Customers Spend 25% of Withdrawn Cash at the Same Store
While a vast majority of Americans has less access to large cash accounts, most of them consider the automated teller machine a viable option in convenience stores. ATMs have become an integral part of c-store businesses. Today, a large number of grocery stores and convenience stores are striving to do their businesses into one-stop shops.
Considering that, incorporating ATM business into such stores is the best strategy to achieve their goal. The reason is ATMs provide the customers with an opportunity to make more purchases whenever they want. ATMs enabled them to shop onsite 24-hours a day. They do not have to visit banks for cash withdrawals.
ATM Has Become a Lucrative Business for C-Stores
When it comes to monetary benefits, Wood’s four stores revealed they earn around $100,000 profit every month through ATMs. The customers who come in spend 25% of their withdrawal at the store.
This figure translates to sales of $25,000 approximately, which sums up to $300,000 a year, per store. Besides, they receive a surcharge fee on every transaction. Let us say, if they have 1,600 transactions per month with a surcharge amount of $1.95, it adds up to $3,120 a month or $37,000 per annum.
Besides, the State of the Industry (SOI) report of National Association of Convenience Stores (NACS) unveiled that cash machines generate around $984 every month, which is more than $11,750 per year. Many storeowners agree that ATM can increase the cash-spend significantly in stores.
Another store manager from Europe indicated that ATM increased cash-spend at the store to 65%. The communications director of Kum & Go said that they provide their customers with the convenience facility of cash withdrawal. They have ATMs in the store so that their customers can easily withdraw funds whenever they want.
Although it is difficult to mention the exact numbers of profit one can earn from ATM, the given examples clearly show that ATM is undoubtedly a lucrative business.
Integrated With Advanced Technologies
A recent report indicates that ATMs as technology have become one of the trendiest assets across the world. The advances in automated teller machines, such as making cashless transactions through these devices made it quite famous all around the world. Besides, security was one of the major concerns for ATM operators. Today, robust technology-enhanced ATM security with new methods, protecting the machine from skimmers and muggers.
The Fees Weight on ATM Operators
Although ATMs helped to reduce the credit card fees, many customers use their debit cards to get cash-back, allowing the store to charge a transaction fee. Many stores have permitted their customers for the cash-back on their debit cards.
The reason is - many people use their debit cards to get that money. They do this by way of retail or grocery establishment Point of Sale machine at the cashier instead of heading towards ATM and getting the money to pay for their sale. Sometimes, customers only buy $3 or $5 item and get back $30 or $60 in cash to avoid paying the ATM fee. While ATM is an excellent moneymaker for convenience stores, owners need to pay for their portable cash machines out of their earned amount.
However, there is no doubt that access to cash has reduced the number of credit card transactions. Therefore, retailers, specifically the storeowners, should consider placing an ATM and encouraging their customers to get the cash from an automated teller machine instead as cash-back.
The Bottom Line
While ATM can help businesses to generate passive income over months, it is essential to choose the right device and trustworthy ATM Company to avoid any loss. In that case, look no further than MOBILEMONEY. Not to mention, they have a wide variety of cash machines, designed for a specific type of businesses. Moreover, they have a highly skilled team of technicians who ensure to help the customers for making the best decision.