Sunday, March 4, 2007

School Vending Machine Contracts

The Center for Science in the Public Interest (CSPI) studied vending machine contracts and found that they are not very efficient fundraisers. The attraction lies in the fact that the dollars gained are discretionary and can be used where they are most needed. "Though perceived as lucrative," said Margo Wootan, one of the studie's authors, " we found that school beverage contracts usually raise less than a quarter of one percent of school districts' budgets. That modest amount of money can be replaced"
From CSPI's report "Raw Deal: School Beverage Contracts Less Lucrative Than They Seem"
" School beverage contracts generate an average of $18 per student per year for schools and/or school districts... Revenue to schools/districts ranged from about $0.60 to $93 per student per year."

" The majority (67%, on average) of revenue generated from school beverage sales goes to beverage companies rather than to the schools, making beverage vending an inefficient way for schools to raise money. Children (and their parents) have to spend one dollar in order for their school to raise 33 cents. Alternatively, fundraisers in which schools sell products, such as gift wrap and candles, usually provide schools with profit margins of about 45%, though the revenue to the school is determined by the volume sold."

Source: Joy Johanson, Jason Smith, Margo G. Wootan, "Raw Deal: School Beverage Contracts Less Lucrative Than They Seem", Center for Science in the Public Interest,December 2006

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