ATM = Cash Vending Machine
ATM Vending Machine Costs
Think of an ATM as a cash vending machine. An ATM Vending Machine is really just a vending machine that dispenses cash instead of snacks or soda.
Instead of charging $1.00 or $2.00 for a soda or a snack (that cost you something to begin with), an ATM machine charges $1.50 or more for the convenient access to the cash in your bank.
Now, the banks have all sorts of agreements with ATM networks to offer access to your cash (otherwise we would not use banks as much and ATM cards). Your ATM will now just dispense $20 bills to users that pay for access. Then the funds from that users bank will deposited back into the ATM cash providers account daily.
All you do is keep it loaded with $20’s instead of snacks. What happens when a vending machine gets low on product? You refill it. If your vending machine dispenses sodas and snacks, have to buy more to fill up the machine.
With an ATM, the same money you put in gets recycled. You take a few $20 bills out of your cash register (if you’re a retailer with cash) or if your an ATM Vending Machine Business you get $20’s from your bank and put them in the ATM.
Customers withdraw those $20’s and the ATM networks deposit that money back into your bank account the next business day. No soda or snacks to buy to refill the machine. Also, our online ATM management system shows you daily usage and balances so you don’t have to visit the ATM unless you need to.
You Rarely Make Over $2 On A Can Of Sada
A deluxe snack and soda machine with a bill acceptor can actually cost more than a typical retail ATM Machine. The main difference between an ATM and a snack machine is that the ATM can make more than triple the income and has a lot less overhead. The product it dispenses is money, and a portion of it is spent in the business where the ATM is located.
You rarely make $2.00 or more profit on a can of soda. And with an ATM the $20 bills that are spent in your store are put back in the ATM the next day to be dispensed again. Your only inventory item is a few dozen twenty-dollar bills.
Tips for Success
To ensure your ATM will do well there are a few tips you should keep in mind.
- Place the ATM in a well lit location.
- Try and pick an area where there is a lot of traffic (if it’s your store don’t put it back by the restrooms).
- Keep in mind – location, location, location, even within the Location where you decide the ATM will be (think about the most foot traffic).
- Keep the ATM away from solid glass windows for security purposes.
- Have a professional install the ATM to secure it to your floor.
- Have a Dedicated phone line and Power Outlet within three (3) feet of where the ATM will be located.
- Have your cash ready to load before you open the store or if you’re an ATM business have cash ready before you visit the site. Don’t count your cash in public view.
- If possible, take the cash cassette into a different room to load.
ROI All Depends On the Usage and Traffic
Our ATM Profit Calculator can provide some estimates.
Keep in mind that an ATM located in a nightclub, amusement park, or casino will typically have high transaction counts because customers frequently run out of cash and do not want to leave to go to an ATM.
An ATM located in the lobby of large apartment or commercial building with lots of tenants or employees typically does well because of convenience.
People become creatures of habit and like to combine “trips”. If you provide them with a way to get cash at work, or on there way out of the house, there is no need to stop somewhere to get cash.
ATMs in convenience stores and fast food restaurants do well because they are destination establishments. People go there for something anyway and the ATM saves them a trip to the bank.
If you are considering an ATM or getting into the ATM Vending Business, feel free to give us a call and we’ll try and save you from the school of hard knocks.