ATM Business Start-Up – Learn More About How Profitable Owning an ATM Machine Can Be
Are you thinking about investing in an ATM? If so, like many entrepreneurs before you, you’re likely what the profits are that you can expect to earn from owning an ATM machine?
This is a great question to ask! Every entrepreneur should want to know more about the profits that they can expect from owning an ATM machine before they purchase it.
In this article, we will provide you with insight into the profits that you can expect from owning an ATM machine and we will offer you several tips that you can use to increase the profit from your machine as well.
Understanding the Basics of ATM Profitability
Before we talk about the profits that you can expect from an ATM, we need to discuss the basics that affect ATM profitability.
The location where an ATM is placed is the first thing that affects profitability because of the obvious reason that if an ATM is placed in a location with little to no cars passing by, or foot traffic, that ATM will not have a lot of transactions per day.
If you place an ATM in a location that gets a high number of vehicles passing by, and foot traffic every day, that machine will likely be a profitable location.
Owners shouldn’t stop at just placing their ATM’s in great locations, online advertising is also important as well. ATM business owners should market their machines online on websites like Google My Business too because this will more people to find the new location using their smartphone or favorite internet connected device.
Some of the best locations to place an ATM include convenience stores, restaurants, bars, restaurants, night clubs, and grocery stores because studies have shown that consumers who have access to ATMs are usually going to spend 20-25% more money in the locations that they are in.
How Much Money Can You Earn from an ATM?
As of April 2020, the average processing fee for an ATM in the United States is between $3.00 and $3.50. This means that if an ATM does roughly 300 transactions in a month, the owner of that machine can expect to make $0.50 per transaction or $150 per month in profit.
You can invest in as many ATM’s as you want, the key to success with owning a profitable ATM business is to focus on placing your machines in great locations but you should also focus on offering more items from your ATM’s as well.
Some of the items that can be dispensed from an ATM include paper currency, coins, gold, Bitcoin, stamps, coupons, and more!
Another way to increase the profitability of each ATM includes on-screen and ATM receipt advertising. This is by far one of the easiest ways to increase ATM profitability.
You can partner with other businesses in the area and charge them a flat monthly fee to advertise on your ATM, or a percentage of the monthly profits that come from you sending them new customers.
Besides the ideas that we’ve mentioned for increasing ATM profitability, you should also focus on re-evaluating your ATM surcharge rates per each machine every quarter and doing everything you can to keep your communication costs low since low overhead means you will have higher profits with each machine.