Why have an ATM
|On your property:||At your business:|
Why have an ATM on your property:
Four words: Small space,
Due to the high profitability of an ATM, most companies will pay many times the usual square foot rate for the right location. And be the perfect absentee tenant while providing a convenience to the customer and increased sales to the other tenants.
Why have an ATM at your business:
Source: AT&T Global Information Solutions (formerly NCR); MasterCard Consumer Segmentation Study
The new machines are very sophisticated and compact, able to accept debit, ATM, and credit cards. Beside cash, they dispense store coupons, gift certificates, sports tickets, and postal stamps and provide on-screen, full color graphics advertising. The ATM can often be the most profitable six square feet in the establishment.
These sophisticated dispensing machines are virtually exploding in popularity, showing up everywhere from restaurants and convenience stores to malls. The are several good reason for this increasing popularity:
- No transaction cost to retailer - Unlike accepting credit or ATM cards at point of sale, the automated cash machine transaction does not cost you a percentage of the sale.
- New revenue source - you make a share of all convenience fees. The marketplace proves that the public is very willing to pay this small expense given the convenience of saving a trip to the bank. Statistics show that even in "stop-by" situations, typically around 7% of customers will use an available ATM machine. These figures go up in locations where the customer spends more than a just few minutes at the location and are significantly higher in some places like bars and night clubs.
- Increased in-store spending - The availability of cash on hand increases the average purchase total significantly (see statistics above). On-screen advertising and coupons on the cash receipts can be effectively used to further increase in-store spending.
- Customer draw - The simple convenience of instant banking will bring customers into your store. This was well demonstrated by the larger supermarket chains when they started opening actual bank branches in their stores - a luxury not available to every business. On-screen advertising and coupons can be used to turn even more of these customers into impulse buyers.
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© the company, Inc. - 1999