Why Buy an ATM? This is a brief presentation that illustrates how placing an ATM in a retail...
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Transcript of Why Buy an ATM? This is a brief presentation that illustrates how placing an ATM in a retail...
Why Buy an ATM?This is a brief presentation that illustrates how placing an ATM in a retail location has multiple layers of benefits, not just in terms of direct revenue generation from the machine itself, but also in reduced store operating costs and increased sales.
First, what makes a market opportunity?
What does an ATM offer the customer?
• Puts cash in their hands• The ultimate convenience
– 24 hours per day– Extends shopping hours
Why cash? Cash is back in vogue• Of every $100 spent, $60+ is cash (Visa)
• 27% of US families had no credit cards in 2007 (Federal Reserve Board Survey of Consumer Finances, February 2009)
• Credit card purchase transactions were down 4% through 2009 (Nilson Report, Feb 2010)
• Cash in circulation has grown 4% over the past 8 years (Hitachi Consulting)
What does an ATM offer the retailer?
The presence of an ATM can be extremely beneficial for retailers that require or prefer that their
customers pay with cash
Let’s take a look at the benefits…
Benefits of having an ATM 1. Increased Sales
– An ATM can increase a business’s sales as much as 8%
– ATM customers spend 20% more than non-ATM customers
2. Cash Retention– 25% of the cash
withdrawn from an ATM is spent on the premises
– This number can be as high as 75% for nightclubs, bars, etc.
Benefits of having an ATM 3. Control Bad Debt
– Cash doesn’t bounce
– Reduce charge backs, disputes, returned checks, and stress
4. Security– Less risk of robbery
and theft
Benefits of having an ATM 5. Reduced Costs
– Reduce credit card fees; typically 2% of the purchase price
– Make money rather than pay POS fees
6. More Time– Money dispensed is
deposited directly into your bank account
– More face-to-face with customers
Benefits of having an ATM 7. Increase
Customers– Offer services your
customers demand– Keeps customers
at your location
8. Source of Revenue– ATMs put cash in
your customer’s hands
– ATMs put cash in the business’s hands
Revenue Generated by an ATM
• Transaction revenue– Customer traffic– Surcharge
• Retail revenue– Customer traffic– Withdrawal amount
Transaction Revenue
Daily traffic = 200
x 30 days/month
Monthly traffic = 6,000
x 4% customers that use the ATM
Trans/month = 240
x $2.00 surcharge
Transaction revenue/month =$480
Monthly store sales =$30,000
x 8% increase in store sales as a result of having an ATM
Extra Rev/month =$2,400
Retail RevenueTrans/month = 240
x $60 average withdrawal
$’s dispensed/month = $14,400
x 25% spent on premises
Extra Rev/month = $3,600
Average sale = $10
x 25% more ATM users spend
Increased $/sale = $2.50
x 240 ATM users/month
Extra Rev/month =$600
More Revenue Streams• Marketing opportunities
– Coupons, messaging, graphics, signs, and wraps
• Monitoring agreements• Maintenance agreements
Features to look for• Should you choose just any ATM?
– Easy to use and service– Remote capabilities for monitoring and
retrieving reports– Instill confidence in the retailer– Trusted partner with a proven track record
Easy to use and service
• Windows® environment with an easy-to-read color LCD
• Ability to gather reports and audits electronically in a useable format or via the onboard printer
• Modular service philosophy
Monitor your ATM remotely
• Pull audit trails electronically and remotely• Check the status of the ATM and cash levels• Manage user settings and access• Upload software updates with the click of a
mouse
Increase retailer confidence
• Service after the sale• Supply and support partners that can
manage parts, repair, and training• Service partner that can accommodate
various service philosophies
ATMGurus recommendTriton ATMs
• Designed to meet the needs of consumers, retailers, and service providers
• Backed by full-service sales, parts, repair, and training facilities that can be customized for any application
Made in USA
www.triton.com www.atmgurus.com