UK DRS economics for retailers: from cost centre to profit centre
(written January 2026, based on explicit assumptions listed below)
The UK Deposit Return Scheme (DRS), to be operated by the UK DMO, will oblige many retailers to host reverse vending machines (RVMs) in their stores. For most store owners, the first question is simple:
“How much will this cost me – and what do I get back?”
This blog walks through a worked example, using clear, conservative assumptions, to show:
- What costs a retailer should expect to incur when operating an RVM
- What income they can expect from the DRS “container handling fee”
- How, on these assumptions, a standard RVM is a net cost over 7 years
- And how adding a high‑attention media screen (Recyclever’s approach) can flip the economics so that the same RVM becomes a net income generator
All numbers here are illustrative, not contractual. They are designed to be transparent and easy to challenge. The detailed assumptions are listed first, then we build up the economics year by year.
1. Base assumptions (January 2026)
1.1 Machine, life and throughput
- RVM purchase, delivery and installation: £15,000 (year 1, one‑off)
- Economic life: 7 years
- Daily throughput: 500 containers per day
- Operating days: 365 days per year
- DRS handling fee paid by UK DMO to retailer: £0.03 per container
This gives a base handling‑fee income of:
- 500 containers/day × £0.03 = £15 per day
- £15/day × 365 days = £5,475 per year
1.2 IT / POS integration (vouchers)
To issue DRS vouchers redeemable at the till, the RVM must talk to the store’s POS via the retailer’s IT supplier.
- POS / IT integration, configuration and testing: £3,000 (year 1, one‑off)
In reality, this varies by retailer, but £3k is a reasonable planning figure for a full integration and some training.
1.3 Day‑to‑day running costs
Labour (store staff)
- Superficial cleaning: 10 minutes per day
- Bag handling (tag, code, move to back of store): 15 minutes per day
- Total: 25 minutes per day = 0.4167 hours
- Labour rate: £15 per hour
- Labour cost per day: 0.4167 × £15 ≈ £6.25
- Labour cost per year: £6.25 × 365 ≈ £2,281 per year
Energy
- Power consumption: 2 kWh per day
- Assumed retail electricity rate: £0.30 per kWh
- Energy cost per day: 2 × £0.30 = £0.60
- Energy cost per year: £0.60 × 365 ≈ £219 per year
Receipt paper
- One roll per week: £2 per roll
- 52 weeks × £2 = £104 per year
Service contract (SLA)
- Preventive maintenance twice a year, plus breakdown cover and remote support
- Assumed SLA cost: £125 per month = £1,500 per year
Total recurring opex (every year):
- Labour: £2,281
- Energy: £219
- Paper: £104
- SLA: £1,500
Total: £4,104 per year
1.4 Periodic maintenance
- Compactor blades replaced every 3 years for efficiency
- Parts cost: £300 each replacement
- Occurs in year 3 and year 6 in our 7‑year window
1.5 Space
- Approx. 1 m² of sales space used
- We acknowledge this but assign it a value of £0 in the base case, which penalises neither the RVM nor the scheme.
2. Base case: RVM economics with no media screen
First, let us see what happens if the retailer only earns the statutory DRS handling fee.
2.1 Annual income and costs (steady state)
Per year, without any media income:
- Income from container handling fees: £5,475
- Operating costs: £4,104
- Operating surplus before capex and periodic parts: £1,371 per year
Then we layer in:
- Capex and IT in year 1: £18,000
- Blades: £300 in years 3 and 6
2.2 7‑year summary (no media)
This is the base case we are improving on later.
| Year | Cost (£) | Income (£) |
|---|---|---|
| 1 | 22,104 | 5,475 |
| 2 | 4,104 | 5,475 |
| 3 | 4,404 | 5,475 |
| 4 | 4,104 | 5,475 |
| 5 | 4,104 | 5,475 |
| 6 | 4,404 | 5,475 |
| 7 | 4,104 | 5,475 |
| Total (7 yrs) | 47,328 | 38,325 |
Over 7 years:
- Total income: £38,325
- Total cost: £47,328
- Net result: about £9,000 loss over the life of the machine
So under these assumptions, the RVM, funded only by the DRS handling fee, is a compliance cost. It more or less washes its day‑to‑day running costs, but does not pay back its initial investment.
