ATM Machine Success

[Buzzie8]

I know I saw a post on this earlier but was having trouble finding anything on ATM machines at car washes. I have a Swipe N Clean that I want to pull out of my vending/changer area leaving a great space for what I am thinking should be a through the wall ATM machine. Obviously, I want to generate some $$$ from this space. I wanted to know what kind of return owners were seeing from their ATM machines before spending the $4-$5k on one. It would be especially helpful if someone has some insight on their success in a busy self-serve environment.
Thanks,
Buzzie

 

[robert roman]

During last construction boom, I worked with some developers who included ATM in business model.

Like coffee drive-through, contract postal unit and other small balance properties, thresholds have been established for business acceptance criteria. For example, 400 cups per day for coffee drive-through.

Benefit/cost ATM is straight-forward.

ATM, delivery, install and sales tax figure $7,000 plus $5,000 cash to fill it is $12,000.

Gross profit per transaction is $1.50. Amount depends on base fee charged.

Attraction rate is between 2 and 5 percent of foot traffic.

Annual foot traffic for self-service might be 37,000 per annum * 0.05 = 1,850 * 1.50 = $2,780

$12,000 / $2,780 = payback 4.3 years (excludes overhead)

 

[Earl Weiss]

I have had several installed by vendors and later removed for lack of business at my Gas / C Store / Tunnel location. Failure could be due to having banks on 2\3 sides of me. Had people try to sell me one on a "Disguised Leae" which was actulay a purchase and finaced tru a lease. They offered all sorts of rebates showing me how lucrative it was. Problem was that since it was a lease by a thrid party if the machine was junk I would still be obligated on the lease. Refused to do this non recourse lease despite sales reps spiel about how the company was stellar. Told them that if it was so sttellar they could sign the lease and sublease to me on a regular lease I could cancel if machine was junk, didn't pay off or the rebates didn't come thru. Funny that none took me up on the offer. At lease one such company did go belly up later along with any rebates promised the locations.

 

[mjwalsh]

Buzzie,

I can just speak from the positive experience that we have had during the last 29 months of ownership of an ATM. In our case we did find a few things in the 5 year contract that came with our $2200 Nautilus Hyosung ATM purchase. One was being locked in with the gate processor for all 5 years. We revised the contract ourselves by making acceptance contingent on not being locked in. As it turns out the technology is a much better long term business model based on the gateway processors that I have been reading about from my fellow specifically self service wand (guns if you will). As I have honestly posted before our $5 bill payout ATM has paid for itself more than once greatly exceeding our expectations. The thorough, reliable tracking within the machine & the daily, monthly & quarterly reporting we have experienced has been very helpful!

What we need is enough of us who like the proper combination of $5 bills & higher denomination coins for our mostly self service operations to make a diligent effort to make it known to the ATM industry that it would be very worthwhile for their industry to include a higher denomination dispensing coin option as a new & improved model of their ATM. By higher denomination coin option: the end customer could still get bills out but could also choose the specific number of those higher denomination coins. Hopefully, you guys who see the value will help in this effort.

By the way ... there are 3 convenient stores within 6 city blocks from us who also have ATMs.

Mike Walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[MudMoney]

Mj
I sent you a pm.