As a retail business owner, you've likely heard that using a smart safe or cash recycler can make your cash management processes more cost-efficient and predictable. The promise of reducing labor by up to 8 hours per week and having a fixed monthly expense for your cash management equipment, reporting, and software is certainly enticing.
However, the reality is that the labor and expenses associated with smart safes and cash recyclers aren't always as straightforward as they first appear. While cash equipment can make things faster and easier, there are several hidden costs and variable fees that can continue making cash management expenses hard to plan for.
The Impact of Equipment on Labor
One of the key factors affecting your cash management labor costs is the type of equipment you have in place. Single note acceptors, for example, tend to take more time for staff to feed the money into the machine. However, bulk note acceptors significantly speed up the time it takes to count and verify store cash. For instance, the bulk acceptor on Cash Depot’s BANK IN A BOX can count and verify 300 bills in just 30 seconds.
Smart safes present another wrinkle. While they accept deposits, they don't provide the start-of-shift register funds or other daily register cash that staff would normally have to count manually. That cash has to be counted separately, reducing the labor time each store saves versus manual cash management.
In contrast, cash recyclers like the BANK IN A BOX provide those start-of-shift and daily register funds, reducing the amount of manual counting required. This can lead to greater labor savings compared to a smart safe setup.
Unpredictable Fees and Charges
Have you ever looked at your mobile phone bill wondering why the company is charging you $15 more this month? Then you have some random regulatory charge, admin fee, or service charge? Even worse, the amount you are charged varies month-to-month as those fees fluctuate.
The invoices for your smart safe or cash recycler program can be riddled with a similar laundry list of unexpected fees and charges that can make your monthly costs fluctuate. Some common examples include but are not limited to:
- Currency or coin collection fees
- Currency or coin order fees
- Check deposit fees
- Per strap or coin roll fees
- Emergency or late order fees
- Restocking charges
- Payment difference adjustments (when the collected cash differs from what was reported)
- Provisional Credit/Next-Day Credit fees
- Out-of-scope maintenance charges
- Courier costs for additional time, unscheduled trips, fuel, or insurance
These types of fees can suddenly appear or disappear, causing your smart safe or cash recycling bill to change from month to month. This fluctuation makes it difficult to budget cash management expenses accurately.
Tackling the Challenge of Cash Management Cost Planning
How can you get a better handle on planning your retail cash management costs? Here are a few tips:
- Ask the right questions. Before signing up for any smart safe or cash recycler program, request real invoice examples. This will help you see exactly what types of fees are typically charged. With evidence in hand, you are empowered to find out how often those additional charges occur and get a sense of your likelihood of incurring them.
- Thoroughly review the contract. Make sure you understand any language around possible fees and the maximum amounts that can be charged. Don't just take the sales representative’s word for it.
- Budget a little extra. Even with the best planning, there will likely be some variability in your cash management costs month-to-month. Look at your cash trends and sales data to estimate a reasonable buffer in your budget to account for any unexpected fees or charges.
Over time, the reporting and data you get from your smart safe or cash recycler will give you better visibility into your typical cash management costs – by providing a more accurate look into when and where your stores receive cash purchases. This data will make it easier to plan and budget your next-day credit, cash pickups, and other services – and help you know when you might be triggering added fees.
With some additional investigation, communication, and data your cash management system can not only lower labor time and streamline operations, but create help you predict and plan your total cash costs, too. In the meantime, be prepared for a bit of unpredictability to go with your time and efficiency benefits. And don't assume those labor and expense savings will be as straightforward as advertised.
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TLDR: Most cash management programs bill themselves as predictable expenses. While they usually save you money, hidden fees can often make your costs higher and monthly billing more volatile than you think.
