Is your cash suffering from expense-creep?

(SPECIAL EFFECT VIDEO – IT’S NOT YOUR COMPUTER!) It’s state-fair time. Going to the Indiana State Fair reminded me of the shock I had doing a re-engineering study on a huge amusement park. It had all the latest rides, games and talking animals.But, progress hadn’t found its way to the back end of the business. With each step of additional revenue, they  added one more piece of cash-counting equipment. Years of innovation and savings had passed them by.  New technology, legislation affecting checks, plus the establishment of virtual vault networks by banks all are good reasons to take a close look at YOUR backroom.

Have you captured economies of scale?

 Counting cash is probably not a core competency of your business. It’s easy for costs to creep up disproportionately. This is especially true for money rooms, since the activity is hidden and few businesses employ in-house experts.  Changes in volume should be paired with new, back-end technology and legislation.

Here’s a 5-step health check for your cash:

  1. Go back 5-years and compare your volume of cash deposited, with your bank deposit fees. Don’t forget to look at store labor, too.
  2. If you have added self-checkout systems, have you re-engineered your backend to handle unsorted notes?
  3. Do you deposit 10 or more checks each day, taking them to the bank? Most major banks offer outstanding products that  eliminate the need to move this high-value paper to the bank for deposit. Some solutions can be combined with guarantees. And, by converting them to electronic items, checks move more efficiently through the banking system, reducing the chances of you eating a bad check.
  4. Do you deal with more than 1 financial institution per market? Ask your bank or armored carrier about their “virtual vault” service.
  5. Is your armored car schedule the same as it was 5 years ago? Compare it to the amount of cash you handle and see if it makes sense.

A CEO told me just last week that he is looking to save every possible dollar. How about you? Get behind that money room door and take a look!


 


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