Depending on the size of your bank or credit union, ATMs might cost you a little bit or a lot. The more ATMs, the more money you throw at them to keep them up and running.
That cost can be a bitter pill to swallow. So, any trick financial institutions have for keeping costs down is a necessary one. There is no single cost-saving solution that can replace all other efforts. Instead, there are several methods of maximizing the value of your fleet.
Recently, we wrote about how to save money and free up budget space at your credit union. We mentioned buying refurbished ATMs, but that’s not the only way to get the most out of your ATMs. One of the best and most ubiquitous ways to save money on ATM fleets is to use refurbished ATM parts. Here’s the low down on ATM part refurbishment.
What Are Refurbished ATM Parts?
Refurbished parts are basically used parts, but they’re just as good as new. The refurbishment process ensures that any flaws in the part is carefully fixed. Any blemishes are removed. A refurbished part is virtually indistinguishable from a new one.
Except refurbished parts aren’t new. They’re just lightly used, cleaned, reconditioned, and tested to ensure perfect working order.
The usual manufacturing process is a little different. It requires mining, refinement, huge machines, manufacturing plants, and so on. It encompasses the entire lifecycle of the materials and the skilled labor required to produce them.
Refurbished parts require only skilled labor to restore them to like-new condition.
Cut out the rest of that and you cut out those associated costs.
Who Uses Refurbished ATM Parts?
This is one of the dirty little secrets of the ATM industry. Most companies use refurbished ATM parts. Yes, even major financial institutions.
Here’s why:
There is a lack of supply of original, brand-new ATM parts on the market. There is not a single company in the world that has enough new stock to supply the amount of needed ATM parts. Sourcing all new parts is both very difficult and very cost-inefficient.
It’s not just a few financial institutions that do this. It’s just about all of them.
And it’s not limited to financial institutions. Almost every OEM manufacturer buys refurbished ATM parts from ATM part refurbishers. There’s no reason to spend the resources on new ATM parts when the refurbished, reconditioned ones are so much cheaper, easier, and more available.
Two Reasons to Use Refurbished ATM Parts
Here, we’ll make it really easy. Here are two reasons you might want to use refurbished parts instead of new ones.
1. Refurbished parts are high quality
Like we mentioned, they’re essentially new. There’s no drop off in quality or longevity.
2. Refurbished parts are easier to obtain
Yes, they cost less. And they’re more available. But most importantly, sourcing quality refurbished parts is faster than getting new ones. Especially for urgent fixes or fleet updates, timelines and speed can be very important. That makes new parts more than just cost-prohibitive—they’re “time-prohibitive” as well.
Further Reading
If you’re looking into sourcing refurbished ATM parts instead of new ones, have no fear. Literally everybody else is doing it. (And we do mean “literally” literally.)
Relying on refurbishment is the ATM industry’s dirty little secret. Except it’s not really a dirty secret—it’s just the way things are, and for some reason, not many people talk about it. In fact, we’re learning about a whole range of ways to save money in your ATM ecosystem.
And, just because it’s that time of year, we’ll sprinkle in a few more ideas about how to approach your credit union’s 2020 budget.
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