ATM breakdown and information on dealing in ATMs. If you are considering an ATM for your business this is a must read.
FULL SERVICE: Customer purchases it and puts their cash in it.
VAULT CASH IT: Customer owns machine and we/ or another Co. puts their money inside.
OTHER WAY CASH: CAPITAL ATMs USA owns the machine and the customer (you) put your cash in it.
LEASE AGREEMENT: With good credit you can lease to buy out an ATM from CAPITAL ATMs USA $2.00/day
Today we sold a location of ours the ATM we placed and cash vaulted for 15 years. We’ve had a very good relationship but they felt they really wanted to try their hand at running the ATM. So we sold the ATM to them at a reasonable price and tried to persuade them to let us vault cash it for them at $1.00 per transaction. They decided they would make more money by doing it all themselves. But here’s the real picture.
Bought ATM for $1200.00 (used)
Their money inside for $4000.00 V.C. (Vault Cash)
The ATM is a one time expense so I won’t show this in the example. But the V.C. is every week and sometimes $5000.00 which is now tied up for good. What’s their return (ROI)? If they do 150 transactions/month at $2.50 they should receive $375.00. First deduct the processing fee of about $25.00. When we were giving them full service we were paying them $1.00 per transaction. They received $150.00 and no processing fee. Right now the gap is only $200.00. Not bad right? ROI is 48% for the year. It’s even better than the stock market but less riskier. However, here’s the rest of the story. The owner could have taken that $5000.00 and invested it in a new product line for his store and customers. The ROI would likely be much greater for a new “PIZZA” or Sandwiches or Hoagies To Go And he’d keep making his money back month after month without tying it up for ever. And if someone broke in to his store would they take the ATM or the PIZZA Maker?