Should You Make Your Facility Cashless? – Part 1

When we decided to start this blog, I knew immediately that I should address the advantages of turning a facility cashless. I have been asked numerous times, “what are the advantages of the cashless system?” Unfortunately there are so many advantages, the message gets lost as a “sales pitch.” I hope with this series of posts to answer the question thoroughly while providing real life examples and solutions.

Whether you are negotiating a salary, selling a car, requesting a donation for your charity, or operating an entertainment facility, you do not want to “leave money on the table.” How often does a customer walk into your facility with a specific amount of money to spend? How often has a teenager been given x dollars to spend at your facility? Now ask yourself, how often do you feel they have walked out without spending every penny of their allowance?

Let us analyze two identical locations, FunRUS, traditional facility that does not utilize cashless technology, and JunglePlex, a fully cashless facility. For our example, let us also assume both facilities utilize the same pricing scheme. Also, you should note that the same principles would apply if JunglePlex only used the cashless system in their arcade rather than their entire facility.

After school Sue decides to go play for a while at FunRUS. Her parents have given her $20 for a fun-filled afternoon.

Across town, Matt decides to go to JunglePlex, and his parents have also given him $20.

When Sue arrives at FunRUS, she first purchases a $3 hotdog and a $2 large soda. She plays a round of miniature golf for $5, and afterwards spends $8 on go-kart rides. She cannot find anything to do with the $2 remaining, and decides to pocket it for a future purchase.

Across town, Matt was purchases a debit card in order to participate in activities at JunglePlex. After putting his $20 onto a card (either at a Point of Sale station or at a self-service kiosk), he decides to purchase a $3 hotdog and a $2 large soda. He then plays a round of miniature golf for $5, and afterwards spends $8 on go-kart rides. He also cannot find anything to do with the $2 he has remaining, so he decides to leave the facility with his debit card with the expectation he’ll use it when he comes back to JunglePlex.

Although the above examples are simplified, they are quite common. If these scenarios happen 100 times in a day, then FunRUS has lost the opportunity to receive an additional $200; while JunglePlex has received $200 in additional cash with little to no cost. It is true that Matt might return and spend that $2; however he will probably also return with another $20. Additionally, depending on your local income tax laws, you can usually defer the $2 in revenue and not pay taxes on it until it is used later.

By utilizing a cashless system, you can avoid one avenue for “leaving money on the table.” Stay tuned for more advantages that can be offered by using a cashless system.

See the rest of this series on making your facility cashless:

Part 2
Part 3
Part 4