New Reason to Use CoinStar
Mood
Impressed
My mother has always touted the merits behind saving your loose change. Several times a year my brothers and I would sit at the kitchen table and help her roll her pennies and nickles, dimes and quarters which she would then cash in at the bank.
When Coinstar came out she frowned on it because it scraped 8.9 percent off of the total as a service fee. She would rather do all the work herself and get 100 percent of the profits.
Well, Amazon.com has just taken away one of mom's complaints. You can now turn in your loose change at a local CoinStar and get back 100 percent of the profits in the form of an online gift certificate for Amazon.com.
Hoping to scrounge market share from America's couch cushions, the world's biggest online retailer just launched a partnership to offer Amazon gift certificates at thousands of change-counting machines operated by Coinstar Inc.Chicago Tribune - Coinstar partnership turns loose change into gift certificates
The deal allows Coinstar customers to instantly receive an Amazon gift certificate for the amount of change they dump into a green Coinstar machine, eliminating the 8.9 percent service fee. It's available at 3,500 machines in the United States--including 235 in Chicago, mostly at Cub Foods, Jewel and Osco stores.
Amazon is aiming for the youth market and the market of adults that don't have credit cards with this venture. It allows anyone with loose change to make a purchase at Amazon.com, and that figure encompasses just about everybody.
Although Amazon accepts payment by check, the process can be cumbersome and time consuming. It does not accept cash, which makes it tougher for teens to buy at Amazon the way they can at the mall. Amazon's partnership with Coinstar gives the online retailer a way to reach into teens' pockets, but it may lack the instant gratification some seek.Chicago Tribune - Coinstar partnership turns loose change into gift certificates
The only other downer to this venture is that a purchase can incur shipping fees. You don't have to face this obstacle if you manage to find a machine that has offers from some of the other businesses Coinstar has struck a deal with.
Coinstar has struck similar arrangements with Starbucks Corp., Pier 1 Imports Inc., Hollywood Video and Linens 'n Things Inc., in which Coinstar customers exchange their change at certain machines for retailers' gift cards.Chicago Tribune - Coinstar partnership turns loose change into gift certificates
Though, I'm not sure if you get back 100 percent of your cash with those businesses. I also discovered that, along with pennies, nickles, dimes, and quarters, some machines are now accepting bills, which can really help things add up. Apparently my mom isn't the only one counting pennies:
Coinstar estimates the Chicago area has approximately $311 million in loose change sitting "idle" in homes.Chicago Tribune - Coinstar partnership turns loose change into gift certificates
"Americans are notorious coin hoarders," Rowan said.
Average household stash: $99, according to Coinstar.
"I'm not sure it moves the needle in terms of Amazon's income statement quarter to quarter, but it's a creative way to add new customers in what is a fairly mature market," said Scott Devitt, an analyst with Legg Mason.
This definitely makes Coinstar actually worth using, in my opinion.
Posted by Bitsy at 12:38 PM Comments
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