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What is a cash float?
What’s a good amount of cash to carry?
The ideal cash float varies significantly from one vendor to the next, based on factors such as product pricing and sales volume. Generally speaking, having anywhere between $150 and $300 in change is advisable. For those selling lower-priced items, around $100 might suffice, especially if an ATM is accessible nearby for emergencies. This minimal amount keeps the risk low while ensuring you can make change for customers paying with larger bills.
Cash float depends on what you are selling
Is it okay to ask other vendors for change?
This is a bit of a grey area. At every market, there is that one vendor who is known as a bit of a nuisance for asking everyone for change. If it’s an occasional ask, I think that’s perfectly fine, but I wouldn’t make it a habit. Your best bet is to come prepared.
If you are asked for change from other vendors it’s okay to say no if you don’t have enough cash to accomodate your customers. Personally, if I can spare it I will give vendors change, but only if doing so doesnt not leave me short-changed.
Where should you store your cash float?
Most market stall vendors will carry a money belt on them that clips around their waist. When shopping for a money belt, make sure to pick one that has separate compartments
for notes and coins and is easy to access. Try it on in the store; make sure it’s comfy and fits. The accessibility of money belts makes transactions quick and decreases the risk of money mishandling or theft.
Most stationery stores sell cash boxes that can be locked away with a key. You can usually pick one up for around $20–30. Bear in mind that if you use a cash box, make sure that it
is always out of customer view and that you never stray too far away from it. It’s a good idea to carry the key on a lanyard around your neck.
Security Practices to Consider
- Visibility and Vigilance: Keep your cash handling discreet. Avoid counting large amounts of cash in plain view of the public. Always be aware of your surroundings and who is near your stall. Even if its just your regular customers or neighbouring vendors, the best practice is to practice discretion. Out of sight out of mind.
- Insurance: If you frequently carry large sums of cash, consider getting insurance against theft. This can provide peace of mind and financial security in the event of an unfortunate event.
Incorporating Digital Payments
In an increasingly digital world, accepting electronic payments can drastically reduce the need for a large cash float. Equip your stall with a portable card reader or mobile payment services like PayPal or Square. These tools not only cater to customer preferences but also track sales automatically, simplifying your accounting processes.
Hot tip: Get free processing with SquareUp
If you are new to Square, signing up via our link may include free processing on your first sales. The offer changes, so check the current terms when you sign up.
End-of-Day Practices
At the end of each market day, take the time to count your cash meticulously. Compare the start-of-day cash float to the closing cash float amount. Check for discrepancies. Discrepancies will most likely show if you have given your customers too much or too little change, but if you have staff, it may show something more sinister, such as potential inside theft. Never jump to conclusions, but monitor your cash float and who is working that day.
Record the amounts to monitor your business’s financial health and prepare accurately for the next day. This routine not only helps in financial management but also in planning your future cash flow needs based on actual sales data.
Related reading: card payments at a market stall and the market directory.
