Wednesday, September 3, 2008

Coinstar: The Big Lie

I am sure that most readers have seen Coinstar machines at their supermarket. The way it works is pretty simple, you deposit your change and the machine counts up your coins. It then spits out a voucher which you can redeem at the cashier. Typically, Coinstar charges you about 8.9% for the coins counted. You can also choose a gift card and avoid a counting fee.

Coinstar has a slogan "Turn your coins into cash," which I consider to be a big lie. The phrase "coins to cash" always rubbed me the wrong way. I've never been a fan of Coinstar, and I refuse to pay them 8.9% to count up my coins. However, their marketing is very effective because they've somehow gotten people into thinking that coins are no longer acceptable legal tender.

Let's back up a moment and think about the language here. Aren't "coins" considered to be "cash" by definition? Since when are coins not acceptable as legal tender, for all debts public and private? I've had half a mind to bring in a big jar of coins to pay for my groceries just to protest the Coinstar machine. If they refuse my money, I could claim discrimination...

Gift cards are not cash either. On eBay, gift cards often sell for 10% less than face value. In any case, when you compare this "counting fee" versus the amount of interest that you can get at the bank, that is nearly 3 years worth of interest that you are losing out on.

If Coinstar wishes to be truthful, they ought to change their slogan to "turn your cash into a voucher or gift card that is worth less than you put in".

DC

6 comments:

JB said...

When was the last time you bought something that was more than $2 with just coins?

I would rather just go deposit it into my account and then get cash out...

But coins are old fashioned... and we really shouldn't even have them anymore. 1 cent doesn't equal what it did in 1940.

Pinyo said...

That's one reason why I love the coin machine at my local bank. Just dump it in and get 100% of my money that I can trade for "bills" or deposit.

FIRE Finance said...

Alas! The line between smart marketing and outright lying is getting fuzzier each day.

BTW last summer we went to Canada for a charity fund raising event. During checkout at Hilton Garden Inn we did pay couple of hundreds in Canadian coins (apart from some bills). Everyone was looking at us but we kept smiling faces and gave them all the coins.

pfstock said...

Thanks everybody for the comments, especially the last one. That is hilarious!

BloggingBanks said...

I second Pinyo on the coin machine at your bank. I get 100% of the value of coins deposited directly into my own account earning interest.

K said...

Yippee for banks with free coin counters! This site below has lists for each state:

http://www.theunderstory.com/index.htm

I always try to use my change as I go so I dont end up with handfuls. If you remember to carry:
3-quarters
1-dimes
2-nickels
4-pennies
with you then you will always have correct change for whatever amount is.