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American households expect to spend about $1,200 per person on summer vacations this year, according to a recent survey by American Express. That means many households will be looking for ways to uncover additional disposable income to put toward those vacation expenses.
Cummins Allison, a leading innovator and provider of coin and currency handling solutions, offers the following tips to help retailers can turn up the heat on their self-service coin machine use and in turn, generate greater profits in the process:
Vacation travel is one of the top two uses of cash redeemed from self-service coin machines. The amount of cash redeemed for vacation spending ranges from $20-$1,200 and the months of June and July are the most popular months that customers cash in their coins. In a recent survey, nearly 16 percent of respondents reported they redeemed their coin in June, while nearly 14 percent cashed in coin in July.1
Extra money for general living expenses, such as groceries or gasoline, is the number one reason consumers cash in saved coins. The value of this “found money” is even greater this summer as gas prices continue to hover around $4.00 per gallon. Annually, customers redeem an average of $185 for these types of general expenses.
With an understanding of how seasonal and economic patterns impact coin redemption, it’s easy to forecast when your self-service coin machine will be in higher demand and adjust your marketing strategies accordingly. Kiosk promotion can be increased via circulars or your store website, and in addition, custom graphics, signage and screen displays can be created and refreshed each season.
These spikes in demand can lead to greater profitability ; machines owned and operated by the retail store can net seven percent or more on each transaction. And, customers who cash in coins are more likely to spend this money while in the store. Leverage this opportunity by promoting seasonal items, such as travel accessories or road trip snacks.
Seasonality and economic conditions are external factors that impact coin redemption habits but they can be used advantageously with customized marketing programs.
To learn more about how your retail store can maximize these high redemption periods by owning a self-service coin machine, click here.