October 2, 2017, Mississauga, ON – The Canadian grocery market is a large and dynamic industry. Grocers must adapt to changing consumer trends, external competition from new entrants and increased demand to lower product prices.1 With that in mind, the pressure is on to control costs and find new ways of increasing profitability. Cummins Allison, the leading innovator and provider of coin, currency and cheque processing technology, explains how grocers need look no further than their front-of-store to find the solution.
Coin Management: Exposing a Hidden Operating Cost
Cash management – especially coin handling – is an often-overlooked cost center that claims valuable staff resources and diminishes a business’ bottom line. For example, grocers often struggle with the high cost and time commitment of managing coin within their stores, including burdensome tasks such as:
- Ordering new coin for the day or week
- Managing cash drawers
- Filling coin hoppers in self-checkout lanes
- Providing rolled coin for service desk use
- Processing coin from store-owned vending machines
There is no doubt that grocers could benefit from a more efficient and cost-effective system for managing cashiers’ cash drawers and other in-store coin related activities to minimize costs and increase productivity.
Extend the Benefits of Self-Service Coin Redemption: Reduce Operational Costs
Self-service coin counters are not only used by grocers as a revenue generator, but also as an effective way of recycling coin in their own operations – saving thousands annually. For example, when grocers lease or own a machine, they have access to the redeemed coins inside, and with a coin packaging solution, they can package the coin from the machine and use it to restock cash drawers.
The cost benefit is twofold: reduce pickup and processing fees and eliminate the need to buy coin from banks or armored carriers, further increasing ROI. By packaging their own coin, grocers can save up to $144.20 per week for one store, which leads to a whopping $7,498 of savings per store each year.
Turn a Value-Added Differentiator into a Profit Center
As a value-added differentiator, self-service coin redemption can increase foot traffic and the amount of dollars that customers spend in-store, contributing to the store’s overall profitability.
With the right procurement strategy, grocers can further expand the profitability potential of the service. When evaluating procurement models, grocers should keep in mind that purchased and leased coin machines deliver higher ROI. The cost of the equipment and fees is typically recovered in as little as twelve months – and grocers retain a greater percentage of the profits, turning coin operations into profitability.
Eliminate Costs & Maximize Profitability: It’s All about Control
For grocers, improving their coin management strategy depends upon gaining control of costs, productivity and profitability. Self-service solutions deliver the control grocers need and deliver more value and money. To find out how you can put these solutions to work at your store, visit: http://www.cumminsallison.ca/ca/en/products/coin-handling/money-machine-2.
1QUIC Research Report, “Canadian Grocery Market Report”, January 2017. http://www.quiconline.com/wp-content/uploads/2016/09/CH-Canadian-Grocery-Report-01.16.17.
About Cummins Allison
Cummins Allison is the leading innovator and provider of currency, coin and cheque handling solutions.
Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit www.cumminsallison.ca.
Carol Moore – Vice President Marketing
Cummins Allison Corp.
Outlook Marketing Services, Inc