Can a soldier in the barracks sell snacks and drinks to other soldiers in the barracks for profit, that were bought at the commissary?

2020-04-11T19:02:38-04:00

This is in an AIT setting that is longer than 20 weeks. Due to the COVID-19 precautions, access to the commissary and exchange is limited. I've bought some items from the commissary to sell to other soldiers. Snacks and Energy drinks mostly. The DS doesn't seem to care at the moment but says I need to know the regulations as some higher-ups might have an issue with it. Mentioned something about competing with AAFES and making a profit from other soldiers? No one is forced to buy, nor am I endorsed or advertised by the command. Pricing is cheaper than the shoppette, but more than the commissary, saving others time and money and increasing morale. A search on google hasn't turned up anything solid. Any guidance and advice are appreciated.

Response by SFC Private RallyPoint Member made Apr 11 at 2020 8:43 PM

2020-04-11T20:43:18-04:00

There's a couple of competing issues here.

First, ANY time you are soliciting money from Soldiers at a workplace or federal building, there are ethics laws that come into play concerning funding. Even your company training room store, FRG fund raisers, and SAMC non profits have to abide by federal laws and ethics guidelines because they are soliciting money on federal property. Every one of these requires a JAG review when a new chapter or group is created and there is no SOP in place.
Second, you are not a store or an official business. That means you are running an unofficial, unlicensed business from the barracks. While the NCOs might not care, they don't have to take responsibility for it either. Once someone mentions [complains] to the commander, the CDR will be forced to give the yay or nay to your side business. He will have to ask himself, "if I approve of this, could it blow up in my face?". The answer to that is yes, a hundred different ways, yes.
There is also the AAFES non competition clause you mentioned, and yes that is a real thing. Of course, you're only competing once you are an official business

Response by Sgt Private RallyPoint Member made Apr 11 at 2020 8:52 PM

2020-04-11T20:52:45-04:00

SPC Private RallyPoint Member Great advice has been offered by SFC Private RallyPoint Member. I would not go forward with this plan without command approval, and you can expect it to be disapproved.

Response by CAPT Kevin B. made Apr 11 at 2020 9:04 PM

2020-04-11T21:04:47-04:00

Way back in the day I had acquired the collateral nickname HEBO; High End Booze Officer. I'd buy up all the good stuff during the Winter Fly-In to Antarctica. Since I had to audit the Package Store, the audit was much simpler. Then over the summer period, I'd gradually sell it off on a not for profit basis. That way, there were no hoarders or Stay a Whole Day Air Farce types raiding the store for good stuff. It was an open secret, so much so, I was the only O-1 that happened to get invited for dinner at the Skipper's hut most every week. He got a monthly bill. Where I'm going with this is can/can't do regulations aside, I advise nobody make hay off their shipmates, but rather take care of them. Your actions will get repaid nicely in interesting ways. It does take a Village to help people along. It only takes one Village Idiot to cluster everything up.

Response by LTC Jason Mackay made Apr 11 at 2020 10:28 PM

2020-04-11T22:28:20-04:00

SPC Private RallyPoint Member to amplifÿ what SFC Private RallyPoint Member has said, you have a number of things that are really wrong here.
1. All commercial activities on an Army Installation require approval by permit or memorandum from the Garrison Commander or their designate, usually the Business Officer at FMWR. Especially on unit property. Usually people's side hustles are in public places (like a personal trainer or car detailer) or at their Government Quarters where utilities costs that are in excess, may be recovered.
2. DECA and AAFES items are not for commercial resale. One exception.
3. Units, operative word units, may run a "sweet and treat" snack stand among other fund raisers (similar to what you are doing) but any profit must be deposited in the account of the Unit Fund, run by your commander and administered by FMWR for unit morale and benefit. Those benefits must be available to ALL unit members (usually a BBQ at Organizational Day or Unit PT Shirts). Subject to legal review and audit at anytime. There is actually a SOP template out there provided by FMWR to run such a fund. The funds may be use due to replensih stock. The exception to #2is Unit Fund Raising i.e. The "sweet and treat" and FRG BBQs etc. two different regs and Fund instrumentalities in the nonappropriated Fund lanes.
4. Given installation policy, you probably have to have command permission for a second job, aka moonlighting, aka side hustle.

There are 4 or 5 separate regulations at work here. Your NCO ambivalence will not protect you when it goes bad, although, they should know better. All it takes is one guy to complain and they will swoop in and crush you. The people who knew and even bought your stuff will deny all knowledge.

Nothing will get a Commander riled faster than threat of relief for an illegal Fund. Do what your rank can stand. I don't have time to hunt down each reg for you but you need to hit the I believe button on what I have told you. If it is critical to morale and there is no significant profit, let the commander authorize you to run it.

