How to Use LAER for Handling Objections

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LAER is most widely known as a marketing technique used by salespeople. However, you will find that it’s actually a great active listening technique for handling objections in any scenario. That’s why we’ll explain in this article how to listen, acknowledge, explore, and respond to objections you might face when approaching location owners with a proposal to place your ATM.

What is LAER?

LAER is a communication strategy that stands for Listen, Acknowledge, Explore, and Respond. While you might think these four steps go without saying, it’s actually a method that needs to be practiced and perfected. Too often we want to jump in with our solution, especially when we are so confident and sure of it. But doing so will almost certainly cost you the deal.

You know you have a good idea. You wouldn’t be approaching business owners with an ATM opportunity if you weren’t sure the location would benefit from it. And, you know there is little to no risk on the part of the location owner. But how do you get someone to trust you and to hear you out (especially for your first placement)? 

If you’ve struggled to negotiate locations in the past, it probably isn’t the idea that isn’t working; it might be the presentation. These are the four steps of the LAER method explained:

Listen

This is the first step, but it will be a vital one throughout the entire conversation. You don’t want to just listen to the owners’ initial objections, you’ll want to also listen to their answers to your questions. 

Listening doesn’t just mean not interrupting. It means really trying to understand the perspective of the speaker. As the location owner says he or she isn’t interested, try to understand why. When you ask probing questions to get to the root of the pain that’s causing the objection (step 3, explore), listen closely to the answers. 

This way, when you respond (step 4), your response is personalized, genuine, and helpful. Responding in this way rather than from a generic script will show the owner that you are a professional who actually listens.

Acknowledge

During and after actively listening to the owner’s objections and answers to your questions, acknowledge that you understand what is being said. Acknowledgement can be a verbal, “I understand,” or a non-verbal head nod. Whether or not you agree with what is being said, acknowledgement encourages the speaker to keep talking. 

When he or she is finished, begin your response with a summary of what was said. If you get it right, great! If you get it wrong, the speaker will be happy to clarify and probably grateful for the opportunity because it shows that the conversation is two-way.

No longer are you simply trying to “sell” a machine, an idea, or a proposal. You are engaging in a professional conversation that works to please both parties. Again, acknowledgement doesn’t necessarily mean agreement. It just means that you are trying to meet the owner at his or her point(s) of concern 

Explore

Exploring allows you to dig deeper into the root of the objection. What exactly is causing the concern? Where is the objection coming from? You might find that a location owner is objecting due to past experiences, misinformation, or different goals or agenda. 

Ask questions that allow you to better understand why people are objecting. Don’t assume you know why they don’t agree. If you do, your response isn’t going to cut it; you will only scratch the surface of the problem. Don’t try to align what you hear with your beliefs. Instead, try to really understand them so that you can provide a realistic response.

Respond

Don’t tell someone why their way of thinking is wrong. This is aggressive, salesy, and off-putting, and it’s a surefire way to convince someone not to work with you. If you simply respond with facts, you can let someone determine on his or her own what makes the most sense. 

Your response should be factual and helpful. Recommend a solution, a next step, and/or compromise. Keep reading to see some common objections you can use to prepare yourself.  

What Objections Do ATM Owners Face?

New ideas can be scary. Change can be scary. Why try to fix what isn’t broken, right? Location owners might be particularly hesitant to enter into a partnership with you if they really don’t know much about ATM machines or the business. The less they already know, the scarier the change will be.

Location owners are also busy. Don’t be surprised if they aren’t quick to jump at an opportunity that they think will create more work for them. They also might not see that the potential rewards outweigh the perceived risk.

Here are some objections you might come across (or maybe already have) when approaching location owners:

  • I’m afraid an ATM machine will attract crime.
  • I don’t have room for a machine in my store.
  • I don’t have time to handle an ATM machine.
  • I think I’d rather purchase my own machine.
  • I don’t feel comfortable working with someone new to the business.

What kinds of questions can you ask to dig deeper into the root of the objection? Next, we’ll provide an example.

What Happens without the LAER Method?

Let’s take a look at two conversations, one that uses LAER and one that does not. Which one sounds more effective to you?

Without LAER:

ATM Owner: Thank you so much for your time. I wanted to talk to you about placing an ATM machine in your store. Is this something you might be interested in?

Location Owner: No, not really. I don’t want people breaking into my store.

ATM Owner: Well you see, adding an ATM to your store will increase traffic to your store and get you more sales. 

In this scenario, the ATM owner provides the location owner with the potential value and benefits of adding an ATM machine to the location. However, this response completely ignores the root of the objection. So it isn’t going to be a strong enough response to convince the location owner to work with you.

