How Can You Make More Money Having an ATM In Your Business?
As “experts” continue to talk about our supposedly impending cashless society, one of the big questions for retailers is, can I still make money having an ATM? The answer, of course, is a resounding “YES”!
While pundits would have everyone believing standard self-service banking is on its way out, studies show consumers 18 to 34 years old visit an ATM over seven times per month. But it’s not just younger consumers, older generations use ATMs five times or more a month. In fact, the average ATM performs around 300 transactions monthly. This translates into around 75 users per week going to the ATM to get cash.
But how do we translate having an ATM in your business into revenue? Here are a few options that can help retailers make real money from an onsite ATM.
Running your Own Machine
Owning and operating an ATM seems like a no-brainer. After all, if you’re running the machine, you’re making money. You set the surcharge fee and take a cut of the surcharge fee users spend to access their money at the ATM plus the money they spend in your business. As a bonus, loading the machine with the store’s cash can help save you money on trips to the bank or armored carrier pick-up fees.
But having an ATM isn’t all profit. Businesses that choose to own and operate their own machine must also bear the brunt of the cost for all the pieces that go into making the machine run. These operational costs include, but are not limited to processing, communications, first and second-line maintenance, and consumables.
But running your own machine isn’t the only way to make money.
Enjoy the Profits Without the Extra Work
Retailers that want to make money from an onsite ATM don’t have to own and operate the machine on their own. They can choose an ATM placement program with a reliable ATM provider.
ATM placement programs take the burden of the equipment and operational costs off the retailer. A typical provider will include processing, cash loading, maintenance, and consumables all at the standard cost of the program.
But what about the surcharge fee? Placement programs come in different shapes and sizes. Some might charge a monthly fee and let the establishment keep the surcharge revenues. Others offer to split the surcharge revenues to lower or eliminate monthly fees to the retailer. In many cases, businesses with surcharge-split programs are able to offer the initial equipment placement for free.
And if you want to get a bigger cut of the pie, you can load the ATM with the cash from your store and do basic maintenance like changing paper rolls.
Branding the ATM Drives = More Profit
Making an ATM look pretty might seem like a waste of time and money. After all, it’s just a cash box, right?
Nope, studies show branding an ATM with recognizable graphics and brand logos improves consumer trust – and can boost transactions by 20-40%. And more transactions mean more potential surcharge revenues.
But boosting transactions is not the only way to make money from the ATM. Advertising the store’s products and services on the machine screen or adding coupons to the receipt can help increase in-store sales, too. Or, for more direct incremental revenue, retailers can partner with their ATM provider to wrap the ATM with a local financial institution brand to drive even more traffic to your business.
ATMs can be lucrative for retail businesses. Despite “expert opinions,” consumers young and old still flock to these machines as a convenient way to get cash. And, with such heavy usage numbers, having an ATM in your business is almost a must-have to keep up with the competition.
But whether you want to own and operate your own machine or partner with a reliable provider to manage your ATM program, Heath ATM has a solution to provide the services your location needs to make the most profit from your machine.
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