An ATM cash machine business and a vending machine business are two side hustle options that can earn you a semi-passive income. So which one is better?
At the end of the day, it is up to you and your personal goals, experience, and comfortability that will affect your decision. However an ATM cash machine business can be a simpler venture in many ways. Here, we’ll provide you with a side-by-side look at some considerations of each.
Why Are ATM Cash Machine Business and Vending Machine Business Good Side Hustles?
An ATM cash machine business and a vending machine business are similar in many ways. Both businesses involve the purchase, placement, operation, and maintenance of one or more machines.
Compared to traditional retail businesses, ATM cash machines and vending machines typically have lower overhead costs. There is no storefront rent, utilities, or a large staff; just the equipment and product.
The success of each is dependent on the quality of the location. Finding a quality location requires research into the target demographic, market gaps, and amount of foot traffic.
Since there is no storefront rent, both businesses, therefore, require placement negotiations. You will have to partner with other business or location owners or renters by appealing to them with the extra service you can offer to their customers.
Additionally, both businesses offer semi-passive income. This means that you can be making money while you do other things: work another job, pursue hobbies, sleep…. But you will still have to monitor the activity on your machine, making sure it’s stocked, operational, and generating revenue.
Then, of course, there is ongoing maintenance for both. You might have to troubleshoot error codes, handle customer complaints, make sure the machine is clean and presentable, and address any tampering, vandalism, or damage.
However, while both an ATM cash machine business and a vending machine business involve automated transactions and generate revenue through user interactions, there are several important differences between the two.
Key Differences Between ATM Cash Machine Business and Vending Machine Business
Product Offering
The most obvious difference between an ATM cash machine business and a vending machine business is the product offering. One offers convenient access to cash while the other offers food and beverage.
A vending machine business generates revenue based on the sale of the products it offers. An ATM cash machine generates revenue from a service fee, or a surcharge. Customers pay for access to the service, but they essentially receive that which already belongs to them. An ATM doesn’t sell anything per se.
An ATM cash machine business is simpler in this respect. The only “product” you work with is cash. The only metrics you need to monitor are how much cash is needed and at what times. This allows you to ensure that your ATM machine has enough cash to meet the demand during the times of highest need (maybe weekends, holidays, local events, etc.).
There are a lot more factors to consider with a vending machine. For example, will you offer snacks or drinks? How much of a variety will you offer? Which product(s) sell more frequently than others? You need to strategically select and monitor the products that appeal most to your target demographic.
The same is true of an ATM cash machine business but on a much more limited scale. For example, most ATM machines offer a single denomination (20s), though you can opt for two denominations.
But that’s pretty much it. With an ATM cash machine business, your biggest stocking concerns are which denominations to offer and when the busiest cash-demand times of the month are.
Market and Placement
While product offering is limited to an ATM cash machine business, the placement options are more diverse. And that’s a good thing.
Vending machines are commonly placed in offices, schools, hospitals, gyms, and other public spaces. ATM cash machines, however, succeed wherever there is a need for cash.
Vending machines typically require locations where large numbers of people congregate for a long duration of time. ATM cash machines do well in similar locations, like shopping centers, bars, and casinos. But they also do well in areas where people are simply passing by, like markets, convenience stores, and parking lots.
ATM cash machines are also more versatile in that they can be placed indoors or outdoors. This offers 24/7 access to your service which allows you to make more money.
Finally, ATM cash machines can be easier to place than vending machines. First of all, you aren’t limited to large venues that necessitate vending machines. You can appeal to salons, restaurants, and other small businesses which expands your options.
And, business owners are motivated to add an ATM cash machine to their location for the benefits they’ll see in return. The added service can bring in more traffic, increase sales, and encourage cash payments which saves the company money on credit card transaction fees.
So while both businesses rely on placement negotiations with other businesses, the process and options vary greatly.
Regulatory Compliance
Just like any other business, an ATM cash machine business and vending machine business will have to comply with industry regulations.
Operating a vending machine business may require adherence to various regulations and permits, depending on the location and types of products sold. Ensuring compliance with health, safety, and licensing requirements can add complexity and administrative burden.
ATM cash machines must meet regulation guidelines according to the Americans with Disabilities Act (ADA). But new machines are already designed to meet these requirements, so most of that burden is off your shoulders! All you need to do is make sure there is a clear path to the machine and that all functions are accessible.
Conclusion
While both vending machine and ATM businesses offer opportunities for generating passive income through automated transactions, they involve different products/services, target audiences, revenue models, and operational considerations. Carefully evaluate these factors to determine which type of business aligns best with your goals, resources, and risk tolerance.
An ATM cash machine business is simpler than a vending machine business in many ways which can make it a better side hustle. And what’s more is there is a risk-free training program available to you to get started in the ATM business from the ground up.
If you want to start making money while you sleep, find out everything you need to know from ATMDepot.com’s own CEO and founder, Noah Weider with the ATM Business Road Map. With the right information, tips, and support, starting an ATM business has never been easier. Get started today!