Wednesday, October 25, 2006

Coinstar cash converter - 9.8% !!

Some time ago - shortly after the Zehrs in Bolton added the self-checkout lanes for groceries, I thought it would be a great idea to have a much better coin receptacle for feeding coins into the machines. It makes perfect sense for these machines to be setup to get your coin as easily as possible since I'm sure that grocery stores need lots of coin for their operations. At first my thinking was to just make the slots on the existing machines in the checkout aisles with a better design that allowed dumping a handful of change into a pot instead of having to feed them one-by-one through the little slot. Later I thought it might be better if there was a separate change machine that was setup to accept change in the best way possible, and print a coupon with a bar-code that could be scanned by the checkout machines to apply the value of the change you deposited against the purchase you were making. I thought this was a great idea - and apparently so did someone else because I am now seeing "Coinstar" machines starting to appear. These machines accept coin and convert it to ... I think less coins and bills. I'm not sure what you get because I read the fine print - 9.8% fee!!!! Are you kidding?!?!?! I was thinking of charging maybe 1 percent with a minimum fee of 5 cents, or something like that, with the thinking that if the machine was designed to properly sort the incoming coins, then the store could use the coin in their daily operations, reducing the need (and cost) for coin delivery to the store. I like the idea, but I won't pay almost 10 cents on the dollar for it...

1 comment:

Michael S. Thibault said...

10% is very steep, but given that I ended up with about $15 in pennies, nickels and dimes in a jar after a year in London it was worth the exchange rate. I never would have spent them otherwise -- maybe a few pennies or nickels here and there, but they accumulated much faster than I could unload them, so it was sort of like buying fifteen bucks on Ebay for $1.50 in shipping.

Cheers