This response also sounds rehearsed. It’s totally acceptable to use a script to guide you, especially when you are just starting out. But in this case, the script is obvious because it sounds as though the ATM owner wasn’t really listening to the location owner. Instead, the ATM owner responds as though it didn’t actually matter what the location owner said; the response was going to be the same. 

It sounds almost as if the ATM owner was just waiting for the opportunity to recite the list of benefits. And while they might be true (there really is a list of benefits of ATM machines for location owners), they don’t address the concern the location owner has. This response does not provide a solution or compromise.

With LAER:

ATM Owner: Thank you so much for your time. I wanted to talk to you about placing an ATM machine in your store. Is this something you might be interested in?

Location Owner: No, not really. I don’t want people breaking into my store.

ATM Owner: I understand. Break-ins can be expensive! Have you experienced a break-in here before?

Location Owner: No, but I’ve heard stories of other robberies in this area.

ATM Owner: Oh. There have been robberies in this area? Were they ATM robberies?

Location Owner: No, they robbed cash registers. OR I don’t know.

ATM Owner: Are you worried about theft during store hours or after store hours?

Location Owner: Well, both, but the robberies here happened (during/after) store hours.

ATM Owner: Uh huh. I see. Well robbery is definitely a concern, but ATM machines aren’t really a big target for armed robbery. It takes a long time to breach an ATM machine, and that increases the risk for average robbers. What if we put the ATM machine outside of the store?

Do you see how this scenario sounds more like a two-way conversation with both parties sharing new information with the other? The ATM owner listens to the location owner by repeating or summarizing what the location owner says, acknowledges the location owner by verbally affirming that he or she understands, explores the root of the problem by asking probing follow-up questions, and responds with facts specifically about ATM crime and even proposes a compromise.

So if you were questioning the effectiveness of active listening strategies before, hopefully now you see the benefit! Are there other methods you can use? Absolutely! The point is that you practice active listening in order to provide more effective responses and close those deals!

How to Use LAER for Handling Objections

In summary, listen to what the owner says, acknowledge that you understand the objections, explore in depth the pain that is driving the objection, and respond to the pain only when you fully understand it.

The concept is simple, but execution can be tricky. You might not get it perfect right away. Practice using it and listening for it in your day to day conversations. You may find that it even improves your conversations with your loved ones!

For scripts you can use to get location owners to talk to you to negotiate deals, check out the Member’s Area at ATMDepot.com!

How to Complete Your ATM Business Basic Checklist

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This ATM business basic checklist is for you to use as you go through the process of operating an ATM machine. If you’re looking for more of a step-by-step guide, check out our article How to Start an ATM Business in 5 Steps. 

However, if you are looking for a list of what needs to be done, this is it. Once you have completed each item in this ATM business basic checklist, you will officially be in business. You can’t neglect any of these items if you want to start operating your own ATM machines!

1. How to Find a Processor

What is ATM Processing?

You need to work with an ATM processing company so that your ATM machine can communicate with your customers’ banks. An ATM processor identifies the network of each card inserted into your ATM machine, routes the information to the user’s bank, verifies the funds, then receives approval from the bank to dispense the withdrawal amount up to what’s available in the account. Check out our video here for more information.

Factors to Consider

Although ATM processing is pretty basic, there are a number of factors to consider when choosing an ATM processing company. It is in your best interest to research a variety of companies to find the one that is going to best suit your business needs and transaction volume.

Now, if you’re just getting started, you might not know your transaction volume yet. But your processor might. Find an experienced company that will be able to assist you throughout your entire career as an ATM owner. 

Experience

An experienced company will be able to give you advice regarding the location you choose (keep reading this ATM business basic checklist for more information on choosing a location) as well as how much you can expect to make from that location or from alternative locations.

Support

You also want to work with an ATM processing company that wants you to make money. A company that acts as a business partner will offer you support throughout your entire career, not just during the initial setup. The company should offer training, ongoing support, and dependable support (meaning they answer the phone when you call…).

Other Services

Finally, you want to know what additional services the company provides. Not all ATM machines work with all processing companies, so if you choose a processor before your equipment, you might want to know if they also sell equipment. Because they will only sell machines that they can support.

If you purchase your equipment before choosing a processing company, you will have to make sure the company can support it. (More on deciding machine type next.) And you can switch processors after you are already in operation. Your needs might change, or you might not get the service you expect from your current processing company. In these cases, you will need to switch to a company that can support the machines you already have. 

Other services you might want to consider are vaulting, remote monitoring, and automated payments. This business is all about building passive income. So you want to minimize your workload as much as possible.

