Reply to Thread

Message:: [QUOTE="-jeffB, post: 26536403, member: 27832"]Yeah, I think getting people in the door is the major driver here, just from the math. Store A: bring us all your pennies, we'll give you 2 cents for each one! That way we won't have to round, sometimes in your favor, on cash transactions. Store B: We'll round, always in your favor, on cash transactions. On average, over a large number of transactions, Store B will lose 2 cents per cash transaction. (An equal distribution of 0, 1, 2, 3, or 4 cents per transaction.) On average, Store A will lose... exactly the same amount, as they give back 0, 1, 2, 3, or 4 cents to the customer, each of which cost them two cents. Now, in practice, Store A won't have to pay double for every cent they give in change. Some customers will give cents in payment, and sometimes they'll be able to get them from banks (I assume). But on the flip side, it's costing them employee time to count and redistribute those cents, time that Store B now saves. Not to mention the time consumed by the penny collection/redemption stunt itself.[/QUOTE]