Buy An ATM Machine Business
Buy An ATM Machine Business
For over 45 years Automated Teller Machines (ATMs) have been owned and operated by banks and financial institutions. The first ATMs actually caused resistance in the banking community as they cost over $30,000.00 each and the annual costs of running them were more than the yearly salary of a bank employee. But over time and with recent government deregulation of the ATM industry private investors have been able to buy an ATM machine and profit from the transaction fees generated from it. As costs have lowered to buy ATM machines smaller sites such as general stores and other smaller businesses have become targets for sites by the private investors in the ATM industry.
The shopkeeper earns a share of the transaction fees in exchange for allowing the machine onsite and providing minor first line maintenance of the machine and its cash replenishment requirements. The investor retains a share for carrying the risk of the business and for his investment into the business.
Owning an ATM machine can be a good investment as once the ATM machines are sited there is no stock to buy or rentals or staff costs to be paid. There is also a smaller entrance investment than a traditional business as you can start with a few ATM machines and then add to your portfolio as your returns or investment budget allow.
As there are no doubt multiple opportunities in your city from ATM deployers you would need to research the various offerings to select the one that most suit your investment budget and your level of time you wish to put into establishing the business. For example if you are willing to spend some time securing your own sites you would make a saving on the siting costs included within you ATM investment.
You would also take your time to ensure that you selected the best sites. Siting is a simple process as you are offering shopkeepers an additional income stream at no cost to them but you must ensure that you do not offer one of your ATM’s to a site that does not perform involving a relocation cost that you did not factor into your feasibility of buying an ATM business. Choose cautiously. Many larger sites have an ATM machine but your target market will yield much opportunity. Look for a site with good traffic where the ATM machine will be visible and promoted by the shop owner. Restaurants are not normally good sites, neither are sites where most purchases are paid for on credit cards. Busy cash businesses where customers recognize the need to refill their wallets when they empty them buying goods in the shops are your target.
That combined with a shop owner keen to maximize transactions of the ATM is what you are looking for. There are plenty of siting opportunities so choose well. Ensure that the ATM company you purchase the ATM machines from provides you with any siting brochures and sample siting contracts for you use. The siting agreement is very important because a signed siting agreement represents your ATM business and this, and the costs of the ATM, are the potential goodwill component of any sale of the your business. Sign for at least 3 years for longevity and certainty, and ensure that the site owner lists the ATM machine on his shop insurance policy. The ATM company will provide training to the site owner in regards to his duties regarding cash replenishment and minor maintenance including replacing receipt rolls.
Ensure that you achieve the best possible transaction share available, as some companies will only pay you 20 to 40 cents per transaction. Shopping around and research will secure for you deals of around 80 cents per transaction.
Look to at the reliability of the Machine provided and that a free call number is provided for your customers and for the site owner to call if required. Software upgrades can be carried out remotely at no charge to you or the site owner so make sure you machines and you chosen company support this feature.
Buying an ATM business can be a good business as the machines earn money for you freeing up your time to concentrate on other ventures of employment. But research well before you decide what ATM machines to buy.