Annual Administrative Unit Plan―2015 - 2016
Department
Bookstore
Discipline or Program on
which this plan focuses
Date
I.
January 16, 2015
Version number
2
Program Overview (relate as much as possible Program Overview to college mission statement.)
The Bookstore provides products required for the academic pursuits of the students and is vital for academic success. The Bookstore
also provides optional items which support campus life and promotes student achievement.
A.
How was this measured
Goal 1: Improve the image and value of services which the
bookstore offers to the college community.
This is measured by Profit and Loss
reports issued each month.
X
Track the performance of the Bookstore
with consideration to monthly sales
reports, cost of goods sold, customer
satisfaction, labor costs, operational
costs so that trends can be quickly
X
Continuing
Goals
Objective 1. Ensure that the College community is aware of the
opportunities available at the Bookstore by: advertising the value of
textbook buyback to students and advertising the one-shop
convenience of the Bookstore to the entire campus community.
Mandate and advertise the Bookstore’s policy that a sufficient
number of textbooks for all credit classes will be stocked. Advertise
new life enhancing products and services offered by the store.
B.
Goal 2: Improve operational efficiencies
Discarded
Assessment of progress made on goals for the current 2014-2015 year
Achieved
II.
II.
Assessment of progress made on goals for the current 2014-2015 year
noticed and adjustments made.
Create system to show the progression
of change within each of the areas
addressed. Use charts as a means of
communicating information to help
evaluate progress made.
C.
Goal: 3: Increase used book sales
Objective 1: Promote and advertise the benefits of selling your
Textbook back to the Bookstore. Think green. Create a marketing
plan which includes incentives to students to encourage them to sell
the book back to the store.
This is measured by Profit and Loss
reports with line item GL for used book
sales.
X
Track the expenses which are occurring
in the bookstore and compare ratios to
prior year.
X
Objective 2: Engage faculty to make timely decisions regarding the
adoption of a textbook. Promote changes to the textbook policy for
college wide adoption.
D.
Goal 4: Consider rightsizing expenses in labor.
Objective 1: With declining revenues of approximately 46 percent
over a three year period, corresponding reductions in labor and other
general expenses will have to be considered. Develop alternate
plans to reduce cost of operation in all areas of the store.
E.
Goal 5 Update the security system for the Bookstore
Objective 1: The video system in the Bookstore and Business Office
is not working correctly and units which are 10 years old must be
repaired and replaced. This objective will establish a new network
video system so that the Sheriff’s office can receive streaming video.
This is measured by comparing income
and expenses and working with the
ratios of efficiency.
Track the number of operational
cameras which are working to improve
the ratios.
F.
Goal 6. Improve operational efficiency and reduce costs by installing
a new POS and Inventory system in the Bookstore.
Inventory and POS system installed.
G.
Goal 7. Identify new ways of reducing costs by re-examining the
Unable to use alternate lower cost credit
X
X
X
II.
Assessment of progress made on goals for the current 2014-2015 year
H.
Notes:
District’s credit card contracts to identify new service providers who
would offer alternate ways to reduce the costs for this service.
card processing companies because
District controls this service.
Goal 8. Provide excellent services and support to the college
community. Maintain currency by identifying new types of services
needed by students and faculty
New survey will be conducted in Spring
2015. Survey conducted in 2013 has
been evaluated and results are
presented below.
X
From 2011 to June 2013 the plans to improve the operational efficiency of the store has been hampered because of problems
with the college’s supporting technology infrastructure. The Store has experienced problems with the data bandwidth between the
college and the District Office resulting slow communication speeds and numerous outages. In addition the servers which were
allocated to drive the network was expanded to include multiple colleges which has over extended the abilities of the server. Thus
this goal while achieved in 2011 has been changed to continuing for 2012. As of the fourth quarter of 2013 there are still
communications issues with wireless and slow connections between the registers and server but it appears that slowly the Info
Tech technicians are gaining better control over the situation.
A survey which was conducted in 2011 revealed that 70% of the students like to purchase used textbooks and that 60% choose
to buy their books at the Pierce Bookstore. Other choices such as buying from other students, the publisher, e-books, renting from
other online sources or from the Pierce Bookstore were used far less with a range from 2% to 7% of respondents. When students
were asked about how they paid for the books, 60% said that they use personal money with the remaining percentages being
Financial Aid and money from family. When asked about the options students may choose instead of buying a textbook, a
majority of students stated that they rarely make use of alternates, which include: sharing books, using reserve books at the
Library, not buying the book, or using a older edition. With regard to the selling the book back at the end of the semester, students
revealed that a majority of students 60% do not loan, give, or sell their books at the end of the semester. 25% of the remaining
students reported selling the book back to the Bookstore.
