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ATM Placement

Where Should I Place My ATM?

Where Should I Place My ATM

To really maximize the profits you earn from your business’s automatic teller machine, you need to place that machine in the right location. ATM placement is an art, not a science, however, even experts on the topic can sometimes disagree about ATM placement strategies. So consider the following an introduction to the factors that go into this important decision.

First and foremost, your customers won’t want to use your ATM unless they feel safe doing so. Therefore, install your ATM someplace in your business that’s lit brightly, somewhere under the watchful eye of a security camera, perhaps with a visible alarm system within arm’s reach.

You also have to decide whether to install your ATM indoors or outdoors. Outdoor ATM’s can be accessed twenty-four hours a day, of course, but they’re more vulnerable to vandals and thieves. You’ll have to invest in a first-rate (in other words, expensive) security system. There might even be specific safety/security laws in your state and municipality dictating the kinds of security measures you’re required to have in place for an outdoor ATM. In addition, during the day many customers prefer using indoor rather than outdoor ATM’s, as they feel safer doing so. In that regard, you might actually lose some ATM business if you place your automatic teller machine outside.

If you manage a large complex, such as a shopping mall or a resort hotel, then choosing the spot in which to install your ATM becomes significantly more challenging. Many such facilities set up an ATM in the lobby, believing that customers expect to find ATM’s there, and also believing that a lobby is a safe place because it receives so much traffic all day long. And many hotels, malls and even hospitals decide to maintain more than one on-site ATM. For instance, a hotel might find it worth the investment to put an ATM on every floor. If you decide to go this route, it probably makes sense to put the ATM at the same location on each floor – just to the left of the elevator, for instance.

You don’t have to run a business with multiple floors in order to derive benefit from multiple ATM’s, though. Even if you own, for example, a fairly large, one-story convenience store, you might find that if you purchase more than one ATM, and place those ATM’s in opposite sections of your store, those ATM’s will increase your profit margins each month.

One of the longest-running debates when it comes to the placement of ATM’s is this: Should you put an ATM right next to the front door of your establishment? There are passionate advocates on both sides of this argument. Those who say that an ATM should go beside the front door can site statistics indicating that putting an ATM here greatly increases the usage that ATM will get over time. Some studies have even said that an ATM beside the front door gets twice as many transactions as an ATM placed in, say, one of the far corners of a business’s interior.

On the other hand, the case against putting an ATM by the front door is also convincing. First, if you attract lots of customers each day, an ATM next to the door could cause congestion around that door. People lining up here might even block the entrance. And if potential customers walking by on the street see this commotion, they might be discouraged from entering your establishment, thus costing you business. Even worse, a line of customers near your front door might constitute a minor fire hazard, should that line be thick enough. And if your front door is glass, it might be tempting for drug addicts and other amateur robbers to break the glass at night, step inside and try to loot your ATM.

If you have no idea how many ATM’s to buy, or where to place them, you can always contact experts at an ATM consulting service. They’ll be able to analyze your floor plan and your flow of traffic and tell you the best place to put your machine(s).

ATM Machines, A Buyer’s Guide

ATM Machine Buyer’s Guide (Part 1) 

ATM Machine Buyers Guide image of CashOur hope is that this ATM Machine Buyer’s Guide helps you navigate some of the known pitfalls in the business. This will be a three part series. Be sure to click the next part in the series at the bottom of each post when you’re ready to proceed.

All kinds of businesses now maintain automatic teller machines, including supermarkets and  restaurants. That’s because ATM’s offer several benefits to business owners.

When you set up an ATM inside your establishment, you may see a spike in the number of your customers. And, with that source of money at hand, some of your customers may be inclined to spend more money. In addition, you might also find that you start receiving fewer checks which means less risk at the point of sale. Of course, you’ll also end up paying fewer processing fees for credit cards as well. But what things should you know before you go out and purchase one or more of these machines?

