Despite the increasing array of payment methods available today, cash is still very much alive.
With about $1.5 trillion in U.S. physical currency in circulation, it ranks as the number one payment method – especially with Millennials and Baby Boomers, according to the Federal Reserve’s 2017 Diary of Consumer Payment Choice.
Armed with this data, here are the five businesses that can benefit the most from having convenient ATM access for customers:
Convenience Stores - In a recent state of the industry report, convenience stores broke records and raked in a whopping $601.1 billion in sales. According to the report, 165 million customers use a convenience store every day. Sales in every category skyrocketed in 2017 and with a society that is all about convenience and fast transactions, there is nothing to indicate a decline. Healthy snacking reached the top 10 in-store categories for the third year in a row. Additionally, another report cited 79 percent of U.S. consumers make cash payments. This is a win for the c-store owner who offers access to an ATM.
Arcades - There is no denying that the gaming industry is hot in the U.S. Just like the technology behind it, the arcade of the past has transformed in recent history. Take a look at this snapshot if you remain unconvinced. More and more arcades and amusement businesses are opening. Many provide a mix of nostalgic gaming and the quickly evolving VR genre. VR is nothing to ignore with predictions that it will be $45.09 billion market by 2025. Millennials are undeniably a huge part of the gaming and arcade market. Research supports that this generation is learning from mistakes of previous ones and prefers cash over cards. Card acceptance is low at these facilities and owners of any entertainment genre is missing out on sales without cash being readily available.
Hair Salons / Barber Shops - Hair care still reigns in the beauty industry as being the a lucrative business, with an average growth rate of 1.8% the last five years. While consumers may be more mindful of spending during hard times, they are still allocating money for hair care. Hair care tops the beauty industry segments with a solid 24 percent and 86,000 locations according to an 2018 analysis. Hair salons and barber shops are typical small business owners who prefer cash for each transaction. One economic snapshot of the spa and salon industry showed the number of non-employer salon and spa establishments increased 83 percent in the last decade, while their sales jumped 93 percent. For these small businesses, cash eliminates credit card fees and can lead to better tipping from clients.
Nail Salons - For reasons like that of a hair salon or barbershop owner, nail salons need the ability to give consumers access to cash. As of 2017, $8.53 billion was spent at nail care businesses. It is a highly competitive industry with average spending per visit averaging $20.93-$31.00. There was also an influx of 11.7 percent new nail technicians entering the industry in 2017 over 2016. With new services coming on board all the time and a market with huge up sell, nail salons should provide their clients access to cash to increase loyalty and allow for more tips.
Thrift Stores - Most thrift store owners know the profits can be big. TV shows like “Storage Wars” have made that knowledge public. With $17 billion in annual revenues, thrift stores are pulling in big profits one dollar at a time. Consumers love a bargain and thrift stores are known for impulse shopping. Tax season is huge player in the thrift store game, but thrift stores are known to do well through any economic condition. In great times they get more donations and in lesser times they will make more sales with people pinching every penny. Fees for processing any other method besides cash can pile up on the average store owner. An ATM allows both the customer and business owner to profit on this steady stream of income.
Cash purchases add up to big sales in each of these industries. By supplying customers with convenient access to cash, business owners can take advantage of additional sales.
To learn more about providing customers with ATM services at your business, contact BFC Enterprises today.