By Katie Halpern

J201 reporter

	Many local businesses are adapting to the spending habits of students. Services such as credit card machines, campus access cards and longer hours are proving to benefit not only the customer, but the business as well.
Photo by Katie Halpern
Shea Anderson purchases her ice cream with her campus access card. Jiffy Treat is just one of the many businesses that accepts the card.

What is Campus Access all about?

Indiana University junior Shea Anderson was searching her room frantically.  She looked under her bed and then proceeded to look all over her room.  At last, she found her campus access card in her school bag.  Anderson walked out the door and headed to Jiffy Treat.  She opened the glass door with a huge smile on her face.  She ordered a chocolate ice cream and handed her campus access card to the cashier.  The employee swiped her card and the computer made a beep.  She got her card back and ate her ice cream happily. 

Indiana University, located in Bloomington, has a student and staff population of over 40,000 people. Many businesses in Bloomington make the majority of their profit from the buying power of students.

Consequently, businesses in Bloomington are seeking to capitalize on the huge amount of spending by student consumers.  That is why they are adapting their practices to the changing times

Bloomington businesses are trying to lure students by creating special offers just for them.  Many businesses have decided to team with the Indiana University's campus access card services, which offers a pre-paid card. It doesn't require cash or credit cards. 

Indiana University is a member of the National Campus Card Users. According to experts in 2001, an estimated 1500-2000 universities in North America have some sort of campus access card program available to students.

Since the campus access card program began in 1996 at Indiana University, an 8% increase in growth has been deposited each year, according to the official website of campus access cards on the Indiana University database.

The way this card works is trouble-free.  All you have to do is have money deposited on the card and then you can go to one of the many stores, on or off campus.  Then you are able to buy an item with the fast swipe from the cashier.  It is so convenient that Anderson describes this card as "a free ride from bills" because the card cannot be used once the money is gone.

"It's like a phone card, when you're out of minutes you get disconnected." Anderson continued by saying, "The access card won't scan if there is no money."  Anderson uses her card "at least twice a day."  It is convenient for the students because the money is automatically withdrawn from the account when used and they do not have to carry around cash.

  Companies have quickly caught on to the trend of campus access cards and have joined the program hoping their business will prosper more from the card. Becoming a merchant of the student access card is very appealing to business owners.  Sarah Medwick, an employee at Jiffy Treat said, "I would say more than half of the customers that come in here use a campus access card to buy ice cream."

When funds are deposited in your campus access account you can do many things.  There are currently eight locations on campus to use the card and in Bloomington there are 26.

Long Hours + Late Nights= Money

Not only are businesses in Bloomington making it easier for students to spend bucks with their campus access cards, they are changing their hours of operation just for students.  The restaurants are revolving their menus and their hours around the night life of the students. 

Rockits, a local pizza parlor on Walnut, claims it gets most of its business from "the students who are drunk leaving the bars at 3:00a.m.," said employee Mayumi Urigino.  "That is what keeps Rockits alive, the drunkards coming from the bars."

If students are willing to come in and grab a few slices of pizza, Rockits is going to profit from them.  To target more customers, Rockits offers special deals for large orders.

Hot dog vendors also realize that if there is food in front of the students when they are leaving the bar, then it will be bought according to Ernie Maxwell.  Maxwell has been a vendor outside Kilroys Sports bar for a couple of years.  "I can make more money than anyone could imagine standing out in the freezing cold selling hot dogs for two bucks a head."  Maxwell finds himself "staying outside the bar till the party is over."

It is so easy for college students to spend money.  The appealing products that companies are selling, the easy advantage of access cards, the late night hours businesses are staying open: all of these suggest students are a huge target in the world of business today. 

Money Making Hammocks

That is certainly what entrepreneur David Miller thinks.  Miller is 21, and loving life as a student taking the semester off to manage his own hammock business.  Miller describes himself as a "free-spirited kind of guy." 

A year ago, Miller was hanging out in his backyard lying on a hammock.  The hammock kept turning and flipping over, and he became irritated that he could not get comfortable.

Miller said the idea just came to him while he was lying painfully squashed between the ropes.

"Wouldn't it be a lot more calming to have a chair that was comfortable?"

