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Subtract surcharge, add coupons

Dropping surcharges is just the beginning. Dairy Mart plans to add coupons to its ATM equation.

June 24, 1999

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Dairy Mart wants to give its customers more than just a break from surcharges at the ATM. The Hudson, Ohio-based company, which just completed a rollout of surcharge-free ATMs at more than 600 of its stores, also plans to distribute coupons, and possibly stamps or other items, at its machines. "It's another way to make sure that when somebody comes to the ATM, they have a reason to purchase something from our store," said Dairy Mart chairman, president and CEO Robert Stein. Stein said that Efmark, the Westmont, Ill.-based company that manages Dairy Mart's ATMs, is already lining up interested vendors and working on the necessary software and cassette modifications. Dairy Mart hopes to begin dispensing coupons as early as next month. The company's no-surcharge initiative has gotten national media attention and is making an impression on customers, some of whom have collared Stein during recent store visits to tell him they appreciate the service. "People are pretty ticked off at having to pay a $1.50 fee," he said. "We think this is a very exciting value and opportunity for the customer." A baseball fan at a Wooster, Ohio store told Stein he saw a sign advertising the no fee ATMs behind home plate at a Cleveland Indians game. While that stadium sign may be Dairy Mart's splashiest publicity effort, the c-store chain is also using radio and newspaper ads, billboards and store signage to promote the initiative. "We think this is big, so we're going to advertise it big," Stein said. The company is considering forming alliances with several credit unions and credit union associations. One group that has expressed interest is Alliance One, a regional selective surcharging alliance with members in Ohio, Kentucky, Indiana and West Virginia. Stein thinks the no-fee ATMs will help drive store traffic. "For some people, it may be a reason to change their habits and come to Dairy Mart. While they're here, we certainly hope they'll go ahead and buy gas or something to eat as well," he said. In addition to its ATMs, the chain is making other changes it hopes will attract customers, including giving some stores a facelift and opening new stores with a more spacious feel. "We want to get away from that cramped environment many people associate with a convenience store," Stein explained. Dairy Mart also is adding more convenience food products like pre-made sandwiches. In Ohio and Kentucky, the company has exclusive rights to the Mr. Hero restaurant chain. Stores with a Mr. Hero will have a grill where food is cooked to order and a full menu, including breakfast.