Bill Recycler Float: A Consideration and Strategy

by MEI Vending Marketing Manager
MEI Vending Marketing Manager
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on February 24, 2014 in Cash Recycling | 0 Comments

Par: [pahr] 

Noun an average, usual, or normal amount, degree, quality, condition, standard, or the like

Synonymous with:
 


Float [floht]
British.Noun: 

a sum of money used by a storekeeper to provide change for the till at the start of a day's business.

The amount of float you leave in your vending machine coin changers to manage customer payback can be decided a few ways: 

  • Pure guessing
  • By your coin mech
  • Trial and error
  • Plowing through lengthy DEX reports for bills/coins in and out
  • Running a report from your VMS System

True or false, right or wrong, one of these has likely become your preferred method for determining the change left in your machine.  One of these strategies has likely been works well for your business.   We might argue that leaving it up to the Auto Par feature in your CASHFLOW Series 7000 coin manager is an accurate and reliable decision for your business and bottom line! 



One of the many benefits for deploying bill recycling is the ability to remove expensive coin float, particularly $1 coins, from your machines in favor of $1 bills, which are self replenishing through customer visits.  However, some level of bill float is necessary to seed the Recycler device with, in order to pay the consumers back with bills.   



Because the MEI VNR Recycler holds up to 30 notes ($1s or $5s), there is capacity and potential to hold an additional $30 - $150 worth of additional float for the machine on its drum.  But adding an additional $150 in float to each machine (or even just $30) may seem like an unattractive place for expensive capital.



What many operators may not have previously considered, is that it is not required to MAX fill the Recycler drum with all 30 notes, similar to a coin changer school of thought.  After all we did say the Recycler at its core was self replenishing!


Instead, operators may choose to store and recycle any quantity of notes between 1 and 30 and then have the option to fill it with only a portion of that desired par amount.  Consumers then fill the remaining amount with their incoming bills, versus an operator having to outlay their own capital for it.   


Here’s an example of how it works.
 

  • Set the Recycler to hold, 25 -$1 bills (5 bills shy of its max capacity of 30).
  • Program the Recycler to employ its ‘Par to Level’ feature
  • Set the additional float for the Recycler to $10
  • Have a driver fill the Recycler module up with only 10 of those 25 $1 bills (Par to Level). –Now you’ve added only $10 worth of extra float to the machine versus a full $25.
  • Then allow the customers use their bills to replenish and fill the Recycler up to the max 25 notes it is set to hold- Any extra bills over this amount will go to the cashbox.
  • When a driver visits the machine for the next collection, they’ll hit the “Par to Level” button and the Recycler will dispense the number of excess bills over par for collection – or anything upwards of 10 in this scenario.


This setting is the ultimate float saver, since you’re truly letting the Recycler do what it was meant to do- self replenish with the consumers’ incoming bills.  An operator need only place an additional $10 of float in each machine vs $25- giving him the flexibility of doing something else with his $15 of capital.



For a refresher on how to program your Recycler, visit our technical support website and watch the VNR Recycler Training Video, Chapter “8”.