Skip to content

Pricing

Pricing

Lookup page. Use the situation that matches your stop. Prices and markups below are what operators in the corpus said they charged or assumed — not guarantees.

Current doctrine

Price the problem and the convenience, not grocery-store comparison shopping. Anthony defines the model as: vending wins when convenience beats the substitute. Mike Kaufman says people do not go to a machine because it is the cheapest place to buy.

Set the ticket from four facts, in this order:

  1. What the buyer needs right now, at this site, with no better nearby option. If that answer is clear, stock it and price it confidently. (Anthony, Jul 29, 2026)
  2. What the pack looks and weighs like. Larger / heavier packs support a higher price. Repeated by Anthony (Jul 7, 2026), Mike Kaufman (Feb 17, 2025), and John Newcombe (Jul 17, 2026).
  3. What that location type will pay. Manufacturing and high-volume lunch rooms often need more competitive prices. Hotels, Class A apartments, overnight medical waits, and “trapped” sites support premiums. See Price by location type.
  4. What is left after cost of goods, revenue share, card/software fees, and labor. Do not treat advertised monthly revenue as what you keep. (Anthony, Jul 7, 2026)

Drinks usually get the more aggressive markup and longer shelf life. Snacks and fresh food sit closer to 2–2.5× cost unless you move to a bigger pack. Emergency items (pain relief, chargers, laundry pods, condoms, toiletries) are priced for the impulse, not for volume. (Mike Kaufman, Feb 17, 2025; Anthony, Jul 7, 2026)

Judge SKUs by profit dollars per slot and per case, not by margin percentage alone. (Mike Kaufman, Jul 5, 2025; Anthony, Aug 13, 2026)

Note

Mike Kaufman (Apr 23, 2025) uses “margin” and “markup” in the same walkthrough for figures from 100% to 1000%. Treat those percentages as spoken sales language, not one accounting definition. Anthony flags the same mix-up on a Coke example.

How do I set the first prices on a new machine?

Current doctrine

Do not invent a perfect planogram-and-price book on day one. Fill the machine, then let that building’s buyers correct you.

Anthony (more recent first-fill rule):

  1. Keep the first stock simple: drinks, snacks, protein, healthier options, and convenience items if they fit the site.
  2. Look at nearby convenience-store prices.
  3. Price like a business: in-building convenience is worth more than driving somewhere else.
  4. Do not price irresponsibly.
  5. Watch what sells. Add more of what moves. Replace what sits.
  6. Restock from that location’s data, not from what you personally like.
  7. If the machine has a backend planogram, make it match what is physically in the slot.

Source: How to Buy Your First Vending Machine (Step-by-Step Process) (Jul 24, 2026).

Mike Kaufman (install-day first fill):

  1. Stay inside a first-inventory spend of $250 to $500 (Mike, Nov 7, 2025). Get the machine full, then double down on what sells.
  2. Stock a little of everything. You do not yet know that property’s clientele.
  3. Go to the convenience store nearest the property, see what they charge for soda, and mark your machine up a little because buyers do not have to leave the building.
  4. Mark drinks up more aggressively than snacks. He says drinks outsell snacks and attributes 70% of their sales to drinks, not snacks (anecdotal).
  5. Use charm prices such as $3.97 instead of $4.
  6. Place a premium item next to a cheaper-looking alternative (example: expensive 16-ounce Monster next to a Rockstar priced 50 cents less).
  7. Put best sellers at eye level. Group like with like. Fluff bags so they look full.
  8. After stocking, update the backend planogram so AI cameras are not confused.

Source: Everything You Need To Purchase Your First Vending Machine (Nov 7, 2025).

Nuance

  • Conversations before install are free; inventory mistakes are not. (Anthony, Jul 7, 2026)
  • Mike Hoffman (Oct 10, 2025) says to use the order-to-delivery gap to ask employees or residents what they want and what prices they will actually pay.
  • Anthony (Dec 26, 2025) waits about two to three weeks for preferences to show, then doubles and triples down on sellers.

Conflicts

Warning

First-price method is not one rule. Anthony (Jul 24, 2026) and Mike Kaufman (Nov 7, 2025) both start from the nearest c-store and mark up “a little.” The same Mike corpus also prices emergency items far above any nearby store and treats $4 water as a time-savings sale versus a Walmart trip (I Mind Control People With My Vending Machines, Here’s How, Sep 5, 2025). Use the c-store walk for snacks and everyday drinks; use the emergency-tax logic only on urgent, trapped-buyer items.

