WS Chronicle

Staff Report

The Winston-Salem Chronicle

WINSTON-SALEM — Forsyth County’s law enforcement detention center is poised to generate nearly $1 million in annual commissary sales — a captive market that brings in significant funds for the Sheriff’s Office while raising broader questions about how jails nationwide profit from captive consumers with little choice.

On Jan. 15, the Forsyth County Board of Commissioners approved a new revenue contract with McDaniel Supply Company, Inc., awarding the company on-site commissary services at the Forsyth County Law Enforcement Detention Center (LEDC) beginning Feb. 1, 2026, through Dec. 31, 2028. McDaniel offered a 43.5% commission on gross sales, second only to the disqualified highest bidder, and will pay the county roughly $404,511 based on projected 2026 sales of about $929,910.

Historical data shows gross sales at the LEDC commissary have steadily climbed in recent years:

• 2023: $869,306 in gross sales, $388,858 paid in commission at a 45% rate
• 2024: $896,547 in sales, $334,759 paid at a 37% rate
• Sept. 2025 (partial year): $767,901 in sales, $268,079 paid at 35% rate

County officials said commission rates offered by bidders, vendor experience, and responsiveness determined the award, noting that even though Keefe Commissary Network offered a slightly higher commission, it was judged not to meet responsibility criteria.

Behind Bars, A Business Model

Commissary operations are essentially captive convenience stores where people incarcerated in jails and prisons buy snacks, hygiene products, stationery and other items not provided by the institution. A person in custody cannot shop elsewhere; instead, these funds often come from family and loved ones.

Nationally, commissary sales are a multi-billion-dollar sector. A nonprofit analysis estimated commissary vendors collectively make about $1.6 billion a year through these sales, driven by built-in monopolies and captive customer bases with no retail alternatives.

Studies of prison systems show incarcerated individuals can spend nearly $947 per person per year on commissary purchases — often more than they could earn from prison jobs.

In county jails around the country, commissary funds are commonly used to finance programs such as recreation, educational materials and other items ostensibly intended to benefit incarcerated people. But investigations have found these funds can grow into multi-million-dollar accounts, as seen in several Massachusetts county jails where commissary funds topped $1 million.

Prices and Burdens

National reporting and advocacy research finds commissary prices and markups can exceed local retail by double-digit margins or more, even for basic items. Some investigations uncovered price gouging of staples such as ramen noodles, soap or religious items, with markups ranging from modest to extreme in states across the country.

Critics argue that while commissaries are portrayed as supplemental convenience stores, they often fill gaps in basic provisions — especially for people whose wages inside facilities are extremely low — and shift the cost of essential hygiene and food items onto those already vulnerable and their families.

Local Revenue, National Context

For Forsyth County, the contract is a significant financial piece of jail operations in a tight county budget environment. Commissioners and sheriff’s officials emphasize the revenue helps support detainee services without drawing on general taxpayer funds. The precise uses of commissary commissions in the Sheriff’s Office budget will likely be a point of discussion in upcoming budget hearings.

At the same time, when viewed against the national landscape, Forsyth County appears to fall on the lower end of commissary revenue and commission rates compared to many jurisdictions across the country. Advocates note this may signal a more restrained approach that could help limit costs for incarcerated individuals and their families.

But as local officials tally revenue projections, advocates around the country are increasingly calling for oversight of commissary pricing, markups, and the way contracts are structured — especially where incarcerated people and their families shoulder the cost of goods far above what the general public would pay.

As the new contract takes effect in February, Forsyth County joins a national conversation about the economics of incarceration — where every purchase inside a jail or prison can feed a complex revenue model with real financial consequences for individuals and families.