rookie514 Posted May 5, 2009 Share Posted May 5, 2009 I just got a request to place an ATM in a busy community center where I have 4 vebnding machines. I know nothing of the ATM business and need some ideas where to start. Link to comment Share on other sites More sharing options...
coinvestor Posted May 5, 2009 Share Posted May 5, 2009 I was asked if I would do an ATM before. I looked into it and decided against it. I found stats that showed the average ATM withdrawl to be $60, so if my machine was going to make $300 a month (at say .50 a transaction after comm) I would have to load $36,000 into the machine. The risk does not seem like its worth the reward if this is not what your setup to do. JD Link to comment Share on other sites More sharing options...
rookie514 Posted May 6, 2009 Author Share Posted May 6, 2009 lol 36 grand Link to comment Share on other sites More sharing options...
mobo13 Posted May 20, 2009 Share Posted May 20, 2009 agreed....these days with a whole bunch of desperate people running around...too much risk. Link to comment Share on other sites More sharing options...
WillisNYC Posted May 25, 2009 Share Posted May 25, 2009 I have a friend who owns a number of ATMs like the small ones placed in service stations, bars, etc. He charges $3.00 per $100 withdrawal and he does AMAZINGLY well. I frankly thought that no one would ever pay those amounts, but I am astounded by how large his business is! I don't know if one machine is worth the risk, but there is a LOT of opportunity in this area of business and would not dismiss it lightly. Link to comment Share on other sites More sharing options...
BluePlate Posted May 25, 2009 Share Posted May 25, 2009 If you own the ATM and load the ATM, the standard is you keep most if not all the surcharge. If you own and load (say you make $2/transaction) to earn $300 you need to do 150 transactions a month. You give the location 25 cents per transaction for what is called back end interchange. The $60 average withdrawal fee is fairly correct. You need to load $9000 per month. Remember though - you get that money back within 24 hours of it being withdrawn. To start out, load weekly ($2250). Load 2X a week (~$1300). Better yet, own the machine. Convince the store owner to load daily, instead of bringing his cash to the bank. Give him $1/transaction. He doesn't have to go to the bank and he makes $150/month. Plus most of that money is spent in his own store, the is more true for places that sell lottery. Can't put that on credit.........So you only make $150/month. Not too bad! Link to comment Share on other sites More sharing options...
slinuxuzer Posted October 19, 2010 Share Posted October 19, 2010 Blueplate, could I PM you ? Link to comment Share on other sites More sharing options...
Bocephus Posted October 19, 2010 Share Posted October 19, 2010 blue plate, just out of curiosity, when you started did you just have a few thousand dollars laying around the load the machines with, or did you get a loan, or what? Link to comment Share on other sites More sharing options...
BluePlate Posted October 20, 2010 Share Posted October 20, 2010 That is a really good question. Actually when I started, I was at a financial low point. What I did is I asked everyone I know if I could borrow money. I "sold" them on the ATM concept. I regularly borrow money at 20% for vault cash. I run it like a hedge fund or a bank CD. Where I do not pay back pricipal. Give you a real like example. Friend of mine's mother passed away, they inherited $90,000. I borrowed $10,000 @ 20%. I give her the interest payment (not pricipal) $167/month. I have a 1 year contract. She loves it because a CD is paying 1.5%. I love it because that $10,000 makes me about $700-$900 a month. At the end of the 1 year contract, she can renew or take her $10,000 back. She has been so happy I don't see her not renewing, but I am constantly planning and looking for new investors just in case someone backs out. Link to comment Share on other sites More sharing options...
pdox Posted October 20, 2010 Share Posted October 20, 2010 This would be an example of how not to fund your ATM business. http://www.projo.com/news/content/bank_defrauded_10-19-10_7GKEI6P_v19.230c4e2.html There may be some available business in Conn. for you Blue. Link to comment Share on other sites More sharing options...
Bocephus Posted October 20, 2010 Share Posted October 20, 2010 how many ATMs did you start off with? Did you just sell the store owners on the concept? Link to comment Share on other sites More sharing options...
The Mage Posted October 29, 2010 Share Posted October 29, 2010 That is a really good question. Actually when I started, I was at a financial low point. What I did is I asked everyone I know if I could borrow money. I "sold" them on the ATM concept. I regularly borrow money at 20% for vault cash. I run it like a hedge fund or a bank CD. Where I do not pay back pricipal. Give you a real like example. Friend of mine's mother passed away, they inherited $90,000. I borrowed $10,000 @ 20%. I give her the interest payment (not pricipal) $167/month. I have a 1 year contract. She loves it because a CD is paying 1.5%. I love it because that $10,000 makes me about $700-$900 a month. At the end of the 1 year contract, she can renew or take her $10,000 back. She has been so happy I don't see her not renewing, but I am constantly planning and looking for new investors just in case someone backs out. Maybe you should start a fund here on VENDiscuss. As much as you are making off of the money, I would think you would want to stockpile the profits, pay back the $10K, and make an extra $2,000 a year, with much less risk. Link to comment Share on other sites More sharing options...
BluePlate Posted October 30, 2010 Share Posted October 30, 2010 I love RISK! Right now most of my ATM biz money is going back into the ATM business. If I stumble on another $10K I would grow my business rather then pay back investors. I know a few people in this business who generate $30K-$40K per month, they work their butts off for it and they have done it over the course of 10-12 years, I really would not mind being there. Link to comment Share on other sites More sharing options...
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