You can load your ATM machine (vaulting) yourself to make as much profit as you can. But if this isn’t convenient for you, your ATM processing company might offer this service. 

Remote monitoring allows you to track your machine’s activity and cash availability which makes it easier for you to keep it stocked and minimize downtime. And automated payments prevent you from having to spend time making transfers yourself and constantly online banking. The less time you spend managing your ATM, the more passive income you make.

When looking for an ATM processor, look for a business partner. Find out more about how to choose an ATM processor here.

2. How to Decide on Your Machine Type

You have lots of options when it comes to choosing ATM equipment. If you’ve already chosen an ATM processing company to work with, you will have to narrow your search to machines the company can support. If the company sells machines, this might be the simplest item on this ATM business basic checklist!

Machine Type

First, you need to decide if you want a freestanding machine, a through-the-wall (TTW) machine, or a wall mount machine. The three most important factors to consider when it comes to machine type are cost, space, and security.

TTW machines are the largest of the three types and therefore cost a little more. However, they are more secure because the vault extends into another room that can be secured during regular operation and vaulting. Unfortunately, they require a lot of space and some construction work to allow the machine to fit into the wall if the space doesn’t already exist.

Freestanding machines are smaller than TTW and are therefore a little cheaper. You also have more flexibility with the placement of a freestanding machine. Likely, a majority of the ATM machines you see day to day are freestanding.

Wall mount machines are the smallest of the three types. They are also the cheapest, but they don’t hold as much cash. Wall mount machines are a good option for slower locations. Despite the name, this type can be mounted to a countertop as well which makes them easy and convenient to place; they don’t take up a lot of space.

Manufacturers

Some of the biggest names in ATM equipment are Hyosung, Genmega, Hantle, and Triton. All are reputable companies that have been in the business for a long time and are known for producing quality equipment. 

Check out our ATM Buyers Guide for more guidance on choosing the ATM equipment that’s best for your business. We also compare Hyosung and Genmega, the two top of the line ATM manufacturers.

New vs. Refurbished

Finally, you have to weigh the pros and cons of a new vs. refurbished machine. It really comes down to your budget, your experience, and machine availability. 

We recommend starting with a new ATM machine at least for your first one. Newer models come with improved features and advanced technology making them easier to operate.

However, refurbished ATMs are also good options. It just depends on what is available and the quality of the refurbishment. If you have your heart set on a specific manufacturer or model, you might not be able to easily find what you’re looking for; you will more likely have to choose from what’s available. 

Most importantly, make sure you purchase certified refurbished if you choose to go this route. This guarantees that the machine has had standards checks, detailing, and upgrades applied.

3. How to Place Your ATM

If you own your own store, you can go ahead and mark this off of your ATM business basic checklist! If you plan to place your machine in someone else’s business or store, consider these factors:

  • Foot traffic
  • Proximity to other ATMs
  • Proximity to you
  • Liquor license

The busier the location is, the better the location’s reviews are, the more people that pass by it every day, the better your ATM is going to perform. People can’t use your machine if they don’t pass by it or see it, so you want to get as many eyes on your machine as possible.

You also want to corner the market. You will get more users the farther away your machine is from other machines. This way, you aren’t sharing customers; yours is the most convenient!

Remember that the goal is to build passive income. So the less time you spend managing your machine, the more you make! This is why it’s important to choose a location that’s convenient for you, too. If it’s close to the route you take often, either to and from home or work, you make more with less time and work (and gas!).

Finally, keep in mind that locations that have a liquor license are able to charge more for transactions. In our article 9 Best Locations for ATM Machines we share our experiences with ATMs in various locations. If you need help approaching location owners, check out our tips for cold calling or join ATM Depot’s Members Area for access to scripts you can use to negotiate a deal.

4. How to Decide Your Surcharge

Setting your surcharge is all about strategy. You want to strike a balance between a transaction fee that’s convenient for your users and profitable for you. If you’re just getting started, you need to make your return on investment (ROI) before you can start making a profit, so you want to do this quickly. There are two ways you can do this:

First, you can set a surcharge that is lower than the competition to increase the number of transactions your machine receives. Second, you can match the competition or set a higher surcharge to try to make more per transaction. 

However, it isn’t as simple as that. It all depends on your location, the amount of foot traffic, the demand for your service, and your proximity to other machines.

Fortunately, we have a comprehensive guide for How to Set Your ATM Surcharge. Furthermore, you can always adjust your surcharge, so don’t stress out about it too much. Trial and error will play a big role in making sure you get it just right!

