West Valley College What students… DoPreferDemand 65% Compare prices 60% Purchase all required 32% Share 22% Skip 16% Swap 11% Photocopy 50% Used 21% New/used combo 14% New 5% Rentals 3% eTextbooks Convenience Value Choice Textbooks Source: Student Monitor LLC and Barnes & Noble company research
West Valley College What faculty… Source: Barnes & Noble company research Do/would do 69% Consider price when choosing a textbook 72% Would support giving students a choice of renting a book for their courses 42% Would be more inclined to submit their adoptions to the bookstore if rentals were an option 52% Would consider using the same book for a period of two years if it meant a rental would be available 7% of faculty always or often already do Textbooks
West Valley College 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)
West Valley College 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.
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College 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
West Valley College Net Cost to Students $37.50 * Net Used$75 Digital$65 (Approximate) Net Customer $45 (Approximate) Net Cost RentalRental New$100 $50 * Net * If bought back
West Valley College 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 Books for rent Eligibility determined by: - Edition status - Reuse rate of book on both local campus and across company - Single vs. multi-use (Single use-online components and access codes, study guides etc)
West Valley College 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.