Buying an ATM
Money provided by an ATM machine makes a special sound.
Especially for business owners that operate them. It’s the noise of passive income.
Franchise opportunities aren’t limited to brick and mortar businesses. And with low startup costs, these machines are popular.
Come along as we outline how to turn your initial investment into a profitable venture.
Own the entire process and become the go to company.
What To Consider When Buying an ATM
After buying an ATM franchise, you’ll instantly join other small business owners. And that’s exciting!
Your eventual operation will require:
- Buying machines
- Selecting locations
- Installing the ATM machines
- Placing cash inside
- Earning money with each transaction from a consumer
Sounds straightforward enough.
Now that we’ve given you a taste of the future, let’s hit pause for a second. And help you bring the vision into reality.
Owning a Proven Business Model
Machine franchises offer training on choosing the best locations and bargaining for ideal rates.
To begin, pull out a notepad and pen.
Owning an ATM as a franchisee involves thinking about the following:
- Kind of machine (full-service or standalone)
- Options for distributing cash
- Added features (check reader, bill validator)
We’ll address costs later, but for now here’s something to keep in mind.
Once you connect with the ideal franchisor, they’ll be a franchise fee. And it pays to have at least two ATM machines with cash to fill them.
Tuck that in the back of your memory.
Next, it’s time to go shopping!
The Different Types of ATMs Available
One note prior to looking at specific machines.
American customers are used to “new.” But purchasing a used ATM might make more sense for your situation.
There are three low-cost options for your own business:
- Hyosung Halo
- Genmega 2500
- Hantle 1700
Research to pick the right equipment for your ATM business. But do stick with one manufacturer ongoing.
Doing so will organize the routine ordering of service and parts in the future.
Should you decide on a new machine, it’s worth figuring in an electronic lock. Plus a 1k removable cassette for additional flexibility.
We suggest going through an ATM broker versus an individual willing to sell you one.
Give us a call if you want more information on connecting with them.
You’ve been introduced to various choices. Next, we’ll narrow down your lineup further.
How To Choose the Right ATM for Your Business
Window shopping is over.
You’re ready to make a great investment in cash vending machine franchise opportunities.
But before you assume the role of franchisee, you must ask practical questions.
Is Buying ATMs a Good Investment?
Managing the convenience of cash withdrawals for consumers can be lucrative.
Especially because an ATM machine will generally hold its value well. Your franchise can generate income either passively or as a full-time effort.
Once a customer takes out money, surcharge fees will appear in your bank account. Every day.
A merchant commission will be subtracted from your surcharge fees if machines aren’t at a location that you own. But maybe you already run a brick and mortar business. In that case, 100% of the revenue is yours.
Interchange income is another way to increase your balance.
Profit will vary, but you can estimate around $200 each month per ATM. And if you become the go to option, you will likely see a higher number.
What are the main costs associated with buying and operating an ATM?
Can You Just Buy an ATM?
Expect each new machine to sell at $2,000 – $4,000. Add-ons will raise this price.
How Much Does It Cost To Purchase a Cash Vending Machine?
Generally, owners of an ATM business only entertain brand-new machines. At first.
But after discovering that this equipment holds its value, they are more open to another opportunity. A used ATM machine.
Running $1,200 – $1,800, they decrease overhead costs. And deliver comparable service to customers.
Factors which may change the price:
- Kind of machine
- Wi-fi capabilities
- Bank availability
- Placement location
Continue with us as we address some remaining details.
Installation and Setup of Your New ATM
Your franchise will be on more solid footing with careful location selection.
To begin, remember that you’re competing with larger ATM businesses. Because of this, avoid convenience stores and gas stations.
Finding underserved but locally known spots is ideal.
Bigger players view them as low volume and lacking in terms of consumers. Perfect.
That presents a golden chance to build a local presence. And establish trust in the community.
- Office buildings
- Small motels
- Family-owned restaurants
- Nail salons
- Sports bars
You know who else is scouting these spots? Another vending business. But they are actually allies for your ATM machine.
Let us elaborate.
Cash is still a popular method of payment for snacks and drinks. So, cozy up next to a vending machine franchise.
Extra ATM Installation Particulars
Prior to launching your cash business venture, discuss these points with the location owner:
- Access to power
- Communication system
- Available space
- Security of your machines
Your machine is already energy efficient. Even so, it requires somewhere to plug in.
Will transactions use an internet connection or phone line? For the internet, hook up ethernet cables and run them to the ATM. If you choose the phone option, install a committed line for your purposes.
This keeps the merchant/location owner happy. And it increases the satisfaction of cash seekers.
Your ATM machine pamphlet will have the exact measurements. Grab a ruler and ensure the designated area will accommodate you.
Finally, what security measures are in place? It’s unlikely that the machine will be stolen, but ask nonetheless.
Once you feel good, there are two final decisions.
Will you pay someone for the actual install, or will you do it yourself?
Hiring out will cost you a couple hundred dollars. Handling it on your own will only cost time.
And many business owners find the installation process straightforward.
How To Use Your New ATM
You’ve made it this far and we commend you.
It’s almost time to go live and enjoy recurring income from your efforts. The final step is keeping it stocked with money.
Good news in that area.
Your ATM machine will likely be connected to a portal that alerts you before it’s depleted. Just make sure you have notifications set up.
There are two ways to oversee this task in your business:
- 3rd party vulted
Self-vaulting involves you refilling low machines. Or, for a fee you can have a cash delivery company take care of it. Your decision.
Finally, budget $200 – $300 per year for ongoing maintenance and repairs. Don’t worry, your new cash vending machine will include warranties on parts.
And that’s it! You’re nearly ready for achieving a competitive advantage.
There’s just one more decision you need to make.
Reidel Law Firm and the Cash Vending Industry
As experts in franchise law, we can help you handle the legal aspects of any franchisee issues.
In addition, our legal team can advise you on ways to shore up gaps in the following areas:
- Review personal guaranty and real estate control docs
- Franchisee formation, guidance, and asset protection
- Franchise operating compliance audit and coaching
By effectively managing risk and maximizing opportunities for your business we answer the needs wherever and whenever they arise.
Call Reidel Law Firm today at (832) 510-3292 or fill out our contact form. And see how our advice can bring you success in the franchise industry.