School Business Scenarios

School Self-Operation

The school self-operation model assumes that schools purchase, stock and service the milk vending machine. This can be an option for both large and small schools.

	Pros	Cons
Site size	Can support smaller location sizes	********
Start-up costs	********	Significant financial investment for equipment purchase and maintenance
Servicing requirements	On-site labor may be used	School responsible for training, maintenance, repair and allocating labor
Pricing/profits	Pricing determined in-house and all profits stay within the school or foodservice departments. Successful machines may pay for themselves in a short period of time and allow for great profitability	School assumes more risk if the machine underperforms
Machine location	May have more opportunities to place in high-traffic locations	May have trouble placing machines in places that compete with other school vending profits
Contracts	********	Other vendor contracts may restrict product flexibility and machine location
Business success	May provide fund-raising opportunities for non-profit groups in the school or community	Schools may not focus on maintenance and stocking; operational learning curve for vending inexperienced processors
Product selection	School controls the products placed in the machine	Product quality and selection is dependent on local availability