Then I have some shares of Enron to sell you. If you have been told that a company will put ATM equipment in your retail business for free, think it over carefully. How do you suppose these companies pay for their equipment and sales forces, buy advertising, paid for well designed web sites and to drive traffic to those sites?
I hate to be the one to tell you there is no Santa but sooner or later you'll have to face it. If you accept this "free" equipment you will be paying though the nose, until you grow up or come to your senses. That great guy, who's offering to put a free ATM in your business, could cost you $20,000.00 or more a year, plus you will be paying for that equipment for him. You will also be losing a substantial tax write-off and you will never own the equipment.
In the United States, according to a report by AT&T global, the average ATM makes over $20,000.00 a year. The "free" ATM that Mr. nice guy's company is offering you will, no doubt be programmed to send all or most of service charge fees directly into their fat bank account. Still worse, once you sign-up, his company could have the ATM rights at your business location for years to come.
Studies tell us that, having an ATM in a retail location will increase sales by an average of 20% and save you between 15% and 35 % of your credit card charges. So in the old days, when the big expensive cash machine where the only option, there was sometimes justification to entering into these lop-sided deals. Example; if you were in no position to purchase or finance a large capital investment, you could still take advantage of the increase in sales and savings of credit card charges.
With a new generation of inexpensive script or cashless ATM System being designed and manufacture by more than a few international companies, there is no longer any excuse for finding yourself in one of these one-sided agreements. Many reputable companies offer tax deductible lease to own programs. One of these companies Quick Pay ATM offers no set up fees, no out of pocket up-front costs at all. In most cases this will allow the equipment to pay for its self while capturing a nice profit each month.
If you already have one of these "free" deals, have your attorney take a look at the contract and get his advice on what can be done. In most cases, if the equipment stops being profitable, the nice guy's company has the option of removing it, but don't let me gives you any ideas.
If the contract is iron clad and you've had the equipment for a for time, you can try talking to Mr. nice guy, tell him: that you've figured out that there is no Santa Claus and that your bottom is getting tender. Maybe, he will renegotiate the split with you. Personally, I think it's more likely that he'll just get in his saucer and fly away.
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