What markup should I use by category?

These are operator-stated ranges. Costs and sell prices move by supplier and city.

Drinks (everyday soda, energy, water)

Situation What they said to do Source
Default drink Price at 2.5× to 4× cost, sometimes 5× or 6× Mike Kaufman (Feb 17, 2025)
First fill Mark drinks up more aggressively than snacks Mike Kaufman (Nov 7, 2025)
You want both premium and price-sensitive water buyers Stock premium water high and a cheap water next to it Mike Kaufman (Sep 5, 2025)
Two similar energy drinks Price one higher so the other feels like a deal; keep both profitable Mike Kaufman (Apr 23, 2025); Set premium positioning (Jun 27, 2025)
Same drink, two sizes Price the smaller size cheaper; keep it about as profitable as the large bottle Mike Kaufman (Jun 27, 2025)
Red Bull $4 or $4.50 depending on the location Mike Kaufman (Apr 23, 2025)
Premium shakes (Fairlife / high-end protein) $4.50 up to $6 on first-fill talk; later $6.50 for a Fairlife 42g as a gym #1 seller; Mike’s own route $6.99 suburbs / $7.99 city; Tim recalled about $6 to $6.50 Mike (Nov 7, 2025); Mike (Jun 27, 2025); Mike / Tim (Apr 7, 2026)
Protein shakes at a gym $4 to $6 depending on grams of protein Mike Kaufman (Apr 23, 2025)

Stated drink examples (all Mike unless noted):

  • Smart Water: cost stated as 35–40 cents, $0.75, $1 (VendHub), or about $1.20 (warehouse-club “to be safe”); sell $3.50–$4, $3.75, $3.95, or $4.50. Sources: Sep 5, 2025, Feb 17, 2025, Apr 9, 2025, Dec 14, 2024.
  • Cheap water (Crystal Geyser / Arrowhead): cost 17 cents; sell $2 next to Smart Water, or $1.50–$2.00 in the earlier drink-markup talk. Same two videos.
  • Celsius: bought at $1.33, sold at $4.50 next to Alani at $4. (Apr 23, 2025)
  • Alani as the premium anchor: $4.50, with Rockstar next to it at $2.75 or $3.00. Mid-tier Rockstar/Monster still claimed at 66–70% margins. (Jun 27, 2025)
  • Pellegrino: 70 cents cost, $4 sell in micromarkets. (Apr 23, 2025)
  • Coke / Diet Coke: 53 cents cost, over $2 / $2.25 sell. (Apr 23, 2025)
  • 16-ounce Monster vs 16-ounce water, both claimed at 65% margin: Monster $4 / water $2; he says a case of Monster brings in $112 vs $51 for water. (Jul 5, 2025)
  • Anthony water example: cost $1.39, sell $5.99. (Jul 29, 2026)
  • Anthony on Javier’s Texas hotel water: Anthony estimates probably an 80% margin; Javier did not give his own number. (May 5, 2026)

Tip

Match water brand tier to the building. Anthony (Jul 29, 2026): standard water at a plant, ordinary apartment, or mid-range hotel; premium water at a luxury hotel, upscale office, or high-end gym. Premium water in the wrong place sits. Cheap-looking water in an upscale hotel leaves money on the table.

Snacks and fresh food

Situation What they said to do Source
Default snack / fresh food Expect closer to 2× to 2.5× cost unless you move to a bigger/heavier pack Mike Kaufman (Feb 17, 2025)
Candy Weaker markup than drinks. Reese’s at $2.50 only about 100% because candy is expensive to him Mike Kaufman (Apr 9, 2025)
Quaker chips 44 cents cost, $2.50–$3 sell; expire in less than 90 days Mike Kaufman (Apr 23, 2025)
PBJ snacks 38 cents cost, $2 sell; do not buy too many cases Same
Oreos Under $1 cost, over $3 sell Same
Häagen-Dazs cups $3 sell, sub-75-cent cost (apartment frozen example) Mike Kaufman (Apr 30, 2025)
$7–$8 fresh sandwiches Offer in apartments (DJ was surprised they sold). Same sandwiches have not worked as well in manufacturing because the price is a little higher DJ Fuchs (Dec 23, 2025)
Tiny cash profit If you buy a fruit-snack bag at 30 cents and sell it at $1.25 (87 cents left), do not expect to pay $25/hour labor on that item. Change the item or the price Anthony (Jul 17, 2026)

Emergency / incidental / “need it now” items

Doctrine: the buyer is solving suffering or a deadline, not shopping price. Mike Kaufman (Sep 5, 2025) says people will pay 10× on an emergency item. Anthony (Jul 29, 2026): when the phone is dead or the headache is now, they are not comparison shopping.

