By purchasing and ATM, a business owner can dramatically increase his or her sales. The merchant can increase the amount of money spent in the location by current customers and, at the same time, attract new customers.
For example, a convenience store merchant places an ATM in the store and charges a fee for each customer to use the machine. This fee usually ranges from $1.00 to $3.00 depending on the location. The typical convenience store will average between 400 – 500 cash withdrawals every month. At $1.50 per withdrawal, the merchant would earn $600.00 after 400 cash withdrawals. Not a bad gross profit, considering the merchant can lease the machine for less than $200.00 per month.
A flat profit margin, however, is only a small factor in influencing a merchant to purchase an ATM. At 400 withdrawals a month, about 13 people a day are withdrawing an average of $40.00 to $50.00 each time. These same people will spend approximately 10-20% of that money in the store. These figures are based on studies done by 7-Eleven and Convenience Store Decisions Magazine.
Some other benefits include attracting new customers, reducing the expense of accepting credit cards and discouraging bad checks. Many merchants will buy an ATM simply because their competition down the street has one. ATM’s are becoming almost commonplace. A wise retailer will recognize the many benefits of providing this service to their customers.
MORE SWIPES = MORE PROFIT
