Strategic Purchase Decisions on Vending Coffee Machine Prices

Understanding Price Drivers Beyond the Number

When a buyer looks for a coffee vending machine, the first thing pricing buyers looks at is the price. Getting the best price is not the only way to look for a machine. One way to make the best strategic purchase is to look beyond the price. One price influencing factor is the machine's core components. For instance, some brands independently develop their own key components like extractors, ice makers, soda modules, and foam modules. Machines perform differently based on their components. Machines that make rich coffee, quickly ice, and creamy foam perform better. A machine may be more expensive at the beginning, but machines that self-develop work modules are more cost efficient over a long time because they lower repair costs and last longer. Therefore, more expensive modules are better because they last longer. The more expensive the module is, the better the machine will work and the longer it will last.

The Value of International Certification  

Have you ever noticed that two vending coffee machines can have very different prices, even if they look similar? One of the reasons that prices vary is because of international certifications. CB, CE, KC, and CQC may just look like initials, yet they each represent certifications which state that the machine complies with regulations in different areas of the world. If you plan to use the machine in Europe, CE certification is a must; without it, you might face problems getting it into the market or even fines. Acquiring these certifications is a sign of cost and time expenditure, but this cost is a form of protection. You can be certain that the machine is safe, compliant and compliant when considering expanding to new markets. So when comparing prices, remember that a higher price with certifications is often a smarter choice than a cheaper, uncertified machine.

Prioritizing Functions: Stop Paying Too Much or Too Little

Another important consideration when deciding on a price is the machine’s functionalities—this ensures you will not be paying for what you won’t be using and ensures also that you won’t be cutting costs on what you actually need. Different machines feature different functionalities; some have 32-inch touch screens that enable easy operation and are great for busy places like malls, others have coffe-bean hoppers and let customers see the beans, building trust, and are great for coffee shops and office lobbies. However, some machines serve over 200 drink options while others just serve 30 basic choices. When buying a coffee machine for a small office, a machine that offers 30 or more drinks is just fine—paying more for a machine that offers 200+ is a waste. However, when the machine is located at a busy train station, a larger variety of drink options will attract more customers making the extra price reasonable. You should always ask: What do your customers need? What features will aid my business’s growth?

Production Capacity and Market Track Record: Creating Long-Term Value

The value over time stems from the production capacity and performance of the market. For instance, if a brand has a production capacity of a 20,000-square-meter facility with two production lines working simultaneously, they are more likely to meet your supply needs for future expansion. Consider a brand that produces 1,000 vertical coffee machines each month; if you need machines for several new locations, you won’t wait for months. The brand’s market performance is equally important. Consider the reliability of a brand that has its machines operational in several locations including China (Hong Kong, Macao, Taiwan), Japan, and South Korea, Western Europe, and North America. With 7,000 machines running, they are bound to be reliable. You are likely to pay more for machines from such brands, and, while you may have broken parts that are expensive to repair, you will have better value from the brand due to poor after-sales support. In the long run, your time and money are saved, so the initial expense is a worthwhile investment.

Asset-Light Monetization: Pricing Relative to Revenue Expectations

When someone considers buying a vending coffee machine, an entrepreneur or a machine operator sees the coffee machine as an investment, not just an expense. This is why the price should be evaluated in light of the machine’s monetization capabilities. Some machines have multiple payment capabilities, such as card readers and banknote/coin dispensers. This not only assists the end user with a range of payment options but also helps in increasing sales. Other machines have the versatility of preparing a range of drinks, from coffee to sparkling water, and other iced beverages. More options will most likely capture a larger audience. There are also machines designed for operation with virtually no resources. This permits you to begin with very little and, after several trial and error attempts, still yield a consistent revenue stream. One should always inquire about the price of a machine in relationship to the volume of customers it will serve or the revenue it can help capture in a month. A machine that costs a little more and guarantees more revenue is more valuable strategically than an idle cheap machine.