Requesting advice on starting an ATM business!!

[Christopher Aleman]

I have been doing some research online and there seems to be a lot of potential in the ATM industry.  From what I understand so far, you make 100% of the transaction fee from the ATM withdrawals.  So the plan would be to approach multiple business owners (whose businesses seem to get a lot of foot traffic) and discuss the benefits of installing one of my ATM's in their business.  I would stock/refill (with my own cash), and maintain the ATM's, and the business owner would get a percentage of the fee (an example would be a $2.50 transaction fee and the business owner getting 50 cents per transaction).  Not to mention the increased business and reduced credit card charge-back's the business owner would benefit from.  ATM's surprisingly average around $2,500 and I plan to stock about $2,500 in each machine.  So each ATM would cost around five thousand and I would continue to expand/reinvest the money into the route.  

Does anyone have any advice or experience with this type of business?!

[Brandon Shapiro]

Your generally right but quite a bit off on your numbers.  The business is good and you will earn high returns, much higher than real estate.  If a machine is making 2500 a month you would be putting more like 20-30k in it a week.  Most machines make around 200 bucks.  Good machines make 300-500 a month.  Steller machines make up to 3500 a month.  The better the machine the more you pay out to the merchant and thus the more fill cash you are supplying for a lower margin.  

It is a very capital intensive business.  We have grown our business for 6 years but have about 700k invested in it now just to keep our machines full.  It is scalable, the returns are good, you don't need a lot of employees (we have none currently) to grow a good size business but you do need capital. 

Happy to talk to you more about it if interested.