Cash counters help businesses prepare for millennial customers
Despite rumors that the digital age has eclipsed cash, money counters are a solid investment for business owners.
Millennials represent a powerful customer base, collectively wielding $200 billion in purchasing power annually, Forbes contributor Dan Schawbel reported. For this reason, it's important for business owners to take into account the purchasing patterns of millennial customers.
These days technology seems to be advancing at the speed of light, with young people riding into adulthood on a wave of personal computers, cell phones, video messaging and apps that run the gamut of recreational and financial uses. Watching millennials socialize, stream TV shows and even date via their smartphones, it may seem like something so traditional as paper currency is all but dead.
However, research suggests that when it comes to cash, millennials have other ideas.
Why investing in cash counters makes sense
Many millennials have come of age in trying economic times. Sixty-seven percent of young people born between 1981 and 1997 stick to a budget, beating out baby boomers, according to a T. Rowe Price study referenced in a Forbes article by Maggie McGrath.
In an article for The Atlantic on young adults' purchasing habits, Joe Pinsker referenced the "pain of paying." This concept, asserted by researchers from MIT, Carnegie Mellon and Stanford, holds that spending money actually registers as physically painful.
Using fMRI scans, these researchers monitored brain activity while participants viewed the prices of products upon which they'd been given $20 to potentially spend, a Carnegie Mellon article detailed. When the test subjects registered that prices were too high, the scans indicated activity in the brain area responsible for processing pain. Results revealed that this brain activity ultimately reduced spending.
The researchers also found that certain methods of purchasing dull the discomfort of parting with money, with credit card spending notably less painful than handing over cash, Pinsker reported.
As a particularly money-conscious generation, many millennials prefer cash, a NPR Morning Edition article asserted, citing a 2014 Federal Reserve Bank study. The results of this study indicated that cash is the most frequently used method of payment for everything from entertainment to medical services and is preferred by 40 percent of 18-24 year olds.
With such a substantial customer base leaning toward cash, business owners stand to benefit from investing in money counters. By counting up to 1,600 bills per minute, cash counters save time that can be directed back into growing a strong business.