By working together we can lower the cost of books

Transcript:By working together we can lower the cost of books:
By working together we can lower the cost of books for West Valley students West Valley College Bookstore Industry Update How Prices are Determined Revenue to WVC Textbook Order Process Importance of Early adoptions Importance of Used Books Lowering The Cost of Textbooks The new world What students… Textbooks Source: Student Monitor LLC and Barnes & Noble company research What faculty… Source: Barnes & Noble company research Textbooks How Prices are Determined College stores operate on “margin” Margin is the difference between cost and retail Publisher sets the “cost” and bookstore calculates the retail shelf price based on contractual terms Average margin on course materials is 27% (NACS) 7 How Textbooks are Priced Author Freight 4% WVMCC District 10% Publisher Bookstore Salaries and expenses 10% Bookstore Earnings 1% 75% OF EVERY NEW TEXTBOOK DOLLAR GOES TO THE PUBLISHER AND AUTHOR. Revenue for WVC Financial Terms Academic Year 2009/2010 25% margin pricing on new textbooks $325,000. Guarantee 10.5% up to $2,000,000. 11% $2,000,000-$3,500,000. 13% over $3,500,000. $20,000 annual donation $125,000 one time payment $200,000 capital $3,445,135. sales = $355,565.to WVC 8 Revenue for WVC Financial Terms Academic Year 2010/2011 20% margin pricing on new textbooks $275,000. Guarantee 7% up to $2,000,000. 8% $2,000,000-$3,500,000. 10% over $3,500,000. Increased sales in the bookstore = Increased revenue 9 How Prices are Determined Previous Pricing: New Textbooks sold at a 25% margin $75.00 cost = $100.00 shelf price New Pricing: New Textbooks sold at a 20% margin $75.00 Cost = $93.75 shelf price Used Textbooks are sold at 75% of the new book price $100.00 New = $75.00 Used $ 93.75 New = $70.35 Used Cash back to students Used Textbooks = Cash Back If book orders received early students receive 50% back Example: $100.00 New Book = $50.00 Net Cost to Students $75.00 Used book = $37.50 Net Cost to Students WVC Bookstore paid $316,463. to students this academic year Faculty select and submit order to store Store verification and acknowledgement Ordering practices based on enrollment and history Textbook sourcing Buyback from Students Used Book Wholesalers Early Orders mean more used books! As of today we have 65% of book orders for Fall vs. 60% LY. Book Order Process Facilitate low cost options Follow-up with faculty-calls, emails and presentations Communicate un-bundled options and price Research edition status and availability Communicate advantages of early orders Registration Integration- gives students early access to used books Work