Return On Investment for automatic cash recycler

Don't bother counting your money!

First, it's worth noting that this applies to all physical stores, including convenience stores: if you're not careful, you can end up losing money.

Indeed, cash management processes can be quite restrictive. Counting and re-counting the cash float to reconcile it with the accounting records, and then repeating the same routine with the manager before making bank deposits – all of these activities can take up precious time, potentially costing you sales and hindering your ability to build customer loyalty. In some cases, your cash registers may even have to close early for counting, and your employees may be tied up with administrative tasks instead of serving customers.

This does not concern me. I have only a few cash receipts... FALSE!

It's a common misconception to think that the loss of money due to inefficient cash management only affects businesses with high volumes of cash receipts. Some argue that low-volume businesses like pharmacies don't need to invest in automatic cash recyclers. However, the reality is that whether you process 300 or 3 cash receipts per day, the administrative burden and time wasted can be very similar.

Fine, I just have to stop accepting cash payments... FALSE!

It's not a viable solution to simply stop accepting cash payments. In fact, in France, it is illegal to refuse cash payments. Cash plays an important role in social integration and a cashless society is not yet a reality. Even in the midst of the COVID-19 pandemic, cash remains the most popular payment method among French consumers, according to an IFOP study commissioned by Brink's in October 2020.

Time is money!

To illustrate this point, let's consider a medium-sized business and explore the potential return on investment (ROI) of installing an automatic cash recycler in this type of operation.

Cash registers: 6
Number of employees: 15
Average gross hourly operator salary: 15,00 €
Average gross hourly wage for a manager : 23,08 €
Opening days / Month : 26

Cost of counting cash :

Time allowed at the end of the service - operators : 5 mn X 15 people => 1h15
Time allocated at the end of the service - manager (control + preparation of the cash float for the next day) : 3 mn X 6 drawers => 18 minutes
CCost / Day for the operators : 1h15 X 15,00 € => 18,75 €
Cost / Day for the manager : 18mn X 23,08 € => 6,93 €
Total cost € / Day : 18,75 € + 6,93 € => 25,68 €
Total cost € / Month : 667,68 €

So you lose about 667,68 euros per month just to count your cash!

Management and processing costs:

Add to that the time the manager loses in managing and processing the money (banknotes / coins) about 1 hour per week or 23.08x4 => 92.32 €. (counting, depositing, etc.)

Cost of mistakes:

Errors in giving change
Then, you have to count all the small errors that are generated by the cash payment. For example the errors of change. If it is 1€ / Day / Person (which is little). In the example, a total amount of error of 15 € / day is / month: 390,00 €.
Unknown markdown
From our experience, this is between 0€ and 100€ per day and per person. If we take the postulate of an evaporation of only 1 €. Total € / Month : 390,00€
Counterfeit money management
Our cash management solution controls and identifies counterfeit bills in real time. It does not accept them and returns them directly to the customer. Total € / Month : 50,00€

Result:

If we assume that there is no shrinkage, this gives :

Counting: 667,68 €
Management and treatment: 92,32€
Error of return of change 390€
Counterfeit money management 50€

That is a total of 1200 € per month!

Knowing that the average cost for a cash recycler is about 13.85 € per day or 360 € per month you are on a positive ROI of 1200 - 360 => +840 € without taking into account the markdown!