Businesses Build on America’s Prison Population
Date:  08-20-2012

Making money off of inmates is the new way to do business
Inmates in America’s jails, state, and federal prisons are allowed to buy certain items from commissary, a little store that sells products at fair market value to inmates making pennies an hour. For those who can afford it, the opportunity to purchase a small treat, or a hygiene item, is an eagerly anticipated ritual of prison life. Ask an inmate what the main brand on their shopping list is and they will most likely tell you “Keefe,” because Keefe, sometimes pronounced “Kee-Fee” by prisoners, has a huge stake in prison commissary contracts. As a matter of fact, the Keefe Commissary Network, a lucrative division of the Keefe Group, proudly announced on March 31, 2012, that in its first quarter, “Keefe Commissary Network reaches 500,000 inmates served!” Keefe also brags that “Corrections is Keefe Commissary Network's only business, which allows its dedicated staff to focus exclusively on this unique market.” Unique market is one way to put it, but “captive consumers” is more apt.

While Keefe sells everything from City Cow squeeze cheese to Keefe coffee to incarcerated folks, it is branching out, and following the lead of other corporations who realize that there is money to be made off of the 2.3 million Americans behind bars. Keefe has expanded its products far beyond Cactus Annie Tortillas to take advantage of the technology age. Keefe also offers correctional facilities the “Keep Track” software system, which includes technical support and is designed to manage “inmate orders or medical bills.”

Yes, there is money to be made from this “unique market.” Correction officials realize that their facilities run more smoothly when inmates can occupy their time by watching television or listening to music. Some prisons allow inmates to purchase televisions and radios from commissary, and now innovative business are offering MP3 players and the opportunity to purchase songs. The items however, have to fit strict prison requirements. Savvy businesses understand this and create products designed to comply with these requirements. These businesses are now in hot competition with each other to get a slice of the prison market. In his article in Bloomberg Business Week, Nick Leiber writes on The Apple of the U.S Prison System.

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