This is the starting point that many retailers are understandably concerned about.
3. The twist: turning the RVM into a media asset
At Recyclever, we take a different view: an RVM can be more than a compliance machine. It is also a high‑attention digital touchpoint.
When customers use an RVM:
- They typically spend around a minute per session in front of the screen
- They are standing still, facing the content, with little visual distraction
- If there is a queue, people behind them also watch the screen closely
This is not just another digital screen lost in the noise of store signage; it is a captive media asset.
3.1 What are in‑store digital screens worth?
Digital signage benchmarks are surprisingly transparent:
- Industry guidance indicates that 32–55 inch screens in restaurants or retail stores typically sell advertising in the range of $100–$500 per week, depending on location and footfall.
- Across digital signage more broadly, rates can range from $100 to $2,000 per week per screen, depending on how premium the placement and audience are.
Converting very roughly, that suggests:
- A typical 32" in‑store screen can reasonably command something like £300–£1,700 per month per screen, depending on traffic and how much airtime you sell.
Recyclever’s screen is more captive than a generic wall‑mounted screen, but for credibility we use a lower‑end figure in our economics.
3.2 Conservative media assumption for this model
For the purposes of this blog, we assume a very safe, almost pessimistic scenario:
- Retailer sells the RVM’s 32" media screen for £350 per month
- To manage content (upload, schedule, rotate campaigns) the retailer subscribes to Recyclever’s RecyHub video management portal at £40 per month per RVM
So, from the retailer’s perspective:
- Gross media value: £350/month
- RecyHub fee: £40/month
- Net media income: £310 per month
On a yearly basis:
- 12 × £310 = £3,720 media income per year per RVM
This sits on top of the DRS container handling income.
4. Enhanced case: RVM economics with media screen income
Now we recompute the 7‑year economics including the media income.
4.1 Annual income with media
Every year, the retailer now receives:
- DRS handling fees: £5,475 per year
- Net media income: £3,720 per year
Total annual income: 5,475 + 3,720 = £9,195
The cost side remains exactly as before:
- Opex (labour + power + paper + SLA): £4,104 per year
- Blades: £300 in years 3 and 6
- Capex + IT: £18,000 in year 1
4.2 7‑year summary with media (years as rows, cost and income as columns)
Here is the updated inverted table, in a format you can paste directly into a blog editor:
| Year | Cost (£) | Income (£) |
|---|---|---|
| 1 | 22,104 | 9,195 |
| 2 | 4,104 | 9,195 |
| 3 | 4,404 | 9,195 |
| 4 | 4,104 | 9,195 |
| 5 | 4,104 | 9,195 |
| 6 | 4,404 | 9,195 |
| 7 | 4,104 | 9,195 |
| Total (7 yrs) | 47,328 | 64,365 |
Over 7 years:
- Total income: £64,365
- Total cost: £47,328
- Net result: approximately £17,000 positive over the life of the machine
Compare that to the £9,000 loss in the base case without media:
- Without media: RVM is roughly £9k in the red
- With media at only £350/month gross (and paying £40/month for RecyHub): RVM becomes roughly £17k in the black
That is a swing of about £26,000 over 7 years, achieved by simply recognising and monetising the media value that was already there.
5. Why choose Recyclever: compliance plus a new revenue stream
5.1 From regulatory cost to profit centre
Seen purely as a DRS node, the RVM is a cost of compliance. It is necessary, it supports circularity, it serves your customers – but it does not naturally pay back its own capex.
Recyclever’s approach is to turn that equation around:
Base case (DRS fees only):
- The machine broadly covers its annual running costs
- But still leaves you around £9,000 out of pocket over 7 years
Media‑enabled case (DRS + modest media sales):
- Same DRS income and same operating costs
- Add a realistic, conservative £350/month media sale per RVM
- Pay £40/month for RecyHub to manage content
- Net result: about £17,000 of profit over 7 years
Instead of the RVM being a cost line hidden in the DRS budget, it becomes a visible profit centre.
