How to choose the best Coin Deposit Option
At ESI, we have sold hundreds of Coin Deposit Machines of different brands for different solutions. I believe it is a good thing for almost every financial institution or retailer to have a way of collecting their customer’s coins, whether to add to bank accounts, spend in stores, or simply attract new customers. Here, my focus is on retail.
Now is the big question: What solution should I look at? There are many versions of placement (usually revenue share), purchase or rental. The needs all vary by market. I’ll address each of these here:
CoinStar owns this market with good reason. They are the only group that has a national network of service and pickup and the resources to allow gift card and donations options at the machine. It is also the most recognizable name in the industry.
That said, they cannot be everywhere. Some smaller, even rural regional retailers do not have the foot traffic for CoinStar. If not there are various options to look at.
We recently ended a relationship with a regional grocery chain due to a sell off of most of their stores. However, in the 5 years we had machines there, we raised nearly $5 million in coins in 69 stores. They reported to us that data showed approximately 64% of the deposits, once cashed, were spent in the store. That is over $22,600 per store per year. Not bad when the machine costs nothing AND they shared revenue from the coin deposits in addition.
Purchase / Lease / Rental
If you have the cash to buy or lease the machine, then the ROI becomes more important. If you have your money invested, it becomes more critical to advertise and add value to using the machine. Even renting the machine ties up cash, although you can return it if it does not work out. I am an advocate of the closed coin cycle in which every coin deposited in the machine is a revenue generator and is a cost reducer by having coins to reuse in the store vs, buying coins and paying for the bags to be removed. There are a lot of ways to do that from equipment tied to the POS System like the Cash Complete from Suzo Happ down to a basic desktop coin counter, sorter packager. Almost every coin equipment dealer has the simple solutions.
I hope this helps as you think about revenue opportunities. I’d love to hear your feedback at firstname.lastname@example.org