OTC pain relief (Advil / ibuprofen four-packs)

Later, more specific rule from Mike Kaufman (Dec 12, 2025):

  1. Start from your cost on the small pack.
  2. Aim for about a 600% markup from cost (6–800% on a 50-cent pack sold for $3–$4).
  3. Do not use $2.50 — he says it feels too cheap and people question quality.
  4. Use $3 in most locations.
  5. Use $3.50 to $4 in office buildings and medical facilities.
  6. Use $5 only in airports or hospitals.
  7. Adjust for that market.

Earlier example from the same operator: four-pack cost $1.50, sold at $6 in grab-and-gos or smart machines, stated as a 300% markup. (Sep 5, 2025)

He also cites about $20 for OTC allergy meds when the customer does not want to drive to Walgreens. (May 22, 2025)

Phone chargers

Claimed cost Claimed sell Context
$3.99 $11.97 (also describes a $9.97 “just under $12” tactic) Sep 5, 2025
about $2–$3 $12 to $15 depending on location; about $15 in an airport because airport stores charge $35–$40 Dec 5, 2025

He frames $15 as cheaper than leaving work for an hour when someone’s time is $50–$100/hour, and cheaper than a gas-station ~$25 charger. Same video.

Laundry pods

  • 14-pack: pay about $3.99, sell right under $15, stated markup greater than 250%. (Sep 5, 2025)
  • Costco box of four bags for $30, sell each bag at $15 ($60 sales / $30 profit vs “about 20 Snickers” for the same profit). (Apr 23, 2025)
  • Also stated as about $14 Tide Pods in a smart machine, and “upwards of $15” next to condom packs. (May 22, 2025; Jul 25, 2025)

Condom three-packs (campus / near-campus apartment smart machines)

  1. Buy through the rebate channel he names; first-test cost less than $4, target about $3.49.
  2. Keep retail in the $9–$10 band, right under $10.
  3. Later at night, bump closer to $10.
  4. During the week, bump down closer to $9.
  5. Place next to other high-ticket incidentals (Tide Pods) so $9–$10 looks normal.
  6. Do not cut the price because unit volume is lower than water. After the first month he counted over 10 packs and about $6 profit per pack, which he compared to 6 to 10 waters.

Source: I Put Condoms In My Vending Machine And Made... (Jul 25, 2025). Test, not a full-route rollout.

Hotel / rental toiletries (Apr 23, 2025)

  • Toothpaste: buy about $2–$2.25, sell $4–$5 (he calls this around 100% margins).
  • Soap: 20-pack for $12 (60 cents a bar), sell $1.50–$2.
  • Tampons: 96-count for $16 (17 cents each), sell $2 (he calls this 10× / 1000% markup).

Other urgency SKUs Mike groups with “pay whatever they need”: Trojans, Tide Pods, Häagen-Dazs, tampons, high-quality Charmin, batteries, earbuds, screen protectors, phone cases. (May 7, 2025; Dec 5, 2025)

Warning

On the “five weird items” video, sell prices of $6 / $15 / $7 / $15 are given without pack counts or sizes, so you cannot compare a single piece to a multi-pack. (May 7, 2025)

Novelty and labor-heavy SKUs

  • No-wholesale local cult item: Tim Barnes priced Buc-ee’s Beaver Nuggets at $15.89 after a 40–45 minute one-way driver run from Austin. He guessed cost $7–$8; Mike called that about an $8 spread. Do not underprice at launch just to avoid looking greedy. If it does not sell at that price, drop the experiment. (Apr 7, 2026)
  • Expiration-discounted Dubai chocolate: Matt Morrison sold bars at $11.99. Promo buy $1.99 (close-dated) after starting at $2.99. He and Anthony treated that as a $10 spread. Possible fad. (Mar 30, 2026)
  • Two-pound gym protein jugs: Mallorie Rauch stated $20–$25 margins per transaction; Mike (Sep 19, 2025) cites $40 for a protein jug in a smart cooler. She also undercut the brand’s 10% subscribe discount with a 15% staff discount. (Apr 21, 2026)

Price by location type

One planogram and one price list will miss sales. Mike Kaufman (Jun 27, 2025): identify the habit you are selling into, then price to that psychology. Anthony (Jan 30, 2026): Chicago vs Oregon can look extremely different — copy fundamentals, not another operator’s exact prices.

