By Jim Weaks, Cummins Allison
With growing pressure to keep stores front-and-center in the minds of shoppers – especially given the growth and interest in non-traditional competitors – many grocers are looking for ways to differentiate through additional services. Self-service coin counting machines provide an opportunity to achieve competitive differentiation, retain and draw in new customers and increase the frequency of return visits – and purchases. Critical to the success and profitability of self-service coin redemption, however, is understanding how the technology inside the machines can impact accuracy and reliability.
It’s What’s Inside Your Machine That Counts
When it comes to self-service coin machines, it’s what’s inside that counts – literally. While machines fundamentally serve the same purpose of authenticating, denominating and sorting, the way that coins are processed can vary greatly. Here’s a closer look at the three most common coin counting technologies available in today’s self-service coin machines.
1. Rail Sorting Technology. The most prevalent technology used in self-service coin machines today. Coins are aligned with the aid of a rotating wheel and sent along a narrow track – or rail – on their circumference via gravity. Each coin then passes a detector where it is counted and sorted according to denomination. Rail sorters typically process between 600-900 coins per minute.
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Pros: The simple design makes these machines affordable to own and easy to maintain. Authentic coins feed directly into bags or bins, and non-coin debris is deposited into a small trash receptacle inside the machine for easy disposal.
Cons: Coins in rail sorting equipment are especially susceptible to bouncing, potentially leading to mis-sorts, miscounts, or falling from the rail and causing a jam. Coins need to be manually fed into the machine in small batches, increasing the amount of time needed to process a transaction.
2. Figure-8 Technology. Uses two overlapping disks, rotating in opposite directions, taking the coins on a figure-8-like path. The smallest coins are sorted first, and are eventually deposited into bags or bins.
Pros: Figure-8 machines are capable of processing up to 2,500 coins per minute, and coins are automatically fed into the machine, for a more user-friendly experience. Unwanted items are automatically removed from the machine after the coin batch has finished.
Cons: Two moving parts inside mean an increased potential for machine downtime as a result of one of more of the parts failing. Space available for coin bags is limited, requiring more frequent intervention by personnel. Additionally, the required floor space for bag units is considerable, requiring an additional three feet per side for bag changing clearance.
3. Single Rotating Disk Technology. Machines utilizing this technology consist of a single moving part, rotating at a high speed. Authentic coins are deposited into collection bins or bags, and foreign coins are rejected and returned to the customer.
Pros: The fastest coin sorting speed, capable of processing up to 4,100 coins per minute. Coins are less susceptible to being impeded by foreign objects and debris. Non-coin items larger than the coins cannot enter the passageways, thereby minimizing machine stoppage – and these items are automatically removed from the machine once the coins have been counted. Parity checks at multiple points inside the machine enable accurate, consistent count totals.
Cons: The pad surface should be periodically inspected for tears or damage and may eventually need replacement as part of a routine maintenance plan.
Self-service coin machines can provide solid returns and compliment high-quality customer service initiatives for grocers. But success is dependent upon the technology inside the machines. Take the time to look inside the machine and understand the technology you’re evaluating, as it can have a direct impact on your operations – beyond the initial cost of the machine.
Jim Weaks is responsible for the self-service coin business unit at Cummins Allison. He develops strategic sales, marketing and customer support initiatives focused on the financial, retail and gaming markets.
