Tokens vs dollar coin

[Washme12]

Would like comments on vending tokens vs dollar coin in changers. We have multi coin acceptors in all the equipment.

 

[MEP001]

What is your purpose for considering one or the other?

The usual reasons for dispensing tokens from a changer are either to give a bonus payout with a large bill or to prevent break-ins by having less cash on the premises.

I had planned to give $1 coins for change in the auto-cashier, but I couldn't get them easily from banks.

 

[Washme12]

The purpose would be to discourage break-ins. We have a site that the changers vend tokens but it was that way when we purchased it. We are considering converting a site for dollar coins to tokens and was looking for feedback from operators who have done this as well.

 

[chaz]

My thought, unless you have a break in issue, stay clear of the tokens, and only switch as a last resort. I know others will argue they actually make money from tokens that are never redeemed. But I know I hate getting a pocket full of tokens for change. If you make the switch, I would suggest you allow for payments with quarters and coins the customer brings with them.

My problem with dispensing quarters for change is the "customer" that only comes for change. I am in the process of switching to dollar coins in my changer. All my equipment will take dollar coins, quarters, and bills. In addition I offer c/c and debit at automatic and s/s.

I suspect my change to dollar coins will also increase s/s biz and customers will simply add another dollar coin, instead of a quarter when the last minute tone sounds.

My bank will order dollar coins for with no service fee, delivered with their regular weekly money shipment For the initial roll out, I want only gold coins. I will either hand sort these from the bank mixed rolls or for an up charge plus freight I can get these from the US mint

 

[Washme12]

We converted to dollar coins a number of years ago. Just make sure you have good signage or you will be getting calls from customers that say they only got back one quarter for their dollar. I was getting all gold coins when they first came out which was nice but now nice they stoped producing then I get a mix of all them.
Our reason for converting to tokens at this particular location is to help prevent break-ins otherwise we would stick to the dollar coins. We will still accept dollars and quarters.

 

[MEP001]

Unless you stop accepting cash altogether, you won't reduce equipment break-ins by dispensing only tokens from your changer. Crooks are dumb, and they don't care that a portion of the cash will contain tokens. They'll just throw them away. An example of how dumb crooks are is from something another forum member posted. He said he'd shut off power to all the bays at night and remove the coin drawers. The idiot crooks still broke into his bay meters.

 

[cantbreak80]

I suspect my change to dollar coins will also increase s/s biz and customers will simply add another dollar coin, instead of a quarter when the last minute tone sounds.

Especially when a quarter purchases 15 or 20 seconds.

 

[mjwalsh]

Especially when a quarter purchases 15 or 20 seconds.

Everyone's operation is different so I am not saying the following is a good fit for everyone: Since there is a growing number of operators who also have a laundromat &/or other attributes ... now have an ATM ... it would be helpful to have an ATM that also gives out higher denomination coins as a choice. If impediments to getting the higher denomination coins here in the USA continue to exist because of lack of "common sense adjustment for inflation" legislation ... then of course the nifty hopper-coin dispensing optional feature is less likely to happen. We have been giving out straight almost new dry 5s from our ATM for about 32 months now & we have been pleasantly surprised seeing the general public using 5s more as the new "norm" for their initial amount put in our in bay bill acceptors.

Of course, our fellow operators who are part of the 100% cashless gang ... probably have trouble relating to the previous statement kept in context.

As far as crime goes, I personally think that the key is to have the best possible relationship with local law enforcement along with utilizing the best possible split second notification via the best possible sensors & alarm communication. We have a lot of newcomers to our state who are coming from other states that are even more screwed up than our state of North Dakota ... who find themselves temporarily on our streets instead of the streets of Ohio, Illinois, Florida & others etc. There is a good percentage who actually are responsible & we have found that they can actually police each other when it comes to some of them getting into mischief (that can give all of them a bad reputation).

Mike Walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[Whale of a Wash]

I switched to high security $1 tokens over 3yrs ago, and have really enjoyed not being the coin changer for all the apts, next to most of the washes. Less bill jams-(Mars) yes even the mars jams- less problems with changers. I almost took no quarters to the banks before as i lost $75-150 a day to change people. Feeding the machine with 2 tokens is sure easier for me when washing 30-40 bays per day. It is also easier for the customer. I also like giving out bonus tokens for the larger bills, and it works well. 80% of our business is repeat business, so tokens are not a problem with customers buying extra. Some bring their own quarters, and a few have complained about tokens as they were from out of town- even thought Tokens are in 4in letters on the changers. I just have them toss the tokens under the equip rm door, and mail them a refund. I won't get into the i hate tokens vs dollar coins debate, just that a $1 denomination is alot easier to deal with

 

[chaz]

I agree, the debate on tokens vs dollar coins really seems to be an individual decision. I too am switching to high security dollar tokens, mine are issued by the US government. I will accomplish much what the dollar token folks have. That is, not bring the neighborhood coin changer, the need to insert fewer coins in the s/s bays, less wear and tear on coin mechanisms, and increased revenue with customers adding the extra dollar instead of a quarter or two. As of yesterday all my equipment takes dollar coins, quarters and bills. My s/s bays and auto also take larger bills and credit/debit. Once my bank gets my dollar coins, I will switch over my changer to dollar coins. Just need to install the dollar coin wheel and reprogram. I will add signage (that most won't read) indicating the dispensing of US dollar coins.

