1. Business Models for School Milk Vending
School Self Operation
Pros
School retains all revenue
Full control over contents and quality control
Control over vend price
Fund raising mechanism
Use on-site labor
Leasing allows for immediate operating profitability
If purchasing the machine, the payback is short
Cons
Machine purchase price
Labor required for servicing machine
Maintenance infrastructure
Product spoilage
Vending Operator
Pros
School can have vending program for little or no money
Machine filling service provided by vend-op
Benefit from expertise and experience of vend op
School receives percentage of profits
Cons
School shares profit with vend op
School forfeits some control over what goes into the machines
School depends on operator for quality control
Not viable for smaller schools
School forfeits control over vend price