Consumers have more financial management options available today than ever before. Many shoppers are choosing to diversify funds with mobile banks or alternatives to traditional banking. While they can pay with their credit, debit, or prepaid card, cash is still king - and everyone needs cash for certain transactions.
Your retail business can cash in on this need by providing an automated teller machine (ATM) in your store. ATMs can generate passive income, increase foot traffic, and boost sales. In this article, we’ll break down why an ATM can boost your business, plus what you need to know before installing an ATM in your retail store.
How an ATM Can Boost Your Business
Increased Foot Traffic
Having an ATM means you’ll have the opportunity to draw in new customers and increase your foot traffic. Even if people don’t need something from your store, they’ll have a reason to stop in. Research shows that people who come in to use an ATM are more than twice as likely to buy something in your store.
Each transaction at an ATM includes a surcharge. Depending on which ATM installation model you choose, you can receive up to 100% of that surcharge as business income. This means you’ll be able to generate more revenue without adding more items to your store!
More Cash, Fewer Fees
People who come into your store to use an ATM are also more likely to make cash purchases in-store. You’ll reap the benefit with fewer credit card processing fees and more cash transactions - and that’s in addition to the income you’ll earn from ATM surcharges.
Planning for Your ATM
Determine Which of the Three ATM Business Models Works for You
First, you can choose to purchase and pay for an ATM yourself. The average cost is between $2,000 and $3,000, but you’ll earn 100% of the net profits, which means you’ll make your investment back more quickly.
The second method is called placement, which means an ATM company identifies your retail business as a great option for one of their machines. They’ll install the machine with little to no cost to you - but that means lower profits for you, as well.
The last method is leasing from an ATM company or creating a partnership with one. If you can’t invest the full amount upfront to purchase an ATM, this may be a great option for you. You’ll split profits with the ATM company rather than take full profit upfront. This is a great way to test potential profits with an ATM if you’re not sure about purchasing one.
Choose a Good In-Store Location
Treat your ATM like merchandise. Pick a key location in your store. Do you want it near the door, where people can easily access it, or do you want it further in the store so they have to walk by merchandise? You should also consider privacy - people who are making financial transactions don’t want someone looking over their shoulder or standing next to them. Make sure your ATM’s location allows for privacy during transactions but is also easy to find in the store. Last, remember to add signage, so people know where to find your new ATM.
Schedule Regular Maintenance
Like all machines, ATMs need regular maintenance. You’ll need to add cash to the vault daily, check for error codes and malfunctions, and change out paper for receipts. Even if you decide to purchase a machine up front, it’s important to have a maintenance agreement with an ATM company to ensure your machine stays in great working condition.
Getting an ATM can be a great investment and income opportunity for retailers. The right machine can fit seamlessly into your retail store and help you bring in new business.