A survey which was conducted in 2013 revealed that 74% of the students are concerned about the condition of the book and 54%
of these students rarely sell their books back to the store. Of the students who purchase used books, 55% of them purchase their
books on the internet.
III.
Numerical measurement of services provided (number of students served, books sold,
employees hired, GSF/Acreage maintained, etc)
Academic Year
Measurement
Standard
Income Generated
IV.
2011-2012
2012-2013
2013-2014
2014-2015
3,920,775
3,710,448
4,025,973
Cost of Service expressed
as a percent of income
63.2%
72.4%
73.5%
Gross Profit expressed as a
percent of income
36.8%
27.7%
26.5%
Less Expenses expressed
as a percent of income
36.1%
30.%
27.5%
Profit Loss expressed as a
percent of income
.7%
<2.>
3.8%
(estimated) 4,200,000
2014 – 2015 Analysis of Changes in services (either types of services offered or volume of services provided over the past year).
In the space provided below, provide a narrative analyzing how services delivered have changed from prior year.
Has the FTE increased beyond planned expectations, i.e., did FTE increase(decreased), have users/labs/technology increased(decreased)?
Changes as reflected in the table above reveal that after 4 years of sharply declining sales the Bookstore enjoyed at 8.4 increase
over prior year sales. While this one year adjustment represents a major accomplishment on behalf of the employees of the store the
real challenge which was overcome occurred in the reduction in expenses. The Management team was able to save considerable
amount of money in labor and general operating expenses even while the gross profit margins dropped by 1%.
Looking back at the historical aspect, the true impact of change which started after FY 2008-09 represented a 52 percent reduction
over a four year period. This remarkable loss in revenue can be contributed to many different factors including:
1. Off campus sales from a local competitor
2. Internet sales.
a. Textbook rental programs
b. Sale of international books
c. Availability of free copies of the same book on media exchange sites
d. Used book exchanges
e. Download ebook from publisher which self destructs in 130 days
f. Obtain echapter from publisher and pay $8.00 / chapter.
3. Alternative substitutions
a. Conversion of traditional book purchase to rental based programs.
b. Not purchasing a book but using the desk copy available at the Library.
c. Sharing books in the class.
4. Escalating Price
a. Faculty price awareness and conversion from expensive books to less expense books.
b. Price elasticity of demand, which represents rapid product price increases and its impact on the quantity demanded.
5. Purchase the books from the bookstore using the rental program
Books which are purchased as rental books will generate reduced sales. As a sample a $100.00 book will rent for
$65.00 and used book which sells for $65.00 will rent for $45.00
By tracking three different books used in the store and looking at the number of units sold and comparing that to the number sold in
the previous years the coefficient or measure of elasticity represents negative 0.6. This means that for every one percent increase in
price there will be a .6 percent decrease in units sold, thus textbooks are very elastic. Students will look for alternatives like used
books but the supply of used books is rather limited and normally cannot keep up with the amount demanded.
Based on the elasticity ratios, as the publishers continue to raise the price of new textbooks to reduce the number of used books to
squeeze every last nickel from a commodity in a maturing life cycle, there is more demand for used books or less expensive
alternatives as shown in the list above.
With respect to the rental of textbooks.
The reduction of New Book sales which will occur as a result of rental sales will result in reduced income. Rental books will also have
tremendous impact on profitability at least for the first and second cycles of the rental period. For example a book which sells new at
$100 will rent for $65 during the first cycle. On the second cycle as used book rented it will rent for $45 which yields $110 or a 34%
margin ($37.70 profit). Thus we made $37.70 but still required 2 cycles of labor to generate whereas if we had sold two new books
we would have generated $55.40. The real magic occurs on the third cycle whereas we now have generated $155.00 ($65+45+45) or
46% margin ($87.70 profit) with only an initial investment of $72.30 which occurred the prior fiscal year which means that there was
no cost of goods.
