Vending Viable for Byways
in Right Location
Vending machines in high traffic locations on two federal interstate highways proved profitable for a nearby scenic byway, that is, until a legislation-based challenge redirected profits to another organization.
Who:
The Mountainland Association of Governments is a municipally-contracted council of governments and development organization that promotes travel and tourism along the Nebo Loop Scenic Byway in Utah as part of a regional economic development strategy. The association found vending machines to be a profitable means to raise funds to support the byway.
What/Where:
Two vending machines were placed at each of three locations on two interstate highways. The machines sold beverages, candy, phone cards and newspapers. Revenues generated by the machines benefited the byway organization for five years before a legislative challenge altered the financial arrangement. See How.
When:
The vending machines were set in place in 1995 and were available for use year-round.
How:
The Mountainland Association of Governments contracted with the State of Utah to operate tourism information centers on two interstate highways. The association initiated contact with vending companies, including AT&T, Coke, Pepsi, USA Today and water bottling companies to place two vending machines at three information center locations on two interstate highways. Those highways averaged 50,000 daily trips.
The vending companies placed, stocked and maintained the vending machines. The byway organization paid the cost of establishing a power source for the machines; the vending company paid the electrical operating costs. When vandalism became a problem, the byway organization paid the minimal expenses to enclosed the machines in metal cages and lock them down to new concrete slabs.
The vending companies collected revenues when they stocked the machines and initially sent the byway organization a check monthly for 100 percent of the revenues after the vending company took its profit.
Following a legislation-based challenge by the Utah State Division of the Blind, drawing on its right of first refusal for vending rights on federal property as provided by the Randolph-Sheppard Act, fifty percent of the profit after the vending company took its share was directed to the Division of the Blind for two years with the other fifty percent still benefiting the byway organization. After two years, the Division of Blind requested and received 100 percent of the post-company-share profits from the machines.
The Mountainland Association of Governments has not placed any vending machines along the non-federal roads of the Nebo Loop Scenic Byway because they have not wanted to be in competition with other machines already in place.
Funding Potential:
The vending machines on the high-traffic federal highways averaged about $5,000 per machine per year. The potential to use vending machines placed on non-federal roads may exist to sell byway-related goods, e.g., t-shirts, byway-label water. However, carefully weigh how the machines would fit into the community and select appropriate locations.
Why Vending:
• Generates funding with a minimum commitment of staff time
• Offers opportunity for selling byway-theme items
Resources:
Mountainland Association of Governments
National Automatic Vending Association
See also state-based vending associations
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This project was funded in part by a |
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