Miller started to do some research on the Internet about different types of hammocks.  He wanted to see what was out there in the world of hammocks.

After completing his research, he made a contact in Bali, Indonesia, who could help him with his business.  He decided it was in his best interest to go there and discuss some possibilities.  He was soon on a plane to Bali making a risky investment on something he calls, "specialty" hammocks.  These hammocks differ from rope hammocks because they are made out of parachute material, can be machine washed, and are highly durable.

Photo by Katie halpern

Dave Miller takes time out with a friend to enjoy the hammocks he sells. Purple is just one of the many colors the hammock comes in.

"It was a ticket to the moon," said Miller, with a huge grin on his face.  Ironically, this slogan "Ticket To The Moon" became the company's title, which is located in Bloomington, Indiana.

After returning to Bloomington he started to sell hundreds of these hammocks to students.  Miller said, "these hammocks are perfect for students who go camping and are into the wilderness thing."  He markets his hammocks to these people and refers to them as his "best customers." The hammocks are said to be as "comfortable" as a bed according to Miller.

 The hammocks are easily accessible and can fit into a small pouch, so they are easy to transport.  These hammocks can be seen anywhere on campus, from students hanging them on there front porches or napping between classes in Dunn Meadow.

"When I sold a couple to students who lived off campus, a domino effect came over.  Everyone wanted one and I was happy to provide them." he said.  

Miller laughed for a second and said, "I did not have a credit card machine at first and I saw that it was limiting my sales because nobody ever had cash on them."  Miller quickly invested in a credit card machine and saw how fast students are willing to pull out the plastic. "My sales went up 50% after letting people use credit cards."

Currently, he has been developing a deal with the University's bookstore to have the hammocks come in Indiana's colors.

"The students at IU are my prime buyers, so having the hammocks available to them at another place makes it easier for people to find out about "Ticket To The Moon."

Part of the reason why Miller has become so successful is because of the credit card.  Credit card companies are also targeting students as well as businesses.  Credit card companies take advantage of college students spending habits. It is nearly impossible to walk through campus without seeing a representative from a credit card company offering a free gift to open an account. 

The Credit Card Dangers

"I get tempted every day to buy a credit card, they are always offering me free crap if I sign up," said Stacey Fogle, a junior.

It is very easy to get a credit card issued if you are a student.  The qualifications basically consist of filling out an application.  Then a few days later, a pre-approved credit card arrives in the mail.  

Junior Blaine Chod has already opened two new accounts with credit card companies this year.  "Having a credit card makes going shopping a lot easier."  

A report by the American Council on Education documented that 80% of college graduates have at least one credit card.  A year ago, the Chronicle of Higher Education said that in the year 2000, "32 % of college students had balances between $3,000 and $7,000.  The average credit card debt is $2,748, and 9% of students carried balances of more then $7,000." 

Debt Statistics Among College Students

Information provided by: www.nelliemae.com/library/cc_use.html

The credit card companies target college students because they use their cards on a normal basis but only make the minimal payments, allowing credit card companies to make a lot of money due to high interest rates.  Sociologist Robert Manning conducted research on credit card debt and suggests, "students who say they quit school because of low grades are often actually hiding debt."

The credit card crisis is a huge issue that college students face today.  Students have the pressures of keeping up with the fast pace of changing times.  Bloomington has three clothing stores for women on the strip of Kirkwood.  These stores are appealing only to young college students.  The stores have expensive brand names that are listed outside of the widow. "The clothes are hip and trendy and that is when credit cards come into action," said Chod. 

According to CCCS, (Consumer Credit Counseling Service of Central Indiana) other college students have troubled issues for living expenses, food, and supplies for school.  The average college student spends well over $2,000 dollars a year on discretionary purposes such as books, supplies, transportation, and personal expenses, according to Trends in college Pricing-2001, the College Board.  This means that the 37,000 undergraduate students of Indiana University spend a minimal of $74 million a year.

Kara Kmiec said, "when I don't have any money on me of course I'll use my credit card, if I have the money or not."  These students find credit cards to be the easy way out. 

Last updated on 12/14/2003

Designed and Edited by Jessica Newberg