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Calculating Margin in Vending – The Basic Formula and Pitfalls

1 min read

Product margin is not machine profit. Commissions, losses, and service costs come off.

Product margin is net selling price minus purchase cost, often shown as a percentage of the net price. To judge a machine's profitability, also count the site commission, payment fees, expiry losses, and service costs.

What to deduct

Further information

See the vending machine guides (publisher's site) for more.

FAQ

Is margin based on the gross price? Usually the net price, after VAT.

How to cut losses? Rotate products and match quantities to sales.