FIPSE INSTITUTIONAL MATERIALS RENTAL INITIATIVE AND ALTERNATE SOURCING OF INSTRUCTIONAL MATERIALS PRESENTATION

April 14, 2011 3:30 PM to 4:30 PM HLRC 4EPresenter: Larry Packham, FIPSE Grant Project Director

THE PRESENTATION… 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?

DEFINING OUR TERMS 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

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

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

RFAA Model 4X New

Unit Cost Full Retail Rent PriceCost

Factor vs. Full Retail

Depreciati

on

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 27.00 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%

72.30 325.00 152.00 72.30 79.70 101.25 79% 52.4%   166.82 189.87 53.2%

THE MATH… WHOLESALE RENTALS

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 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%

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 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%

INTANGIBLE BENEFITS… 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

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… 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 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.

CUSTOM PUBLISHING… 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 9th edition New Price: $107.90 Custom 9th edition New Price: $68.50 Custom 9th edition Rental Price: $27.40

WHO’S WHO? 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, 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 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

IMRI PROJECT ADVISORY GROUP 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…

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.

QUESTIONS?

QUESTIONS?

Thank you for coming!