[conductr]

I have secured a location for an ATM that will be very lucrative. I expect profits to pay for the machine within 3 months and it's pure profit from there.

Why do I want a Partner?
I've talked to several ATM companies to explore my options. Basically, I can either buy the machine in full and keep 100% of the ATM fee; or, I can partner with them and they keep 50% of the ATM fee for 5 years. Based on my expectations of income, that is way to expensive considering they are taking no risk!

What is the investment?
Total capital required is $12K. We each invest $6K (if 50/50).

How is it invested?
$4K-5K is the cost of a nice new machine. $6K to stock the machine. The rest will be for operating costs; machine repairs, signs, etc.

What if things don't work out?
ATM machines can be resold for close to their retail value so we shouldn't lose too much value on assets. Cash on hand goes back 50/50, no loss there.


Also, in exchange for 1) finding the location and 2) doing the actual work of keeping the machine operating/stocked with cash on a daily basis, I would like to have an option to buy you out. We can negotiate further on those details at another time. (Something like; after X time or after X% ROI - I can buy you out at $X).




I will accept other offers besides 50/50; minimum $1000 investment.

Please feel free to ask any questions.


PS: I am located in Dallas, TX.

[conductr]

Partnership aside, does anyone have any constructive feedback regarding my post?

Thanks

[mrx]

What about insurance cost? What' the crime rate in the city / area? Is it located inside a store or outside ?

[JLeezer]

Originally Posted by mrx

What about insurance cost? What' the crime rate in the city / area? Is it located inside a store or outside ?

Excellent questions. What does happen in the event someone were to decide they wanted to hook the machine up to a pickup with some chains and drag it and the cash inside off?

[conductr]

Originally Posted by mrx

What about insurance cost? What' the crime rate in the city / area? Is it located inside a store or outside ?

Good point. I've received quotes of $15-$30/month for insurance. I'm not sure what the crime rate is in Dallas but I'm sure they took that into account. It will be located inside a gentlemen's club.

[mattnelson]

Originally Posted by conductr

Good point. I've received quotes of $15-$30/month for insurance. I'm not sure what the crime rate is in Dallas but I'm sure they took that into account. It will be located inside a gentlemen's club.

check that that insurance quote includes the money in the machine. Its hard to get money insured.

[JJack054]

What do you think the profits will be from the ATM?

[conductr]

@mattnelson
The insurance policy is specifically for ATM businesses and does cover both machine and cash inventory.

@JJack054
For profits, my expectations are 10 transactions per day @ $5 surcharge. Because of the location (strip club), I think this may actually be a conservative forecast. But, I would encourage each potential investor to perform their own variance analysis.

[mrx]

Originally Posted by conductr

For profits, my expectations are 10 transactions per day @ $5 surcharge. Because of the location (strip club), I think this may actually be a conservative forecast. But, I would encourage each potential investor to perform their own variance analysis.

I don't see the inside of my clubs.. but wouldn't it be cheaper to buy beer or even a pitcher then pay $5 for change?

[conductr]

Originally Posted by mrx

I don't see the inside of my clubs.. but wouldn't it be cheaper to buy beer or even a pitcher then pay $5 for change?

Sorry I'm not understanding you completely. I think you're making the point of 'why would anyone use the ATM?' All I can say is that people just do. In this type of club it is a cash only business. Many people decide they want to spend more money than they are carrying into the place and their only real option is to use the ATM (or, leave-go to the bank-come back-pay another cover charge). From a personal finance perspective, better planning will always make more sense but the fact is that people do use ATMs and fairly frequently with above normal fees at a gentlemen's club.