One of the first questions new convenience store owners ask me is “How can I increase sales in my convenience store?” The answer is pretty simple, the easiest thing you can do is add products that will boost traffic and in turn revenue. The best products to integrate into your retail store are as follows; an ATM, air machines to pump tires, and phone accessories. These products will help you boost revenue in your business in ways you may not have thought before.
Installing an ATM to Boost Revenue
Some years back ATM’s were only possessed by major financial institutions. But now as the cost of owning one of these machines has dropped significantly, it has become possible for small businesses to buy an ATM machine. By installing an ATM at your business, you can help provide people with easy access to cash. ATM’s are huge additions to a business because they can naturally attract customers. When a sign is placed outside showing that your business has an ATM’s, it gradually draws more people to your retail store. Psychologically speaking, immediately after someone withdraws cash and has the cash in their pocket, they are more likely to spend it right away. Unprompted shopping happens more often after a person adds more money to their wallet.
Benefits of Having an ATM
Some benefits of operating an ATM at your convenience store includes: Effectively increase customer traffic, extra revenue from ATM transaction fees, build customer loyalty, and higher rates of on-premise spending by customers using the ATM. According to a recent 7-11 study, ATM customers spend 25% more than regular customers. What happens is someone comes into your convenience store to use your ATM, when they’re done getting their money they might end up getting something to drink like an energy drink or water and if they smoke they could get a pack of cigarettes and a lighter. Through these customers just using your ATM, they could end up spending an extra $10 just buying a couple things at your business, that they wouldn’t have otherwise purchased. An average ATM will get about 10 transactions a day, so if each person who comes in to use the ATM just spends a couple dollars at your convenience store, it can really start to add up. The great thing is this is not even counting how much extra revenue you get from the transaction fees an ATM charges. This is why I say an ATM is necessary for anyone wanting to boost profits in their gas station or convenience store.
How Much Will an ATM Make in Just Transaction Fees
Unfortunately you do not receive 100 percent of the service fee your ATM charges. The credit card processor will take on average 20 cents per transaction. The average surcharge for ATM’s in the United States is $2.50, if you include the credit card processing fee, insurance for your ATM, cost of supplies, such as receipt paper, and cost of repairs down the road, the average price you will lose per transaction is about 50 cents, leaving you with $2. An average ATM will get about 10 transactions a day, meaning on average per day, your retail store will make an extra $20 from your ATM. This comes out to $140 a week, $560 a month, and $6,720 per year. The great thing is, this is not even including the other benefits the ATM gives, such as increased spending, sales, and traffic at your gas station, liquor store, or other types of convenience stores.
How Much Does an ATM Cost
When buying an ATM you have a few options, you can buy a new ATM, a used ATM, or you could lease an ATM. Generally, a new ATM will cost on average between $2,000 and $3000. The benefit of a new ATM over a used ATM is that a new ATM will come with a one to two year warranty depending on the manufacturer. Used ATM’s generally cost on average between $500 and $750. The down side of purchasing a used ATM is that the average lifespan of an ATM is about 7 years, meaning if you buy an ATM that is 5 years old, it will only have a few good years left. I would recommend people interested in implementing an ATM in their convenience store to purchase a new ATM. The reason is the manufacturer’s warranty will cover the cost of repairs for 1-2 years after the purchase, plus you need you will at least get a good seven years out of it. Generally, leasing an ATM will cost about $50 to $100 a month, if you’re in a high traffic area, the vendor might waive the monthly fee and just want a piece of the transaction fee. I don’t recommend ever leasing an ATM because most vendors will have you sign at least a one year commitment, which means even at $50 a month, you will pay $600 over the course of a year in monthly fees. At that point you would be better off just buying a used ATM you could have for a few years. Lastly, If you would like to get an estimate of how much you would make from owning an ATM before investing $2500, you could always buy a used ATM for $500 and test the demand. If your satisfied with the results, you could go ahead and upgrade after that to be on the safe side.
How much money do I need to fill my ATM with
The average amount withdrawn from an ATM is $60. If 10 people are using your ATM a day, that means $600 is getting withdrawn on average, per day. It basically all depends on how often you want to fill it up, if you’re gonna fill up your ATM everyday you could put $1,000 into it and you should have no worries about running out before the next refill. If you’re only able to fill it once a week, you’re gonna have to fill it up with closer to $4,000. Essentially, it all depends on the area of your convenience store and how often you want to fill up your ATM with cash.
In conclusion, ATM’s are huge additions to a business because they can naturally attract customers. When a sign is placed outside showing that your business has an ATM, it gradually draws more people to your gas station or convenience store. Unprompted shopping happens more often after a person adds more cash to their wallet, so an ATM could help boost your sales as well. Overall, an ATM does many good things to a business, it helps boost customer traffic, provides extra revenue through ATM service fees, it helps build customer loyalty, and increases on premise spending by customers using the ATM. Every gas station, liquor store, convenience store, and any other small business should have an ATM. If you would like to see our analysis of different ATM’s on the market and listing the benefits and downsides of each one, check out our other article, Best ATM’s for Convenience Stores and Gas Stations in 2020.
Have you ever been driving and realize that one or more of your tires are much less inflated than the others? Many of us have been there, usually what people do in this situation is look for an air machine, which can inflate their tire/tires. These can be found at automobile repair shops, car washes, gas stations, and other types of retail stores. Most of these machines just pump air, but some models have a vacuum hose attached that can clean the inside of your car with, some dispense water, and some even accept credit cards, which is really useful when you don’t have loose change in your car. These machines are really beneficial to have at your convenience store because it can attract customers to your business. An air machine at your gas station or any other type of retail store can really boost traffic to your business. Not only do you profit from the money put into the machine, you will notice that the customers that come to inflate their tires may also get gas from your gas station or may come into your business and buy whatever they need while they’re already there. For example, a customer that comes to fill his tires realizes he’s out of cigarettes, so he comes into the business and buys a new pack from you, he may even buy anything else he needs like a soda or energy drink. Air machines not only boost your retail stores revenue through the actual use of the machine, but also attracts customers into your business and could lead to additional sales through the factor of convenience.