Gross profit increased from 26.7% to 36.8% and while it is a positive increase the changes actually reflect an increase in
inventory. On the expense side of the house the data reflects a gradual climb from 36.1%. This increase in expenses is tied to
diminished sales while the fixed costs of labor have held steady. All of these changes reflect a business with a fluctuating inventory,
possible issues with pricing formulas and increasing ratios of labor expenses to income. The objective will be to reduce the variable
labor components to bring the store into better ratios as they pertain to the reduced income
Some remedies which would help to address these issues are as follows
Reduce costs
Continue to look at ways to reduce labor expenses.
Study options to transfer the indirect labor costs to other departments.
Create ideas to increase sales
Consider a daily rental program which is priced at a higher ratio then that of the traditional semester rental program.
Consider ways to reduce the days in which a rental book can be returned or charge a stocking charge.
Consider increasing the services to students
Provide Banking services for the students
Laptop Repair service
Sale of ebooks
Shipping center
Consider expanding e-commerce
Install Jump Books
Install procedures to sell dead stock to outside jobbers, Monsoon and or other organizations.
Study ways to expand the sale of digital books in the store.
Consider increasing the number of books which are available to be rented.
Consider selling eReaders in the store if you can obtain margins to make it worthwhile.
Increase the size of the confections areas and or expand the C-store concept.
Consider a register to support the C-store operation side of the house.
Change the marketing concept of the store
Re-label the store as The “Student’s” Store, not the Bookstore
Treat the students as a guest to the store. Welcome them to the store.
Engage shared governance and encourage active participation
Encourage both in-store and on-line sales
Dynamically priced used books
Provide incentives to customers to purchase books
Provide expanded returns certificate to encourage students to keep books.
Analysis of first quarter Profit Loss statement
The 5 year trend in declining sales based on first quarter data is over and sales reflect an increase of 13.9 percent over the same
period last year. has dropped which signals that sales may level off this year. As an illustration, in 2011 the bookstore suffered a 25.7
percent drop in sales from prior year. In 2012 ratio improved to 6.7 percent drop, and in 2013 the drop reflects a 1.5 percent drop.
New textbook sales reflect a 12.9 percent increase over last year are leading having a total aggregate of 75 percent of the total
revenue received, whereas rental books reflect the largest increase at 35 percent over last year. Used book sales continue to decline
dropping to 8.7 percent of all sales from last year’s 9.2 percent. There has been a steady decline in used books over the last four
years. For example, in 2010 used books sales represented 25% of total sales, in 2011 this ratio dropped to 21%, 2012 the ratio
dropped to 19%, in 2013 the ratio was 9.2%, and in 2014 it is 8.7%. While some may say that this drop of Used book sales could be
contributed to rental books, it should be noted that rental ratios have remained relatively consistent. The trend continues to
demonstrate more students are purchasing new books and or rentals.
(Press tab for additional rows.)
Notes:
V.
2015 - 2016 Annual Goals Based on the Pierce College Strategic Plan (Distinguish between goals and the resources required to
achieve these goals.)
Provide an objective (action plan) for achieving each goal – must be measurable.
Press Ctrl + Click to identify the specific Pierce Strategic Plan Objective
addressed →
Strat. Plan
A.
Goal 1: Provide a system by which students benefit from purchasing their books through on-line sales. By
encouraging students to purchase at the campus bookstore retail sales will increase to bring some stability to the
profitability of the store.
A1, A3,
B1, B2b,
C1b
Objective 1. Begin by either altering on-line sales by 1) dynamically price used books so that the price remains
consistent with 80 percent of the on-line retailers or 2) include as part of the sale a supply notebook at no charge
for each $100 or greater book sold or 3) include in the online order a certificate which allows the student to return
their books within 3 weeks of the start of the semester with validate proof that they have dropped the class.
To dynamically alter used book prices will mean that the 33 percent margin will be adjusted based on comparison
sales from other websites. Buyers will have to look at the books offered and compare prices manually.
By promoting price awareness for used books, or including an incentive, or providing reassurance that students can
return their books with an extended return policy online sales will be improved. This is important since most
students will visit the campus store web site as their first action, to see what books are assigned for their courses,
and at the same time note the cost of the new and used books. Armed with this information an increasing
percentage of students will head to other online competitors to complete their purchase
B.
Goal 2: Provide a system by which students benefit from purchasing their books through in-store sales. By
encouraging students to purchase at the campus bookstore retail sales will increase to bring some stability to the
profitability of the store.
