Convenience store owners know the value of shelf space. In fact, the shelf may very well be the most precious real estate in the consumer-retail value chain. Profitability depends on having the right product mix, optimally placed, to ensure that a high turnover rate on goods sold is achieved. Selecting the right assortment of products for your consumers can make or break your business, so it’s no surprise that selection is competitive and placement is strategic since space is limited. But as traditional revenue streams flat line, storeowners need to look for fresh and innovative ways to increase profitability. But how do you add to your product mix when you’re out of space? The most successful businesses are getting ahead by thinking outside the box and off the shelf. By offering recession proof services like point-of sale bill pay, retailers can reap additional benefits, without having to trade something out.
3 reasons why convenience stores should offer Walk-in Point-of-Sale bill pay:
1. Increase door swings and foot traffic
Not only are you giving consumers another reason to walk through your doors, but that reason is reoccurring. The average person has between three to five bills per month to pay, and rarely do payment due dates all fall on the same day. That means that he “cash preferred” consumer, that often makes last minute payments, could be entering your store five additional times per month. Once in-store the odds of making unplanned, additional purchases are drastically increased, since an increase in foot traffic positively correlates with an increase in basket size. Essentially, the opportunity to leverage the expansive consumer base of major national and regional biller exists and is highly beneficial to driving new, repeat traffic into your store.
2. Earn a percentage on each transaction
The most obvious benefit to accepting third party bill payments in unaffiliated retail locations is the percentage of transactional revenue earned. There is a convenience fee applied for the added level of service that the customer receives by being able to make expedited, last minute cash payments, in handy locations, during extended hours of operation. The biller sometimes absorbs this convenience fee, since it alleviates their own counter pressure as a result of dispersing congested payment volumes away from their centralized payment offices. That or, the customer incurs the convenience fee for the value that making last minute, conveniently located payments offers them. Regardless the retailer benefits by earning a percentage on each bill pay transaction made, increasing revenue earned, without taking up, or trading out shelf space.
3. Competitive advantage by targeting the growing financially underserved consumer market
Billers still see a steady stream of customers regularly visiting their centralized offices to make monthly bill payments. Many people pay this way out of habit, but even more out of lack of options. The large and growing underbanked population in the U.S. transacts either primarily or solely in cash drastically limiting their payment options to either commuting to the centralized billers office to make an in person payment, or purchasing a money order, stamp and mailing the payment well in advance to avoid late charges, neither of which are convenient, efficient or inexpensive. By offering an in demand service to a growing segment of the market, retailers can gain a competitive edge that is advantageous on several levels.
Click here to learn more about how offering Point-of-Sale third party bill pay can benefit you as a convenience store owner!