Transcript Fipse institutional materials rental initiative and

FIPSE INSTITUTIONAL MATERIALS RENTAL
INITIATIVE AND ALTERNATE SOURCING OF
INSTRUCTIONAL MATERIALS PRESENTATION
April 14, 2011 3:30 PM to 4:30 PM HLRC 4E
Presenter: Larry Packham, FIPSE Grant Project Director
THE PRESENTATION…
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DEFINING OUR TERMS
THE FIPSE GRANT
INITIAL RESPONSE
THE MATH…
INTANGIBLE BENEFITS
OUR GOALS
WHATS NEXT?
ALTERNATE SOURCING
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CUSTOM PUBLISHING…
WHO’S WHO?
IMRI PAG
WHAT YOU CAN DO!
QUESTIONS?
DEFINING OUR TERMS
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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.
THE FIPSE GRANT
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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.
INITIAL RESPONSE
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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.
THE MATH… RFAA RENTALS
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
72.30
Full Retail
Unit Cost
RFAA Model 4X New
100.00
38.00
43.50%
18.08
19.93
27.00
74%
52.4%
41.71
68.05
62.0%
75.00
38.00
58.00%
18.08
19.93
24.75
81%
52.4%
41.71
40.61
49.3%
75.00
38.00
58.00%
18.08
19.93
24.75
81%
52.4%
41.71
40.61
49.3%
75.00
38.00
58.00%
18.08
19.93
24.75
81%
52.4%
41.71
40.61
49.3%
325.00
152.00
72.30
79.70
101.25
79%
52.4%
166.82
189.87
53.2%
Wholesale Cost
Wholesaler Rebate
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
54.88
50.0%
75.00
48.08
30.00
18.08
37.50
19.42
24.75
78%
64.7%
41.16
41.16
50.0%
Net Cost
Full Retail
Wholesale Cost
Wholesaler Rebate
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
54.88
50.0%
75.00
48.08
42.00
6.08
37.50
31.42
24.75
127%
74.8%
41.16
41.16
50.0%
Net Cost
Full Retail
THE MATH… WHOLESALE RENTALS
42% Wholesaler Rebate Model
30% Wholesaler Rebate Model
INTANGIBLE BENEFITS…
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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!
OUR GOALS
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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.
WHAT’S NEXT…
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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!
ALTERNATE SOURCING
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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.
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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 PUBLISHING…
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Custom Published Textbooks are NOT incompatible
with RFAAs and low cost rentals!
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Custom published textbooks can lower textbook prices for
students, help manage the edition cycle and support rentals!
Donatelle, Health: Basics
 Full
9th edition New Price:
$107.90
 Custom 9th edition New Price:
$68.50
 Custom 9th edition Rental Price:
$27.40
WHO’S WHO?
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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.
 [email protected] 310 287-4381,
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Olga Pech is West’s Assistant Bookstore Manager
Project Manager for the FIPSE grant. Secondary contact for
textbook inquiries. Resource for all other inquiries.
 [email protected] 310 287-4425
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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.
 [email protected] 310 287-4424
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IMRI PROJECT ADVISORY GROUP
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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
WHAT YOU CAN DO…
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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.
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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?
QUESTIONS?
Thank you for coming!