C-store owners might not realize it at first, but ATM cash management can be a major burden if not handled properly.
You've heard it before: If you want something done right, do it yourself. But in terms of cashing up your c-store ATM, that's not always true. In fact, to reduce risk, shrinkage and cost, it's often best to hire someone else. Just ask the management at Country Marketplace.
The new owners of Country Marketplace, an independent c-store and deli in Stockton, Calif., faced a problem: The store's ATM was becoming a burden.
The previous owner of the store had the ATM, so we just took it over, said the c-store's manager. The new owner had issues with cash management and the ATM would always run out of money. They just couldn't keep the ATM full enough.
Money machine
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According to Samantha Guthrie, president of turnkey ATM provider Automated ATM Solutions, a site with moderate foot traffic might need to put anywhere from $6,000 to $16,000 in cash in their machine every week. This is a major drain on basic cash flow for the business, Guthrie said. Plus, few owners are willing to trust an employee to load that amount of cash in the unit.
One tool to alleviate this problem is free placement, a deal where the store owner lets an outside company provide cash management services, and in some cases also provide the ATM. Under the deal, the two companies split the transaction fees.
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Country Marketplace turned its cash management chores over to Automated ATM Solutions, and was thrilled with the results, according to the manager.
Now that the unit has cash all the time, it's a great customer draw and has increased sales quite a bit, she said. The ATM has a very noticeable impact on our business.
Guthrie said that the arrangement is a flexible one: The more work the store's management does to maintain and manage the machine, the bigger its profit. In Country Marketplace's case, the ATM is owned by the store, so Automated ATM splits the fees accordingly. In other cases, such as stores with less foot traffic, Automated ATM might retain ownership of the machine. Each deal is different, and the goal is to customize the deal to best suit the individual store.
Country Marketplace's manager advises store owners and managers who consider giving some or all of their ATM management to a company like Automated ATM to �Go for it!
It can sometimes take hours to balance (the ATM), and the cost to have someone else manage it has been worth it, she said.
We are seeing sales increase since the additional money from the ATM began being circulated in the store.
