll be paying someone to do repairs.
Claw Machines, and any vending machines, will require you to scale to some degree. Having one machine probably won’t generate much cash flow. You will need multiple machines spread across several locations to realize a worthwhile return.
Conclusion
How much can you make from claw machines? The answer depends on a lot of variables. Machines range in price from affordable to expensive. In order to turn a profit, you will need to consider things like location of the machines, number of machines, win rate, price to play, prize selection, and rental and repair costs.
Claw machines can be a profitable source of income but be prepared to do some research and experimentation. Also, be prepared for the upfront costs of getting up and running.
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
