[PEN-L:2700] DISTRICT 11'S COKE PROBLEM (fwd)

[michael@xxxxxxxxxxxxxxxxx]

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Date: Thu, 28 Jan 1999 11:05:58 -0800
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From: Sid Shniad <shniad@xxxxxx>
Subject: DISTRICT 11'S COKE PROBLEM
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Harper's Magazine						February 1999

[Memo]

DISTRICT 11'S COKE PROBLEM

>From a September 23, 1998, letter sent to the principals of School
District 11 in Colorado Springs, Colorado, by John Bushey, the
district's executive director of "school leadership." In September 1997,
the district signed an $8 million exclusive vending contract with
Coca-Cola.

Dear Principal:

Here we are in year two of the great Coke, contract. I hope your first
weeks were successful and that pretty much everything is in place
(except staffing, technology, planning time, and telephones).
First, the good news: This year's installment from Coke is "in the
house," and checks will be cut for you to pick up in my office this
week. Your share will be the same as last year.

	Elementary school 	$3,000
	Middle School 		$15,000
	High School 		$25,000

Now the not-so-good news: we must sell 70,000 cases of product
(including juices, sodas, waters, etc.) at least once during the first three
years of the contract. If we reach this goal, your school allotments will
be guaranteed for the next seven years.

The math on how to achieve this is really quite simple. Last year we
had 32,439 students, 3,000 employees, and 176 days in the school year.
If 35,439 staff and students buy one Coke product every other day for
a school year, we will double the required quota.

Here is how we can do it:

1. Allow students to purchase and consume vended products
throughout the day. If sodas are not allowed in classes, consider
allowing juices, teas, and waters.

2. Locate machines where they are accessible to the students all day.
Research shows that vender purchases are closely linked to availability.
Location, location, location is the key.

You may have as many machines as you can handle. Pueblo Central
High tripled its volume of sales by placing vending machines on all
three levels of the school. The Coke people surveyed the middle and
high schools this summer and have suggestions on where to place
additional machines.

3. A list of Coke products is enclosed to allow you to select from the
entire menu of beverages. Let me know which products you want, and
we will get them in. Please let me know if you need electrical outlets.

4. A calendar of promotional events is enclosed to help you advertise
Coke products.

I know this is "just one more thing from downtown," but the long-term
benefits are worth it.

Thanks for all your help,

John Bushey
The Coke Dude




--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx