In prior blog posts we have discussed the value a smart safe brings to a business. In this article, we’ll expand on this and discuss ways a proven cash dispensing system can positively impact an organization’s overall cash management environment. A cash dispensing system and a smart safe work together to provide a secure, fully automated system for depositing and dispensing cash whenever required. Much like a smart safe, transactions from a cash dispensing system are completely auditable and can easily be programmed to enable the appropriate governance a store may require to help protect their cash and run their business.
A retail organization may reach a point in their business where a cash dispensing system makes sense. But what are these trigger points?
Here are three reasons why a retail organization may decide to adopt a cash dispensing system:
To expand their business
A convenience store may decide to expand its offerings to generate new revenue streams. Here are a few examples:
- Check cashing – stores can generate check cashing fees in exchange for offering a convenient means for their customers to cash their checks.
- Lottery tickets – stores selling lottery tickets may need to pay out winnings to customers, which will require a system to dispense cash whenever required.
- Money Service Business – a convenience store may decide to offer wire transfer services to its clients. If on a receiving end of a wire, the store will need to dispense cash to its client. Fees generated from this service represent a new revenue stream for the store.
To reduce labor costs
Without a cash dispensing system, a larger store, one with multiple cashiers, may quickly realize that the manual handling of cash at the start of a shift is an extremely inefficient, time consuming, and costly process. With a cash dispensing system, a cashier can fill his or her till in under a minute. In this scenario, the advantage of using a cash dispensing system is that start of shift funds can be pre-set per the store’s policy. Therefore, when a particular cashier logs into the system to dispense funds to fill a till, the exact amount of funds that is required will dispense. Each transaction is tracked, so balancing cash against the day’s point of sales data is much easier and efficient, which greatly reduces labor costs associated with manual balancing.
To enable better accountability and tracking of cash
With a cash dispensing system, each transaction is tracked to the individual cashier. It is very easy to determine funds that are checked out, at any given time. In addition, pre-determined amounts of cash can be set by the store manager or someone with higher authority, in order to provide the right oversight, governance, and overall security to the dispensed amounts. Similarly, with a pre-set amount of cash dispensed at the start of a shift, balancing cash at the end of a shift against a cashier’s point of sale data is much more streamlined. Discrepancies are reduced, which in turn minimizes the need to conduct investigations.
A retail store may evolve its business to the point where the exclusive utilization of a smart safe is no longer adequate for its cash management needs. Retail stores, particularly those that operate in an extremely competitive territory, are always looking at ways to differentiate their offerings, and create new revenue streams. In addition, labor costs continue to increase, so maximizing the efficiency of store labor is critical to success in today’s retail world.
From a cash management perspective, solutions exist that can help address a retailer’s journey of strengthening its offerings and becoming more competitive. A proven cash dispensing system, working in tandem with a smart safe, can offer the flexibility, convenience, auditability, and security required to help a store navigate this journey.
If you are a retailer that would like to have a better understanding of Tidel’s cash dispensing solutions, and how they can impact your business, please email [email protected] or call 1-800-678-7577.