Does anyone know the real cost of maintaining a cash machine? I seem to recall reading it worked out as something pitiful like 20p per withdrawl?
Right now we seem to have a binary pricing structure where its either: a) FREE or b) 1.50
Why does no one charge something fairer in the middle?
1.50 just seems so extreem.
There is and can never be such a thing as 'the real cost' unless its for each individual machine, or at beeast for one organisations machines, it depends on numerous factors such as where the machine is, who loads it and how much they are paid, how often its used, and whether the organisation doing it is doing it directly to make a profit or its regarded as a cost.
Any such figure would be an average...averages are completely useless for understanding costs or indeed most things. I earn 1 million pounds as an investment banker, you earn 10,000 a year as a checkout assistant. Our average wage is 505,000. Feeling better off now?
Because they are run by different companies, its like asking Tesco to increase the price of their petrol to help make petrol at an Esso station in Cornwall cheaper!
well dont use it then FFS!
Because the machines are fulfilling different purposes. The free ones are loss-leaders by the banks to encourage people to use their services (and provide them with public visibility and free advertising). The fee-charging ones are profit-generating enterprises for their operators (both the shop which installs it and the supplier who provides the machine). In both cases, the actual cost of providing the cash withdrawal is not really relevant to the fee charged - it may make the difference as to whether a machine in that location is worthwhile or not, but it won't affect the fee itself very much.
Mark
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