Commissary company finds growth in serving correctional facilities

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buy this photo John Walters, a delivery driver for Stellar Services, unloads a delivery at Oakhill Correctional Institution on Monday, Nov. 23 Mike DeVries/The Capital Times

Stellar Services profile

Address: 4123 Terminal Drive, McFarland

Web site: www.stellar-services.net

Co-owners: Linda Budnar, Bruce Chapman, Ed and Patty Bierer

Employees: 40

Services: Provides inmate banking software, reverse ATM machines and commissary supplies

Annual revenue: $5.3 million (estimated for 2009)

A McFarland business that provides area jails a way to manage inmates' money is expanding and moving to a larger space in the Stoughton Business Park.

Stellar Services, 4123 Terminal Drive in McFarland, which supplies and maintains banking software to jails and correctional facilities, also stocks institutions' canteens, providing inmates with weekly shipments of everything from soap to soda to Sudoku puzzle books.

The company, which opened in 2001, has grown more than 50 percent -- from about $3.5 million in sales last year to an expected $5.3 million this year.

In April, Stellar plans to move from its 7,500-square-foot warehouse to a $2.5 million building that is almost four times larger.

The Stoughton location, 301 Business Park Circle, has room for expansion, which the company expects to need in three to five years, said Ed Bierer, one of Stellar's four owners.

Stellar acquires new accounts by bidding on state contracts and submitting proposals to counties.

Stellar's banking software manages the money inmates have with them when they are booked into jail or money they are given by friends or relatives during their stay. Money can be deposited into "reverse ATMs" called Stellar Tellers that also accepts credit cards.

The machines are in about 30 jails -- usually in the lobbies -- and people can add to an inmate's account that can go toward paying bills to the county or buying items from the commissary, said Bruce Chapman, one of Stellar's co-owners.

The banking program works to decrease the amount of time correctional officers spend keeping track of inmates' money, and the system makes it easy to correct mistakes, Bierer said. "This allows the sheriff to have some peace of mind when it comes time for an audit," he said.

Stellar works with more than 35 jails and correctional facilities in Wisconsin and about 25 in Illinois, Indiana, Iowa, Michigan, Minnesota and Ohio.

All locations receive shipments weekly, Chapman said.

The banking and commissary business segments work together in that the company provides the money management software for free but, as part of the contract, also supplies the facilities' canteen or commissary.

The sodas and snacks are sold to jails and the facilities mark up the items 20 to 30 percent, Bierer said.

"The jail is making some money off of this," he said. "We make money off it by marking up our wholesale price."

Stellar's new warehouse will provide more storage space for the company's commissary order system and a larger training center, he said.

Bierer said some facilities contract with Stellar because they are too large to manage a commissary on their own or never had one.

Kathi Geissler, clerk for the Jefferson County jail, said the facility has used Stellar for about two years and has been impressed with the company's commitment to customer service.

"They've been known to drive out here with a missing order," she said. "It's made commissary very simple."

"Because the system now is automated, instead of spending eight hours a week on (commissary tasks), I probably spend three ... or less," she said.

Stellar offers more than 475 items, which include acne cream, Milk of Magnesia, photo albums, notebooks, calculators, dictionaries, birthday cards, coffee, SPAM, underwear and T-shirts.

Doritos and Snickers are consistently big sellers, Bierer said, as are chili-flavored Ramen noodles.

"We package a lot of Ramen noodles," he said.

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