Nayax vs. USA Tech CC Readers

[gelaro]

Been researching this by reading here and elsewhere. Bottom line, should I go with Nayax or USA Tech? (Pay Range seems a bigger risk.)

First, how profitable does a location need to be to consider this? I am thinking about three locations with a drink machine and a snack machine. Two locations have asked about them. One has not asked but it's a hotel that would seem to be profitable. All three are probably border line in terms of being profitable. I am not sure. How soon would you want to see them paid back to consider putting it on?

Second, which one would you get? Nayax is a little cheaper if you get six (buy 5 and get 1 free). USATech will actually rent them with a buyout option so if they don't produce increase you can take them off and send them back. The monthly cost and sales charge seems the same. 

I think the PayRange thing might be too involved for people to use though it is a lot cheaper. (Thoughts welcome on that).

Does anyone have any view as to the preference of one over the other?

[arkhusker]

I've come to the conclusion that if a machine is now grossing $40/week it is worth adding a card reader and two-tier pricing. I'm using USAT but considering adding some of Parlevel's devices.

[Southeast Treats]

I use multiple companies, and the differences are minor, so it really comes down to getting the best deal.  Nayax and USAT are both good to work with; I think USA requires you to lease a minimum of 10 units at a time.  I recently started using ParLevel cashless also, and I do like them best as far as how they deposit funds from sales to your account.  USA and Nayax are weekly deposits of sales minus swipe fees, where ParLevel deposits every working day the total sales amount, and bills swipe fees once a month.  That lets you have the time value of your money, not the processor. 

I have PayRange on one account.  It's not as good as a card reader but it makes for a cheaper option.  It took a while to catch on with the customers, and there are a lot of steps for a first time customer (download software, input card info, fund the app for at least $10, and then make a purchase).  I would not expect it to work well in a hotel setting.  It seems like smartphone payments are not catching on as fast as predicted anyway.

I think it takes a little more in sales to justify the readers ($250 a month or so; that number is dropping as units get cheaper), but the other side of that is if you are using the data to prekit it makes you more efficient, so that has value too.  And the fact is almost all machines will have to have readers in the next few years anyway.  You should see sales increases of 10% to 15% pretty quickly after you add the card readers, and it will grow over time.  I have some accounts that average well over 50% cashless.  

 

[gelaro]

Thanks.

Tell me if me thinking sounds right here: I put two Nayax readers in a location (snack and drink) that is doing about $80 a week. The readers cost me $500 ($249 each). If sales rise by 20-25% to about $100, that equals roughly $10-12 dollars profit per week (mid 40s profit margin), or about $45-50 a month on the high end. That's about twelve months to pay off the investment. 

Is that correct?

Is that worth it?

[Bvending]

We use usat and have had no problems with them. The readers are definitely worth it in my opinion. The hotels i have them in have seen about 40-50% increase actually. The increases we have seen across the board have exceeded my expectations. Before we started using the cc readers, we had a location we were going to pull out of. Snack and drink averaging about $15 a week a piece. Decided to give it one last chance with the cc reader ( because the average age of worker is probably 28), they are now averaging $75 a week a piece.

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[Southeast Treats]

1 hour ago, gelaro said:

That's about twelve months to pay off the investment. 

If you are just looking at cost of hardware, but don't forget the monthly fees - so it will take a little longer to be cash positive overall, but it's still very doable.  And if the numbers increase more than expected it will go faster.

Another consideration in choosing hardware is life expectancy of the tech.  I started out with 2G units and have already had to replace them, mostly at my expense.  3G is the norm right now, and I have been told it will be good for at least 5 more years of service.  USAT just introduced their 4G unit, it's a little more expensive (but it can be leased or rented to spread out the cost) and should last quite a while.  I am still buying 3G units for the time being but it is something to think about.

[AngryChris]

5 hours ago, gelaro said:

Thanks.

Tell me if me thinking sounds right here: I put two Nayax readers in a location (snack and drink) that is doing about $80 a week. The readers cost me $500 ($249 each). If sales rise by 20-25% to about $100, that equals roughly $10-12 dollars profit per week (mid 40s profit margin), or about $45-50 a month on the high end. That's about twelve months to pay off the investment. 

Is that correct?

Is that worth it?

Only going after the math here... but a 25% increase is about $20 gross. At 40% profit,  that's  $8/week, not $12-$16. I don't know how you got to that.  It's not really going to break even well if you're doing $80/week combined. 

Think.. $20/week is about $1000/year. Your margin is 40% and processing fees are 6%. At 34%, you make $340 before wireless fees. Two units at $8/month is $192/year. So you're left with roughly $148 per year with the full 25% increase in sales. It would take you over 3 years with those numbers. At $80/week each, the cc reader is much easier to justify. 

There is more benefit in having a reader than just money, but you need to decide whether to invest  $500 to be a nice guy or invest  $500 into something with a much greater return. You could land a small account with a can machine only that does $30/week. Even at 40% profit, that's about $600/year in your pocket from a $500 can machine.