Jump to content

Best credit card for drink machine?


kyle0050

Recommended Posts

My current drink machine pooped out on me and I have the option to get a credit card swiper on the next machine I am buying. So what is the best company to go with you'd say. Also what would you say your fees for the credit card reader are. I would be putting this at a high school and have had a good handful of kids ask me to put one in. I am also wondering is it worth it to install one or just keep doing cash?

 

Hope to get some opinions. Thanks!

 

 

Link to comment
Share on other sites

If they are at least 16 years old or somehow have debit cards/credit cards, I would certainly put that in.  Those kids would spend all kinds of money if they have a card.  I'm not going to go into numbers because the boost from credit card readers is all over the place but a soda machine that does at least $125/week in cash sales is certainly worthy of a credit card reader to me.

I use USA Technologies  and I believe the fees are about $7/month for the wireless connection and about 5% for sales if they average over $1.00 per transaction, or about 6% if they are under $1.00.

Let's say you did $150/week in cash and $180/week with a credit card reader installed (the cash sales may go down significantly so you have to compare the overall boost, not the CC sales as opposed to the cash sales).  At $130/month in increased sales, estimating maybe 40% gross profit after COGS, you have to put about $52 in gross profit.  Assuming your cash sales shifted from $150 to $100, and CC Sales went from $0 to $80, you have to take off 5% of that $80/week for a total of about $17/month in sales fees and $7 for the wireless connection.  So... you subtract $24 ($17 + $7) from the $52 in gross profit from the month to get $28 in extra monthly profit.  That means you will easily pay the credit card reader off in one year.

Numbers aside, having a credit card reader can reduce down-time due to bill jams, coin jams, etc...  It could buy you enough time to prevent you from having to make a special trip using costly fuel and time.

Link to comment
Share on other sites

I have already seen the affects of the large percentage of high school students that carry a debit or credit card and you will definitely get incremental sales from a card reader in a high school.  Payrange is a good idea as well after the initial adoption by students. 

Link to comment
Share on other sites

On September 6, 2016 at 8:25 PM, AngryChris said:

If they are at least 16 years old or somehow have debit cards/credit cards, I would certainly put that in.  Those kids would spend all kinds of money if they have a card.  I'm not going to go into numbers because the boost from credit card readers is all over the place but a soda machine that does at least $125/week in cash sales is certainly worthy of a credit card reader to me.

I use USA Technologies  and I believe the fees are about $7/month for the wireless connection and about 5% for sales if they average over $1.00 per transaction, or about 6% if they are under $1.00.

Let's say you did $150/week in cash and $180/week with a credit card reader installed (the cash sales may go down significantly so you have to compare the overall boost, not the CC sales as opposed to the cash sales).  At $130/month in increased sales, estimating maybe 40% gross profit after COGS, you have to put about $52 in gross profit.  Assuming your cash sales shifted from $150 to $100, and CC Sales went from $0 to $80, you have to take off 5% of that $80/week for a total of about $17/month in sales fees and $7 for the wireless connection.  So... you subtract $24 ($17 + $7) from the $52 in gross profit from the month to get $28 in extra monthly profit.  That means you will easily pay the credit card reader off in one year.

Numbers aside, having a credit card reader can reduce down-time due to bill jams, coin jams, etc...  It could buy you enough time to prevent you from having to make a special trip using costly fuel and time.

Do you charge an extra fee for credit cards? I've seen machines that charge an extra 0.10 or so

Link to comment
Share on other sites

We are 100% USAT and can take any card in your wallet and most NFC apps on your phone on any of our machines. A vending management company recently wanted us to add PayRange to their machines so that they can monitor the cash and credit sales. I refused  but gave them access to their machines in USA LIve to get the same information.

It may sound like I sell USAT, but the truth is I helped them beta test card apps in the 1990s. They have been doing cards longer than all of their competition combined. Security is priceless.

Link to comment
Share on other sites

  • 3 weeks later...
  • 2 weeks later...
12 hours ago, deee_z said:

How much do these units cost each and how tough are they to get set up and running?

Cost depends on the company and whether you buy them new or used. I have Parlevel readers and all I had to do was plug them into the machine to get them up and running. Everything else was taken care of for me.

Link to comment
Share on other sites

  • 3 months later...

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...