ATMs for Laundromats: Why an ATM Can Be a Smart Investment for Your Laundry Business

ATMs for Laundromats: Why an ATM Can Be a Smart Investment for Your Laundry Business

Laundromats have changed considerably over the past several years. Many stores now accept credit cards, mobile payments, laundry cards and app-based payments in addition to traditional quarters. But even as laundromats become more technologically advanced, cash remains an important part of the business.

That is one reason ATMs for laundromats can make so much sense.

Installing an ATM gives customers convenient access to cash without leaving your laundromat. At the same time, the ATM can generate surcharge revenue for the laundromat owner, improve the customer experience and potentially help keep more customer spending inside the business.

For many laundromat owners, an ATM isn’t simply another amenity. It can be a relatively inexpensive piece of equipment that serves customers while creating an additional revenue stream.

Why ATMs and Laundromats Are a Natural Fit

Think about what happens when a customer arrives at a laundromat and realizes they don’t have enough cash.

Maybe they need quarters. Maybe your store has a change machine that accepts $1, $5, $10 or $20 bills. Maybe they need cash to load a laundry card. Or perhaps they want to purchase detergent, fabric softener, dryer sheets or something from a vending machine. Maybe they just want to grab some cash while they wait.

If they don’t have cash, they have a problem.

Without an ATM, their solution may be to leave your laundromat and find a nearby bank, convenience store or ATM. That’s not ideal. Once a customer leaves your business, there is always the possibility that they don’t come back. Even if they do, you’ve created an unnecessary inconvenience during what should be a simple visit.

ATMs for laundromats allow customers to get the cash they need without leaving the property.

That convenience alone can make an ATM a worthwhile addition to a busy laundry.

Make It Easier for Customers to Get Quarters

Despite the growth of card-operated laundry equipment, there are still plenty of coin-operated laundromats throughout the United States. If your washers and dryers accept quarters, you probably already have one or more change machines. But a change machine can only help customers who already have cash. An ATM solves the step before the change machine. A customer can withdraw $20 or $40 from the ATM and then use the change machine to get the quarters they need for their laundry.

Instead of:

Customer → Leaves Laundromat → Finds ATM → Gets Cash → Returns → Gets Quarters

You have:

Customer → ATM → Change Machine → Laundry

It’s faster, easier and more convenient. And unlike a change machine, which primarily exists as a customer convenience, an ATM can actually generate additional revenue for the laundromat owner.

Generate Additional Revenue From ATM Surcharges

One of the biggest benefits of owning an ATM is the potential surcharge income.

When a customer uses an ATM, you can establish a surcharge for the transaction. Depending on your ATM processing arrangement, some or all of that surcharge revenue can be paid back to you.

For example, suppose your laundromat ATM averages 150 withdrawals per month and you charge a $3.00 surcharge.

That’s:

150 transactions × $3.00 = $450 per month

Over 12 months, that’s $5,400 in gross annual surcharge revenue.

Of course, actual ATM profitability depends on transaction volume, surcharge amount, processing arrangements and other expenses. Some laundromats will perform significantly better than others. But this is what makes owning an ATM interesting. You’re purchasing equipment that provides a useful service to your customers while potentially paying for itself through the transactions it generates. Once the initial ATM investment has been recovered, the machine can continue generating revenue month after month.

Keep More Customers Inside Your Laundromat

Customer retention isn’t only about getting someone to return next week. Sometimes it’s about keeping them from walking out the door right now.

Imagine someone arrives with three loads of laundry and realizes they only have $5 in cash. They search for an ATM on their phone and discover one at a convenience store two blocks away. Now they have to leave. Maybe they notice another laundromat while they’re out. Maybe the convenience store has an ATM with a high surcharge. Maybe they simply become frustrated with the experience. Whatever happens, your laundromat has unnecessarily inconvenienced a paying customer. An ATM gives them another option.

For laundromats, convenience matters. Customers may already be spending an hour or two washing and drying clothes. Anything you can do to make the experience easier can help differentiate your business from competitors.

ATMs Can Complement Card and Mobile Payments

A common question we hear is whether ATMs for laundromats still make sense when a store accepts credit cards or mobile payments.

