ATM Sales: Part 2, Assessing Your Client’s Needs

By Vito | March 1, 2011

Ok, so you’ve come prepared to your face-to-face sales meeting with your client at his business.  After an introduction and asking generalities about your client’s business, it’s important focus on your client’s needs.  Instead of becoming “salesy” and telling him about how great your company and your programs are, it’s time to sit back and listen to your
client’s expectations:

These questions can help you assess whether it’s in his best interests to purchase the ATM or for you to offer a placement.  If profit is his highest motivation, then purchasing the ATM is obviously his best option, that way he can retain 100% of the surcharge.  If he’s not as focused on profit, a placement may be a better option and you may find he only wants a small portion or even none of the profits.  Of course, if he wants no hassles, this is also an indication that he would likely be more interested in a placement.

The most difficult of scenarios, as you may have guessed, is if the client wants to profit highly, yet is not willing to operate the ATM or invest the capital necessary to buy or lease the equipment.  Let’s call this client Mr. Best-of-Both Worlds.  This is the client you have to make understand that unless he has a high transaction volume (above 300 transactions/month ) that the ATM is not profitable enough for you to give away a large percentage of the net income. After all, you must remind him that you need to profit.  AND you have to put large sums of cash into his ATM on a weekly basis (whereas he can fill it up daily with a low amount of cash) and drive to the location and expend gas (whereas he is there anyways) to fill the machine.

If he operates at what you suspect to be a  low volume location, he at very least needs to be responsible for cash loading if he insists on a high percentage of the profits (40% or above), while you provide the machine.  You can also propose to put a machine on a trial basis, 30-60 day  contract, to verify whether the location is indeed high volume or not.  During that time, if you choose to provide cash loading, you can propose a smaller than usual percentage for your client until the end of the trial period (to cover your installation costs), after which time a longer term contract can be renegotiated if the location proves viable.

If you cannot come to an agreement with Mr. Best-of-Both Worlds, and he pulls the oft used, “Well I have another guy that can do it for me at my price,” you may have to consider walking away and letting the “other guy” take the account. You need to ensure a fair deal, and if your prospect is not reasonable, sometimes walking away is the best option.  In negotiations, the guy that can afford to walk away always wins.

Stay tuned for part 3…

 

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