Cash now accounts for a small fraction of our sales, but a few regular customers rely on it. Going card-only would simplify closing the register, reduce counting errors and make banking easier. On the other hand, I don't want to exclude people for a modest operational saving, and local cash-acceptance rules may apply. Has anyone calculated the actual labor and error costs before changing policy? I'd rather make a careful choice than follow a retail trend.
Deciding whether to stop accepting cash when fewer customers use it but some rely on it
- small-business
- stop
- accepting
- cash
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1 reply
If the share is really small, I’d look at whether the register work is actually the pain point or just a habit. Sometimes the cleanup cost i...
If the share is really small, I’d look at whether the register work is actually the pain point or just a habit. Sometimes the cleanup cost is lower than the goodwill cost of going card-only.
We did a rough count at my last place and the biggest issue wasn’t the money, it was the little errors late at night. Still, a few customers really did notice when we stopped taking cash.
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I’d calculate the labor cost of cash handling before changing anything. Counting, reconciling, bank runs and mistakes all take time, even wh...
I’d calculate the labor cost of cash handling before changing anything. Counting, reconciling, bank runs and mistakes all take time, even when they feel small.
And don’t ignore the customer side. A tiny operational saving can be a real loss if the people using cash are regulars who also buy other things.
I’d be careful not to pretend the math is cleaner than it is. Cash can be annoying, but switching policy has its own overhead too.