B15M

I'm hoping there is someone here that has managed or owned a business and can answer a question for me.

This morning I went to the bakery early in the morning. There were signs at the cash register asking for singles.

The bakery has been there for a while. Why dont they get singles during the week? It's not like singles cost more money.

The same thing at the coffee shop. Early in the morning they are always hurting fr singles. Why?

I used to work behind the counter in the lumber yard. We would start the day with 100.00 in cash in the register. When someone came with a 20.00 order and paid with a 100.00 it would wipe us out.

So, one of the great mysteries of life.

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Brekelefuw

It's because they use up the small bills and change making change for the large bills. The amount of traffic at a coffee shop in the morning means that if they get a rush of people buying a coffee for $2 and paying with a $20 then very quickly they have run out of the appropriate denominations of bill to make change for other people because they only have $20 bills left in the register.

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B15M

I know why it happens. The question is, knowing that this is going to happen, why don't they get a bunch of singles in advance?

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bobd0

I managed several gas stations years ago, from a one-man operation to a very busy station with half a dozen workers pumping gas almost non-stop. I also worked in retail stores from large department stores to small shops and the story was always the same.

You have to start the day with a bank and even if you realize there is a possibility you might run out of small bills and change you can only start the day with so much money in the till. No retail establishment is going to start the day with a thousand dollars in the till just in the off chance the first few customers will all pay with twenty dollar bills -- particularly a small business like a bakery where the baker might be thrilled to have that amount in the cash register by the END of the day. That money doesn't just appear in the morning. The baker has to keep it in the store overnight or carry it there in the morning. Either way, storing or carrying that amount of cash exposes them to risk.

On the other side of the coin, customers could be a bit more helpful by planning ahead instead of continually using their local small businesses as if they were banks.

lmf

"On the other side of the coin, customers could be a bit more helpful by planning ahead instead of continually using their local small businesses as if they were banks."

Bodb0,

Exactly! Customers could be more helpful is a good insight. Often customers quickly drive by an auto teller at a bank or business and receive twenties and use them for small purchases to obtain their change and/or don't think about the merchant who is swamped with big bills at start up. Is it any wonder that we are seeing businesses declining to accept $50 bills.

I'm sure the small businesses appreciate their customers, but they can't compete with the bank. The banks are selling the food or merchandise the small businesses do, but the banks have giant vaults to hold their start-up money and often guards to watch it.

My local bank does not sell coffee and donuts nor fill the gas tank of my car and they usually don't have dollar shortages unless the government is in the process of closing them down.

Best wishes,

Lloyd

B15M

That is backwards thinking. They don't need 1000.00 in the till. They could keep 100.00 worth of one dollar bills in the back room. If for nothing else, just to please the customer. Remember, the customer SHOULD alwayse be right.

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jdostie

But $100 in $1 bills, at a donut shop let's say the first six customers come in with 20's and buy $2 worth of coffee & donuts. By the sixth guy, he's short $8.00.

Of course SOMEBODY is likely to come in with a five, and somebody else with close to the correct amount of change, but it will run out very fast indeed.

On the "other side of the coin" if the ATM's would distribute 5's instead of just 20's. . .

nieuwguyski

Keeping cash in the back room still exposes the business to risk. A bad employee might steal the cash during the day, or there might be a break-in overnight. Bakeries and coffee shops face a tall challenge, because one doughnut, roll, cookie, or coffee doesn't cost much, but if the customer pays with a 20, there goes a bunch of change from the cash drawer.

I work as the bookkeeper at a small nursery (plants, not babies). One of my responsibilities is to keep us stocked with change. The owner is motivated to keep the minimum amount of change on the premises, to minimize risk. In theory we're better off than the coffee shop, because most of our stuff costs more than a coffee. Not only do we give out less change as a result, but customers are more likely to use a credit or ATM card. The flip side is that we therefore keep even less change in the safe.

First thing in the morning will be the toughest time for a small, cash-based business. You probably stay open later than bank hours, so even if you have a key to use the after-hours deposit slot all you can do is drop the day's take in a safe place, but you can't buy small bills and change. The next morning you probably open earlier than the bank, so you have to get through opening until you can send someone to the bank to get change.

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rowuk

Hey guys, why beat around the bush. The reason that all of these dudes pay with $20 bills is because the wife and kids take them out of the wallet. If they would go to the ATM, THEY would have the problem to solve - but at the grocery store and not the coffee shop.

I think that it is unreasonable to expect small business to be able to completely compensate laziness and carelessness on the part of the customer. The customer is NOT always king in my book. The dealer and customer BOTH have things that the other wants. It is a partnership.

When you don't get a coffee because the shop has run out of change, you can look in the mirror or start pointing fingers. The former suggests a solution, the latter frustration. I put my change in the ashtray of my car (non smoking car). Everybody in my family is too lazy to steal that change so I always have something for the coffee shop.

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