Completing Your ATM Business Basic Checklist

You know what you need to do, but how do you do it? This ATM business basic checklist is just the start. That’s why choosing the right ATM processing company is so important. Because you want support from beginning to end. Whether it’s asking questions, strategizing, or filling your pockets, your ATM processor should be there every step of the way making sure that you are successful. If you have questions about choosing a processor, purchasing ATM equipment, placing your ATM, or setting your surcharge, contact us today!

ATM Business Basic Checklist via ATMDepot.com
Want to start your own ATM Business? Make sure you check off all of the items on this checklist before you get started so that you’re prepared.

How to Set SMART Goals for Your ATM Business

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Have you heard of SMART goals? It’s no secret that goal-setting is a tried and true method of making sure stuff gets done. But if you’ve set goals before without success, you might have missed some key steps.

Setting goals for your ATM business is a good way to make sure you are successful. You might need to set goals to help get your business started to begin with. Or maybe you need to set some goals to increase profits. Or maybe you want to set some goals to help you balance your ATM business better among your other jobs and your personal life.

Whatever the case may be, SMART goals are a good place to start. We’ll show you how.

What Are SMART Goals?

SMART goals are specifically designed to help you actually achieve what you set out to do. Rather than just jotting down some items on a to-do list without any accountability, SMART goals allow you to monitor your progress toward a big-picture goal. 

SMART stands for Specific, Measurable, Achievable, Relevant, and Timely. By making sure your business goals fit these categories, you set yourself up for success by ensuring that you have a plan to actually accomplish them. Let’s take a look at some examples of SMART goals you can set for your ATM business.

How to Set SMART Goals

How to set SMART goals is already outlined in the acronym. Think of a goal and make sure it fits all five categories. If it doesn’t, then tweak it until it does. We’ll start with a basic example—increase profit—and see how it can be turned into a SMART goal.

Specific

First, your goal needs to be specific. “Increase profit” is a good start, but it would be even better to assign a number to it. If you make just one penny more, technically you will meet this goal. But is that really what you mean when you say you want to increase profit?

Take a look at how much you have already been making. Then, decide how much more you’d like to make. Give yourself a specific number to reach. Track it along the way to make sure you are on track to meeting this milestone.

Measurable

Once you make your goal more specific—increase profit by X% or increase profit to $X—you need to make sure it is measurable. Because, like we mentioned before, you want to be able to track your progress toward reaching your goal. And you want it to be clear at the end whether or not you succeeded.

Assigning a dollar amount or percent to the “increase profit” example not only makes the goal more specific, but it also ensures that your goal is measurable. Percents and dollars can be calculated. You can do some accounting at the end of the quarter or the end of the year to see if you have increased profit from last quarter.

By setting a measurable goal, you are able to keep it on the forefront of your mind. You can create a chart or graph to visibly display your progress toward your goal. Don’t blindly wait around until accounting time to see if you magically made more money. 

Measuring and tracking progress makes working to achieve your goal a constant activity and therefore increases the chances that you will actually succeed. If you are actively measuring and tracking your progress toward your goal, you can make adjustments along the way if the numbers start going the wrong direction or plateau.

Achievable

This one is tricky because you have to find a balance between shooting for the stars and grounding yourself in reality. You don’t want to set yourself up for failure by setting a goal that is completely out of reach, unrealistic, or unachievable. On the other hand, we want to encourage you to set high goals for yourself and to believe that you can and will achieve them.

So let’s look at our example. Increasing your profit by 10% or by $1,000 are examples of achievable goals. These numbers are realistic, and reaching them will have an obvious effect on your business, your income, your lifestyle, etc. 

Earning a million dollars, for example, is not realistic. If you’re in the ATM business, you know you aren’t doing it to get rich. So you aren’t selling yourself short by lowering your goal from a million dollars because this business isn’t designed to earn you that much. It has nothing to do with your abilities, passion, drive. Just keep that balance in mind as you set your SMART goals.

Relevant

Next, you want to make sure your goal is relevant. This means that whatever goals you set for your business should align with the goals you set for yourself, your family, and your personal life. If your goal is to increase profit by $1,000, but to do so means placing an additional ATM machine, then you have to consider whether the time it will take you to maintain that ATM machine will cut into other important obligations.

Say you want to increase profits. So you place an additional ATM machine. But now you have to add a few hours a week to your route. Normally you would be spending that time at home with your family. Is that business goal still relevant? 

If not, adjust it! Maybe lower the profit goal to a number that could be reached by adjusting the surcharge or advertising the machine. That way you can still reach your goal, make more profit, and stay on track with the other areas of your life.

Timely

Finally, you want to set a time frame. Without it, you could be working blindly day in and day out without ever knowing for sure if you were making good progress toward your goal. 

A time frame holds you accountable. And if you’re measuring or tracking your progress, you can see how what you are doing in your business now is affecting the trajectory of your business toward reaching your goal. 

