How does the business work?

 

AuToMatic, LLC purchases ATM machines and places them within businesses that could benefit from having a machine. When people use the machine to withdraw money, a fee is collected, which is then split between AuToMatic, LLC and the business that the machine is placed within.

 

What services does AuToMatic, LLC provide?

AuToMatic, LLC takes care of the cost of the machine, loads the machine with all cash needed, and provides all ongoing maintenance of the machine, including insuring the machine and more.

 

What does the location get out of it?

The location will not only receive a FREE ATM machine from working with AuToMatic, LLC, but will receive a sizeable portion of the fees collected every month. All cash loading and maintenance is taken care of by AuToMatic, LLC, so the location can continue to focus on providing top notch service to their members and collect a check every month. Having a machine also provides another service to current customers and equips them to spend more money within the business and the local economy.

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What is the withdrawal fee?

The withdrawal fee is $3 which is a standard rate across the United States.

 

What is the percentage split between AuToMatic, LLC and the business?

Typically, AuToMatic, LLC awards 30-40% of the fees collected by the machine to the location that the machine is placed within up to an average 30 transactions/day that take place during the month. However, this percentage is also subject to how frequently the machine is used. AuToMatic, LLC employs a sliding scale to determine the fee split above 30 transactions/day. If the machine experienced on average 31 transactions/day during a given month, an additional 1% is awarded to the business. For example, if the minimum percentage split designated to the business is 30%, and they experience an average 31 transactions/day during a given month, they would receive 31% of the fees collected. The 1% increase is awarded for every transaction above an average 30 transactions/day of a given month up to 60%. Referencing the previous example, if the minimum percentage split designated to the business is 30%, and they experience an average 60 transactions/day for a given month, they would receive 60% of the fees collected. However, since the 60% threshold was reached, and the machine were to experience greater than 60 transactions/day for a given month, the business would still receive 60% of the fees collected.

 

What return on investment can my business expect from the machine?

Given that the business will not be spending any money on the machine or services provided, there is nothing but upside for the business. Regarding numbers, AuToMatic, LLC is conservatively targeting 15-30 transactions to take place on average every day, which would result in $16,425-$32,850 of total fees collected with a $3 withdrawal fee. Depending upon the minimum percentage the location is designated, the business can expect to receive between ~$4,927-$13,140 per year from ATM machine fees alone based upon these conservative estimates. This is not accounting for the additional revenue the business can experience from members spending their withdrawn cash within the location. In addition, the daily average of 15-30 transactions taking place every day is a conservative number given the number of members that walk in and out of the business every day. However, for forecasting purposes, a conservative projection is preferred.

 

How is my business paid?

The location is paid on a monthly basis. AuToMatic, LLC will either mail or hand deliver a check by the 5th of the following month along with a monthly statement outlining the number of transactions that took place with the machine during the month for the business to verify.

 

Are there any protections in place in case the machine is compromised?

AuToMatic, LLC holds insurance policies that cover the machine as well as the cash inside of the machine. In addition, we also hold a general liability policy providing $2 million of total coverage, with $1 million of coverage per occurrence.

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What does the machine look like?

The machine AuToMatic, LLC uses is the Nautilus Hyosung 2700CE.

Dimensions:

- Height: 52.3" (1,328mm)

- Width: 15.7" (400mm)

- Depth: 18.4" (468mm)

- Weight: 265 lbs (120 kg)

 

What happens if the machine malfunctions?

A number for either members or the club to call if the machine were to malfunction will be outlined on the machine. All customer service issues will be handled by AuToMatic, LLC, with an experienced technician available to come on site when requested.

 

Is my business locked into hosting the machine for a period of time?

The typical contract length between AuToMatic, LLC and the business the machine is placed within is three years. However, this contract length is negotiable if necessary.