A1, A3a,
B1, C1b
Objective 1. Begin to offer students who purchase their books and not return them an incentive in that if they keep
their book past the return period and thus stay in class and do not return their book that they will receive a supply
notebook for each 100 dollars purchased in books at no additional charge. The incentive will only be available for 10
days after the conclusion of the last day to return their books or after the date that the books are not returnable. This
incentive will have to be promoted and marketed around the campus. For each sale students who purchase books
will receive a written notice which outlines the program and indicates the date on which they will receive the free
product incentive.
C.
Goal: 3: Increase used book sales
C1b
Objective 1: Promote and advertise the benefits of selling your Textbook back to the Bookstore. Think green. Create
a marketing plan which includes incentives to students to encourage them to sell the book back to the store.
Objective 2: Engage faculty to make timely decisions regarding the adoption of a textbook. Promote changes to the
textbook policy for college wide adoption
D.
Goal 4: Consider rightsizing expenses in labor.
Objective 1: With declining revenues of approximately 46 percent over a three year period, corresponding
reductions in labor and other general expenses will have to be considered. Develop alternate plans to reduce cost
of operation in all areas of the store.
B2b
E.
Goal 5 Update the security system for the Bookstore
B3
Objective 1: The video system in the Bookstore and Business Office is not working correctly and units which are 10
years old must be repaired and replaced. This objective will establish a new network video system so that the
Sheriff’s office can receive streaming video.
F.
Goal 6: Improve operational efficiencies.
B1a
Objective 1: Track the performance of the Bookstore with consideration to monthly sales reports, cost of goods
sold, customer satisfaction, labor costs, operational costs so that trends can be quickly noticed and adjustments
made.
Objective 2: Create system to show the progression of change within each of the areas addressed in Objective 1 &
2. Use charts as a means of communicating information to help evaluate progress made.
G.
Goal 8. Enhance customer service interfaces considering timely responses and quality of experience.
D2
Objective 1. Purchase and install two survey kiosks for the Bookstore that provide a touch screen interface for
customer feedback. These units to be placed so that they are highly visible and easy to use.
http://opinionmeter.com/
Objective 2. Provide excellent services and support to the college community. Maintain currency by identifying new
types of services needed by students and faculty. A survey will be conducted in Spring 2015. Survey conducted in
2013 has been evaluated and results are presented below.
I.
Goal 9. Develop and enhance revenues generated through entrepreneurial ventures in the bookstore.
C1b
Objective 1. Develop partnerships within the Bookstore to offer programs to repair tablets, cell phones, and other
computing devices for students. Travel agencies, banking services should also be considered.
VI.
Long-Range Administrative Goals (3–5 Years)
A.
Press Ctrl + Click to identify the specific Pierce Strategic Plan Objective addressed →Strat.
Long-Range Goal: Ensure long-term viability of Bookstore operations.
Long-term Objectives:
-Maintain awareness of tends and changes in the Textbook/College Bookstore industry.
-Reviewing and implementing best practices in the college store industry.
-Develop strategies to address changes brought about by technological changes as e-books and on-line textbook
ordering.
-Identify new ways of cutting costs and increasing efficiency.
- Right size the staff of the store and hire a bookstore manager
Plan
A1, A3,
B1, B2b,
C1b, B1a,
D2
B.
Long-term Goal: Continue to position the Bookstore as a value-added positive component of the College.
Long-term Objectives:
-Conduct annual survey of faculty and students to identify emerging needs and deficiencies.
A1, A3,
B1, B2b,
C1b, B1a,
D2
-Continue to refresh the look of the store using general merchandizing techniques of product mix and
merchandising. Ensure that merchandizing techniques address the preferences of target populations.
VII.
External Influences (Environmental Scans)
A.
District-wide initiatives
Bookstore Managers meet once per month
Interest expressed by the VP of Admin Services in the operation of the store. Labor unions may be involved as classified
positions change in response to changes in the scope of jobs.
B.
Local Jurisdictional Agency Interface
None
C.
Community Interface
None
D.
Federal and State Codes
State and Federal codes have been expanded to force bookstores to release more information to the students including ISBN
and other important information so that customers can better select the product based on price.
E.
Other Pertinent Data (best practices of other colleges, innovations learned at conferences, etc.)
None
(Press tab for additional rows.)
VIII.