If this is the site… Then… Source
Manufacturing / warehouse, high volume, little walkable lunch competition Price more competitively than your other stops, even a little under the closest 7-Eleven. Buyers want a machine that works and competitive prices, not fancy branding Madison (Dec 2, 2025)
Same manufacturing / shift-work, long shifts Test large-format snack bags so the higher price feels reasonable. Small bag is one person; large bag can be shared or kept nearby Anthony (Jul 29, 2026)
Class A / luxury apartments, high rent Assume residents are not very price-conscious and will pay a little more Anthony (Jan 9, 2026)
Fancier residential vs plant Keep higher pricing at the residential stops Madison (Dec 2, 2025)
Hotel, property takes a cut of gross Mark products up for the hotel and model commission on gross, not street pricing Tom Canterino (Mar 25, 2026)
Hotel guest, forgot an essential (charger, OTC) Price as a convenience essential. Mike: guest does not care if it is $20 vs $15. Anthony: do not underprice chargers out of fear they will shop Mike (Feb 17, 2025); Anthony (Jul 29, 2026)
Hotel in a hot climate (Texas example) Lead with large bottled water (Javier’s top seller was 1-liter Ozarka) plus typical fountain-brand drinks and convenience meds Javier Zetter (May 5, 2026)
Apartment / condo / hotel with kitchens or laundry Late-night ice cream and big candy plus cook/laundry staples (olive oil, four-pack of eggs, Tide Pods). Hotels also OTC and chargers at premium Mike Kaufman (Jun 27, 2025)
Gym / just finished a workout Premium protein as a meal replacement. Split pre-workout vs post-workout tiers. No Snickers in a gym mix (Mike, Feb 17, 2025) Mike; Mallorie
Urgent care / patients leaving with a pharmacy list Stock DayQuil, cough drops, other OTC so they skip Walgreens. Discount those unexpected items on the launch flyer Mike Kaufman (Jun 27, 2025)
Hospital ER waiting room, overnight staff, 3 a.m. Overnight premiums. Complementary department spots, not next to the cafeteria Mr. Passive (Nov 21, 2025)
Outpatient waiting families / specialist clinics Cannot leave; comfort purchases; he says less price-sensitive / higher income Same
Roofing warehouse / job-site staging Larger cheap energy (16-ounce+ Rockstar/Monster), not a 12-ounce premium healthy energy Mike Kaufman (Feb 17, 2025)
Loading dock / drivers who cannot leave the truck Energy and premium drinks; they pay a premium because they are on the clock Mr. Passive (Nov 21, 2025)
Apartment gym / fitness center Post-workout protein, bars, hydration, pre-workout at a premium — framed as investing in health Mr. Passive (Nov 21, 2025)
You are the only option (2 a.m. apartment, night-shift plant, drugstore closed) Treat price as less relevant / monopoly positioning Mike Kaufman (Sep 5, 2025)
Senior living / nursing, tight budgets, dentures, diet limits Do not assume protein or healthy items will sell, even at 100+ units Sandy (Nov 25, 2025)
Shelter or very disadvantaged account Do not apply the same wholesale price increases as the rest of the book Jason (Dec 30, 2025)
Student housing, hot weather, Smart Water moving Pull slow movers and give Smart Water three or four rows Anthony (Jun 16, 2026)
Airport (if you can get in) Highest convenience premiums (water, Advil at $5, chargers around $15) Multiple Mike videos; Dec 12, 2025; Dec 5, 2025

Note

Apartment convenience is also priced against DoorDash, which Mike (Apr 30, 2025) says marks the same items up even more. Ice cream downstairs vs DoorDash is the same argument. (Apr 9, 2025)

Pack size, format, and “does this slot earn its space?”

