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Self-Service Coin KiosksThe benefits and financial analysis to understand your options

* The original investment of $375,000 nets $2.1 million in ten years based on the assumptions outlined in this example.

** Net of depreciation, annual service agreement and coin handling.

Years 1-3 Years 4-10

Gross Revenue Based on 9.8% Fee $1,146,600 $2,675,400

Net Revenue from Kiosk Purchase** $565,350 $2,194,150

Net Revenue from Third-Party Machine Placement (1.1% Royalty)

$128,700 $300,300

When a machine is placed by a third-party organization, as much as 98% of fee revenue is collected by the equipment owner. And average royalty payments to the store average less than two percent.

By owning a self-service coin kiosk, retailers get to keep all the fees generated from coin redemption. In addition, kiosk ownership also improves cash flow by providing a consistent revenue stream for the full processed coin amount. Investing in self-service coin kiosks can deliver returns of more than seven times the original investment when calculated over the lifetime of the redemption machine.

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INS When making a decision to purchase a self-service kiosk or to consider allowing a third-party to place

a machine in your store, there are many considerations, including both service and financial benefits. There are distinct differences between these options, but only one which gives you control over revenue and service to your customers. This use case outlines one grocery chain’s experience while comparing these options.

In today’s market, it’s all about maximizing opportunities for greater returns. If you’re looking to increase profits for your organization, then self-service coin kiosk ownership offers the highest return on your investment. Selecting the right partner minimizes any risk or effort associated with ownership.

If you analyze the numbers, self-service coin kiosk ownership demon-strates quantifiable ROI to retail stores. The following scenario represents revenue realized from an actual cus-tomer comparison. This comparison is based on 25 machines depreciated over three years with a coin process-ing average of $3,000 per week. This ownership example also includes the cost of coin handling and a service agreement (net of ongoing operat-ing income), which ensures superior operation of the kiosks.

Although the assumptions for this comparison may vary based on kiosk model choice, the revenue calculations represent real costs from a working business model.

Industry’s Highest ROI

Retailers that own their self-service coin kiosk keep 100% of the fees generated from coin redemption.

Positive cash flow for this customer equaled $3.9 million per year, generating significant opportunities. Steady cash flow is a leading benefit to kiosk ownership.

An original investment of $375,000 to purchase 25 Cummins-Allison self-service coin kiosks will net $2.1 million in just 10 years.

Equally important to kiosk ownership is making sure you’re investing in a high-quality self-service coin machine. In a recent trial, a national grocery store chain tested Cummins-Allison self-service coin kiosks against an industry competitor. In eight stores of the customer’s choosing, Cummins-Allison kiosks replaced the competitor’s machines.

Within the first year of operation, the participating stores reported coin volume increases of more than 25 percent. Trial averages jumped to more than $5,000 per week from $3,850 per week.

You may be wondering why this grocer experienced such a significant change in coin volume. The reason is due to a significant increase in machine uptime—consistently 98 percent uptime. Not only did Cummins-Allison self-service coin kiosks work faster and more efficiently for users, but there was a significant decrease in machine jamming, attendant service requests and repairs.

Cummins-Allison has the fastest, most efficient coin-sorting technology in the industry. Patented technology processes large coin volumes in seconds—sorting out debris and non-coin items without stopping or jamming. Kiosks are robust and built to last, and in the event that your kiosk does need a repair, they are backed by local, factory-trained service technicians with local parts inventories for quick and efficient fixes to get you back up and running…and making money.

Not only do high-quality kiosk machines deliver maximum uptime, but they also generate greater ROI! Superior performance means:

1. Your customers aren’t turned away because the machine is down,

2. Faster processing creates positive word-of-mouth advertising and

3. Fewer attendant calls maximize staff time.

Highest Quality Self-Service Coin Kiosk for Maximum Uptime

A national grocery store chain realized coin volume increases of more than 25 percent within the first year of owning Cummins-Allison coin kiosks.

Cummins-Allison self-service coin kiosks work faster and more efficiently for users, maximizing uptime at 98%.

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Cummins-Allison self-service coin kiosks pay you more money per square foot and provide the highest ROI in the industry. Cummins-Allison is the only machine on the market that lets you control and retain fees through the delivery of an automated service to your customers.

Reap the profits and benefits of kiosk ownership with Cummins-Allison:

• Gain control: Set redemption fees to determine revenue, extend your brand and drive promotions.

• Capture incremental growth: Retain all profits and increase coin redemption revenue over time.

When you select Cummins-Allison, you’re choosing:

• The #1 provider of high speed coin processing equipment — more than 50,000+ installs worldwide

• Dedicated provider of innovative and best-in-class products — boasting more than 350 U.S. patents

• Fastest coin sorting and processing machine on the market — up to 4,100 coins processed/min.

• Industry proven reliability and 99.995% accuracy rating

Why Cummins-Allison?

Earn 7% or more on your self-service coin kiosk and experience the freedom to adjust fees to be competitive.

When asked, customers divulged what three key features a self-service coin machine should offer:

1. Cash payout right at the machine

2. Larger receptacle for accepting all coins at one time

3. Reduced coin processing time — fewer coin jams and rejection of good coins

Cummins-Allison self-service coin machines satisfy all three of these consumer requests. ¹

Cummins-Allison FastPay self-service coin machines are the only coin redemption kiosks on the market to offer cash redemption right on the spot. Forget long lines at customer service counters for customers needing to redeem a cash payout, instead immediately put cash in customer hands for greater potential of spending back inside your store. And your employees can focus on more valuable tasks instead of redeeming, tracking and balancing customer receipts or maintaining the machine when jams occur.

To learn how the Cummins-Allison Money Machine can improve cash flow and boost your store’s bottom line, visit cumminsallison.com/ssc1

¹ Top Six Drivers of Consumer Use of Self-Service Coin Machines by Branmark Strategy Group (2010)

The Customer’s Ideal Self-Service Coin Machine

FastPay…Cash Payout, Right Away

Specifications throughout this document are approximate and subject to change without notice.© Cummins-Allison Corp. 2011 Form 023-1864

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