Response by CW2 Private RallyPoint Member made Apr 11 at 2020 10:58 PM

2020-04-11T22:58:40-04:00

Even company training room stores are not authorized as they can be considered a "slush fund", this is no different except it's even less innocent. You are reselling products for more than they cost at retail - pretty sure that's scalping - even if they are more expensive at the shoppette. The commissary is that cheap for a reason, and now you are undermining that government agency (DECA is the govt, AAFES is not - they just have a deal to be on post). I recommend you sell at the price you paid, or stop altogether. Doesn't seem ethical or legal, they're your fellow Soldiers, if you were honestly doing it to increase morale there'd be no profit.

WTF, you get snacks and energy drinks (and this much computer access) under supervision of a Drill Sgt?!?!?!?! What has the Army come to?

Response by SFC Christopher Taggart made Apr 12 at 2020 7:03 AM

2020-04-12T07:03:50-04:00

If you haven't figured it out by now...the WORD here is...STOP!

Response by MAJ Ken Landgren made Apr 12 at 2020 3:28 PM

2020-04-12T15:28:14-04:00

In AIT I loaned money for 10%. lol

Response by SPC Jeffrey Jensen made Apr 12 at 2020 3:43 PM

2020-04-12T15:43:03-04:00

This is why you don't ask soldier, you do. It's easier to seek forgiveness than it is to ask permission when no one is getting hurt. Try as hard as possible to get your friends what they need before getting shut down and have a laugh about it. Asking people what the book says will make you incompetent is your service and I was soldier of the year multiple times. Just to keep it real life.

Response by SPC Private RallyPoint Member made Apr 12 at 2020 3:54 PM

2020-04-12T15:54:53-04:00

Thank you everyone for your advice and guidance. I appreciate you all talking the time to respond.

Response by SSgt Christophe Murphy made Apr 13 at 2020 11:10 AM

2020-04-13T11:10:37-04:00

This isn't anything new. Every unit I was at there was a kid doing a side hustle and slinging something. Razors, snacks, drinks, DVDs, etc. The one common thing is that eventually the Command finds out and eventually it gets shutdown. It's not uncommon for units to maintain a soda mess, coffee mess or some form of small concession in a work space. But eventually something happens,somebody gets mad, money goes missing, it gets flagged and it goes away for a while and eventually pops back up when enough people from the original crew rotate out. It is a cycle and it goes round and round. Command has final approval on all side gigs and generally shut down inside ones like this. It's gonna happen. You can either try to get Command approval or wait until they shut you down outright but the odds are not in your favor.

Response by SGM Private RallyPoint Member made Apr 14 at 2020 3:59 AM

2020-04-14T03:59:57-04:00

Considering that your customers are also your coworkers, one single piece of advice:
"You don't shit where you eat."

Response by SSG Rick Austin made Apr 28 at 2020 5:40 PM

2020-04-28T17:40:58-04:00

I was a Supply Sgt for an Infantry Company in Germany. We were in Graf when one of our Soldiers lost a Night Vision Scope... not a pair of NOD's an actual scope. BN CDR was Red Hot, told us we were staying in the field until we found it and had walked every square inch of Graf looking for it. So, original FTX = 2 weeks.. BN Leaves.. they park us in the woods and BN CDR states "You may not leave this training area until the NVS is found".. After 1 week 1SG and I are sitting around BS'ing when a Plt Sgt walks in and says"Damn I wish I had a coke". Light went off. I asked Top if I could open a little store out of my Supply Tent for our guys. Cash or Credit. 1SG opens his Wallet and hands me $100. I run to the commissary and load up. That night at chow he calls a company meeting and announces the store. All proceeds would go for new Furniture and equipment in the Day Room. We Ran that store for exactly 2 weeks.. found the scope, another company found it inside one of their 113's back at base. After returning the 1SG money, we made over $500 and bought a new Large Screen TV, had the Pool Table re-done and had one heck of a BBQ with the rest.... BTW.. somehow word got out and we had lots of people... of ALL ranks stop by our tent or our Truck when we were feeding chow or giving out C-Rats... and every penny of credit owed was payed within 8 days of returning to the barracks.

Response by PFC(P) Private RallyPoint Member made Apr 28 at 2020 9:34 PM

2020-04-28T21:34:06-04:00

Uh, just don't do it.

Response by PFC John Longan made Sep 19 at 2020 9:34 PM

2020-09-19T21:34:48-04:00

Dang you all are a wild up bunch. This has gone on for the begging of time. If it isn’t class 6 or rationed items in countries that have them. Chill, I doubt he is competing against aafes.

Response by TSgt Timothy Backstrom made Apr 11 at 2021 6:41 PM

2021-04-11T18:41:13-04:00

Back at RAF Lakenheath in the late 90's I ran the coffee bar at work, and I bought all the supplies out of my own pocket, then divided up the cost by the number of members. My boss made sure I didn't make a profit in case AAFES did get nosey about it.