The question

Reverse Vending Machines (RVMs) are clearly not “cheap metal boxes”: they contain substantial mechanical, electronic and software technology, and require installation, commissioning, IT integration and ongoing service. On top of that, stores incur operational costs (staff time, consumables, back‑room space). Against this, Deposit Return Schemes (DRS) pay retailers a handling fee per container returned, and there is potential incremental revenue from media and promotions.

The central question for a finance or property director is: over 5–7 years, does an RVM pay for itself, and under what volumes and commercial assumptions?

The direct answer

Over its lifecycle, an RVM’s cost base comprises:

• Capital and deployment costs

  • Machine build (hardware, sensors, computing, compactor).
  • Delivery, installation and commissioning.
  • Any enabling works (power, data, floor preparation).

• In‑store operational costs

  • Staff labour: changing paper, emptying bags, moving them to the backroom, handing them to the collection truck.
  • Consumables: printer paper, bags, basic cleaning materials.
  • Space: both front‑of‑house and back‑room footprint.
  • A maintenance contract with SLAs (response times, preventive visits).

• IT and integration costs

  • Initial setup of APIs between the RVM fleet portal and POS / voucher systems.
  • Ongoing maintenance of those interfaces and monitoring.

On the income side, you can typically expect:

• A handling fee per in‑scope container from the DMO (in the UK this has not yet been confirmed; for illustration we will assume £0.03 per container as a working number).
• Media and promotion revenue from selling RVM screen inventory to brands and using vouchers as a carrier for funded promotions.
• Loyalty‑driven value from deeper customer engagement and increased visit frequency (harder to quantify, but real).

Recyclever’s philosophy is to design and build robust, reliable machines competitively in the UK so that, under realistic handling fees and media assumptions, retailers can operate within acceptable cost parameters and see the RVM as an asset, not just a compliance burden. Installing RVMs inside the shop, where feasible, reduces deployment cost significantly and remains the default recommendation.

The addition of a media screen on the RVM is a key lever: it transforms the unit from a pure cost centre into a potential profit centre, particularly when combined with:

• Brand‑specific promotions embedded in vouchers.
• Integration with loyalty apps that can drive funded campaigns and more sophisticated offers.

One RVM: illustrative revenue at different return volumes

The table below gives a simple, one‑machine illustration at four different daily return volumes. It assumes:

• 30 operating days per month.
• An illustrative handling fee of £0.03 per container (purely as a working assumption).
• A conservative, flat £500 per month per RVM in media/advertising revenue (for example, one always‑on campaign across a large network of stores).

This is deliberately simple and directional, not a full P&L model.

How the handling‑fee line is calculated:

• 300 containers/day × 30 days × £0.03 = £270/month
• 500 containers/day × 30 days × £0.03 = £450/month
• 800 containers/day × 30 days × £0.03 = £720/month
• 1,000 containers/day × 30 days × £0.03 = £900/month

The media line assumes that, across a sizeable estate, you can sell at least one “slot” per machine per month to suppliers or partners. In practice, depending on your commercial model and the attractiveness of your network, that number can be higher.

Interpreting the numbers

The totals in the table are gross inflows per RVM per month under the specified assumptions. Against these you would set:

• Amortised machine and installation cost over 5–7 years.
• Maintenance contract and any extended warranty.
• Incremental store labour and consumables.
• Any incremental IT costs not already covered by existing teams.

In many realistic scenarios:

• The handling fee alone can cover a substantial part of the operating cost.
• The media revenue, even at conservative levels, can materially improve the payback profile.
• Once you add loyalty‑linked uplift (extra visits, slightly higher basket size when customers come to redeem vouchers), the overall business case becomes stronger still.

The key point is that, at moderate to high return volumes, these revenue lines together will typically surpass the fully‑loaded cost of acquiring, installing and managing an RVM over its lifecycle—particularly if:

• You install indoors where deployment and maintenance are cheaper.
• You choose a machine designed for low failure rates and minimal staff intervention.
• You actively manage and monetise the media and promotional capabilities rather than leaving the screen idle or underused.

Done well, an RVM is not just a DRS compliance cost; it is a platform that combines regulatory fulfilment, customer engagement, brand partnerships and operational efficiency in a single, compact piece of equipment.

Learn about Recyclever RVMs https://www.recyclever.com/reverse-vending-machines