The Penny Shortage: What It Really Means for Your Business
The Penny Shortage: What It Really Means for Your Business
Lately, business owners across the U.S. have seen headlines about a nationwide penny shortage. The issue is real — the National Association of Convenience Stores (NACS) reports that retailers are increasingly running into challenges when making change for cash transactions.
For many small business owners, this news sparks concern. Could the penny shortage hurt customer satisfaction? Will it add costs? Could it even expose the business to fraud risks? Let’s take a closer look and put things in perspective.
Why the Penny Shortage Is Happening
The shortage isn’t because pennies are disappearing — it’s largely a a distribution and production issue. In May 2025, the U.S. Treasury placed its final order of penny blanks, signaling the end of regular penny production once the existing stock runs out.
That means sometime in early 2026, we may see no new pennies minted.
Add to that the fact that many businesses and consumers are now going cashless—fewer pennies circulate back into the system.
So what appears like a coin “shortage” is really a shift in how currency circulates in modern commerce.
Banks and retailers who rely heavily on coins are now feeling the shift.
What Does This Mean for Your Business?
The biggest impact for businesses is at the register when customers pay in cash. If you don’t have pennies, you may need to:
- Round transactions up or down. For example, a $9.97 purchase may round up to $10.00.
- Offer store credit or loyalty points in place of coin change.
- Encourage digital payments to reduce dependency on coins altogether.
At first, the idea of rounding can seem costly. But let’s run the numbers.
The Real Cost of Rounding
Suppose you serve 1,000 cash transactions per month. If you round up by 4 cents on each transaction, the maximum impact is:
1,000 × $0.04 = $40 per month.
That’s less than the cost of most utility bills. Spread across your business, this expense is negligible. In fact, it’s unlikely every transaction would require rounding up — meaning the actual cost is even lower.
Even better, the risk of fraud is minimal. Unlike digital scams, rounding pennies provides very little room for exploitation.
How Businesses Can Respond Strategically
Instead of worrying about pennies, business owners should use this moment to strengthen financial operations. Here are strategies to consider:
1. Shift More Customers Toward Digital Payments
Encourage the use of credit cards, debit cards, or mobile payment apps. These not only reduce dependency on physical coins but also streamline accounting and improve cash flow visibility.
2. Plan for the Expense
If you expect to round up transactions, build a “rounding expense line” into your budget. For example:
- Track the average number of transactions requiring rounding.
- Multiply by 4 cents to estimate the monthly impact.
- Factor this into your cost planning.
3. Enhance Customer Experience
Communicate openly with customers. Many will appreciate honesty. Consider adding signage like:
“Due to the nationwide coin shortage, transactions may be rounded to the nearest nickel. Thank you for understanding.”
Transparency builds trust, and customers are less likely to see the issue negatively.
4. Focus on Bigger Opportunities
Pennies are small, but what about the “dollars” in your business? A good financial strategy can uncover far larger savings by:
- Reducing overhead costs.
- Streamlining payroll or vendor expenses.
- Optimizing cash flow for growth.
Don’t Sweat the Pennies — Focus on Profitability
The truth is, pennies won’t make or break your business. The real question is how well you’re managing your operations, planning for costs, and positioning your business for long-term success.
As one industry leader put it: “Don’t worry about pennies. Focus on what really drives profitability.”
That’s where we come in. At Lionhood Financial Coaching, we help business owners develop practical strategies that keep operations running smoothly — whether you’re dealing with pennies or planning for six-figure growth.
👉 Schedule your business coaching session today and let’s focus on the strategies that truly matter for your financial success.
Lionhood Financial Coaching — helping businesses thrive through clarity, strategy, and financial confidence.