Open Forum

ATM in Your Laundromat

  • 1.  ATM in Your Laundromat

    Posted 02-01-2019 16:08
    Hello Everyone -
    So I am somewhat new to the laundry business, so please bear with me.

    We have a relatively small laundromat, 27 washers 25 dryers.  However, we do stay busy and the wash and fold is getting to be more popular.  One thing we get asked probably 7-10 times per week is if we have an ATM.  We do not, but it is something I am seriously looking into buying.  I spoke to a rep and I can buy one for about $2,000 and $0.10 per transaction.  Going fee other ATMs tends to be is around $3.00 per transaction.  So a $2.90 profit each time its used.

    My question, even though I think the necessity may be worth it in itself, is does your laundromat justify an ATM if you have one?  I wish I could have just a somewhat guess of the usage of it, but I really don't know.  I know the people that, the people who do not ask, the people who are already aware we do not have one so they hit up an ATM elsewhere before coming to our laundromat and lets not forget about the people in the neighborhood who need a bit of cash for a 1/8th of weed ;-)

    So it seems it could be used more than what I think it might be.  The way I calculated it was with a $3.00 transaction fee minus the $0.10 processing fee, the machine should pay for itself in 7 months and 20 days if used an average of 3 times per day.

    Now I don't know our customer count so it depends on how busy a laundromat is, but has an ATM been a good addition to your laundromats?

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    Thank you
    Josh Strong
    Lee's Summit Laundry
    Phone:  (816) 347-8847
    Email:  leessummitlaundry@gmail.com
    Web:  www.leessummitlaundry.com
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  • 2.  RE: ATM in Your Laundromat

    Posted 02-01-2019 16:38
    Definitely worth it.  After the initial investment, it's literally free money.  I think mine nets me like $400 a month and there's no other department as profitable and trouble free!

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    ronald hogan
    Store Owner/ Employee
    Shoreside Laundromat
    Saugus MA
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  • 3.  RE: ATM in Your Laundromat

    Posted 02-01-2019 16:43
    Edited by Larry Adamski 02-01-2019 16:44
    Josh,

    Yes, my ATM has paid for itself in 7 months with a $3 fee.  You are buying the ATM so you should NOT have to share the transaction fee with anyone- not even $.10.  That guy is taking advantage of you.  Get a quote from someone else and make sure it includes all setup programming too.

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 4.  RE: ATM in Your Laundromat

    Posted 02-02-2019 11:18
    Like everything, there are pluses and minuses to consider. I took out all ATM's except one which I share 50/50 revenue on. Here is why:

    1) it attracted people whom I did not want in the laundry
    2) "Family First" or NJ state benefits debit card does not permit transaction fees. So I had a run on the ATM on the first week of the month when new funds were available.
    3) I had chargeback disputes from non customers who knew how to work the system. Most customers who used the laundry were pretty good.
    4) I used tens and I always had to harvest enough to fill the machine. Then....
    5) Banks needed me to have a separate bank account due to Patriot Law requirements. So now I needed to administer two accounts for one laundry and a third of I owned the property. Banks always did field visits to make sure we were not doing "cash laundering". So I would deposit the ATM in a separate account, deposit laundry revenue into the account. Have them give it back to me as a withdrawal for the ATM account to satisfy the banks
    Then some banks were charging fees on the accounts unless I kept a significant balance.
    I decided to raise prices and take the machines out. It's easier. 


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    Rob Bodner
    President
    EFR Inc/ The Laundromat Guys
    Park Ridge, NJ
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  • 5.  RE: ATM in Your Laundromat

    Posted 02-03-2019 01:02
    Thanks for that run down, Rob. I have been or should I say "was" on the fence for one. I took out the pay phone my first week in business and this sounds like a similar set of the same problems.

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    Thomas Bright
    Owner
    Bright's Coin Wash
    Marengo Illinois
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  • 6.  RE: ATM in Your Laundromat

    Posted 02-07-2019 09:12
    You are welcome. I am not saying money can't be made on this. However, sometimes I see things that seem to contradict the original premise of this business. That is, it is a profitable business, in the right setting and though not absentee, is part time. Sometimes I see people saying they make a small amount of money, but it just seems to be not worth it to me. Good luck. 




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