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Another atm vending thread :)

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Hey Guys, I would like to get more information from anyone in this area.

I know there are a few threads all ready on this but i'd like to get an update on how well you guys that allready have a location or few are doing.

 

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I have had a difficult time finding good locations.  I talked to blueplate and he advised just to stick one in even if it is not too profitable so that's what I am in the process of doing.  I have gotten plenty of location leads just none of them were really good in the past 4-5 months.  I would expect maybe 60-80 transactions per month at the ones I found.  On the other hand since I decided to venture into atms about 5 months ago I have a long list of contacts here and even other atm companies that are willing to help vault the cash and also give me advice which has been a great help. I hope to have one in very soon as im going back and contacting the old leads I had. I will keep you updated.

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I have had a difficult time finding good locations. I talked to blueplate and he advised just to stick one in even if it is not too profitable so that's what I am in the process of doing. I have gotten plenty of location leads just none of them were really good in the past 4-5 months. I would expect maybe 60-80 transactions per month at the ones I found. On the other hand since I decided to venture into atms about 5 months ago I have a long list of contacts here and even other atm companies that are willing to help vault the cash and also give me advice which has been a great help. I hope to have one in very soon as im going back and contacting the old leads I had. I will keep you updated.

How ru getting the cash don't u need 10k per unit?

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You can put as much as you want. New ATM would run about 2k and you can use 1k for vault if it's not too busy

Agreed. You only need as much as the machine dispenses during a specified service interval.

For example, if your atm only dispenses $100 a day, you can keep $100-$200 in it and service it daily. (PITA I know but I'm just outlining one example) Or you can put $3,000 in it and service monthly.

You could put 10k in this example machine and extend your service out to several months but then you're needlessly tying up cash that you can use for another machine.

The trick is to decide what service interval you are comfortable with then determine how much money flows through the machine during that time and put that much in the vault. (Plus a little more for unexpected spikes) That way you lessen the number of dollars you have sitting idle in a machine.

--Steven

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Also, if you do have a location that needs a $10k vault, there are various options for obtaining the cash. They include investors, loans, armored services, or other companies that provide cash services.

--Steven

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I have been contemplating on hiring a locator. They travel through the state and I guess they have some sort of database that tells them where ATMs are located. They are a little pricey. I think they charge $700 per location. I could also hire a regular sales person, but how would I even determine how much to pay them if they found crappy locations.

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Has anyone been successful with ATMs? If so, I would love to hear from you. 60-80 transactions a month doesn't seem worth the hassle. Especially since someone in an older thread stated the competition has been driving the profit margins down. People are placing ATMs in businesses, charging the consumer $3.00 per transaction but only collecting .50¢ of each transaction (giving the rest to the business owners). It's quite hard to make money that way.

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I don't know of anyone that only collect .50 per transaction. Even in a high volume location this would not be worth it considering how much you would be required to vault. Its a lot harder to place ATMs because everyone has a contract that is usually 5 years so even if you are able to offer more of a split they are stuck in the contract.

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I don't know of anyone that only collect .50 per transaction. Even in a high volume location this would not be worth it considering how much you would be required to vault. Its a lot harder to place ATMs because everyone has a contract that is usually 5 years so even if you are able to offer more of a split they are stuck in the contract.

Contract? Who's gonna enforce it? Cmon

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I don't know of anyone that only collect .50 per transaction. Even in a high volume location this would not be worth it considering how much you would be required to vault. Its a lot harder to place ATMs because everyone has a contract that is usually 5 years so even if you are able to offer more of a split they are stuck in the contract.

 

I do it the other way around and give nothing to .50.  It goes like this under 50 nothing, 50-100 .25 over 100 .50. Of course all depends on the situation higher volume more if need be.

You have to train yourself to have a different mindset and that this is a service. The location benefits by saving on credit card fees and putting cash in customer's pockets to spend more , so the .25 or so that you give is just a token of appreciation. If the location doesn't do as expected you try and cut back or cut out the commission all together.

 

If anyone needs a good processor I deal with a guy who has the best buy rates out there along with the best prices on machines and wireless units. Contact me ... he is a great guy to deal with.

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dogwood: I think a contract is a little different when you have a machine anchored to the structure of a building and its filled with thousands of dollars.

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Anyone in California want a banging deal on an ATM machine? I had the sweatest truck stop locations. Both owned by friends. We killed it at those gas stations. 1600 per month gross commission was awesome and for one of the locations I didnt even have to fill the machine. 

 

My friends bought one of the two from us and the other one is collecting dust in my shop. I just dont have the cash flow to do ATM machines right now. At those gas stations I was putting in $8-$12k every 3 days.

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Wow, those are some awesome locations. What model is it? How much would it be to ship to 32246

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Wow, those are some awesome locations. What model is it? How much would it be to ship to 32246

 

Yes, they were awesome locations. Any place that is going to get lots of foot traffic from people on the roads are going to kill it. I will take some pictures of the ATM and post them up as soon as I can.

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finally got my first ATM in im overjoyed haha.  Placed it in the Deli of a group of 5 commercial buildings so far its doing great!

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finally got my first ATM in im overjoyed haha.  Placed it in the Deli of a group of 5 commercial buildings so far its doing great!

That is great to hear!! Please keep us posted on how things are going with this.

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anyone know typically what the merchant services fees are per transaction with ATMS??? Example, I charge sur fee of $3.50 how much of that does merchant processing take...just an estimate guys?? is it .25, $1.00...is it a flat fee per month/per year.

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It depends on the market.  Around me right now, if it's a c-store - they expect 50%.  I work in another market and 75 cents on $2.50 seems to be the going rate.  I have a lot of bars, .50 cents on $2.75 - $3.00 does well.  

 

I caution "giving away the farm" to get accounts.  You can burn your own market, focus on quality.

 

drop me a note if you want to discuss ATMs todd@newenglandatm.net

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Wow, 50% for merchant processing?:huh:

 

So it goes like this....

 

your paying the owner of the store you place your atm at .25-.75 per transaction, then paying for connection/wireless/modem fees of $18-$25 per month, And paying merchant services 50% of each transaction???

 

So, of a surcharge of $3.00 I would assume this... .50 to store owner and $1.50 for merchant services fees??? that leaves me with less than $1.00 profit???

 

I must be missing something

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No, I think you read my post wrong.  The Merchants get 50% in some cases.

 

 

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That is great to hear!! Please keep us posted on how things are going with this.

Pictures I took last week.  This is my first ATM installed hopefully I can keep the ball rolling Blueplate was a great help with info.

 

2uqn3f4.jpg

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On large locations I see some guys say you can put it on a vault car but what company vaults cash for a charge+percentage?  All the vault car companies I have contacted will only vault your cash from your own bank and charge a small delivery fee.

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There are some turn-key vaulting services out there.  They mostly deal with registered ISO.  You need to find an ISO that has this program.

 

Our Program breaks down like this:

 

$60 / load

.14 cent per surcharged transaction management fee

cost of cash is 2.75%  (prime minus -.5%) on average daily balance

and about $19.00 per month insurance fee.

 

So lets take a merchant that does 200 transactions per month and dispenses $15,000/month

A 1000 note cassette can hold $16,000, so 1 load per month    =   $60

Management fee would be  200 x .14 cents                               =   $28

Cost of cash (estimate would be, $18.33 (trust me))                   =   $18.33

Insurance                                                                                    =  $19.00

 

Total cost to load would be $125.33 / month

 

On 200 transactions it would be .63 cents per transaction.

 

Numbers can swing greatly based in different factors, the best way to do this is to have some history behind you. Also, geographically the cost of delivery can change too.

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