Automated teller machines (ATMs) are everywhere. But despite every gasoline station having one, it still seems like there is not much for everyone who needs to withdraw their money, most especially if it is payday.
With that said, you can start an ATM business in your place. It only requires a small investment, especially if you can find ATM parts for sale. But you can expect a good profit from it.
However, how much do you have to invest? And how much can you expect to earn from a single ATM?
How much is the machine?
There are different types from a freestanding ATM to a built-in one, to used or refurbished kinds. However, you can expect to pay around $1,000 to $25,000 for a single machine.
Usually, the used and refurbished types are cheaper as they start from $500. You can also build your ATMs for less than a few thousand dollars, especially if you can find affordable ATM parts for sale.
The most common type of ATM you can invest in is the freestanding type. It works best if you have more floor space as it would take two feet by two feet. Plus, you need some area where the customer will stand.
There is also the countertop ATM if you do not have a lot of space.
How Profitable is an ATM Business?
You are investing at least a thousand dollars. It might not be as big as for some business, but it sure is if you do not have enough extra money. That said, how much can you gain from this type of business?
First off, you can gain profit when a customer withdraws money or does any transaction. Each transaction costs around $1 to $8. Most of the time, you would not be getting all the money. The business that maintains the machine will get a percent of what you get.
If you own the venue as well as the machine itself, you can likely get $.05 or more per transaction. The average ATM transactions each month is 300. With that, you can earn a minimum of $150 per month, or $1,800 per year.
Of course, the higher the transaction fee is, the more you can earn. Then again, if your transaction fee is too high, chances are customers would not be too keen on using your ATM.
You can also earn more by placing ads on your ATM.
Choosing the Best Location
The best way to earn more income from your ATM is to choose the perfect spot. It should be a place where there is more traffic, such as malls, hotels, or shopping districts. Plus, there should also be less competition, so more people will choose your ATM more.
Selecting a place that has a low crime rate is also essential. People want to feel secure when withdrawing money. A place that is more public, like beside a mall or a neighborhood filled with shops, are less likely to have thefts.
Most of all, ensure that the location of your machine will not cause electrical problems. Likewise, there sould be no problem with phone lines and internet connectivity.