They do.

Offering card payments doesn’t necessarily eliminate the need for cash.

Your laundromat may have a combination of payment methods. Some washers may accept cards while vending machines or other equipment accept cash. Customers may need bills for a change machine. Some people simply prefer using cash to control how much they’re spending.

The goal doesn’t have to be choosing between cash and electronic payments. It can be about giving customers options. A modern laundromat might offer cash, cards, mobile payments and an ATM. The customer gets to choose the method that works best for them.

An ATM Can Support Other Revenue Sources

The benefits of an ATM aren’t necessarily limited to laundry.

Many laundromats generate additional income from vending.

You may sell:

• Laundry detergent
• Fabric softener
• Dryer sheets
• Laundry bags
• Drinks
• Snacks
• Other convenience products

If some of those machines or services require cash, having an ATM available makes purchasing easier. Even if customers don’t need cash for the washers and dryers themselves, they may still use the ATM for other purchases. This becomes especially valuable in unattended or partially attended laundromats where customers have fewer ways to get assistance.

ATMs Can Be Great for Unattended Laundromats

Many laundromats operate with limited staffing or are completely unattended during certain hours.

An ATM can be especially useful in these environments. Customers don’t need an employee to provide cash back or explain where the nearest ATM is located. The ATM is available whenever the laundromat is open. That can help create a more self-service environment. If you’re operating a laundromat with extended hours, an ATM can provide customers with access to cash early in the morning, late at night or during periods when an attendant isn’t available.

You Control the ATM Surcharge

When you own your ATM, you typically have more control over how the machine operates, including the surcharge.

That’s important. The goal isn’t necessarily to charge the highest surcharge possible. You want to find a surcharge that produces reasonable revenue without discouraging customers from using the machine.

A laundromat owner may decide that a competitive surcharge makes sense because the primary objective is keeping customers inside the store. Another owner may have a high-volume location where customers are willing to pay more for convenience. There isn’t one perfect ATM surcharge for every laundromat.

The right number depends on your market, customer base, nearby ATMs and transaction volume.

How Much Does an ATM for a Laundromat Cost?

One of the advantages of a retail ATM is that the equipment is relatively affordable compared with many of the other investments required to open or upgrade a laundromat. Commercial washers and dryers can represent a substantial investment. By comparison, a quality retail ATM can often be added to the business for a relatively modest amount. The exact cost will depend on the ATM manufacturer, model, configuration and options. However, laundromat owners should look beyond the initial ATM price.

Before purchasing an ATM, make sure you understand:

• ATM processing costs
• Monthly fees
• Wireless communication fees
• Surcharge sharing
• Contract length
• Service and technical support
• Warranty coverage
• Parts availability

A discount ATM isn’t necessarily a good deal if you’re required to give away a percentage of your surcharge revenue or sign an expensive long-term processing agreement.

When comparing ATMs for laundromats, look at the entire package rather than simply choosing the machine with the lowest advertised price.

How Quickly Can a Laundromat ATM Pay for Itself?

This depends primarily on how frequently customers use it. Consider a simple example. Suppose you invest approximately $2,500 in an ATM and the machine averages 100 surcharge transactions per month at $3.00 per transaction. That would generate approximately $300 per month in gross surcharge revenue.

At that rate, the initial ATM equipment investment could potentially be recovered in less than a year. If the ATM averages 150 or 200 withdrawals per month, the payback period could be considerably shorter. If it only performs 20 transactions per month, it will obviously take much longer.

That’s why location and customer demand are so important.

Before purchasing an ATM, think about how many customers visit your laundromat, how many currently pay with cash and how frequently customers ask for an ATM or leave the property to get money. Those factors can help determine whether ATM ownership makes financial sense.

Where Should You Put an ATM in a Laundromat?

ATM placement matters. The machine should be highly visible and easy for customers to access, but it shouldn’t interfere with foot traffic or laundry equipment.

For coin-operated laundromats, placing the ATM relatively close to the change machine can make sense. Customers immediately understand the process: withdraw cash and then convert the bills into quarters. Visibility is important as well. If customers don’t realize you have an ATM, they won’t use it.

