30 May, 2018

The true cost of cash

Once upon a time there was no doubt that cash was king. Cast your mind back, way back to five or six years ago. In those days of yore you wouldn’t be caught dead without cash in your pocket. There were no EFTPOS machines in sight at the local artisan bakery. A night out with mates was always preceded by a trip to one of Australia’s ubiquitous ATMs. It was way better to have cash on hand to deal with that awkward end of the night tally of who had what at one of those many “no split bills” restaurants. Not to mention paying for drinks at the busy bar where cash was so much easier than a lengthy card transaction as you tried to remember your PIN and probably copped a surcharge for the privilege. 

Fast forward to today and most of us aren’t carrying much, or any, money in our pocket. The modern consumer has moved to an almost complete reliance on digital or card payments. The Reserve Bank’s Consumer Payments Survey found that for the first time Australian consumers are more likely to use digital payment methods over cash. Contactless ‘tap and go’ cards are an increasingly popular way of making payments, displacing cash even for lower-value transactions. We find it weird and inconvenient if we can’t buy our latte with the wave of a card or effortlessly split the bill at the end of dinner. Is your hospitality business keeping track with the cashless times? If not, why not?

Cost is a big factor for most vendors. Yes, there might be upgrade costs to make sure older credit and debit card terminals are compatible with contactless payment technologies. Merchant service fees are a fact of contactless payments and your business will need to find a way to incorporate that cost into your pricing so that you don’t wear the cost. The fact remains that in the immediate future cash is still one way your customers will want to pay. It’s not about cutting out cash transactions altogether but providing flexible payment solutions for your valued customers. What you really need to ask yourself is: what is the true cost to your business if you don’t offer flexible payment methods?

At H&L answering this question is at the very core of what we do. We know that convenient payment methods at the point-of-sale are what your customers want. If you don’t make payment easy for your customers they will spend their dollars elsewhere. Investing in flexible payment solutions as part of a fully integrated POS solution will not just save you money but will actually increase your profits. 

POS systems are designed to improve customer service in a myriad of ways and keep customers coming back again and again and writing rave reviews about your venue on social media. Increasing staff efficiency and work satisfaction with user-friendly POS terminals is key to improving the customer experience. From there orders can be sent to the kitchen for printing to improve order accuracy and, again, customer satisfaction. At the end of the meal a handheld EFTPOS linked to the POS will mean your customers can securely split and pay their bill right at the table and easily add a tip to reward their waitperson for stellar customer service. In this way the integration of H&L’s ingenious solutions protect you from losing money or reputation from staff manually mis-keying transactions into EFTPOS. 

It’s not just about payment solutions, they are just one part of a whole modular package that H&L offers - starting with a tried-and-true POS and on to robust reporting features, workforce management, and marketing solutions. We take pride in our ability to take your hospitality business to the next level no matter whether you are a small business or a multi-site venue. Check out H&L’s YouTube channel to see how our clever payment solutions have increased profits for our customers.