News
Better DES than dead
While Triton has said it does not plan to provide a Triple DES upgrade for its 9500, rival manufacturer GTI sees an opportunity to win the business of deployers with the aging ATMs in their fleets.
June 8, 2002
The old ATM workhorse just ain't what it used to be.
Triton announced at its May distributors' conference that it does not plan to provide Triple DES upgrades for two of its products: the Scrip 9000 and the 9500, in effect a decision to send its earliest models to the glue factory.
While Triton estimates that there could be 5,000 or more of its 9500s in retail locations, it does not believe it makes economic sense to offer an upgrade – particularly after introducing the 9100, its lowest-priced ATM yet, at the same conference.
But at least one Triton competitor, GTI, disagrees. GTI (Greenlink Technologies Inc.) has announced plans for a 9500 upgrade kit that will include a new fascia, thermal printer, Braille keyboard, Triple DES capability and audio capability for about $1,000. The original cabinet, safe, lock, dispenser and power supply will remain.
Danny Langston, GTI's national sales director, said he was contacted by six deployers, with about 1,000 9500s between them, after sending an email detailing the offer in late May.
GTI plans to introduce the kit in mid-summer after deciding exactly what to include, Langson said, explaining that part of the purpose of the email was to assess interest in details like screen size and color versus monochrome.
"We don't want to offer five different upgrade kits. We want to have just one," he said.
Langston said GTI considered offering a similar kit about a year ago but decided against it after encountering little interest from deployers. "We were basically trying to sell them on getting rid of the dot matrix printer and going to a color screen," he said.
Neither reason seemed compelling enough. But that was before Triple DES. According to MasterCard's Global Deposit Bulletin, No. 3, all ATMs must be Triple DES compliant by April 1, 2005. In addition, according to the bulletin, all replaced and relocated ATMs must be Triple DES capable by April 1, 2002.
Not just DES
Neil Johnson, president of Texas-based ISO International Merchant Services, said he is less concerned about Triple DES than he is by the yet-to-be-finalized changes that will likely be required under the Americans with Disabilities Act (ADA). Even if the GTI kit addresses audio capability, Johnson said, there may be additional modificiations required under ADA, such as a lower screen height.
"If you're not Triple DES compliant, then your machine can be shut down until you get it compliant," Johnson said, "but if you're not ADA compliant, you can get sued – and that's a whole lot worse."
Get 'em on the upsell
"If you're in a position where you're offering the merchant a choice of investing $1,000 to keep a seven- or eight-year-old machine running or paying $99 a month to get the most current technology out there, I don't think too many salesmen will have trouble upselling in that situation." |
Despite the Triple DES mandate, Triton believes few distributors will pass up the opportunity to sell a new machine – one that not only satisfies all of the regulatory requirements, but has a more modern look and a low price to boot.
"If we thought we could make money off of (upgrades), we'd do it," said Bill Jackson, Triton's chief technical officer. "If you're in a position where you're offering the merchant a choice of investing $1,000 to keep a seven- or eight-year-old machine running or paying $99 a month to get the most current technology out there, I don't think too many salesmen will have trouble upselling in that situation."
Charlie Samons, vice president of sales and marketing for N.J. ISO Access to Money, said that a few merchants are still paying on their original leases for 9500s, at terms of $160 to $225 a month. In those cases, he said, "It will be very, very easy to tell the guy I can take the old machine off his hands and get him a brand new one for just $100 a month."
Access to Money will encourage those merchants to roll their remaining lease payments into a new lease for another Triton, he added.
Access to Money, which has about a hundred 9500s in its network of 1,600 ATMs, might consider investing in upgrade kits to refurbish and resell some of those recovered machines, Samons said. Used 9500s typically bring $750 to $2,000 on the resale market, depending on condition. Even if not sold whole, he said, parts such as the 9500's cassette and dispenser command a fair price.
An offer they can refuse
Jackson noted that no Triton distributors to date have taken the company up on its offer for an ATM upgrade that would include a new cabinet, screen, lock, software, modem and signage for $2,500 to $2,800, depending on the options selected. New components would be covered under Triton's standard 13-month warranty. If desired, Triton will also refurbish the existing dispenser and cassette for an additional $495.
Though designed for the 9600, that program could apply to the 9500, Jackson said.
Neil Clark, sales manager for Montana ISO ATM Express, said that his salesmen may offer that option to merchants in low-volume locations who have paid off their 9500 and are happy with it. Like Samons, Clark estimates that ATM Express has about a hundred 9500s in its 4,000-machine network.
Thank you for your support
A key advantage to the Triton upgrade, Clark said, is that the manufacturer would still offer technical support. "No offense to GTI, but at least Triton is a known commodity as far as service and product support is concerned."
Alfie Pena, national sales director for Colorado ISO Cash Resources, expressed similar concerns. "(The GTI program) would be like spending $1,000 to overhaul the engine of a car that already has a couple hundred thousand miles on it, with no guarantee of what's going to happen in the next six months," he said.
Indeed, Jackson said, Triton will not provide support for 9500s upgraded by any company other than Triton. "What would you call that machine? A Trilink, maybe, or a Greenton?"
Triton commits to providing support for its products for five years after they are discontinued -- in the 9500's case, that's August of 1997. Jackson acknowledged that most third-party refurb shops should be able to support a 9500 – even an altered one – for the life of the machine.
Easy does it
GTI's Langston said the Triton upgrade program will require a more costly and complex de-installation and re-installation, which will not be required with GTI's kit. "With our kit, you'll just remove the door, unplug the dispenser and electronics from their board and plug it into ours," he said.
"There's more money, time, effort and risk involved taking that dispenser out and putting it into a whole new cabinet," Langston said, adding that he expects service technicians to be among the biggest proponents of GTI's approach.
"We're surprised Triton isn't doing something like this," he said. "Even if there are just 1,000 9500s out there, that's an opportunity to make a million dollars."
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