Ben joined StorMan Software in 2002 and is now StorMan's Australian General Manager.
Title: What are kiosks, and why would I want one?
Date: 16th May 2008
Good morning all - I hope you've had a great week so far. Many people ask me these two questions every time I bring up the subject of Kiosks in conversation - so let's take a look t what a kiosk is, and why you might want one.
What are they?
A kiosk is an ATM by any other name - but we call them kiosks to differentiate them from ATM’s (which have a specific banking function). Kiosks on the other hand, can really be put to any use you can think of that requires a computer and an internet line, so they are good for internet cafes as internet kiosks and parking stations as payment machines - or as we saw here recently in Australia as automated “check-out chicks” for Woolworths
So the question “What are they?” is really a diverse one, given the number of uses that they can be configured to be used for. A prime example of this is an information kiosk in a major shopping centre or I saw one the other day in the fruit and veg section of my local IGA (Independent Grocer Association). Its main job was that it would tell you the number and type of meals you could make with the contents of your trolley based on how many people you had entered in as living in your household… great for single guys or new mums etc.
In many facets of society, we are seeing the self-help revolution take over the more traditional mundane service jobs - such as "check out chicks" (as we call them in Australia), but more so we are finding kiosks and self help ATM’s are filling a service void that has been too costly to fill using normal staff.
Herein lays the crux of the benefits of a kiosk. The kiosk is available 24/7 and only costs you once to buy and a little bit each month to maintain over the lifespan of the equipment. So the benefits that can be provided by using one are enormous given that they can be reconfigured and optimised to change with your business. This is generally a lot cheaper than re training the staff member involved.
Why would I want one?
Perhaps the question here should actually be "why wouldn’t you want one"? The self-help revolution that is becoming more and more apparent within our community has in a large part been supported by Australians. We have the second highest ATM adoption rate in the world. This leads me to believe that if you haven’t got a kiosk or believe that you can do with out one then you may want to re-evaluate that thought process after looking at the following:
“Self-service technology has helped reduce queues at airport check-in counters and at banks thanks to the ATM. Automated kiosks allow people to rent DVDs and develop their photographs without human contact. Woolworths's general manager of retail operations, Marty Hamnett, was quick to point out that yesterday's announcement [on trialling self-checkout kiosks at their grocery stores] was not "the death knell of manned checkouts". He said "Woolworths was merely offering customers more choice and the ability to buy groceries faster.”
Source: Sydney Morning Herald April 22,2008
I would also recommend that you check out the following site which is dedicated to the self service revolution and kiosks in particular. “So What!”, I hear you say, so Woolworths is just making their customers do the jobs that their staff are supposed to be doing… “How does that help me?”
Well I think it’s important to understand the concept. Yes - a kiosk may not be right for you but the question you need to ask yourself as a conscientious self storage provider is would it suit my customers? In many cases customers like to help themselves. Here’s a list of the self help point that I use every week.
- Virgin Blue Check In Kiosk
- BP or Shell petrol - Pay at the pump
- Informational Kiosk at a Westfield shopping centre
- Birch Carroll and Coyle movie Kiosks (previews movies before you by tickets)
- Translink Ticket vending machine (purchase my bus and train tickets)
- Bus and Train Time tabling Kiosk (live updates on busses and trains and any delays)
- Various banking ATMs
- IGA in-store recipe planners
- Parking Kiosk at airport
- Noodle Box (order lunch in local noodle restaurant)
I am positive that I have forgotten some of the ones that I have used but when you consider that I use 10 kiosks a week without even thinking about it you may start to understand how far the self help revolution has come in the last 5 years.
Certainly in the USA and other countries in Europe and Asia there are many times where customers will choose not to use a service or business unless they have a self help option. If we look closer to our own industry we find that the new association in Singapore has already endorsed the Opentech Insomniac Kiosk and they have installed 3 inside the last month. This, from an industry that is only two years old at the most! Already they have looked at other markets and found that the self help option is basically a default option these days when offering extended levels of service in an industry such as ours.
Next take a look at Australia. It is common knowledge that the labour markets in Queensland and Western Australia are very strong. By this I mean that the demand for workers is so strong that demand in most cases outstrips the local supply. What happens then is text book supply and demand; because supply is short and demand is strong the price goes up.
Therefore we see in both these states a very high percentage of workers being paid above and beyond the normal award wages so that they will remain with their current employer. The consequence here is that many employers face very high wages bills each month. Logic would dictate that the implementation of a self help kiosk would allow the employer additional options with their business for a minimal cost outlay. Many owners would therefore be able to offer extended trading hours without having to hire another employee and gain the benefits of extra trading with a once off capital spend. Indeed it is fair to say that based on the current rentals that the kiosks are performing in the USA the ROI (Return On Investment) is very high.
Our figures show that the kiosks pay themselves off in a year based on one $150.00 unit rental a week here in Australia. Please check out the Kiosk ROI calculator for more information.
So based on the above there is no reason why the savvy self storage operator couldn’t use a kiosk to do a number of things. Some examples to get you thinking are 1) run a remote site down the road from your facility with next to no additional staff, 2) extend your trading hours over the weekends, Sunday for example, with no additional staff, 3) take away the excuse that the storer may now have, for non payment, because the office was closed. These are just some of the more popular ones but I am sure as savvy operators you could think of more than those three.
Many of the people who take a kiosk do so because it links into their existing software however many people don’t realise that a kiosk is a standalone solution as well. Many people are unaware that the kiosk will do all of the above and more with no additional software which means that for a small facility you could really run the entire operation with no staff. Please note that in Australia the SSAA (Self Storage Association of Australasia), insist that the Standard Self Storage agreement be signed at the time of rental and indeed this can happen with the Insomniac Kiosk depending on the model.
Therefore all you as an operator needs to do is clean the vacated units and keep the grounds tidy and chase those pesky debtors. Please also be aware that for those operators linking the kiosks through a software package such as StorMan then the kiosk can control the gate access as well giving a solid all round package.
Well for those of you who wanted to know more about the kiosks and why you should have them I hope that this blog has achieved that. Please contact sales@storman.com if you would like to purchase one or require more information.
Again thanks for your time and I am sure I will see you around in the great industry that is Self Storage in Australia!
Regards,
Ben.