Current doctrine

Vending is not only “will someone buy it?” It is revenue per slot. Every row has to earn its space. (Anthony, Aug 13, 2026)

If it weighs more or is a larger pack (bigger chips, movie-theater candy, 8-pack Pop-Tarts, large gummies, 20-ounce vs 12-ounce, 16-ounce vs 12-ounce), charge more. Not a perfect rule for every product. Useful operator instinct. (Anthony, Jul 7, 2026; Mike, Feb 17, 2025; Jason / Mike, Dec 30, 2025)

Compare two sizes before you pick the slot:

  1. Write cost and vend price of the small bag. Subtract for profit per bag.
  2. Write cost and vend price of the larger bag. Subtract.
  3. Calculate how many small bags you must sell to equal one large bag’s profit.
  4. Choose the size that earns the slot more money, not the lower sticker price.

Anthony’s chip walkthrough (Aug 13, 2026):

  • 1-ounce bag: about 38 cents cost, $1.25 sell, 87 cents profit.
  • 1.75-ounce bag: about 65 cents cost, $2.99 sell, about $2.34 profit.
  • He would need almost three small bags to match one large bag.

Later large-bag example at shift-work sites: same 38 cents / $1.25 small bag vs 65 cents / $3.99 large bag. (Jul 29, 2026)

On smart machines, Mike (Jun 27, 2025) says they now run only movie-theater / king-size candy so they can charge more and use fewer slots.

Do not expect a small two-pack of Pop-Tarts priced like a larger pack to capture the same ticket. (Anthony, Jul 7, 2026)

Nuance

  • Beginners look at the small bag and think a lower price means more sales. The larger bag also looks like a real snack. (Anthony, Aug 13, 2026)
  • A $7 snack sounds expensive until the customer looks at it and says that is actually a lot. (Anthony, Jul 29, 2026)
  • Mr. Passive (Jul 11, 2025): when you replace a small M&M with movie-theater size, keep a similar unit count so the stocking schedule does not blow up.
  • Matt Dix (Apr 14, 2026): high-ticket novelty produces revenue, but a 50-cent soda sold for $2.25 is also strong. Look at reality and margins.

Conflicts

Warning

Mike Kaufman (Jun 27, 2025) claims a king-size candy swap can 4X revenue versus a little Snickers, while also saying the swap is four Reese’s versus two — which is not the same multiple. Use the slot-profit worksheet, not the 4X claim.

How do I use price psychology without one “trick” list?

Premium next to cheaper (anchoring)

  1. Place a premium SKU next to a cheaper alternative in the same category.
  2. Price the premium high enough to set the machine’s reference price.
  3. Price the cheaper option lower so price-sensitive buyers still have a yes.
  4. Keep the mid-tier item’s margin similar to the premium so either choice is profitable.

Worked pairs from Mike:

  • Smartwater $3.50–$4 next to Crystal Geyser at $2. (Sep 5, 2025)
  • Celsius $4.50 next to Alani $4; he claims over 200% on both. (Apr 23, 2025)
  • Alani $4.50 next to Rockstar $2.75 or $3.00. (Jun 27, 2025)
  • Expensive 16-ounce Monster next to Rockstar 50 cents cheaper; he says the cheaper-looking Rockstar can actually be higher margin. (Nov 7, 2025)

Put high-margin water and energy at eye level as the first thing people see. (Jun 27, 2025; Nov 7, 2025)

Note

Michael Deese (Feb 24, 2026) says that when cheap water sits next to premium “smart” water, people buy the expensive Smart Water anyway versus Aquafina. That is the opposite outcome from Mike’s “catch the price-sensitive buyer” reason for stocking the cheap bottle. Both can be true at different sites. Watch the data.

Charm prices

  • Use specific decimals: $3.97 vs $4. (Mike, Nov 7, 2025)
  • Chargers: come in just under a round number ($11.97 / the $9.97 “below $12” tactic). He first says they sell chargers for $11.97, then explains $9.97 as the psychology. (Sep 5, 2025)

Payment friction (it changes what people will pay)

Mike (Sep 5, 2025):

  1. Prefer cashless; cards reduce the pain of paying versus cash.
  2. On AI grab-and-go, the card unlocks the door (already a commitment).
  3. Offer Apple Pay so paying feels like using a phone.
  4. He describes a sunk-cost effect: once the door is open they may grab extra items.

Micro-market digital screens (motion, color, property logos, premium look) are used to help justify premium prices. Same video.