 

[JGinther]

My experience has shown that the same low-lives that drop off house trash, abuse complimentary services like changers, and mud up the bays are also friends with others in the area that wash their cars. For us, it makes more sense to just take the issues as a cost of doing business, and work harder at maintaining the place to keep up with it. It starts to show after a couple of years, when the competition doesn't do that: Word of mouth spreads among locals. However, it is fun to screw with the out of staters though. They are the ones that we say "Changers only give out pesos" or "there's a problem with the changer, you might get electrocuted...." when they pull their car 2 inches from the changer and obviously are not there to wash.

 

[chaz]

I am all about customer service. And yes word of mouth is our best marketing. That said, I need to insure my equipment and changers are maintained and operating so that my customers spending money at my wash have a fantastic experience. I am not the cheapest wash in the area, but I dare say one of the best. I am ok if a wash customer doesn't have to maneuver around someone that parks in the middle of the lot, or blocks a bay so they can get change to take off site. I am all about making it easier for my customers to spend money at my facility and get what they pay for, this includes the muddies, change getters and the trash dumpers as long as they are also at my wash to spend money at my facility. I don't make money off those putting a twenty in my changer and leaving with twenty dollars in change.

 

[Whale of a Wash]

Friends of mudders and trash dumpers do not brag to their friends they are a-holes and enjoy using your wash. You should eliminate the problem, as it does bug you or you wouldn't tell people they will get electrocuted or it gives out pesos. I tell them throw in a $10 and you will get a $1 free. This month i also noticed many large bills in a row in the changer, as i advertised buying tokens as gifts.

 

[JGinther]

I actually just do that for my own entertainment. I don't feel the difference at the end of the month either way. And, as mentioned, its an individual situation choice. I would just be cautious of the competitor moving into your area if they operate everything as well and with all other variables the same. You might be surprised how much customer preference - even if they just need quarters for something else one day - can affect decisions about where to wash. Disagreeing would be argueing with loss leader philosophy to some extent.

 

[chaz]

I understand folks needing quarters every now and then for other than use at my wash. I never expected someone to get ten dollars in quarters and then spend the entire ten at my wash, if that was my intent I'd dispense tokens. I do expect those getting change to spend some money at my wash at the time they are there to get change. Starting next week, I guess I'll understand folks needing dollar coins every now and then for other than use at my wash.

 

[JGinther]

yeah, They collect them!

 

[washnvac]

Why does this question come up every 6 months or so?

You guys are in the car wash biz. Not the giving out change biz. $1 high security tokens are the absolute best option in your changers (in my opinion). A potential customer coming on to your site should only be there to spend money at your site--not to get quarters for the laundry or for the parking meter or for the soda machine or for anything else. I provide an avenue for my customers to use my equipment on my sites. We do accept quarters, but none are dispensed on site. Plus tokens allow for promotional opportunities.

Is there walk away? Absolutely! Between my five sites I replenish on average 10k tokens per year. This costs me $2k. That leaves a nice $8k profit to keep my changers for my customers in top working order.

So you guys that want to keeping going to the bank for quarters and/or $1 coins, go right ahead. It does not grow your business any.

 

[JGinther]

That depends on where you are. If one of your washes was beside the one i have in longmont, the results would be laughable...

 

[Whale of a Wash]

Washnvac's response is spot on to mine. I have many accounts i sell tokens to every month. Hard to sell quarters or dollar coins at a discount, Impossible to put a discount on your changer for larger bills. We donate to alot of charities and silent auctions--Not sure i would get much response from cash donations. If i had any SS competitors left in my area--- (3-4 )were here- population (150K). I would still sell tokens. Tokens are alot like gift cards- they promote customer loyalty. I got all this advice on tokens from ICA seminars at conventions before i switched. I think it was at the ICA seminar in Nashville around 95 or 96 that the US Mint was there and excited about the $1 coin for the car wash industry. But Ted Kennedy wouldn't drop the Paper $1, because the paper Manufacturer was in MA. The $1 coin then didn't take and they now have warehouses of them. If you installed a token changer with a discount for larger bills next to your coin changer, do you really think the token changer would go unused .

 

[I.B. Washincars]

If you installed a token changer with a discount for larger bills next to your coin changer, do you really think the token changer would go unused .

I did exactly that at four locations. The $ coin changer probably takes in 10 times as many large bills as the token changers. Tokens may be the best option for SOME operators, but customers don't like them...period.