SurgePays, Inc. (NASDAQ:SURG) Q2 2023 Earnings Call Transcript

So we’re working on the timing for follow-up, is it the best methodology, phone call mixed with text messages makes you know how the best. So we’re working through that right now. We do have this out on ATMs. I’m pleased with the number of leads that we’re getting, that’s going great. But I’m bluntly a maniac about converting leads into sales. A customer is qualified. They said they’re qualified, and we want — and they said they raised their hand, said we want the service. Right now, we’re just plowing through the best way to create a good protocol to get them onboarded.

Michael Diana: Okay. So virtually, every convenience store has an ATM machine. Now the next thing you’re talking about, I think, is sort of your own device that has an LCD screen that — is this something that would just — that you would have to supply that would just relate to you?

Brian Cox: Yes, we would own this equipment. This would go on the counter next to the register. And to give a visual, the — for example, the coffee places that sometimes we go and they flip the screen over and we over tip because they’re staring at us. It’s the same technology, the same technology where we tip on a $4 cup of coffee, except ours would be facing out all the time. And 24/7, it could be running different ads, 10-inch LCD screen running different ads for whether it be ACP, whether it be our prepaid wireless brand that we’re looking to be able to undercut, track phone and boost and all these guys, whatever it is, whatever products we roll out, we would be able to promote that constantly and really kind of big benefit other than allowing that consumer to carry a little bit of the burden of the transaction.

For example, Michael, enter your telephone number, so I can push your payment or certain things like that. It’s also the ability to control the marketing in real time. And anybody that’s ever dealt with a distribution network, and it doesn’t matter what product it is, knows one of the biggest challenges is when you have a turnover in point of cell material, your posters, stickers, things on the door, things on the wall, and there’s also competition in the store. Every time we put a poster up, if the beer or cigarette guys come behind us, there’s a constant — whoever is there last gets the space. This would be something we could control in real time from our servers instantly. And any products we introduce, we could actually promote them. And I would argue other than the focus on the ATM when it’s counting your money, the other time, the singly most focused in a convenience store, especially a low-income convenience store, would be at the moment you’re standing there in front of the cash register, which is why all the impulse buys are usually surrounding the cash register.

So we’re really excited about that. This has been a part of the business plan all along. I wasn’t particularly planning on it being right now, but an opportunity has presented itself. We made mention in the press release that some of the crazy macro stuff that’s going on has opened doors for us before we were actually prepared to kick the doors down. So we’re going to take advantage of those. And that’s one of the cool things about having cash flow and profitability, it enables us to make moves when they present themselves.

Michael Diana: Okay. Now I take it this strategy would depend heavily maybe upon the convenience store owner operator assisting you, right? I mean, they’d have to let you put the screen there, and then they could help you actually direct people’s attention there, I would imagine.