The Benefits of owning an ATM
What benefit will an ATM bring my business?
This is most likely your first question. To answer the question in short, customers today see ATM's as a necessity not just a convenience. Cash dispensing ATMs have become the fastest growing, and most requested service in North America. Initially only banks operated expensive lease line ATMs. With the introduction of low cost dial up ATM's, owners of high traffic locations became able to capitalize on the benefits of having an ATM on site.
Builds Traffic
People depend on ATMs for cash. An ATM at your location attracts customers by allowing them to combine banking and shopping in one trip.
Builds Sales
The typical ATM customer spends 20-25% more than a non-ATM customer. There is also a great opportunity to increase your sales through on-screen advertising and coupon options on your ATM.
Provides a Competitive Edge
Having an ATM can build customer loyalty by providing services customers expect.
Customer Service
In our on the go world, convenience is king. ATM'is have become one of the most used services at convenience stores. For the past three years adults between the ages of 18 and 39 years have used ATMs more often than any other convenience service except air hoses, pay phones and restrooms[1]. During the last few years ATM usage has grown to twice that of Cheque Cashing services and three times that of Money Orders.
Increased Register Receipts
Your location will realize increased customer spending[2]. Most of the money made with an ATM is reflected in your daily register receipts with an average sales increase of 15%[3]. ATM users withdraw an average of $60 per transaction resulting in 30-60 % of cash withdrawn being spent on site, 20% more than if they didn'it have cash[4]. On-screen advertising and receipt couponing dramatically increase collateral sales. By offering this valuable service you will have a significant advantage over your competition.
Increased Foot Traffic
Increased foot traffic is the #1 reason Southland Corp. has ATMs inside their 7-11's. The reason is simple. Potential customers will pass by to get cash somewhere else and might not find their way back to spend it in their stores[5]. Customers today will choose a merchant with an ATM for the security and convenience of completing a transaction inside of a location. Consumers will modify buying patterns to combine shopping and banking. 51% between the ages 25-49 use ATMs 8 times a month with an average withdrawal of $62.00[6].
Decreased Credit Card and Cheque Expense
There are a significant segment of credit card users who would prefer to pay in cash, given the opportunity. These customer switchovers will save you an average of $0.80 per transaction[7]. Plus you are earning surcharge revenue. Cash eliminates the risk of cheque acceptance or the cost of cheque guard services. Replacing cheque or credit card transactions with cash will reduce checkout time, resulting in satisfied customers and lower labor cost.
Surcharge Revenue
2-5 percent of foot traffic will use your ATM[8]. The ATM owner and vault cash provider receive the surcharge revenues. Your overall strategy should be to get as many potential customers to use your machine as possible. It's better to have 400 people a month use your ATM at $1.50 per transaction, than to have 300 people use it for $2.00. While both scenarios generate $600 a month in surcharge revenue, the $1.50 machine gives you an extra 100 customers a month, while putting thousands of dollars into their spending hands.
Tax Benefits
Your monthly lease payment can be deducted as an operating expense. Leasing helps you avoid the Alternative Minimum Tax (AMT) by reducing your AMT tax liability.
Collateral Sales
Money orders, phone cards, concert and sporting event tickets, co-op advertising, and postage are all revenue generating possibilities for ATMs and new possibilities are ever expanding[9]. As much as a 25% increase in these kinds of sales has occurred when an ATM took over the task[10].
E.B.T. (Electronic Benefit Transfers)
The federal government may roll out its E.B.T. programs. Subsidy cheques that used to come through the mail may one day be distributed electronically through ATM compatible cards. Think of the future possibility as the proliferation of ATMs takes on new exciting income opportunities.
