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Who's who: Mark Hoppe

Mark Hoppe's entrepreneurial drive helped him take Efmark Premium Armored Services from a one-man ATM refurb shop based in a spare bedroom of his home to the country's largest provider of third-party ATM service.

November 23, 2004

Mark Hoppe spends a lot of time trying to turn obstacles into opportunities -- nearly all of his time, in fact.

"I get these phone calls at home at 10 o'clock at night," said Mark Hanson, director of business development for TCF Bank, a customer that purchases NCR hardware, ATM service and in some markets armored car service from Hoppe's company, EfmarkPremium Armored Services. "It'll be Mark, and he says 'I was just thinking, have you thought about approaching your problem this way?'"

Efmark provides service for nearly all of TCF Bank's 1,100 ATMs. The 12-year relationship with TCF began in Hoppe's home state of Illinois, where Efmark helped TCF win lucrative contracts with Target, Jewel Food Stores and other retailers, and has expanded into four other states.

Mark Hoppe

"He's probably one of the brightest entrepreneurs I've ever run across," said Hanson of Hoppe. "His mind is always working. He likes to look at things from different angles, sometimes just to shift the paradigm a bit."

From bedroom to boardroom

Hoppe's entrepreneurial drive helped him take Efmark from a one-man ATM refurb shop based in a spare bedroom of his home to the country's largest provider of third-party ATM service.

After graduating from Creighton University in 1977 with a master's degree in business administration, Hoppe took a job as a collector of past due accounts for Chicago's Harris Bank. Though he knew he didn't want to make it his life's work, Hoppe said the experience instilled in him a willingness to make cold calls, an ability that has served him well throughout his career.

"Doing that gave me the ability to pick up the phone, talk to people and not be afraid to hear them say no," he said.

A short time after he joined Harris, Hoppe was tapped to lead the bank's new ATM department. During his tenure, Harris and other banks formed Money Net, a shared ATM network that later became part of Cash Station, which for many years was one of the Midwest's dominant EFT networks.

Starting small

He saw an opportunity to create his own business when major ATM manufacturers introduced their second generation of machines in the early 1980s.

"New ATMs all cost $35,000 to $40,000 at that time," he said. "Bigger banks wanted to get rid of their old machines so they could buy new ones. Smaller community banks were happy to get a good deal on the older machines."

Hoppe founded Efmark in 1981 and spent the next several years buying first-generation ATMs from banks, refurbishing them in a spare bedroom, and selling them. He had few qualms about self-employment.

"I was single with no real responsibilities," he said. "I figured I could re-enter the workforce if it didn't work out."

That seemed like a distinct possibility when Cash Station imposed a moratorium on new ATM deployments during its merger with Money Net, a move that effectively killed Hoppe's burgeoning refurb business.

Another direction

Hoppe decided to parlay his experience into a business providing service and maintenance for Mosler and Docutel ATMs, quickly adding NCR and Diebold to the mix. Though he initially had no aspirations to expand beyond Illinois, Efmark grew with its clients. As they took their businesses into surrounding states, Efmark followed.

Hoppe remembers purchasing five vehicles and renting apartments for staff in the Minneapolis area -- during the week between Christmas and New Year's Eve -- after he agreed to service 500 of TCF Bank's ATMs in what was then a new market for Efmark. 

After a strong period of growth during the '90s, Efmark now provides ATM service in 43 states. The company may expand into the few remaining continental states later this year.

"If we have an account with 12 ATMs in a new state, we open an office there," he said. "If you provide good service and sales, other business will come. Banks have branches and ATMs everywhere, and they want to work with a single service provider."

Adding armored

In 1999, Efmark purchased a struggling armored car company in Texas so it could better compete with ATM vendors' service offerings -- and Premium Armored was born. "The manufacturers were contracting with armored carriers, putting the margins on their bills and calling it a turnkey program," Hoppe said, noting that it was difficult for vendors to provide consistent service levels with subcontractors.

Managing armored operations is a challenge, Hoppe said -- but a homegrown reporting system and an emphasis on policies and procedures has helped. "You have to pay attention to operations 24/7 in the armored business. You can never blink."

The service and armored businesses share obvious synergies, Hoppe said. "Some of our service customers that had been using other armored companies have switched to us, and some of our armored-only customers are asking us about service. Most banks like the idea of only having to make one phone call to address any issues with their ATMs."

Hoppe believes many Premium customers appreciate its ATM-only focus. "We're not stopping at McDonald's to pick up cash from the drive-through window on our way to your ATMs," he said.

Hoppe's two youngest children, a 12-year-old daughter and 10-year-old son, are already showing an interest in the family business, often accompanying him to the office on weekends and even reading Efmark's annual reports. When Hoppe returned recently from a weeklong trip to Germany, his son said, "Dad, do you have any idea how much work is going to be waiting for you on your desk?"

On the occasions when he does manage to clear his desk, Hoppe enjoys driving to the country and relaxing with his family at his small ranch in rural Wisconsin. "We're in the middle of nowhere an hour-and-a-half from home with no distractions. It's great just hanging out together," he said.

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