It’s a beautiful Saturday, so beautiful in fact you decide to go to the farmers market and pick up some fresh food. You show up and realize all the vendors are cash only. Not to worry! Conveniently placed for fools just like you, is an ATM. So you swallow your pride and pay $3 to get a $20 bill.
If you are like me your wondering who is making a 15% mark up on my money? They must be getting rich!
How I Found a Job in an ATM Business
I’ve worked in business to business sales. In my prospecting for new clients, I had met a retired Boeing engineer running an ATM business in California. I asked him to work weekends in hopes to understand the business, make some extra money, but mainly see if its something I might want to invest in myself. I worked for two months That’s 8 weekends, 16 days, 108 hours and this is what I discovered. P.S This is my experience I suggest you look at other sources on How to Start and ATM business.
How does an ATM Business Make Money?
When someone uses an ATM, they pay a fee called a surcharge. People recognize they’re paying for the convenience of getting cash when and where they need it. Each year billions of ATM transactions are performed for a fee. Read more on an ATM business owner from Reddit.
Structure of His Business
Total of 30 ATMs
- The ATMs are about $2,000 / piece
- 20 ATMs were conveniently placed in Dispensaries and Parking Lots across Los Angeles.
- 10 ATMs were used for the events in which he catered to. Events such as Mad Decent, Farmers Markets, and other outdoor events.
The ATMs in the dispensaries and parking lots collected a $2 fee for each transaction. Each ATM would be refilled weekly with $5,000.
- That’s about $125,000 in cash flow to fill the ATMs.
- With an average transaction being $40, that is 3,125 transactions.
- At $2 per transaction, he was averaging $6,250 week on the static ATMs.
Keep in mind he is not taking home a clean $6,250 a week. Each transaction a third party company (Payment Alliance International) would take a small nominal fee for each transaction. I would be lying if I told you the exact amount. Let’s just say he took home $5,000/Week on these ATMs.
The ATMs he had rotating around made $3 per transaction. These required to be dropped off at festivals, farmers markets, and other events that were booked in advance.
How much he made on these, I couldn’t tell you.
- Somewhat “passive income”.
- Simple to begin requires very little technical knowledge
- cash intensive
- hard to find employees to trust with a large sum of cash
- Liability for theft covers machine not cash in the machine
- many banks will not take your business due to so many cash transactions
My final conclusion
My decisions are based on the type of business I like. I like solving problems in a team setting. I also don’t like businesses that make me feel like a drug dealer. Walking around with large sums of cash to refill ATMs, makes you a moving target. Same with the people you hire.
To put the cherry on top it was boring after 2 weeks.
So I vote No on is the ATM business a good startup business.
Let me know if this was informative. Should I include more technical knowledge?