This article appeared in the C-store Self-Service Executive Summary, Spring 2006.
It doesn't take much to convince a c-store operator to put in an ATM, said Billy Broyles, marketing director for Johnson City, Tenn.-based Mountain Empire Oil Co.
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At Mountain Empire's 46 Roadrunner Market stores — scattered throughout eastern Tennessee, West Virginia and North Carolina — pulling consumers in from the pump is a necessity.
"You've got to look for other avenues to survive."
To do that, Mountain Empire is exploring self-service offerings beyond the ATM that attract consumers.
"We've tried check cashing … and we're also interested in DVD rental kiosks."
Mountain Empire's perspective is typical, said Joe Harris, general manager of Hamburg, N.Y.-based ANS Marketing LLC. ANS, an independent ATM sales organization, is helping c-store operators like Mountain Empire expand their self-service offerings.
"Convenient store operators often find themselves in a dilemma," Harris said. "They offer pay-at-the-pump because it's convenient and consumers demand it, but then people don't come into their stores."
To get those customers, c-store operators are trying a little bit of everything, from promoting deli and fast-food sales to selling tickets for nearby theme parks.
Finding the right solution
Finding the "right" offering, however, is key, Broyles said. Unlike the ATM, self-service check cashing and DVD rentals won't work everywhere.
"A lot of it has to do with location. You may have a lot of traffic, but if there's Blockbuster right across the street, you're probably not going to make much on DVD rentals. Or if there's a bank on every corner, a check-cashing solution might not be a great idea."
And because multifunction self-service terminals are expensive — costing between $25,000 and $50, 000 for a check-cashing kiosk, for instance — operators have to plan and be deliberate.
"Customers are ready for more self-service, but these new solutions are definitely more involved than the ATM," Harris said. "That's what got some retailers in trouble two years ago — they just put the machines in. In some cases, they offered too much on one machine. In other cases, they offered functions that didn't make sense for their location."
Harris's pre-deployment recommendations include:
- Choose solutions wisely. If you already offer check cashing at the counter, then a self-service check-cashing solution may make sense. If not, is check cashing something your customers have asked for?
- Do you want to own the terminal or have one placed by a third-party? You'll make more if you own it, but you'll also spend more upfront. And if the solution isn't successful, your options are limited.
- What about service? Will you contract it out or oversee it yourself?