This also plays a part in making sure your goal is achievable. Increasing your profit by next year is an example of an achievable time frame. Increasing your profit by 10% by next week is a little unreasonable. It doesn’t give you enough time to measure the actions you are taking and the changes you are making to ensure that your efforts continue to move you forward.

But the bottom line is to make sure you set a goal that can realistically be achieved in the amount of time you determine. 

Why SMART Goals?

You can make a list of goals all day long. And if you’re really focused and motivated, you can accomplish them. But the best way to make sure you are productive is to set SMART goals. 

SMART goals are ideal because they are designed to be achieved. They clearly state what it is you’d like to do and force you to create a plan to get it done. For example, your goals should be measurable, but then you have to assume the task of measuring your progress. Your goals should be timely, so you need to pick a timeframe and stick to it. If you are ready to step up your ATM game, try setting SMART goals to see just how successful you can be. Need help? Contact us today to see how ATMDepot can help you reach your goals!

Improve ATM Performance and ATM Attractiveness to Maximize ATM Profits

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Owning and operating an ATM business is a simple way to earn passive income. But what if your ATM performance isn’t as high as you expected? Is there anything you can do to maximize ATM profits?

You have to keep in mind that although an ATM business is unconventional in many ways, at the end of the day it is still a business. For instance, what do store owners do during slow periods? They run sales, offer coupons, and take out ads. You can do the same for your ATM. 

If your ATM isn’t performing well, don’t worry and don’t quit. There are things you can do to improve your ATM performance, maximize ATM profits, and get that passive income flowing.

Why Isn’t Your ATM Performing?

Before you look at the ways to improve your ATM performance, you need to diagnose the problem. After you identify the reason(s) why your ATM isn’t performing, then you can determine an appropriate solution.

The first factor you want to consider is the location. Is your ATM placed in someone else’s store? How much traffic does it get? Does the location have good reviews? You want your ATM machine in a store where a lot of people pass by and drop in.

What about hours of operation? Is the location 24/7? If not, is your ATM machine inside or outside of the store? Your ATM might not be serving your customers at the times when they need it most.

Think about the placement, too. Is the ATM in a place where people feel safe using it? If the ATM machine is hidden, poorly lit, or not under video surveillance, this could be deterring customers.

Finally, consider your surcharge. Is it too high? Is there another machine close by that offers a lower surcharge? If so, you might want to experiment with a lower fee.

Of course, you might not be sure what the problem is exactly. In that case, there’s no harm in trying all of the following ways to improve ATM performance and maximize ATM profits!

How to Improve ATM Performance

1. Advertise

The first thing you want to do to get customers to use your ATM is make sure they know it’s available. Is there a sign at the location that passers-by can see from the street? If not, add one.

Advertise inside the location as well. Add a topper to the machine that catches the attention of customers and patrons of the location. There should be a clear path to the ATM machine as well. If it’s in patrons’ line of sight, it will be easier to access and therefore will attract more customers.

Does the location or store have a website or Facebook page? If so, you might want to list “ATM” online as a service offering. That can spread the word to people who aren’t even on site or nearby. 

2. Offer Incentives

You might want to partner with the location owner to offer some sort of incentive to customers for using the ATM machine. Coupons can be printed on the ATM receipts to encourage both ATM use and in-store purchases. This creates a win-win situation for you and the location owner.

3. Upgrade Features

Adding upgrades to your ATM machine is an easy way to spruce up an older ATM machine. Even if your machine is new, adding additional features could help customers notice your ATM machine and set yours apart from the competition.

Add a topper to run graphics, messages, store promotions, ads. Install a lighted keypad to make the machine more attractive. And if you don’t already have a camera on the premises, adding one will make customers feel more comfortable using your machine.

You can also invest in a UV-C light device that scans the keypad to sanitize it. This could impress your customers by looking out for their health and safety and set you apart from the competition.

4. Lower Surcharge

You have to set your surcharge strategically. The average ATM surcharge fee is around $2.50-$3.00. If your surcharge is higher than this, it could be deterring customers.

If your surcharge is too high, you might lose customers to a machine with a lower surcharge. Scope out the surrounding area and see what other machines are charging. (If yours is the only ATM nearby, then surcharge likely isn’t your issue.) You want to offer a competitive rate: high enough for you to make income but low enough to encourage transactions.

You can experiment with this. Lower the surcharge for a while. If transactions don’t increase, then this probably isn’t the issue. So raise it back to the original surcharge so that you at least continue to make the same amount of money from the transactions you do get. Only lower the surcharge if it draws in more customers. 

