Are you planning to set up an ATM machine and let people enjoy its services right within your company or organization’s premises? Well, it can actually be a very lucrative idea provided that you ask yourself two basic questions. These are “Do you have customers asking for an ATM location near you?” and “Do you have a minimum of 150+ people visiting your location daily?” If your answer is yes to both of these questions, it is time that you start considering your options for getting an ATM machine in your organization. So, here is a step-by-step guide on how you can go about it.
Choosing an ATM Service Company/Distributor
There are several ATM companies that can offer you with appreciable services. However, most of these companies will consider a rule of thumb while deciding whether or not to place the ATM machine at a given location. The rule of thumb says that 3-5% of the foot traffic that notices the ATM will end up using it too. Now, quickly calculate the number of people coming through your doors every day along with the surcharge per valid withdrawal and you will easily arrive at a figure that explains the number of transactions per month and also your estimated revenue. The bottom-line is that the higher the foot traffic, the higher will be your profit margin.
Different Types of ATM Services:
Let us now consider the different types of ATM services and agreements available out there:
Co Op ATM Services- A very new concept in the ATM business, this particular arrangement is preferred by companies taking both the advantages and the risks in a 50:50 proportion with the provider. Simply out, co op ATM allows the owner to split the cost and liabilities with a leading ATM dealer or distributor. Another advantage of this arrangement is that mistakes arising from operating the ATM machine for the first time independently can be avoided. All costs are split by the distributor apart from the machine itself. Co op ATM is a good option if you want to minimize the risks and focus on learning more about the business as a whole from a reputed player in the field.
Free ATM Placement Programs- Free ATM placement programs are going around for quite some time now. These services are provided in high traffic locations only. The ATM distributor provides the location with a percentage of the ATM surcharge revenue generated from valid cash withdrawal through the ATM. The dealer will be entirely responsible for every function be it the setting up of the machine, installing the machine, loading cash into it or maintaining the system in the long run. If your organization is ideally located, then it is a wise option to go for free ATM placement programs. All you need to do is choose the right dealer and relieve yourself from all worries related to investments.
ATM Machine Lease- Lease agreements are entered into for a given period of time like one year or so. Leasing can be preferred if you are not really sure about how it is going to work and how much revenue it is going to yield in the long run. However, leasing agreements have several clauses and it is essential that you consider each of them well before entering into one. See if there are clauses revolving around late lease payments or if opting out of the agreement is allowed in the middle of the transaction. Make a careful choice of your provider, clear all doubts and ambiguities right at the beginning to make sure that the ATM business turns out to be profitable for you.