Is an ATM Business a Good Investment? How Much Can I Make?
Owning ATM's can *potentially* be a good business as it is creates relatively passive income (work a couple of hours a week) and can be run from home (low overhead) But it can also be a bad business if you make bad decisions! We'll look at owning an ATM business, today on Franchise CitySo the sellers of these types of businesses tell you how much money you can make, $50,000 a year travelling the world while your machines do all the work. Now some investors have been very successful, but there have been a lot of casualties as well. Also, the industry, and our financial system are going through a lot of changes that you need to consider. Your options for starting an ATM business are 1. buying an existing route, 2. starting a business from scratch by buying and placing the machines yourself, or 3. buying a franchise. If you have the money, buying an existing route is the easiest way to go as the machines are already placed. Finding good locations is 99% of success in this business so if you have the money buying an ATM route is the quickest way. If we look at some of the current listings we see price ranges from $900K, this is a huge route with over 150 locations that is doing about $360K a year in earnings. Keep in mind servicing 150 machines is a full time job, not like a smaller route. For smaller routes we see here a 7 machine ATM business selling for $100K, sales revenue is about $40K a year. You can find single ATM locations for sale at about $12,500. Keep in mind you also need the cash to put in the machines above your initial investment, so larger locations will need a significant amount of cash. If you buy a route make sure of the length remaining on the contracts. If location contracts are expiring soon and ask you to take the machines out, you might as well have started from scratch. Starting on your own you can find used ATM machines, usually from people who failed, relatively cheap ranging from about $1000 and up. Keep in mind some really old machines may not be compliant. Any ATM that is not ADA compliant can result in penalties up to $55,000, so make sure your machines are to code. You'll also need to learn how to install, who can repair them when they break, how to replace the receipt paper and more. Contracts - is your contract worded correctly. Placement, do you know what locations are good, and do you have the credibility to get your machines into a premium location. A super busy airport for example isnt taking your ratty 10 year old ATM you paid $400 for. A franchise in this case has an advantage with existing relationships with major national organizations that can help you get your foot in the door. You'll pay a franchise fee and a premium, but ideally you should make that back through better placements. The third option, buying a franchise can help you with placement, negotiating the best rates, and training on the business. You should have about $60,000 minimum to start a franchise as your franchise fee is $25,000, you'll need a minimum of 2 machines and at least $7,000 in cash to load your ATM's. Again, you'll pay a franchise fee and ongoing fees in a franchise situation, but some buyers have found it helped them build their business much faster and larger than going solo. Ill place a link at the end to learn more about the franchise route. So how much can you make with an ATM? The money from each transaction is split 3 ways, and this amount may vary based on your negotiations. The location where you placed the machine gets a cut, the company processing the transactions gets a cut, and whatever is left over you get to keep. The companies that sell the machines tell you if you get an incredible location that does 50 transactions a day, with a $3 fee per transaction that's $150 a day. You pay the location 50 cents per, that leaves you with $125, take off 20 cents for processing, and that can be more, thats $10 less, leaving you with $115 a day for a single machine. The reality is any location that you find is more likely to have 5-10 transactions a day, A reasonable expectation for an average location is is $150 - $300 per month per machine. But from a high level perspective is an ATM still a good investment? There is no question cash transactions are declining. Today cash accounts for only 22% of all transactions and it is possible over the next 20 years that cash machines will disappear entirely. During the demic cash transactions also dropped, as people prefer to swipe and some companies only accept debit and touchless payment. That said, if you get a good price on a route, or good locations, there is still money to be made over the coming decade.Carey Buck has a YouTube channel all about running an ATM business https://www.youtube.com/channel/UCeoc3bvSYJdU2nStTmX19Fg Details on buying an ATM franchise contact us at https://www.Franchise.city #franchisecity