Can Your Cash Management System Make You Money?

Can Your Cash Management System Make You Money?

Cash Depot LogoThis article is brought to you by Cash Depot.

Cash management has costs. Manual cash management requires labor to count cash, report cash, prepare deposits, and take deposits to the bank. Cash Depot research shows that manual cash management for a c-store can require about 20 hours of labor each week at the store level—which can add up to around $1,000 each month. In addition, the company has found that the average retailer also spends upwards of $37 in bank fees for every deposit over $5,000.

And manual cash counting can lead to shrinkage, whether from human error or internal theft. More than one-third of shrinkage is attributable to human error and administrative or operational mistakes, said Sean Burke, CEO of Cash Depot.

He said these costs can be alleviated by using automated cash management with smart safes or cash recyclers—but while that can save money on labor and shrinkage, it doesn’t address the bank fees, armored carrier costs, fuel surcharges, and other fees retailers pay on top of for the equipment, software and service costs for the machine.

“But retailers can eliminate a hefty chunk of those fees and turn their cash management systems into profit centers by using technology like BANK IN A BOX,” said Burke, “which combines store cash management with consumer ATM and financial kiosk technology.”

“Around 20% of the cash dispensed at an ATM is spent in the store where it was withdrawn. So, with BANK IN A BOX much of the cash being spent is the same cash the store deposited. It’s the same cash being spent in the store over and over again,” he said. And less new cash in the store means less total cash in the store, which can increase safety and hopefully mitigate theft.

Consumers are also drawn to ATMs that use multiple denominations besides $20 bills, said Burke. “Retailers can increase ATM transactions by an average of 2-3% with multi-denomination withdrawals,” he said. “Even large banks like Chase and PNC are upgrading their machines to offer $1 and $5 bills.”

Cash Depot’s BANK IN A BOX is a “unique cash ecosystem,” said Burke. “In addition to recycling store cash out to ATM users, the system also integrates with a wide range of consumer financial services.

These additional options include consumer deposits, business banking that offers bank deposit options to local contractors and other businesses, bitcoin purchases and bill payment services.

By using a cash management system with all these features, retailers can “bring in more foot traffic and make more profit—significantly offsetting cash management costs,” said Burke.

Dive into more content about cash management sponsored by Cash Depot. Read about cash management, recycling, the hidden costs of cash management, how to save on cash management, provisional credit, interest and fees, how to reduce shrink and external theft, how to choose the right cash management system and how to make cash management more profitable.

link

Leave a Reply

Your email address will not be published. Required fields are marked *