5.2 An unbreakable, high‑attention media screen
Recyclever machines are designed from the ground up as retail devices, not just industrial machines pushed into the front of house:
Unbreakable media screen
The integrated screen is built to withstand daily retail life: trolleys, bags, kids, cleaning, and the occasional “bump”. The idea is simple – your media asset should not be fragile. It should be something you trust to keep working at the front of the store.Genuinely captive audience
When customers use the RVM, they must look at the screen. A typical deposit session lasts around a minute, with the customer focused on the display. If there is a queue, people behind them also focus on the same screen. This is nothing like a passive screen high on a wall; it is an experience screen at eye level.Valuable context
You know that everyone in front of the screen is:- A shopper
- Typically eco‑conscious enough to return containers
- Physically present in your store, often at the start or end of their shop
For brands and for your own private‑label campaigns, this is a highly targeted, high‑quality audience.
5.3 RecyHub: control and simplicity for retailers and media partners
Monetising screens is only attractive if it is operationally simple. That is where RecyHub comes in:
Central content management
Upload, schedule and rotate campaigns from a browser, one RVM at a time or across a whole estate. You can work directly as a retailer or via your media partners.Flexible loops and campaigns
Run your own store campaigns, supplier promotions, sustainability messages and paid ads in the same loop. For example, keep a base layer of your own content, and sell a share of the loop to CPG brands.Predictable cost
In our model we assume £40/month per RVM for RecyHub access. It is transparent, and it is already deducted in the net media figure (£310/month) we used in the financial tables.
5.4 A simple choice: a machine that pays for itself
Retailers will have to host RVMs under the UK DRS. The question is not whether you will have a machine, but what kind of machine you choose.
With Recyclever, the RVM becomes:
- A robust compliance tool that does what the regulation requires
- Operationally manageable, with realistic labour, power and service assumptions
- A new media asset that can fund its own existence and generate surplus cash
On the assumptions laid out above, a Recyclever RVM with an integrated, unbreakable media screen and RecyHub management transforms a £9,000 regulatory cost into around £17,000 of profit over the same 7‑year life.
In other words:
You are not just installing a machine to collect empty containers.
You are installing a digital front‑of‑store asset that makes money while it helps you comply.
6. Beyond media: additional levers to turn the UK DRS RVM into a profit centre
The media screen alone moves the economics from a £9,000 loss to roughly a £17,000 profit over 7 years. But for retailers that think in terms of lifetime customer value, basket uplift and share of wallet, there are several further levers that can make the UK DRS reverse vending machine even more valuable.
These are not theoretical “nice to haves” – they are practical ways to turn a mandatory DRS touchpoint into a high‑performance retail tool.
6.1 Loyalty card integration: turning returns into repeat visits
Once the primary compliance step has happened – the RVM has accepted containers and issued a voucher to refund the deposit – the next logical step is to scan the loyalty card.
The flow is simple:
- Customer returns containers
- RVM calculates the deposit refund and issues a voucher
- RVM invites the customer to scan their loyalty card
This is powerful for several reasons:
Incentivised behaviour
If the retailer decides to award points for using the RVM, specifically at this store, customers have a concrete reason to bring their containers here, rather than to a competitor or a manual return point.Footfall and frequency
RVM usage becomes a trigger for store visits. Consumers will “anchor” their container returns to the retailer that rewards them most clearly – either with extra loyalty points, tailored offers or both.Closed loop between returns and spend
By linking the return session to the loyalty profile, the retailer connects recycling activity directly to future purchases. That is a loop most brands and retailers find extremely valuable: you are not just refunding money, you are shaping where it is reinvested.
Over time, this can position the RVM as:
- A reason to visit your store
- A reason to consolidate returns and purchases with you rather than splitting them across competitors
The economics we modelled earlier do not even count this – they just consider direct cash costs and income. But from a commercial standpoint, loyalty card integration is a major lever to convert compliance activity into incremental sales and deeper customer relationships.
6.2 The voucher as a “guided shopping” tool
The RVM already needs to issue a voucher to refund the deposit. That piece of paper can be far more than a bare refund token.