Benefits of having an Air Machine
Some benefits of having an air machine at your retail store includes: Increasing foot traffic into your business, a boost in sales through the air machine fees itself, and providing convenience to loyal customers. Having an air machine at your business could also help you stand out from the competition. On average most gas stations and convenience stores see about 5 people use their air machine a day. This amount can fluctuate between winter and summer, for instance, during the winter tire pressure typically goes down because it becomes colder and people need to fill their tires more often. If your charging customers $1 to use your air machine and 5 people use it a day, your looking at an average revenue of $140 a month or $1,680 a year. If your doing a revenue share with the air machine company obviously you have to account for the percentage you would have to split with them. Typically, most air machine companies do a 50-50 revenue share, which would mean you would get about $70 a month in revenue or $840 a year. This is not a crazy boost in revenue and profits, but this is also not counting the extra sales you can get from these customers entering your store and buying other products. For example, if a customer comes into your business to break a dollar for four quarters to use the air machine, they might realize they need a pack of cigarettes, now your gaining revenue from the air machine itself and the extra products those customers bought while inside your store.
How Do I Obtain an Air Machine for my Business
You have a couple options when it comes to installing an air machine at your retail business. You can work out a contract with an air machine supplier, typically what this entails is a 50/50 revenue split, but they take care of installation, repairs, and provide the machine free of charge. You could also buy the air machine outright from the supplier, you wouldn’t have to split your revenue with them, but you would be on the hook for all installation costs and any other repair costs in the future. If you want your air machine to be more of a passive revenue source, I would recommend just working out a contract with the air machine supplier, this will allow you not to worry about any repairs in the future. Although, if your willing to be more hands on, I would suggest just buying the air machine yourself, obviously this means you would have to be a bit more vigilant and either repair the machine yourself if any issues arise or hire a repairman to fix the issue. Overall, the choice just comes down to personal preference.
How Much Does an Air Machine Cost
This only applies to you if you want to buy your air machine outright and not sign a revenue share contract with a supplier. Depending on what features you want, the price will vary. For a simple air machine that accepts only coins, your looking at an average price of $1,500. For a unit that has an air hose and vacuum hose, that only accepts coins, your looking at an average price of $2,500. For a unit that has an air hose and vacuum hose that accepts coins, bills, and credit cards, your looking at an average price of just under $4,000.
Overall, air machines are a good addition to any gas station, liquor store, or any type of convenience store. Air machines are a great help in boosting revenue through not only the sales generated through the use of the machine itself, but also boosting traffic to your business and generating sales that way. Customers love having a one stop shop and being able to take care of all your customers wants and needs is definitely a huge factor in creating a profitable business.
Cell Phone Accessories
Nearly every person in the United States owns a cell phone and carries it everywhere. There are nearly 300 million cell phones that are used on a daily basis in the United States. There are many different types of phone accessories people will need on a daily basis, This includes phone chargers, wall plugs, car plugs, headphones, and aux cords. If people are driving and their phone dies, while not having a charger with them, they will really have no choice but to buy a charger from somewhere if they’re going to need their phone.
Benefits of Selling Cell Phone Accessories
There are many different types of phone accessories people will need on a daily basis, whether this is phone chargers, wall plugs, car plugs, headphones, and aux cords. If people are driving and their phone dies while not having a charger with them, they will really have no choice but to buy a charger from someone if they’re going to need their phone. Also, since the profit margin on phone accessories are pretty high, you can make a nice profit from selling them. If your buying your iPhone charger cables for $0.80 and selling them for $4.99, your making over $4 profit. Same goes for a wall plug, you will pay on average $0.75 and you can also sell them for $4.99, which nets you over $4 profit again. Additionally, you can boost customer traffic by carrying products that your competitors don’t have. On top of that, phone accessories really do not take up much space, you can set up a little stand on a counter near the checkout and store all the phone accessories you are selling. Having these products could also induce impulse buying, if people know their chargers are starting to go bad they may just purchase one from your business.
How to Boost Revenue in Gas Stations and Convenience Stores
- Benefits of operating an ATM at your convenience store includes: Effectively increase customer traffic, extra revenue from ATM transaction fees, build customer loyalty, and higher rates of on-premise spending by customers using the ATM.
- According to a recent 7-11 study, ATM customers spend 25% more than regular customers.
- An average ATM will get about 10 transactions a day, meaning on average per day, your retail store will make an extra $20 from your ATM.
- Benefits of having an air machine at your retail store includes: Increasing foot traffic into your business, a boost in sales through the air machine fees itself, and providing convenience to loyal customers.
- Having an air machine at your business could also help you stand out from the competition.
- Phone accessories do not take up much shelf space and the profit margins are very good
- If your buying your iPhone charger cables for $0.80 and selling them for $4.99, your making over $4 profit.
Many business owners are always interested in finding out how they can boost sales and profits in their retail store. The answer is pretty simple, the easiest thing you can do is add products that will boost traffic and in turn revenue. The best products to integrate into your retail store to boost traffic are as follows; an ATM, air machines to pump tires, and phone accessories. These products will help you boost revenue in your business in ways you may not have thought of before. If you would like to learn about product placement and impulse products, which could also be used to grow revenue in your C-Store, check out our article Product Placement and Impulse Buy Tips for Convenience Stores, Gas Stations, and Retail Stores in 2020.