Commercial spaces are very expensive, especially in locations that draw a lot of traffic. So when business is slow, it can be hard to turn in a profit. That’s why business owners are looking into more ways to boost profits.
It’s necessary to explore additional streams of revenue that can also be installed within the existing business space. This is where ATM machines come in. An ATM can be placed anywhere within the business premises. And even without human intervention, it can help you generate revenue.
If you’re interested in seeing the value that it can bring to your existing business, keep reading. We’ll talk about the costs and benefits of getting one.
The Key to Success: a Good Assessment of the Costs
Before delving into the various earning opportunities that ATM machines give you, let’s first talk about what money you’ll be spending:
ATM Monitoring Software
ATM monitoring software is a layer of protection provided to ATM users. With this, you can access various functions to help protect users from fraud and to advocate for any unfortunate fraud victims. These functions include:
- Live video analysis that allows you to detect threats as they occur. The footage is analyzed at various strategic places at the ATM.
- Remote software upgrade that helps ensure the software runs smoothly all the time.
- Various sensors will detect different kinds of threats around the machine.
- Unified system interface that lets you monitor everything on just one screen.
- Remote file management that secures all received data so retrieval will be easier.
This isn’t just compatible with an ATM. If relevant, you can deploy this solution to ticket dispensers, automated teller safes, and other equipment.
The cost here can be anywhere from $1,000 to $10,000. How much yours will cost depends on its model and whether you’re buying new.
If this is too much, you also have the option of getting a full-service ATM program where you have a retailer managing the transactions. But again, this task can be assigned to a trained cashier.
These are the two main things that you need. Anything else won’t cost a lot, for as long as you already have a space for the machine.
In What Ways Can You Profit From Your ATM Machine?
You may wonder how a machine dispenses money instead of taking it to generate revenue. Below are the ways that you can profit from having an ATM on your business premises:
Commissions and Convenience Fees
ATM users pay a convenience fee of usually $2 or $3. When you get one for your location, you receive a commission. This is the main way by which businesses make money off this investment.
But depending on the agreement with the entity that provided the machine, the commission you get may be smaller. For example, this is usually the case if you rent the machine instead of buying it.
As this is typically the main source of income, consider how much traffic you’re attracting. Then, make some assumptions on the projected profitability based on this information.
Reduced Credit Card Fees
To better understand how this helps, remember that profit is revenue minus costs. However, fees incurred by the business, like credit card fees, are considered costs.
So even though this isn’t directly a source of income, reducing this cost can help improve the profit margin. In addition, having an ATM in the area may encourage some customers to pay in cash instead of using their cards.
And every time that happens, you’re profiting in two ways: you get a commission on their withdrawal, then free yourself from the credit card fees.
Let’s face it. Not everyone who enters your business is going to go there to buy something. It can be as simple as spotting your ATM as they’re looking to withdraw some cash.
Who knows? Maybe something that you sell will appeal to them. You might just convert a wandering stranger looking to get cash into a loyal customer.
Can an ATM Machine Be Profitable? Yes!
It’s all about making the right decisions as far as setting it up is concerned. For example, if you don’t have the budget to buy an ATM, you don’t have to force it. Renting is also an option until you’re ready to eat up the capital cost.
It’s also about remaining competitive. Even though ensuring that your convenience fees are on par with the competition, other factors also matter. The availability and reliability of the machine you have can also determine whether or not you’ll get someone’s business.
You already have one profitable business. Just keep that business instinct as you set up this new profitable venture. Good luck!