Bill's Blog

Earning Market Share

In the ever-changing ATM market, one common trend has been persistent over the years; a reduced profit margin. Similar trends have occurred in other facets of technology, most notably the computer market. That being said, within the industry you can’t buy loyalty and/or market share. You have to earn it.

There has always been less expensive ATM equipment in the market (and always will be). Tranax has always competed on value not price. In the meantime we will continue to do what we always have done, provide the highest level of products and service reliably and quickly to market.

Despite any rumor, parts for existing Tranax supported equipment are not – nor will they be - a problem for us to provide to our customers. But most important, Tranax has built a relationship of trust with its partner ISO’s of some 10 years now. The relationship is mutual, beneficial and long lasting.  It has been the key to the company’s ongoing success that has in turn helped us both to grow.

A Strong Foundation Moving Forward

I appreciate the comments – and pain. The pain was felt on many levels due to the abruptness of the termination of the contract with Tranax and Nautilus Hyosung. Originally the contract was to be terminated in July 2007, but they decided in November 2006 to quit shipping product, thus creating an early termination of the contract. It was unfortunate and an extremely difficult decision. It also created a lot of problems for us and our customer base.

We are quite pleased and appreciative with the way that our customer base has embraced the Mini-Bank 1700 and the Mini-Bank 4000 product line and stuck with us through these difficult times. In 2002 we experienced a similar situation when they quit shipping the Mini-Bank 1000 and put the Mini-Bank 1500 into the market without a “conversion” time to allow for new product acceptance. That was a difficult time for us. The Mini-Bank 1500 was an improvement over the Mini-Bank 1000, and the Mini-Bank 1700 is an improvement over the Mini-Bank 1500. Technology advances – and when that happens it forces products to improve or become outdated. Our solid design capabilities combined with our support structure will continue to guide us now and in the future.

I have heard rumors in the market of our near demise. Many of you know that we have recently moved in order to double our U.S. manufacturing and assembly capacity and keep up with growing sales. Earlier this year Tranax created a Board of Directors, each one an experienced executive —all of whom have successfully built large global, high technology companies.

These are not the actions of a weakened company, but of a ragingly healthy one, that has come of age and is ready to strike out on their own.

Tranax 2007 & Beyond

A lot has happened this year that I feel has to be clarified and addressed. Over the years Tranax had an ongoing relationship with Nautilus Hyosung that came to an end in 2007. Since that time there has been a lot of rumors and confusion in the industry that I would like to respond to and use this blog to set the record straight. I invite you to ask any questions that you might have and promise a response in a timely fashion.

So let’s get some of the issues out on the table.

Why is there so much animosity between Nautilus Hyosung and Tranax?

I can’t speak for another company, but I can tell you that there is no animosity on the part of Tranax. The two companies have enjoyed a strong partnership for many years, and it served us both well. But for some time now we at Tranax have recognized the need to control our own destiny and define a marketing strategy which will enable the company and its ISO’s to prosper and grow. This approach is based on having stronger control of our product design and manufacturing, its marketing and sales, and its channel and customer support.

For us, this means control over our manufacturing to define products which are carefully attuned to our channel and industry.  Remaining agile and quick to every changing market condition, adding value to our products and services, and building an ISO support system that provides the best channel and customer support -- bar none.

Our split is natural evolution on the part of two companies who are located in different parts of the world with very different corporate strengths and objectives.

I have been saddened by what we have heard in the market, but Tranax is very strong and is positioning itself to grow.

Recently according to ATM & Debit News, Tranax moved into the number one spot in Retail ATM sales for the US market in 2006 – from a strategy that was put into place years ago.

Now that we control our manufacturing we have a whole new line of products and services that we offer; entirely our own. There is no animosity here. Just a sense of excitement.

“The rumors of my death have been greatly exaggerated.” Mark Twain