No-spiral smart machines remove SKU limits, which means higher-ticket products and higher average order value. Anthony (Apr 10, 2026) cites traditional AOV about $2.50 vs modern smart $5 to $6 and treats that gap as enough, by itself, to double monthly revenue. That is his illustration, not a beginner average.

Familiar brands at the machine

At a vending machine people decide fast and usually do not want to experiment. An unfamiliar product at a premium price creates doubt (“is this good, is it worth it, will I regret about $7?”) that can kill the sale. (Anthony, Aug 13, 2026)

If you test a premium or unfamiliar SKU:

  1. Put it in one slot only — not a whole row, not a whole machine.
  2. Let purchases tell you.
  3. Watch the numbers.
  4. If it does not move enough, pull it.

Anthony still could not separate brand vs price vs location on one failed premium snack. Same video.

Promos, markdowns, and changing price after install

Launch / monthly traffic promo

Two-item, 10% off flyer. Give copies to the manager on install day, or have the property email residents/employees and slide flyers under doors.

  • Pick products people would not expect in a vending machine (not water or a common energy drink).
  • Urgent-care examples: OTC meds, ACE bandages, cough drops.
  • Other examples: Celsius and Tide Pods, or makeup wipes and protein chips.
  • Mr. Passive (Jul 11, 2025) runs the same structure monthly after buying a route that had no promos (example month one: 10% off Tide Pods and 10% off condoms). Purpose: pull traffic, not only discount existing demand.

Sources: Nov 7, 2025; Jun 27, 2025; Jul 11, 2025.

Slow mover already in the machine

If something like Coke is never selling, run a promo (example: buy two, get one free) and use screens/analytics to decide what to swap. Do not leave it untouched. (Mr. Passive, Oct 3, 2025)

Stack a promo with a flash rebate

If a rebate is double or triple the usual (Gatorade in June/July is the example):

  1. Run a matching volume promo such as buy two, get one free.
  2. Move more of the rebated product and collect the rebate.

Described as a direction they want, not fully live everywhere. (Jun 27, 2025)

Fresh food before it expires (test, not proven SOP)

On a sandwich loaded with 9 days left:

  1. Day 7: test 25% off.
  2. Day 8: test 50% off.
  3. Day 9: pull it.

Purpose: cut shrinkage, not raise price. (Jun 27, 2025)

Time-based or event-based prices

  1. Identify high-traffic windows (Thursday night / 11 p.m. college lobby is the example).
  2. Raise convenience items then; he says they will not care if chips are $4 or $6.
  3. Test a bump in a predictable demand spike (office energy-crash window).
  4. For a known hotel sellout (concert weekend), log in remotely, update prices, let e-tags receive them over Bluetooth.
  5. Automatic demand-based hikes are a destination he wants, not a finished system.

Same Jun 27, 2025 video. Night-vs-week condom tweak is the only fully specified live example (Jul 25, 2025).

When cost of goods moves

Watch COGS the way grocery stores do. Raise vend prices rather than absorbing every increase. Gut-check a $7-range protein drink against $10–$12 walk-out restaurant prices as a meal replacement. (Apr 7, 2026)

Inherited old-school prices

Older operators often still charge install-day prices (example: 12-ounce cans at $1). Raising those prices alone increases revenue. In micromarkets, Mr. Passive (Jul 11, 2025) also swapped 12-ounce cans for 20-ounce sodas rather than only raising the same SKU. He says you are lucky to get above $2.50 on 16.9-ounce sodas, which is why he added higher-ticket incidentals.

Jesse (Dec 16, 2025), after buying a neglected drink route: walk the stops, ask what you can vary, plan to raise prices and put better products in once you understand each stop.

Jason (Dec 30, 2025), after buying a large traditional route: product and price before technology. Replace 1-ounce chips with bigger bags, then raise pastry and candy prices only at accounts that can support it.

The property or a buyer says the prices are too high

Current doctrine

Hold the line when you are selling service, restock reliability, or a tech upgrade they did not have. Graham Parker (Dec 9, 2025):

  1. Do not discount just because someone complained.
  2. Point to the upgrade versus what they had, or the wow factor if they had nothing.
  3. Tell the property there is value in people having what they want when they want it, and that takes people power and buying power.
  4. Contrast the last vendor who never came out and did not stock the machine.
  5. Frame it as a service business, not just snacks.