Additional Human Resources Needed to Implement Program Goals―Faculty, Staff, Student Workers, and Others
Describe additional specific human resources required. Provide a comprehensive justification based on program
goals, student learning outcomes, program data, and external scans.
A. Faculty
Cost
1. No changes to the existing plan
Strat. Plan
2.
B.
Classified Staff
1. No changes to the existing plan
(Press tab for additional rows.)
Cost
Strat. Plan
2.
C.
Student Workers/Tutors/Assistant Coaches
1. No changes to the existing plan
(Press tab for additional rows.)
Cost
Strat. Plan
2.
(Press tab for additional rows.)
H
D.
Professional Experts/Contracts/Others
1. Contracts with Nebraska Book as necessary for data base support
Cost
Strat. Plan
B1
2.
E.
(Press tab for additional rows.)
Cost
Strat. Plan
Scheduled Overtime/Sub and Relief
1. Employees may be asked to work additional assignments during the start of each new semester. This
cost is calculated into the Financial Business Plan
10,000
2.
(Press tab for additional rows.)
IX.
Additional Equipment and Software Needed to Implement Program Goals
List additional/replacement equipment needed for the 2015-2016 academic year.
Place all items in priority order. Provide a comprehensive justification based on program goals, student learning outcomes, program
data, and external scans.
A.
Purchases
Item and Justification
Cost
1. Banner material to advertise the services and promote buyback of used books
3,000
IX.
Additional Equipment and Software Needed to Implement Program Goals
List additional/replacement equipment needed for the 2015-2016 academic year.
Place all items in priority order. Provide a comprehensive justification based on program goals, student learning outcomes, program
data, and external scans.
2. Install new wireless modems in the bookstore so that inventory control devices can communicate with the
host server when taking inventory.
3. Purchase (2) new vending machines for supply related merchandise which will improve services for
students.
4,000.
12,000.
4. Prepare a contract to provide video and music with provider for the retail spaces in the store.
600.
(Press tab for additional rows.)
B.
Leases
Item and Justification
Cost
1. Remove the ATM machine from the sales floor and relocate to the hallway near the Business Office.
1,500.
2.
(Press tab for additional rows.)
C.
Maintenance Agreements
Item and Justification
Cost
1. Create a maintenance agreement for the lift device in the stock room.
2,500.
2.
(Press tab for additional rows.)
D.
Repairs
Item and Justification
Cost
1. Repair the video security system for the Bookstore and Business Office. The recent incident with the
Bookstore Manager revealed that not all of the cameras are recording, monitor is broken, new camera needs
to be placed in the cash room, and one video switch is broken. Legally an obligation exists on behalf of the
college to maintain a working video surveillance system. The repairs will allow the video to be viewed in the
Sheriffs department and will provide high resolution images using web based remote viewing.
2. Repair damages to the carpet from liquids and insure that all trip hazards from carpet damages are fixed.
60,000.
5,000.
(Press tab for additional rows.)
List additional/updated software needed during 2015-2016—OTHER THAN MICROSOFT OFFICE AND ADOBE CREATIVE SUITE.
Place all items in priority order. Provide a comprehensive justification based on program goals, student learning outcomes, program
data, and external scans.
Item, Number of Licenses, New or Renewal, and Justification
1.
Cost
No additional resources needed at this time
2.
3.
4.
ge
(Press tab for additional rows.)
X.
Additional Supplies Budget (above current allocation) Needed to Implement Program Goals. Provide a comprehensive justification
based on program goals, student learning outcomes, program data, and external scans.
Categories of Items and Justification
1.
Cost
No additional resources needed at this time
2.
3.
4.
(Press tab for additional rows.)
XI
Facilities
A.
New facilities or additional classrooms (leased or built) required to implement program goals. Provide a comprehensive
justification based on program goals, student learning outcomes, program data, and external scans).
No additional resources needed at this time
B.
Alterations and improvements and technological upgrades required for existing facilities to implement program goals. Provide a
comprehensive justification based on program goals, student learning outcomes, program data, and external scans.
No additional resources needed at this time
XII.
Other Resources Needed to Implement Program Goals.
Include costs for student transportation related to educational programs, required insurance payments, and organizational
memberships. Provide a comprehensive justification based on program goals, student learning outcomes, program data, and
external scans.
Item and Justification
Cost
No additional resources needed at this time
(Press tab for additional rows.)
Additional Comments or Information:
Insert additional comments or information here: