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April 14, 2011 3:30 PM to 4:30 PM HLRC 4E Presenter: Larry Packham, FIPSE Grant Project Director
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DEFINING OUR TERMS THE FIPSE GRANT INITIAL RESPONSE THE MATH… INTANGIBLE BENEFITS OUR GOALS WHATS NEXT? ALTERNATE SOURCING CUSTOM PUBLISHING… WHO’S WHO? IMRI PAG WHAT YOU CAN DO! QUESTIONS?
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FIPSE = The Fund for the Improvement of Post Secondary Education. The sponsor of West’s two year grant to investigate textbook rentals. Rental Friendly Adoption Agreement, a.k.a. RFAA = An agreement between faculty and the Bookstore to utilize a rental friendly textbook for four or more consecutive semesters to facilitate rentals. Rental Friendly = No consumable components, single use access codes, loose leaf books, etc.
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West’s Fall 2011 rental program included 15 titles with RFAAs funded by the FIPSE Grant and another 40+ titles rented in partnership with wholesaler rental programs. The FIPSE Grant covers all costs to fully investigate rentals including staff and sufficient funds to purchase +/- 10,000 books to rent to students. FIPSE funding is not subject to state and federal budget cuts.
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Rented 504 textbooks in Fall 2010. 96% of rental textbooks returned. Overwhelmingly positive response from students who rented books in our Fall 2010 pilot program. Over 720 textbooks rented for Spring 2011. Student’s saved more than $72,000 on rental textbooks in the 2010/2011 school year. 8 RFAAs for Fall 2010. 15 RFAAs for Spring 2011.
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RFAA Model 4X New Unit Cost Full Retail Rent Price Cost Factor vs. Full Retail Depreciation Prorated Gross Profit on Rental Gross Profit on Full Retail PGPR/GPFR Gross Margin on Rentals by Term Net to Student Net Savings vs. Full Retail Price +Tax Net Savings 100.00 38.00 43.50% 18.08 19.93 27.0074%52.4% 41.71 68.0562.0% 75.00 38.00 58.00% 18.08 19.93 24.7581%52.4% 41.71 40.6149.3% 75.00 38.00 58.00% 18.08 19.93 24.7581%52.4% 41.71 40.6149.3% 75.00 38.00 58.00% 18.08 19.93 24.7581%52.4% 41.71 40.6149.3% 72.30 325.00 152.00 72.30 79.70 101.2579%52.4% 166.82 189.8753.2%
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42% Wholesaler Rebate Model Full Retail Wholesale Cost Wholesaler Rebate Net Cost Rental Price Prorated Gross Profit on Rental Gross Profit on Full Retail PGPR/GPFR Gross Margin on One-Time Rental Net to Student Net Savings vs. Full Retail Price Net Savings DISCOUNT 100.00 72.30 42.00 30.30 50.00 19.70 27.00 73% 46.9% 54.88 50.0% 75.00 48.08 42.00 6.08 37.50 31.42 24.75 127% 74.8% 41.16 50.0% 30% Wholesaler Rebate Model Full Retail Wholesale Cost Wholesaler Rebate Net Cost Rental Price Prorated Gross Profit on Rental Gross Profit on Full Retail PGPR/GPFR Gross Margin on One-Time Rental Net to Student Net Savings vs. Full Retail Price Net Savings DISCOUNT 100.00 72.30 30.00 42.30 50.00 7.70 27.00 29% 25.7% 54.88 50.0% 75.00 48.08 30.00 18.08 37.50 19.42 24.75 78% 64.7% 41.16 50.0%
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More books in more students hands earlier will improve student learning outcomes! RFAAs could save students more than $1,000,000 a year by the 2012/13 school year! RFAAs support HEOA compliance and allow West to publish author, title and price info in the schedule. Textbook rentals provide West a marketable advantage recruiting students. Reduce. Reuse. Recycle. RENT!
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Give students the option to rent books for up to 80% of IGETC, CSU and AA general education requirements using rental textbooks by 2012. Double rentals each semester from @750 in Spring 2011 to 1,500+ in Fall 2011, 3,000+ in Spring 2012 and 6,000+ in Fall 2012. Develop an industry standard model for a self sustaining textbook rental program.
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West’s IMRI has expanded to include old edition and out of print (OE/OP) textbooks in response to faculty and student demand. Measure the impact of rentals on student learning outcomes in the classroom. Sell students and faculty on rentals and RFAAs. Increase advertising and marketing efforts. Price rentals aggressively to maximize the benefit to students and increase sell through. Run focus groups!
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Alternate Sourcing = Buying books in peer to peer online markets, generally using third party software to automate purchasing and record keeping. Purchase current editions at lower than wholesale pricing. Purchase OE/OP books to support low cost OE/OP rentals. Alternate Sourcing is uncharted territory for us… LACCD and Federal Government purchasing guidelines make purchasing from individual sellers challenging but new services are available and we are committed to alternate sourcing. If you’re interested in OE/OP textbooks contact Nilhson Zelaya to determine availability of specific titles and editions.
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Custom Published Textbooks are NOT incompatible with RFAAs and low cost rentals! Custom published textbooks can lower textbook prices for students, help manage the edition cycle and support rentals! Donatelle, Health: Basics Full 9 th edition New Price:$107.90 Custom 9 th edition New Price: $68.50 Custom 9 th edition Rental Price: $27.40
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Nilhson Zelaya is West’s Bookstore Buyer Primary contact for all things textbooks including researching editions and evaluating books for RFAAs. zelayan@wlac.edu 310 287-4381, zelayan@wlac.edu Olga Pech is West’s Assistant Bookstore Manager Project Manager for the FIPSE grant. Secondary contact for textbook inquiries. Resource for all other inquiries. pechold@wlac.edu 310 287-4425 pechold@wlac.edu Larry Packham is West’s College Enterprise Manager Project Director for the FIPSE grant. Additional resource for all inquiries. Primary liaison with Project Advisory Group. packhald@wlac.edu 310 287-4424 packhald@wlac.edu
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Dr. Judith Ann Friedman, Dean of Academic Affairs Mark Pracher, Dean of Academic Affairs Mary Jo Apigo, AFT Faculty Guild Scott Feinerman, Academic Senate Timothy Russell, AFT Faculty Guild Buck Stapleton, Academic Senate Scott Stamler, ASO Rachelly Escobar, ASO Maureen O’Brien, College Financial Administrator Olga Pech, FIPSE Project Manager, Assistant Bookstore Manager Larry Packham, FIPSE Project Manager, College Enterprise Manager
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Join the discussion about rentals. If you have questions, concerns or ideas please talk to us. Invite us to your division or department meeting. Ask yourself if a RFAA for your course will benefit your students? Targeted savings for students in 2012/2013: $1,000,000+ Improved student learning outcomes. Rentals will support a sustainable business model for the Bookstore in an increasingly competitive marketplace.
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QUESTIONS? Thank you for coming!
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