Talking points he uses: technological upgrade; availability; people power / buying power; contrast with the neglected vendor; “service business, not just convenience.”

Revenue share vs shelf prices

If the manager asks for revenue share, do not volunteer it first. Flip:

  • Do they want to make money off the machine, or is it an amenity so employees / patients / tenants will not complain about price?
  • If they still want a cut, tell them you can pay it but you will have to mark products up (live example: increase the cost of the Poppy).
  • If they worry employees will complain about expensive items, steer to no revenue share so you do not have to raise prices.
  • He also leverages inflation: grocery costs leave less margin to rebate.

Source and live script: How To Negotiate Vending Machine Deals Like A PRO (Sep 26, 2025).

Conflicts

Warning

Same operator, two property stories. Mike Kaufman (Sep 5, 2025) says properties want amenities and do not care about your prices — you are selling happy tenants/employees, not selling to the end user. Mike Kaufman (Sep 26, 2025) builds the revenue-share flip around managers who do care, because employees will complain about price. Use the amenity frame first; if they still want a cut, the later video is the rule: share comes out of a higher shelf price.

I already have sales. What do I change?

Loop, not a one-time price list:

  1. Ignore your favorite snack.
  2. Test.
  3. Track sales (backend: every product, transaction, category, and margin).
  4. Cut losses. Do not wait months. Mike (Feb 17, 2025) says he lost $1,000 over time by leaving wrong products in too long.
  5. Increase winners (more rows of the category that dominates).
  6. Adjust the pricing.
  7. Let data decide.

Sources: Mar 20, 2026; Jul 7, 2026.

A/B test two to three flavors of the same category side by side, then add rows of the winner (Muscle Milk next to Fairlife / Core Power is the example; he says Muscle Milk often sells faster). (Feb 17, 2025)

If a high-volume machine is stuck (Evan’s example: about $2,700/month trying to clear $3,000), push it with pricing-strategy adjustments and product/planogram changes. There is a starting point, not one formula. Every location needs its own analysis. (Feb 10, 2026)

After buying a route, time-box the first 0–3 months to a pricing overhaul, removal of non-sellers, larger pack sizes, and a stocking schedule. Do not rip out the entire mix at once. He said phase-1 revenue gains are only marginal; the spike comes later. (Jul 11, 2025)

Mr. Passive (Oct 3, 2025): use tracked purchase patterns to change prices; run seasonal screen promos. He claims one machine moved from $600 to $2,500 per month after AI optimization — his machine, not a beginner average.

What profit math has to be true before a price (or a location) is acceptable?

Price is only half of unit economics. Run leftover profit before you place a machine or agree to rev share.

Anthony, most recent walkthrough (Jul 7, 2026):

  1. Do not treat advertised monthly revenue as what you keep.
  2. Subtract cost of goods.
  3. Subtract revenue share if any.
  4. Subtract credit-card processing, machine software, and other fees.
  5. Subtract stocking labor if you hire it out.
  6. Use the leftover profit number to decide whether the location, rev-share ask, and labor plan make sense.

Worked illustration only on a hypothetical $5,000 a month machine (not a guarantee):

  • COGS about 35% = $1,750
  • Rev share 5% = $250
  • Fees 8 to 10%, rounded to $500
  • Hired stocker: two hours a week at $25 an hour, about $200 a month
  • Leftover about $2,300

If you only look at top-line revenue you can overpay, offer too much rev share, avoid hiring, or take weak locations.

Anthony, earlier conservative machine model (Feb 27, 2026), well-placed machine:

  • Revenue assumption $2,000/month (he also says well-placed machines do $1,500–$3,000 — his range, not a promise)
  • COGS 35% to 40%
  • Card + software another 10%
  • Gross margin about 50% to 55% ($1,000–$1,100 on $2,000)
  • Then subtract machine payment about $150 and stocker $100–$150
  • Net about $680–$830/month, later rounded to $800 for scaling math

Mike P&L targets (Apr 23, 2025):

  1. Goal: 50% profit margins on the location P&L.
  2. Aim for COGS around 30%.
  3. Budget 10% to 12% for merchant + software fees.
  4. Then subtract remaining rev share, other fees, or labor.

He ties the 30% COGS target to selling items like Celsius at what he calls a 200% figure, then says remaining margin is eaten by fees, rev share, and labor.