You might also consider offering lower denominations from your ATM machine. Customers in the area where your machine is may need to take out less than a $20 bill. Dispensing a different denomination than the other ATMs around you could also help you stand out from the competition.

5. Move the ATM

If all else fails, move the ATM. This is one of the unique benefits of running an ATM business: it’s mobile. If your location is slow, hidden, going downhill, then it might be a good idea to move the ATM to a different store when your agreement is up. However, let’s not jump to switching locations just yet. Strategic placement of the machine at its current location could do the trick. 

First of all, can passers-by see the ATM before entering the store? If not, is there a place that would make this possible? People have to know that an ATM machine is available in order to use it.

Second, is the ATM machine easy to get to? You might consider moving it close to the front door or straight ahead from the front door without any shelves, lines, or other obstacles. Not only should the machine be easy to get to, but ATM users don’t want to be hidden from cameras or the public eye when they access their accounts. An obscure ATM machine isn’t safe, and your customers are attuned to this.

Third, can the ATM machine be moved outside? If this is feasible, it could extend the hours of operation of your machine if the store isn’t open 24/7. This also solves a couple of the other problems: visibility and accessibility.

Finally, is the ATM in an area where people need cash? There might not be a need for an ATM at its current location. Maybe there are other machines in close proximity that are proving to be too much competition. Or maybe there aren’t a lot of opportunities for people to make cash purchases at any other businesses in the area. If this is the case, it might be time to look for a new location.

How to Improve ATM Attractiveness

Would you rather use a dingy ATM or a shiny new one? Not only does shiny grab users’ attention, it also suggests a certain degree of safety and trust. We aren’t saying you have to purchase (or should have purchased) a brand new ATM. There is nothing wrong with a properly refurbished ATM machine.

What we are saying is that customers are more likely to use a machine that’s clean, attractive, and safe. Users don’t want to use a machine that looks old, run-down, poorly maintained. They might fear losing their debit cards if the machine doesn’t look trustworthy.

There are a few things you can do to make sure your ATM machine is attractive and enticing to customers. First, clean it. Wipe it down regularly. Replace the decals if necessary. Clean the area around the ATM, too. You want people to approach the ATM, not shy away from it.

Second, upgrade some features. Add a topper to run messages and advertisements. Get a security camera. Install a lighted keypad to attract customers and make the machine more attractive. Especially if your machine is used or refurbished, adding a lighted keypad could be a nice touch. 

Third, make sure your machine is functional and has little to no down time. An out of order sign could lose customers’ trust and prevent them from returning to that machine. So if anything ever goes wrong, address it immediately. This includes keeping the machine stocked with cash and receipt paper at all times.

Finally, regularly update your software. You want your machine to run as quickly and smoothly as possible. And you don’t want to run into any technical issues. The more available your machine is, the more potential there is for transactions.

Conclusion

If none of these tips are possible or effective for you, you might want to consider moving to a new location while keeping this list in mind. In order to improve ATM performance and maximize ATM profits, people have to know that the machine exists, they have to need cash, and they have to feel comfortable using the machine. 

It might require a little trial and error to get it just right. There are a lot of factors to consider and a lot of decisions to make. Be strategic and don’t be afraid to try and try again. That’s the beauty of the ATM business: it’s easy to be flexible. Want to know what locations experience the best ATM performance? Check out our article “Choosing an ATM Location: 9 Best Locations for ATM Machines” here.

How to Run an ATM Business Successfully

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Want to know how to run an ATM business successfully? Running a successful ATM business is simple. As long as you are willing to do the work, there is money to be made. But when it comes to being successful in the ATM business, it’s important to remember that not all ATM businesses look the same.

Someone else’s success might not look like yours. What that means is that you have a lot of decisions to make that no one can make for you. You have to decide which processor to work with, which machine to purchase, where to place your ATM, and how much to set the surcharge.

The answers to all of these questions will depend on your specific lifestyle and goals. The most successful ATM business is the one that works for you. All you need is a little strategy and patience to run an ATM business that brings in the revenue you aim for.

Here we share 5 tips that show you how to run an ATM business successfully. Follow these tips to make sure you have all of the pieces in place to run a successful ATM business.

1. Find an ATM Processor That Meets Your Business Needs

The first thing you need to do is find an ATM processor you want to work with. There are many things you will want to consider in terms of overall cost, support, and perks. If you aren’t sure how to run an ATM business, you want to find an ATM processor that acts as a good business partner, not just a service provider.

ATM Sales

One important factor is whether or not the ATM processor sells ATM machines as well. If you purchase your machine from an ATM processor, your machine is guaranteed to be compatible with their service. 