Simple ATM signage can help customers identify the machine from different areas of the laundromat. Security should also be considered. The ATM should be properly anchored and positioned in a well-lit, visible area covered by the laundromat’s security cameras whenever possible.

Who Puts the Cash in the ATM?

This is one of the most common questions first-time ATM owners ask.

If you own and operate the ATM, you generally provide the cash that goes inside it. This is commonly referred to as vault cash.

When a customer withdraws money, that cash is dispensed from your ATM. The electronic withdrawal amount is then settled back into your designated bank account through the ATM processing network, subject to your processing arrangement.

For many single-location laundromats, the owner or manager can replenish the ATM as needed.

The amount of cash required depends on transaction volume and how frequently you want to load the machine.

Should You Buy an ATM or Get a Free ATM Placement?

Some ATM companies offer free ATM placement programs.

Instead of purchasing the machine yourself, an ATM company owns and operates it at your laundromat. Depending on the agreement, the company may also provide the cash and handle service. That can be convenient, but there is a tradeoff.

The ATM company needs to make money too. With a placement arrangement, you may receive only a portion of the ATM revenue. When you purchase your own ATM, you have the opportunity to retain significantly more of the surcharge income, depending on your processing agreement.

For a busy laundromat with consistent traffic, purchasing an ATM can often be worth considering. If you’re willing to own the equipment and manage the cash, you may prefer generating the ATM income yourself instead of giving a substantial portion of it to a third-party ATM operator.

What Is the Best ATM for a Laundromat?

Most laundromats don’t need an expensive bank-style ATM. A reliable retail ATM is usually sufficient.

Look for a machine from an established manufacturer with readily available replacement parts and good technical support. You should also consider cassette capacity, receipt printer reliability, screen size, security features and communication options. Some popular ATMs are the Genmega G2500 series and Hyosung Halo 2.

More importantly, purchase your ATM from a company that can support it after the sale.

An ATM may operate reliably for years, but eventually every machine will need assistance. Receipt paper runs out. Card readers wear. Dispensers require maintenance. Software or communication problems occur.

Having someone you can call when there is a problem can be worth considerably more than saving a few dollars on the original purchase.

Don’t Forget About ATM Processing

The ATM itself is only one part of the equation. Your machine also needs ATM processing. Processing connects the ATM to the financial networks that authorize customer withdrawals and handle settlement. When comparing ATM companies, ask exactly how the processing agreement works. Do you keep the surcharge? Are there monthly fees? Is there a transaction fee? Is there a percentage fee? How much is wireless communications if needed? How long is the contract? What happens if you sell your laundromat?

These details can have a major impact on how much money your ATM actually generates.

Be particularly careful with ATM offers that advertise unusually inexpensive hardware but require expensive processing, long-term contracts or surcharge sharing. The purchase price is only part of the cost of owning an ATM.

Buying ATMs for Laundromats

If you operate a laundromat with steady customer traffic, an ATM is worth considering.

It can provide customers with convenient access to cash, reduce the need for them to leave your business, support coin-operated laundry equipment and vending sales, and create an additional source of revenue.

Best Products Sales & Service has been providing ATM equipment, processing and service solutions since 1998. We work with businesses ranging from single-location operators to companies managing large fleets of ATMs.

We can help you determine which ATM makes sense for your laundromat, explain your processing options and help you understand the potential return before you purchase.

Whether you’re opening a new laundromat, upgrading an existing location or simply tired of watching customers leave to find an ATM, adding an ATM may be one of the simpler revenue-producing upgrades you can make.

Looking for an ATM for Your Laundromat?

Don’t just buy an ATM based on the lowest price you find online.

The ATM, processing agreement, surcharge structure, warranty and ongoing support all matter.

If you’re considering ATMs for laundromats, talk with Best Products Sales & Service about your location, customer volume and current payment setup. We can help you choose an ATM solution designed to provide customers with convenient access to cash while giving you the opportunity to generate additional revenue from your laundromat.

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If you’re thinking about adding an ATM to your store—or you want one from a team that’s been in the industry since 1998—we’re here to help.

We’ll walk you through:

• What to buy
• Where to place it
• How to set it up
• What it should earn
• And how to avoid every mistake new buyers make

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