**Unveiling the Secrets of Starting an ATM Business: A Guide to Success**
The ubiquity of ATMs is undeniable. Why? There's an enduring consumer demand for cash, and some businesses still prefer this form of payment over other options. So, you've decided to venture into the world of ATM ownership...
As a company that specializes in selling ATMs, we're passionate about what we do. However, it's important to clarify that our focus isn't solely on selling you as many ATMs as possible. Instead, we're driven by the desire to assist you in achieving a million transactions – that's where the real value lies.
Ninety-nine percent of success in this industry hinges on selecting the optimal locations to maximize potential profits. Whether you're a startup or an industry veteran, taking a moment to absorb our insights on what makes a prime ATM location is well worth your time. In the business since 2006, with a vast array of ATM customers, let us guide you to a more prosperous future.
While we could write entire books about each of these tips, here's a concise rundown of lessons drawn from our experiences – all aimed at your success. Our agenda is clear: we want you to flourish, processing more transactions with us. The number of ATMs you acquire is immaterial to us!
**1. Cash is King:**
Seek out cash-only businesses. This point can't be stressed enough. If you remember one thing from this article, make it this. Look for establishments that don't accept credit cards. Focus on those with high credit card minimums in relation to average sales, or businesses that levy credit card percentage charges. This is the bedrock of discovering exceptional ATM locations.
**2. Foot Traffic and Convenience Matter:**
Prioritize locations with high foot traffic and convenient accessibility. The more eyeballs your ATM attracts, the greater its usage. Equally vital is the convenience factor. Admit it, we're all a tad lazy. We won't park and walk to an ATM. For optimum utilization, it needs to be front and center – an unavoidable presence.
**3. Think Creatively for Profits:**
Unconventional spots can yield surprising profits. Our most lucrative ATM sites often defy expectations. Bars, restaurants, nail salons, and barber shops have been unanticipated money-makers. These locations might have fewer transactions and dispense less cash, but they boast higher surcharges and offer lower revenue shares. In many cases, this results in a better return on investment compared to high-transaction-count convenience stores.
**4. Set a Fair Surcharge:**
Charging a high surcharge isn't necessarily wise, even if customers are willing to pay. Our average surcharge stands at around $2.50. We're firm believers in integrity and fairness, and our surcharge amounts reflect these principles. Don't emulate banks' $4
charges; you're not a bank. Overpricing surcharges could attract negative attention, potentially leading to industry setbacks or excessive regulation.
**5. Be Realistic:**
The average independently owned ATM handles around 250 transactions per month. Ponder that for a moment. At $2 per transaction, you're looking at $500 in potential income. The notion of planting an ATM and making thousands monthly isn't grounded in reality.
**6. Persistence Pays Off:**
Finding locations can be as simple or challenging as you make it. We, at Best Products, prefer testing promising spots for a few months. If they fall short, we relocate the ATM. Accepting that a location isn't viable is tough but essential for overall success.
**7. Set and Stick to Goals:**
Calculate your minimum monthly return on investment (ROI) and adhere to it. We advise aiming for a minimum of $150 per month after expenses to maintain an ATM at a location. Clear goals enhance your odds of success.
**8. Opt for New ATMs:**
Newcomers should gravitate towards new ATMs. Avoid squandering money on used equipment unless you're well-versed in what you're buying. Ensure the machine is EMV compliant, in good condition, and all components function optimally. Seek expert advice if uncertain.
**9. Secure Adequate Funding:**
To launch your ATM business, allocate roughly $2,500 for the equipment and at least $2,500 in vault cash per location. This totals to $5,000 minimum per location. The ATM industry presents both risks and rewards; ensure you're adequately prepared.
Embarking on an ATM business journey is an exciting endeavor. Following these insights gleaned from years of experience can set you on a path to prosperity. As you traverse this landscape, keep in mind that success doesn't hinge solely on the number of ATMs you possess; it's about smart choices, strategic placement, and sound financial management.