How does CoinStar survive as a business?

[PunditLisa]

@Dewey_Finn

I remember a post on the SDMB that at one time Coinstar was running a promotion where you could get Amazon gift cards at a discount (like a fifty-dollar gift card for forty dollars in change). I’d love to be alerted if anyone hears that they’re doing that again, as I’ll go to the bank and buy up rolls of quarters to get the gift cards.

I loved that promo.

Currently they’re giving $10 for $40 transaction if you select iTunes, and 10% discount off Overstock for a $25 transaction.

http://www.coinstar.com/FreeCoinCountingDetail/iTunes
http://www.coinstar.com/FreeCoinCountingDetail/Overstock

[kenobi_65]

@Mama_Zappa

How big a jar adds up to that much??

I have two “jars” in which I keep spare change:

• A pint mug for pennies
• A rock glass (cocktail class, commemorating Super Bowl XXIII) for nickels, dimes, and quarters

Despite the fact that I use up most, if not all, of the quarters I get (I use them for parking), filling both of these usually yields about $100.

My bank (Charter One) has a coin-counting machine in the lobby; they cash out change at no charge for bank customers.

[Merijeek]

I wonder if there’s a correlation between the areas that CoinStar is successful and areas with an overload of check cashing places?

-Joe

[Lynn_Bodoni]

I put my pennies, nickels, and dimes in a wine jug, and keep my quarters in a little change purse that I carry around. Quarters (and half dollars and dollars) are worth carrying around. However, I hate to dig around in a coin purse or coin compartment to find a couple of pennies and a nickel, especially if there’s someone behind me who would also like to pay his/her bill and go on with life.

[Student_Driver]

I’ve wondered why some high-volume cash-heavy businesses like Walmart and Kroger, which both signed contracts with Coinstar in the last few years, didn’t put their own machines in (especially Walmart in its increase in banking/financial services). In addition to a skim of a few percent off the top for the “convenience” and the ability to convince customers to put it toward in-store credit or run promotions, it would also allow the stores to generate some of their change needs in-house instead of having to pay banks (and armored car companies) to “buy” coins. My store receives a small cut from Coinstar, but it seems wasteful to have lots of coins come in and be removed from the store, only to turn around and have to place and pay for coin orders to be driven to the store.

[gaffa]

@R.P.McMurphy

I used to throw my change in a jar. It accumulated so fast it became a PITA to get rid of it. I then decided to change my buying habits. I keep my change in my pocket and I use it every chance I get. Yes, I’ve taken 99 cents out of my pocket rather than get back another coin.

Ya know what? The system works. I don’t accumulate coins. Problem solved.

I live in both Chicago and Kansas City. While in KC, I take the bus quite a bit, and always grab a handful of change. I can usually feed $1.50 into the hopper before the next stop, even if I foist twenty pennies off onto them.

Why isn’t the US government in this business? Put these machines in every Post Office, taking in change and vending either stamps or credit for future postage/ePostage. Instead, they have eliminated all cash accepting machines - their automated machines are credit card only. It would also solve the problem of getting coins back to the mint. People throw pennies away? Every one that is thrown away is one that has to be made from scratch.

I’d really like to be able to visit the local post office after hours, dump a handful of change and be able to mail a package.

[DrDeth]

@ExTank

On a separate note, I always thought that these machines were perfect for money laundering, and I’ve half-suspected for years that most are owned by some form of criminal enterprise.

Umm, no. Really, very few big time criminal activies do a lot of business in quarters. Maybe as joebuck20 sez, if you had illegal slot machines, but even there, you normally just re-use the quarters. Yopu would sell the quarters and then deposit the bills.

I am a certified AML professional. I have been to dozens of AML conferences and this has never been a issue. Mind you, one up and coming issue is using on-line game money to launder real money.

[nahonix]

Coinstar should consider transferring that loose change to bitcoin wallets. Cash is on its way out!

[aceplace57]

Regions is a big bank with branches in 16 states. I’ve called and they don’t have coin counters in the lobby. I sure wish they did.

[engineer_comp_geek]

Moderator Action

This poor zombie’s been revived enough times. Since nothing of substance has been added this time around, I’m going to put him back in his grave.

Thread closed.