By working together we can lower the cost of books
Description: 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
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slide1. By working together we can lower the cost of books for West Valley students West Valley College Bookstore<br>
slide2. 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<br>
slide3. The new world<br>
slide4. What students… Textbooks Source: Student Monitor LLC and Barnes & Noble company research<br>
slide5. What faculty… Source: Barnes & Noble company research Textbooks<br>
slide6. 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)<br>
slide7. 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.<br>
slide8. 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<br>
slide9. 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<br>
slide10. 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<br>
slide11. 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<br>
slide12. 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<br>
slide13. 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 with Student Senate and Library
Objective = provide low cost options and have books available for students Bookstore Role 13<br>
slide14. Impact of Late Text Orders Limited buyback
Limited used books
Books not on the shelf by the first day of class
Publisher shipping delays
Student learning disadvantage
Student anxiety<br>
slide15. How the bookstore works with WVC to lower the cost of books HEOA
TAP Committee
Collaboration on price reduction strategies
ISBN and price available online July 2010
Publishers must provide faculty with price and offer unbundled materials
Inform students on how to save money on textbooks
Increase number of used books available
Rental program pending<br>
slide16. Net Cost to Students $37.50* Net Used
$75 Digital
$65 (Approximate)
Net Customer $45 (Approximate)
Net Cost Rental New
$100 $50* Net * If bought back<br>
slide17. 17<br>
slide18. 18<br>
slide19. Rentals Pricing: more than 50% off new textbook price
Rental period: entire term
Normal use/highlighting allowed
Student given option to purchase book at end of term
Multiple forms of payment accepted either online or in-store Details 19<br>
slide20. Our vision To deliver a wealth of content
—all the information, ideas, and insights students need to get ahead
To bring it to you in all formats, and through all channels
—new, used, digital, rental, in-store, online, mobile
To build loyalty by being the only destination where customers can find everything they need and want, at the best price possible A new world requires a new outlook 20 Only Barnes & Noble offers the breadth of ideas and resources to succeed in this new world.<br>
slide2. 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<br>
slide3. The new world<br>
slide4. What students… Textbooks Source: Student Monitor LLC and Barnes & Noble company research<br>
slide5. What faculty… Source: Barnes & Noble company research Textbooks<br>
slide6. 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)<br>
slide7. 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.<br>
slide8. 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<br>
slide9. 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<br>
slide10. 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<br>
slide11. 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<br>
slide12. 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<br>
slide13. 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 with Student Senate and Library
Objective = provide low cost options and have books available for students Bookstore Role 13<br>
slide14. Impact of Late Text Orders Limited buyback
Limited used books
Books not on the shelf by the first day of class
Publisher shipping delays
Student learning disadvantage
Student anxiety<br>
slide15. How the bookstore works with WVC to lower the cost of books HEOA
TAP Committee
Collaboration on price reduction strategies
ISBN and price available online July 2010
Publishers must provide faculty with price and offer unbundled materials
Inform students on how to save money on textbooks
Increase number of used books available
Rental program pending<br>
slide16. Net Cost to Students $37.50* Net Used
$75 Digital
$65 (Approximate)
Net Customer $45 (Approximate)
Net Cost Rental New
$100 $50* Net * If bought back<br>
slide17. 17<br>
slide18. 18<br>
slide19. Rentals Pricing: more than 50% off new textbook price
Rental period: entire term
Normal use/highlighting allowed
Student given option to purchase book at end of term
Multiple forms of payment accepted either online or in-store Details 19<br>
slide20. Our vision To deliver a wealth of content
—all the information, ideas, and insights students need to get ahead
To bring it to you in all formats, and through all channels
—new, used, digital, rental, in-store, online, mobile
To build loyalty by being the only destination where customers can find everything they need and want, at the best price possible A new world requires a new outlook 20 Only Barnes & Noble offers the breadth of ideas and resources to succeed in this new world.<br>