An ATM processor that sells machines might even have used and refurbished options that are compatible. This saves you time purchasing the machine first and then having to find a processor that will support it.

Automated Payments

You are earning passive income with your ATM business. That means you sit back, relax, and let the business work for you. But if you have to initiate transfers yourself, that’s time and energy you’re spending unnecessarily. Especially if you need to split the payment.

You might have a business partner with a separate account or you might have multiple accounts yourself that you use for different reasons. An ATM processor that offers automated ATM payments and payment splitting can save you the hassle of online banking to manage this yourself.

ATM Vaulting

It’s important to keep your ATMs stocked with cash. You have three different options when it comes to vaulting:

You can vault the ATM yourself which will save you money but cost you in time. If you vault yourself, you’ll want to work with an ATM processor that provides monitoring services to alert you when your machine is low on funds.

You can have the location owner vault the ATM. This is convenient since the location owner should be near the ATM regularly anyway. The location owner may or may not negotiate compensation for providing this service.

Or, you can have your ATM processor vault for you. There will be a charge for this, of course, but working with an ATM processor that at least offers the service can provide you with more options as you add more ATMs to your business and need to reduce your workload while also keeping your machines stocked.

Installation and Setup

You will want to work with an ATM processor that provides instructions for setting up and programming your ATM. The best ATM processors will offer to send a technician out to install an ATM in a new location for you. This might be convenient for you if you’re a first-time ATM owner who isn’t familiar with the technical side of owning an ATM machine.

Service Agreement Templates

A good service agreement leaves no room for error. You don’t want to have to hire a lawyer to settle a discrepancy in your service agreement if there is an issue between you and the location owner. 

You also don’t want to hire a lawyer to draft a service agreement for you. So if you aren’t qualified to draft a fool-proof service agreement, and you don’t want to spend money on a lawyer, you want to be working with an ATM processor that has templates for you.

By using a template, you ensure that all of your bases are covered while still saving yourself money by not hiring out and by avoiding long-term losses in the case of an incomplete service agreement.

Low Fees and Short Contracts

Some ATM processors charge more than others. Those that offer low prices on the sale of their ATM machines make up for the difference by locking you into a long-term contract and charging fees throughout the duration of the contract. 

There are ATM processors that do not do this. Try to find a good balance between fees and contracts when comparing ATM processors.

Support

Your relationship with your ATM processor doesn’t begin with ATM setup and installation and end with payment. Anything can go wrong at any time and you will need a resource to turn to for help. Make sure you have an ATM processor that will be available for you when you need technical support. There are ATM processors that offer 24/7 support should you need it.

When it comes to choosing an ATM processor, look at the options the processors provide. Which do you need at the current stage of your business?

Are you a new ATM owner who will need a lot of support? Do you plan on adding more ATM machines to your business? Are you an experienced ATM owner dissatisfied with your current ATM processor? What do you need that you don’t currently have?

In the end, you want to work with an ATM processor that will help you build the ATM business that helps you meet your goals.

2. Choose an Appropriate Machine

There are three factors you need to consider when purchasing an ATM machine: type, manufacturer, new vs. refurbished.

ATM Type

The type of machine you purchase is going to depend on the space you have available. A free-standing ATM generally has a small footprint. It can be placed anywhere there is a power supply. 

Through-the-wall (TTW) ATMs are typically quite bulky and you will need to invest in a little bit of construction if you don’t already have the space available. This is because the bulk of the machine, the interface, sits inside of the wall and extends into an adjacent room.

You might want a TTW ATM if you want more controlled access to the vault. If the interface extends into a room you can lock or where there is little foot traffic, you make the machine more secure. It isn’t accessible to the public and makes it safer for you when loading the machine.

TTW ATMs also work well when you have a space where the front (the chassis) can face outside. This makes the machine available 24/7 to all passers by, not just in-store customers during hours of operation.

Finally you have the option of a wall mount ATM. This is going to be the smallest option which is optimal if you don’t have a lot of space to work with. It can be placed on a countertop or hung on the wall. It’s going to hold less bills, so this is a good option for a low-traffic location. 

ATM Manufacturer

Some of the biggest names in the ATM industry are Hyosung, Genmega, Triton, and Hantle/Tranax. They all produce sturdy, reliable machines; that’s how they put themselves on the map. So you can’t go wrong with any of them.

Hyosung and Genmega are the best of the best. However, they still vary in size and features. So the decision still comes down to what you are looking for in terms of price versus features.

New vs. Refurbished

Next you want to consider purchasing a new vs. refurbished ATM machine. This decision might depend on your budget, experience, and concern for the environment. 

