Earlier today, I needed to purchase a money order. After researching and finding out that my primary bank - Citibank - charges $5.00 for one, yet random Western Union only charges $0.99 - and is less than 1 block from my office -- I decided to go to said Western Union (Pay-O-Matic).
I have to be honest. I have undoubtedly been to "Check Cashing" establishments less than 3 times in my life. I've been lucky enough to always have a primary bank for all check cashing and banking needs...
Anyway, I walk in and see 3 people ahead of me in line and 3 people at "the window." Being one of my first times in such an establishment - I am curiously very aware of my surroundings...
For example, the Pay-O-Matic obviously cashes personal checks (for a small fee), but also checks made out to Corporations... It also sells E-Z Passes, Metro Cards, and Stamps. BUT ... none of these cross selling strategies are the sad AND smart one in which FOUR OF THE SIX people in front of me took advantage of...
The Check Cashing place sells Lotto tickets. I literally hear every person say "Give me 5 Quick-picks", or "I'll take 10 scratch-offs...." Again ... BRILLIANT and SAD at the same time...
While it's sad - and you could probably make some sort of generic socio-economic theories on WHY people do it -- I honestly think that if Citibank or Chase or whoever did the same thing -- that a similar positive increase in lotto tickets would occur... No?
And furthermore, I'd much rather Citibank make money THAT way - then by "nickel and diming" their existing customers on things like Money Order Fees and Foreign Currency Exchange fees (They charge $5.00 -- even if you are changing $10)....
1 comment:
Caveat Emptor.
Think of the owner's of the check cashing facilities. They can't be the most successful business's in the world. They're not swimming in dough.
If Google can develop new revenue lines, why criticize Joe Schmo Cash Checking Place Owner for doing the same thing. They don't hold a gun to anyone's head and force them to light their money on fire with scratch off tickets.
Both Google and Joe Schmo will find suckers to throw their money away, and god bless both of you for it.
I didn't go the Econ classes much but when I did, i think they said free markets were good.
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