First, do some research and a few calculations before you contact an ATM vendor. Figure out, roughly, how many people come into your business on an average day. If that number is fewer than 150, and certainly if it’s fewer than 100, getting an ATM may not have an attractive ROI, however the other benefits may be what you’re looking for.  Just because you have minimal traffic in your location doesn’t mean your ATM won’t be worth the investment.

We’ve been in the ATM business for over 2 decades now and we’ve seen over the past few years that the general rule of thumb for the number of monthly transactions that your ATM will perform is relative to the the number of people that come into your establishment plus or minus a factor of 10% – 15% depending on the location, type of establishment and several other factors.

If for example you have a high end restaurant with table cloths and a bar, your ATM machine will perform much lower than these averages since this type of clientele typically pays with a credit card. If however you have a quick service restaurant, a bar and grill, local tavern, a nightclub or even a commercial building or parking lot we have seen these types of locations do very well, especially if the business does not accept credit cards. We have also seen customers convert from credit and debit cards to ATM usage with the implementation of coupons or other incentives for use.

One of the best ways to tell if buying an ATM for your location is right for you is to speak to your customers. Ask them if they’d be interested in using an ATM if you had one at your place, or if you often get requests or if customers ask where the nearest ATM machines is, that is a good indication that it would be a wise investment.  Obviously, if you get some positive feedback from your clients, you can advance to the next step: figuring out what kind of automatic teller machine to purchase.

Free Standing Hantle Tranax 1700W ATM MachineThe most common kind of ATM is the kind that stands up on its own, also known as a “free standing ATM”.  These free standing ATM machines require approx 3 sq ft in front of them for ADA compliance (about 36″ for a wheel chair). The machines themselves have a very small foot print and run anywhere from 14″ x 14″ up to 20″ x 20″ still relatively very little floor space for the return on investment.  Even with the diminutive size of the newest free standing ATM machines, if you don’t think you have enough room, you might opt for some of the newest tabletop or counter top models.
Alternatively, you may even consider purchasing an ATM that’s inserted into a wall (also known as a Thru-the-Wall “TTW” model), although this is often a great option for a place of business to plan for during tenant improvements, it is still fairly easy to cut a hole in a wall and retrofit it for a TTW ATM. While these thru-the-wall ATM machines costs a little more than the free standing machines, they are perfect for exterior installations such as sidewalk facing locations or locations facing a parking lot or a busy downtown location.

The Amazing Money MachineThese machines typically have much higher usage since they are exposed to walk by traffic 24 hours a day. If you are considering a TTW ATM, you’ll still need to consider space for the inside part of the ATM which is typically less than a free standing ATM since the ADA portion of the ATM is outside and usually unobstructed. While it is more expensive to install a TTW unit due to the additional construction costs you’ll also need to consider the timing of the install to minimize the noise and descriptiveness of the construction which can typically be completed in a weekend.

TTW ATM Machine GenmegaAnother choice is the outdoor ATM. (These ATM’s may also be inserted into a wall.) Outdoor ATM’s can be used 24 hours a day, and therefore they let you collect ATM fees 24 hours a day! This option, obviously, will save you interior space, too. A downside to an outdoor ATM however, is that depending on the location, your outdoor ATM may require proper lighting so people will feel safe using the ATM; and, depending on the area, you may consider some sort of surveillance cameras. Most outdoor ATM machines are weather protected but if you want the highest possible usage, you’d be smart to consider some kind of protection from the weather for the ATM users, again depending on the type of deployment and the weather in the area. While outdoor ATM’s can be more expensive to keep up, they typically have much higher usage and therefor justify the expense.

Keeping your motivation in mind, this ATM Machine Buyer’s guide is meant to help you not only decide if an ATM is right for you as a business, but is it right for the location where you’re going to put it, and, will your customers use it. If you’re main motivation is to offset credit card fees, almost certainly a free standing ATM will help with that. If you’re motivation is to make more money just from the ATM usage, a thru-the-wall  machine available 24 hours will product much more profit in the right installation.

Your ATM decision-making process doesn’t stop there. A list of other questions you need to answer would include: See ATM Machines, A Buyer’s Guide part 2.