Purchasing a refurbished machine could save you money up front. You want to make sure that you purchase a certified refurbished machine, though. “Blow and go” refurbishments only clean up the surface of the machine. So you might end up spending more money down the line on repairs than you would have if you’d just purchased a new machine to begin with. 

You also might not get your ideal machine if you purchase refurbished since they are based on availability. You do, however, save on the 63 million tons of electronic waste when you purchase refurbished.

New machines are going to be easier to use. Usability constantly improves with each new model. Manufacturers want their machines to be user friendly, so if you are new to the ATM business, you might want to try a new machine first.

3. Place Your ATM Machine in a Profitable Location

The more people who use your machine, the more profit you will make. So you want your machine to be where people will pass by it, where they need the convenience, and where you aren’t competing with a bunch of other machines.

The most profitable locations tend to be those that are cash only, have liquor licenses, get a lot of foot traffic, and have good reviews. You want your machine where people are and where they need cash. 

You also want your machine in an area where there isn’t any competition. Or, if you see an area that already has ATMs but they are outdated, ask around and see if the location owners would be interested in updating.

Consider the convenience of the location for you, too. You want the machine close to where you live or work. The more time you spend getting to and from the machine, the less profit you make. And you need to be aware if your machine isn’t working properly, so you will need to check on it often. 

4. Determine a Fair Surcharge

You are completely in control when it comes to setting the surcharge. You want a surcharge fee that entices customers to use your machine but that also earns you a profit.

If your ATM is close to one across the street, you might want to set a competitive surcharge to bring more customers to your machine. If your ATM is the only one for a number of blocks, you might be able to set a higher surcharge. People will pay for the convenience.

You also need to account for profit sharing. If you place your machine in a location someone else owns, he or she might negotiate for a share of the surcharge profit. 

ATM surcharge fees range from $0-$8. You can offer a surcharge-free ATM service if the ATM itself brings more customers into a business that you own and encourages cash sales. More cash sales save on credit card fees. 

However, if your ATM is in a location owned by someone else, the surcharge is the only way you will make revenue. The average surcharge fee is $2.50. At an average of 6 transactions per day, that equals 180 transactions per month for a total of $450 a month. 

If that number sounds good to you, try starting with $2.50. If you’d like to try to make more, increase the surcharge. You can use trial and error to get the perfect number that satisfies both you and your customers.

5. Stay Compliant

If you purchase your ATM machine new, it’s going to be fully compliant automatically. This means that it meets ADA and EMV requirements. If you purchase a refurbished machine, depending on its age, it might not be fully compliant.

Often you can make upgrades to make an older machine compliant, but you have to weigh this cost against just purchasing a new machine. In any case, your machines need to meet these compliance regulations:

  • The top working button should not be higher than 48” off the ground.
  • The area in front of the machine needs to equal 48″ x 48″ (16 square feet).
  • There must be one unobstructed side of the clear floor space that adjoins an accessible route or another clear floor space leading up to the ATM and connecting to the clear floor space in front of the ATM.
  • All ATMs must be speech enabled. This may require that a 3.5mm female jack be accessible for headphones.
  • The display screen must be visible from 40″ above the center of the floor in front of the ATM. Characters on the screen must be in Sans Serif font, a minimum of 3/16″ in size, and must contrast with their background.
  • Braille instructions must also be provided.
  • Function keys must be designed to contrast visually from their background surfaces.
  • Input device control key surfaces must be raised above the surrounding surfaces.
  • Keypads must be arranged in an ascending or descending layout. The “enter” key should be marked with a raised circle, the “clear” key with a raised left arrow, and the “cancel” key should be marked with a raised X. The “add value” key should be marked with a raised plus sign and the “decrease value” key should be marked with a raised minus sign.

Upgrade kits are sometimes available for machines that do not meet these requirements, but not always. Make sure any machine you purchase meets these requirements or can be made compliant with an upgrade kit. If you already have a machine or two, check them for compliance to avoid hefty civil penalty fines.

How to Run an ATM Business Successfully

We’ve shown you how to run an ATM business successfully. There really are only 5 things you need to focus on to make the most amount of profit from your ATM business. There is some strategy involved, some trial and error, and you might have to make changes from one machine to the next. 

Considering these 5 tips before you jump into business can significantly increase your chances of running a successful ATM business that brings in the kind of revenue you expect.

But even if you’re already in the ATM game, it’s important not to forget these tips. It’s never too late to go another direction, especially if you plan on adding more machines to your business! ATM Depot specializes in ATM processing, sales, service, and independent ATM deployer (IAD) support. Give us a call and we’ll let you know if we think you have a good location. We can also help you figure out what you can expect to make from ATM processing with your machine. Contact us today!