With RecyHub, the system can act as a “receipt customiser” for the RVM voucher:
- No deep integration with basket data is required
- The retailer (or their marketing team) can define daily or weekly promotions that are printed onto the voucher
- These promotions can be as simple as: “Today’s 3 best deals”, “Category of the week”, or “Extra loyalty points on these SKUs”
This is fundamentally different from the checkout receipt:
- The checkout receipt is printed after the customer has already done their shopping. Any offers printed there are mainly relevant for the next visit, if at all.
- The RVM voucher is printed before or at the very start of the shopping trip. It is a piece of paper the shopper will carry around the store as they walk the aisles.
That makes the RVM voucher a navigation tool as much as a proof of refund:
- It can highlight specific promotions and guide shoppers towards those categories
- It can reinforce campaigns promoted on the RVM screen itself
- It can be designed to be simple, clear and action‑oriented (“Save £x today on these products”)
In other words, the voucher becomes a low‑cost, high‑impact micro‑flyer, automatically placed in the shopper’s hand just as they start their shop.
6.3 Data‑driven promotions: responding in the moment
Every container returned through an RVM represents a data point:
- Container type (can, PET, glass, etc.)
- Brand or product family
- Volume / pack size
- Time and frequency of returns
On its own, this already paints a picture of what people drink and bring back. Combined with a loyalty card (when scanned), it can be associated with who is doing it (within the retailer’s own privacy and consent framework).
There are several practical ways to use this:
On‑the‑spot, context‑aware incentives
If a user returns a certain mix of containers, the RVM can trigger relevant offers at that moment:- Promoting alternative brands or formats in the same category
- Suggesting complementary products (e.g. snacks with drinks)
- Offering extra points or bundle deals tied to current in‑store promotions
These can appear:
- On the touch screen during or at the end of the session
- Printed on the voucher as targeted promotions
- Potentially synced with in‑store media around the RVM or relevant aisles
Understanding where consumption happens
Analysing patterns in returned containers can signal whether a shopper’s drinks are mostly purchased here or elsewhere. If a loyal customer consistently brings back brands that are not heavily bought in your store, it opens up precise questions:- Are those items listed or well‑positioned in your assortment?
- Should you adjust pricing, space or promotion to win that spend?
Segmenting “RVM users” as a high‑value cohort
Customers who take the time to return containers are often more engaged, more deliberate and more connected to your brand. Knowing who they are (via loyalty cards) lets you:- Run special campaigns for “recyclers”
- Offer early access to sustainability‑linked initiatives
- Build a narrative that strengthens their affinity with your store
All of this is about using the RVM data cleverly, in real time or near‑real time, to support the retailer’s core objective: sell more, to the right people, at the right time – while doing the right thing environmentally.
6.4 The strategic value of data
Over the medium term, the data generated by RecyHub can become a strategic asset in its own right.
At scale, a network of RVMs generates:
- Detailed information about what is being returned
- When and where returns happen
- How that behaviour evolves over time (seasonality, promotions, product launches, etc.)
- In some cases, how it correlates with known customer segments, where this is done in line with the retailer’s data and privacy framework
This has several implications:
Better category management
Container return data is a mirror of consumption. It can help refine assortment, shelf space, pricing, and promotion, particularly in beverages.Sharper sustainability reporting
Retailers increasingly need to show credible evidence of circularity and recycling performance. RVM data supports those narratives with concrete numbers.Stronger conversations with brands and partners
When you can evidence how much of Brand X is coming back through your stores, and how engaged “your” recyclers are, you have a more informed seat at the table with suppliers.
For the purposes of this blog, it is enough to say that RVM and RecyHub data can significantly strengthen the retailer’s insight toolkit. How that data is structured, governed and potentially commercialised is a strategic question that will depend on regulation, scheme rules and retailer policy. The key point is that, with Recyclever, the RVM is not a black box – it is a transparent, data‑rich node in your wider retail system.
By combining media revenue, loyalty integration, voucher‑based guidance and data‑driven decision‑making, a UK DRS reverse vending machine stops being a necessary evil and becomes a multi‑function profit platform.