CASH IS KING

In a still struggling economy, many bar owners are weighing their options with regard to credit card transactions vs. cash-only operations. And in any scenario where hard currency becomes the only acceptable form of payment, an ATM on-premise would seem essential.

Either way, an ATM can be an important addition to a bar, as it can increase customer retention and customer spending just by being there.

Peter Wilkenshoff, Manager of Best Products Sales & Services Inc. (www.bpsands.com) in Floral Park, New York, said it best: “If a customer walks out your door to find an ATM, it’s a 50/50 shot as to whether or not they’re returning. So don’t give them a reason to leave.”

Kyle Radzyminski, co-owner of three Manhattan bars including Billy Hurricane’s, Thunder Jackson’s and Point Break, said that his bars have ATMs because, “You make a couple of bucks, but it’s mainly about keeping people within the confines of the place. It does work.”

Customers are more likely to spend more money if their cash flow never runs out. Instead of ending the night when they spend that last $20, they can opt to stay at the bar and drink more after taking some money out of the ATM.

Additionally, many bars and restaurants have been trending towards the elimination of credit cards as an accepted payment form on-premise. With the economy still slow, some bars prefer to not pay the credit company fees associated with each transaction, and instead force patrons to pay cash. And the risk/benefit ratio — not paying fees vs. possibly losing patrons who prefer credit — would seem to be weighted in favor of cash-only transactions if you have an ATM on-premise.

“On average, 60 to 90 percent of the dispensed cash goes back into that location’s register,” suggests Wilkenshoff. He also said that by introducing an ATM to a bar, fewer credit card transactions are made, thereby reducing the processing fees. To many bar owners, the formula is easy: increase revenue, decrease expense, and eliminate the time required to process a card transaction. Win/win.

Before shopping for an ATM, bar owners should take a look at the recent history of these simple but important products. Although the overall technology in ATMs hasn’t changed so dramatically that you wouldn’t know how to use the machine a few martinis deep, there have been significant improvements in the operating systems.

Every major ATM runs on a Windows operating system, so they now can do much more than simply dispense cash. “Any current model ATM provides room for marketing on the screen,” said Kurt Duhn, General Manager of ATM Network (www.atmnetwork.net). “With Windows custom graphics system, a bar owner can have coupons or promotions printed on the back of receipts and have other promotions running across the screen.”

Look below most ATM screens and you’ll find more marketing space. Many now offer the option of placing a custom design on the outside of the machine, providing the chance to remind customers which bar they’re currently enjoying, all while taking out more money to buy the next round of shots. And since ATMs often are not naturally sleek machines, adding a design can make the hardware fit more seamlessly into a bar’s decor.

Faster ATM service is another benefit of today’s current models. Rather than using a phone connection, which can take several minutes, new ATMs reduce transaction time to 10 or 20 seconds via a highspeed Internet connection.

The screens on ATMs have also been upgraded, though not recently, from analog to LCD. ATM screen size has increased markedly from earlier models, and now ranges anywhere from five to ten inches diagonally. Some even have infrared touch screens, like the Hyosung 2700CE, which can also display local news and weather.

These improvements have transformed ATMs into good products for almost any size or type of bar.

Steven Ray, of the ATM Network marketing department, pointed out that there is an ATM for every type of crowd. Entry-level machines, like the Hantle 1700W series or the Triton RL 1600, are perfect for bar owners looking for the cheapest machine available. These models only dispense cash and offer no other options for customers.

TURN TO NEXT PAGE

List of articles | Next article | Download pdf of entire article