School Business Scenarios

Processor Full Service

With the processor full service model, dairy processors purchase and service the school vending machines.

	Pros	Cons
Site size	Location size not as critical if incorporated with other deliveries	********
Start-up costs	Minimal finances needed for the site to start if processors invest in the machines, maintenance, vehicles and staff labor	********
Servicing requirements	Processors may leverage existing routes and delivery equipment to handle maintenance, filling and service needs	Small and frequent product deliveries may be needed
Pricing/profits	Processor controls the price and a portion of the sales revenue may go to the site	********
Machine location	********	There may be location restrictions from other vendors
Contracts	Processors can extend existing relationship into a vending program	May have trouble placing machines in sites with existing vending contracts
Business success	Opportunity for processors to build and maintain strong school relationships	Operational learning curve for vending-inexperienced processors
Product selection	Processors can introduce new products immediately and retain control over product quality	Limited by the variety of products offered by a particular processor