Anthony margin target (Dec 26, 2025): try to shoot for at least 60 to 65%; he personally shoots for 65%.

Warning

COGS and “margin” targets do not match across videos. Mike’s P&L goal is 30% COGS and 50% profit (Apr 23, 2025). Anthony uses 35% in the $5,000 illustration (Jul 7, 2026) and 35–40% in the $2,000 model (Feb 27, 2026), and separately says he shoots for 60–65% margins (Dec 26, 2025). Mr. Passive inherited about 45% COGS on a bought route. Build your leftover-profit number from your invoices. Do not average these into one promised margin.

If two items have the same percentage margin, pick the one that drops more dollars per vend and per case. Equal percentages hide different cash. (Jul 5, 2025)

If a SKU has a high margin % but only pocket change per vend, prefer high profit dollars (example: $20–$25 protein vs 87-cent snack profit that cannot support $25/hour labor). (Anthony, Apr 21, 2026)

Reserved cubic inches go to the most profitable items. (Mike, Apr 7, 2026)

Conflicts the corpus does not resolve

Keep both sides. Decide per stop with data.

1. “Mark up a little over the c-store” vs “price is almost irrelevant.”
Anthony (Jul 24, 2026) and Mike (Nov 7, 2025) start from nearby c-store soda and mark up a little, and Anthony warns not to price irresponsibly. The same Mike library prices water at $3.50–$4 as a 30-minute Walmart substitute, Advil at $3–$5, chargers at $12–$15, Tide Pods near $15, and says at 2 a.m. or on night shift price becomes irrelevant. (Sep 5, 2025; later incidental videos.)

2. Smart Water cost and retail are not a single number.
Stated costs: 17 cents (cheap brand), 35–40 cents, $0.75, $1, $1.20, Anthony $1.39. Stated Smart Water / premium water retails: $3.50–$4, $3.75, $3.95, $4.50, Anthony $5.99, airport stories $2 / $3 / $5 / $6. Dates span Dec 14, 2024 through Jul 29, 2026. Use your invoice.

3. Ibuprofen retail moved inside Mike’s own library.
$6 on $1.50 cost (Sep 5, 2025) vs later “$3 most places, $3.50–$4 office/medical, $5 airport/hospital, never $2.50” (Dec 12, 2025). Treat the later video as the more specific location ladder.

4. Charger retail is a band, not a SKU price.
$9.97 / $11.97 (Sep 5, 2025) vs $12–$15 by location (Dec 5, 2025). Cost stated as $2, about $3, or $3.99.

5. Cheap water next to premium water.
Mike stocks the cheap bottle so price-sensitive people still buy. Michael Deese says they go for Smart Water every time versus Aquafina. (Feb 24, 2026)

6. Manufacturing prices.
Madison: price under nearby 7-Eleven because volume buyers care. Anthony: test larger, more expensive bags at plants because size makes the higher price feel fair. DJ: $7–$8 sandwiches failed more in manufacturing. All can be true: compete on everyday drinks/snacks, still upgrade pack size, skip high-ticket fresh if that plant will not pay.

7. Do properties care about your prices?
See The property or a buyer says the prices are too high.

8. Margin language.
Mike’s spoken “200% / 300% / 600% / 800% / 1000% / 10×” figures are not one formula. Anthony’s Coke “69% markup” from 83 cents to $2.75 matches gross margin on sell price, not markup on cost. (Jan 2, 2026)

9. There are a hundred ways to set pricing.
Mike (Jan 20, 2026) says so explicitly, and that the machines he prefers may not be the machines someone else prefers.

What the corpus does not specify

  • How to calculate, collect, or display sales tax on vend prices in San Diego or California. Not specified in the corpus
  • A complete first-machine price book (every snack, every drink, every city). Not specified in the corpus
  • Exact software clicks to change a price, set a schedule, or push e-tags, other than “log in remotely / tags update over Bluetooth.” Not specified in the corpus
  • A formula that converts a nearby c-store price into your vend price (only “mark up a little”). Not specified in the corpus
  • How to A/B test two prices on the same SKU (they A/B flavors and watch sales, then “adjust the pricing”). Not specified in the corpus
  • Whether charm pricing should be used on emergency items that they also price at round $3 / $4 / $5 / $15. Not specified in the corpus
  • Legal limits on dynamic pricing, OTC medicine vending, or condom vending. Not specified in the corpus