So you have an ATM, but do you even know if you’re making any real profit? Some ATM operators consider the additional money spent in their location as profit but you may want to know the actual profit from the machine.
Do not become a business owner that buys an ATM and never calculates whether or not profits are being made. That’s no way to run a business. It’s a good idea to figure out how much you make a month and year so that you know the value of your investment.
When you don’t feel like you’re making as much profit as possible then you may want to consider ways to get more people to withdraw cash from your ATM. There are a few things you can do to encourage more customers to use your ATM.
How Much was the ATM?
Using the cost of the machine and how much profit you make from it monthly you can quickly see your ROI (your return on investment). Most business owners simply pay cash or use a credit card to finance the ATM (they aren’t that expensive anymore) so calculating ROI is fairly straight forward. While you can take advantage of depreciation and amortization as a piece of business equipment, you should also calculate how long it actually takes to recoup your investment. We’ve seen busy ATM’s have an ROI of less than 1 month, while slower machines can take 6 – 12 months, which is still a fantastic ROI.
When you figure out how long it is going to take to pay off what you paid for the machine (your ROI) you’ll get a better understanding of when you will make a real profit. It should not take longer than a year to pay off what you invested to get the machine. Most business owners are able to pay off or recoup the investment in the ATM within a year.
Big factors include how much business you generate and the location of your machine. Make sure that your ATM is in a place people can easily find it. Consider putting your machine near the front of your store so people will be more likely to come in and use it if they need quick cash and don’t forget to load the ATM everyday.
How Much Does It Cost to Operate an ATM?
The factors that add to the operational cost of an ATM include communication (phone, internet or an ATM wireless device), a little electricity, and paper for the receipts. All this added together is probably less than $0.85 per day.
Are you Keeping Track of the Money Going In and Out of Your ATM?
Most retail business ATM operators load cash daily similar to a cash register. So you should balance daily if you can. Otherwise, you can use the trial cassette close functions and online balance functions to track or count the money in the machine daily if possible. Whenever you or someone else loads the machine make your you have procedures in place to keep track of the funds. If you trust someone to load the ATM for you, be sure they keep a ledger or journal and make sure funds balance. This helps keep track of the money to ensure that you are not losing or missing any cash. Some people are tempted to think you’ll never miss a $20 bill here or there, so the last thing you want to realize is that someone you trust has been stealing a $20 here or there for a few months. Twenty dollars here and there might go unnoticed but it could add up.
You should be able to trust your employees but caution is always good to practice. Use the printer balance functions and put the receipts in envelopes and balance to the online system whenever you load or do your closeouts.
Are You Advertising that You Have an ATM?
A few signs, one for inside the store and a couple to put outside can make a big difference. Make your ATM very easy to find once people get inside. Post a big sign outside that reads “ATM Inside” so that people will know if they need cash all they have to do is walk into your store. Place another sign in close proximity to your store that notifies people there is an ATM within walking distance. A small investment into signs can go a long way and help you generate a lot of more profits on a weekly basis.
Another way to generate more ATM usage is to offer specials or coupons on the ATM receipt. Most of the late model ATM machines make it easy to offer your customers extra value for using the ATM. If you have coupons in other publications, advertise those. You can also make deals with neighboring stores to advertise their store on your ATM if they advertise your store. You can also offer a coupon good for a special during their next visit. There are lots of other ways to make your ATM more profitable. Want more tips on how to profit from your ATM, give us a call.