The Cost Of Handling Cash
It’s estimated that transacting in cash can cost venues and stadiums up to 11% more than taking payments via card or other cashless solutions. This additional cost can make a big difference to the margins venues make on their concession stands at an event.
The additional costs come from a range of factors:
Cash transactions take longer The time taken by customers trying to find the right change or searching for notes in their pockets adds to the amount of time other people spend in lines. The more time spent in these queues means less time for them to eat and drink, and this means less time to spend more money.
Longer queues put people off People are less inclined to join a long, slow-moving queue. By speeding up transaction times, you’ll be enhancing the customer experience, and as a result, more happy attendees will be lining up to part with their cash.
The dreaded “Shrinkage” A long-standing problem for venues and their concession stands is shrinkage. Occasionally this may be a pure accident, such as staff mistakenly giving extra change to a customer. On other occasions, it may be more sinister reasons or staff pocketing a little extra cash for themselves, or giving away larger quantities of stocks to friends. Going cashless makes it far harder for the staff to find loopholes.
Staffing costs The staff involved with handling cash goes far further than just the frontline F&B staff. Think of all the time spent - and the amount that costs, in wages - post-event counting up tills and ensuring the takings match with inventory reports. Wouldn’t this just be much faster and simpler if you could run a report of all payments taken in-app? With epos integration, this can automatically cross-referenced with the stock reports too.
Security Once the counting is complete, the money then needs to be collected from each and every till point in the venue. We also all know that banks aren’t open when your late night events finish so that cash has to be stored securely, again adding more costs to protect it.
Moving that amount of cash around a venue and storing it safely is a risky task. It requires trust, and if dealing with large quantities, additional security.
Remember, once the bank opens in the morning, you’ll also need to get it there, which may require a secure form of transport… and more costs!
Fees Commercial managers know that card payments come with a transaction fee, but you also need to be aware that depositing commercial amounts of cash into an account also takes the bank time. And unfortunately, their time does not come for free. You may have to pay fees for them to place your money in your account to cover their costs of counting up and checking the cash.
Is it time to go cashless?
LiveStyled is helping a range of venues work towards a cashless strategy. The Monetise product on the platform enables payments to take place in apps via a range of options, including Apple Pay, Android Pay, PayPal or Credit/Debit cards.
Taking payments through the app gives live reporting of cash flow from the moment purchases are made, and the platform can integrate with ePos systems in order to deliver one report on takings and inventory.
It’s also possible to have the platform running alongside existing ePos systems without integration, and some of the biggest venues in Europe operate in this way. The redemption process is fast and simple, which reduces queuing times, and enables venue customer to make more purchases.
You might also be interested in reading our blog on how to ‘Start Your Cashless Journey With LiveStyled’ here.
If you would like to talk to us about how LiveStyled can help you on the journey to a more efficient, cost-effective cashless, contact us here or subscribe below newsletter for updates.