jamesandsons
Sr. Member
I have to talk through this idea so someone can explain to me why it is a terrible idea.
Coinstar somehow makes money off of people willing to sell their change for 90 or 92 cents on the dollar or whatever their fee is. I'm assuming these people don't have bank accounts, or don't know that they can bring their change jars to the bank, or they are otherwise financially illiterate enough to pay a significant fee to get paper money for their change.
So obviously people like that are out there.
So the business model: buy a high-capacity (but still portable) change sorter, advertise on craigslist or on small-town grocery store bulletin boards, schedule appointments, go to people's homes, count their change, and buy it (for a small service charge).
Pros:
Cons:
All kidding aside though - is there enough upside to this idea, once some of the kinks are worked out, to make it worth giving it a try? Or is it just an absolutely horrible idea, and that's why no one is doing it already?
You'd have to figure out the math and find a fee schedule that was enough to cover costs but low enough for people to feel okay paying it. And the "carrying lots of cash" part is rather concerning. Although presumably you'd be meeting people at their homes, and know their names before-hand. Seems less likely they'd rob you that way... but someone could easily ambush you after the fact, once they knew what you were driving.
I have lots more pros-and-cons bouncing around in my head, but the whole point of this post was to see what other people's thoughts were. So... proceed. This ought to be entertaining.
Coinstar somehow makes money off of people willing to sell their change for 90 or 92 cents on the dollar or whatever their fee is. I'm assuming these people don't have bank accounts, or don't know that they can bring their change jars to the bank, or they are otherwise financially illiterate enough to pay a significant fee to get paper money for their change.
So obviously people like that are out there.
So the business model: buy a high-capacity (but still portable) change sorter, advertise on craigslist or on small-town grocery store bulletin boards, schedule appointments, go to people's homes, count their change, and buy it (for a small service charge).
Pros:
- Cuts the middle-man (banks) out of CRH
- Instant profit via fee percentage (although probably very modest, hopefully enough to cover expenses)
- Experience a unique slice of folksy American culture as you travel the countryside visiting people in their homes. Who knows what else you might run across? It'll be just like American Pickers!
Cons:
- Driving around in the middle of nowhere with large amounts of cash, meeting strangers. What could possibly go wrong?
- No one trusts this weird new service or wants to use it; you bought a $1000 coin machine that now serves no purpose.
- Where do you go for repair service on big honking coin sorting machines when they break down?
- Experience a horrifying slice of American culture as you travel the countryside visiting people in their homes. Who knows what else you might run across? It'll be just like Hoarders!
All kidding aside though - is there enough upside to this idea, once some of the kinks are worked out, to make it worth giving it a try? Or is it just an absolutely horrible idea, and that's why no one is doing it already?
You'd have to figure out the math and find a fee schedule that was enough to cover costs but low enough for people to feel okay paying it. And the "carrying lots of cash" part is rather concerning. Although presumably you'd be meeting people at their homes, and know their names before-hand. Seems less likely they'd rob you that way... but someone could easily ambush you after the fact, once they knew what you were driving.
I have lots more pros-and-cons bouncing around in my head, but the whole point of this post was to see what other people's thoughts were. So... proceed. This ought to be entertaining.
Upvote
0
