Charging for Change

[bigleo48]

So a competitor of mine (not really a competitor as its an old wash that's badly maintained and has no traffic) started charging for change. For example, if you put in $10, you get $9 back. (from what I hear, the only traffic the wash gets is a steady stream of taxis getting change). The service guy who maintains the change machines in the area tells me it becoming more common.

I was surprised by this. It had never occurred to me to charge for change. For me I'm happy to get rid of it most of the time.

You guys seeing this?

 

[MEP001]

I think it's been discussed before - seems like someone was or considered giving 36 quarters for a $10 and just giving more time in the bays to make up for it. If I thought I could make it work, I'd do it too - what's wrong with turning a convenience item into a profit?

 

[chaz]

I provide change so that my customers can spend money at my wash. My equipment all takes bills, quarters, dollar coins, and my auto and s/s takes c/c. I know that providing for my customers also provides for those just wanting change, I guess that's a cost of doing business. The non customers getting change with no purchase has declined a ton since I started dispensing dollar coins. My per spend is also up as customers are dropping the extra dollar coin instead of a quarter or two. The downside, I am now taking about $500 in quarters to the bank, brought in by customers....good thing my bank has a no service fee coin counter.

 

[bigleo48]

Mep...sorry I haven't seen anything posted on it. Nothing wrong with turning it into a profit, I had just never thought of it so I was surprised to see someone doing it. I guess it would be a way to get people to use the CC acceptors in my case.

 

[washnvac]

One answer solves the issue--$1 high security tokens.

 

[robert roman]

A carwash charging for change would be like a casino that charges their customers to break $100 bills into twenties.

If a company has to resort to charging customers fees to use their own money, it usually means it doesn’t have much to sell.

Look what happened to airline industry.

 

[PaulLovesJamie]

I also recall discussing this topic, I'm sure it was here on the forum. As I recall it was in the late 90s prior to the release of the Sac $. At that time I was having my changers emptied a couple times a week by the laundry across the street; one of the solutions I considered was "charging for change."
The main reason I decided against it was evidence based -- anybody else remember the public outrage over being charged to get your $ out of an ATM? I had (still have) little doubt that my customers would have felt the same way.
My solution at that time was to switch to $1 tokens and install multi coin acceptors.

 

[Earl Weiss]

The question I have ia how much $ does he make doing this?

As pointed out there are many solutions to non customers draining changers, Dollar c0ins, Dollar Tokens. I know one operator who dispensed a mixture of quarters and tokens. This allowed him to stay with quarter increment pricing and avoid having to sort stuff. People who would just want change would not want the tokens so they either went somewhere else or became customers. (Perhaps they could try to sell them to customers. )

 

[chaz]

In my opinion, using tokens is almost like charging for change, especially if you don't offer cash refunds. Unused tokens require a customer to return to your wash (even if they would rather not), or they would have some expensive souvenirs .

 

[Whale of a Wash]

If i used dollar coins, they are harder to acquire. How do i sell them to businesses. How do i give them a 20% discount with dollar coins. I have bought tokens at washes all over the country, but never purchased more than i needed. I probably would get negative customer loyalty charging for change-even though it does cost money to service changer. I am not sure about customer loyalty with dollar coins. I do know that anyone that uses tokens either forces customer loyalty or instills it in the customer. At least 80% of my customers are regulars. If they put in a 10$ they get a bonus token-some vacuum or some put it in the Shur-Vend. Or they use the tokens next week. How do thieves look at your coin boxes or vaults with $1 coins--Big score

 

[mjwalsh]

I also recall discussing this topic, I'm sure it was here on the forum. As I recall it was in the late 90s prior to the release of the Sac $. At that time I was having my changers emptied a couple times a week by the laundry across the street; one of the solutions I considered was "charging for change."
The main reason I decided against it was evidence based -- anybody else remember the public outrage over being charged to get your $ out of an ATM? I had (still have) little doubt that my customers would have felt the same way.
My solution at that time was to switch to $1 tokens and install multi coin acceptors.

Paul & others,

We have NOT (over 2 years now) had even close to experiencing the public outrage that you refer to on our ATM. This is partly because the dynamic in our area is that enough of the banks & credit unions have it so their customers have absolutely no hassle no charge for using any ATM. I am grateful for that & I honestly am not sure what banks & credit unions do in other areas.

If enough of us operators would show an interest in ATMs giving out both bills &/or high denomination coins ... we would all have a much better alternative than charging at our changers. It would also lessen our dependency & long term maintenance on our changers & bill acceptors. I am with CHAZ & some others on the higher denomination coin no charge exchange approach vs tokens.

Yesterday afternoon, I apologized to a passing through very engaging Saskatchewan Couple when they asked for change for the fact they could not use a two dollar coin in our car wash, laundromat, &/or dog wash & other vending ... like the more logical arrangement that Canada has with their higher denomination coins. They agreed with me & they graciously accepted my apology.

mike walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[MEP001]

We have NOT (over 2 years now) had even close to experiencing the public outrage that you refer to on our ATM.

Surely you're smart enough to realize that he was referring to years ago when ATMs first began being placed out by private companies rather than banks and were charging $5-8 in fees for a cash withdrawal.

 

[Mr. Clean]

Is the cost of running coin changers really more expensive than credit card fees? Dollar coins make life simple except now that the Presidents have all been released they are no longer purely gold in color so we spend time sorting so as not to confuse the customer with the old silver dollars that look like quarters.

 

[Waxman]

charging for change???? no way. silly imo.

 

[I.B. Washincars]

Regardless of whatever the reason is, I can't imagine anyone not feeling screwed when getting charged for change. He can justify it all he wants, but I'll bet 10 dollars to a dog turd it will cost him a lot more than it makes him. The only way I would consider anything remotely close would be to dispense one or two tokens and the balance in dollars, regardless of what denomination is inserted.