How Much Revenue Could Your Store Earn?
Retailers operating return points may receive a handling fee for every eligible container they accept and process. What your store earns depends on the fee and the volumes you handle.
Costs and revenue
Can accepting returns generate revenue?
Yes.
Retailers operating return points may receive a handling fee for each eligible container they accept and process.
The amount your store could earn will depend on the handling fee available and the number of containers you process.
How is potential revenue calculated?
The basic calculation is simple:
Containers processed × Handling fee = Handling fee income
For example, a store processing:
250 containers per day
could handle approximately:
91,250 containers per year
Even relatively small daily return volumes can therefore add up over time.
What could affect your earnings?
Your potential handling fee income may depend on:
- The number of containers returned
- The applicable handling fee
- How returns are processed
- The accuracy of your return records
- The operating days of your store
Higher return volumes may generate more handling fee income, but retailers should also consider the costs involved in operating their return point.
Revenue is only part of the picture
Handling fees are designed to help compensate retailers for the cost of operating a return point.
When considering the financial opportunity, retailers should also think about:
- Staff time
- Storage
- Consumables
- Equipment costs
- Cleaning and operational requirements
The most suitable return solution is therefore not always the one with the lowest initial cost.
What about additional customer spend?
There may also be a wider commercial opportunity.
Customers visiting your store to return containers may choose to spend their refunded deposit, and make additional purchases, during the same visit.
This means the potential value of becoming a return point may extend beyond handling fees alone.
Keep reading
- How DRS Handling Fees WorkA handling fee is the payment made to retailers for accepting, storing and preparing drink containers for collection.
- The Hidden Cost of Manual ReturnsAt first glance, accepting containers manually may appear to be the simplest and least expensive way to operate a return point.