Ice Vending and Convenience Stores

So you own a convenience store and are wondering if a vending machine is a good idea to replace your current delivered ice system. First let’s make a couple of assumptions. Currently you have ice delivered and stored in a merchandiser in front of the store and you pay at least $1.00 for each bag 8-10lbs each. Second you sell at least 20 bags per day. So the system for getting delivered ice works pretty well, but there are some drawbacks. If you run out of ice you might not be able to get additional ice before your scheduled delivery time. Delivery companies have been hurting lately and many have gone out of business and others are raising rates to keep up with the higher fuel costs they face in delivering ice to their customers.

A reliable ice vending machine that can produce up to 90 ten pound bags per day is your answer to both of the problems above. First if you average 20 bags there are going to be days when you have a higher demand and this machine would certainly meet your needs. For example the Bag of Ice Compact model comes standard with a 900lb ice maker and a 300 lb storage bin. This means that if you have days of 50-70 bag sales you have no worries. In fact you can have several days in a row (say a weekend or holiday) with this type of demand and still not run out of ice. Also the ice will be fresh, not the stale brick that would happen if you only get deliveries once per week.

So does this make economic sense for you? Let’s look at the numbers. The Bag of Ice Compact model retails for $25,000. You need to provide water, a place to drain and 220V single phase power (you have this available if you have merchandisers set up). So if you sell 20 bags per day (a very conservative figure) and are paying $1.00 per bag then your gross income is just over $6,800 per year in addition to the profit you already make on the ice. If you average 40 bags per day you will make about $13,600 additional profit. If you are paying $1.25 per bag (not uncommon) then the numbers go to $8,500 and $17,000 respectively.

Finally the Bag of Ice vending machine is an attractive addition to your store and can go either outside or inside, is capable of operating year round and has proven to be a reliable and valuable addition to many C-Stores. Contact Bag of Ice at www.bagofice.com or email info@bagofice.com for more information.

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