CABRILLO COLLEGE
Bookstore
Program Review 2006
Table of Contents
Management Summary .....................................................................................................1
Program Description .........................................................................................................3
Update on 2000 Review .....................................................................................................5
Program Staff .....................................................................................................................8
Financial Data ....................................................................................................................9
Resources and Facilities ..................................................................................................12
Environmental Scan.........................................................................................................14
Program Assessment and Work Plan ............................................................................18
Attachments
Attachment A
2006-07 Budget
Attachment B
ICBA Financial Survey
Attachment C
5-Year Financial Comparison
Attachment D
2005 Benchmark Report
Attachment E
2005 Textbook Benchmark Report
Attachment F
Bookstore 2005 Customer Service Survey
Attachment G
Bookstore Customer Service Survey 2001-05
Attachment H
NACS Survey Comparison
Section
1
Management Summary
The Cabrillo Bookstore supports the mission of the College by providing the materials and
services needed for student success at reasonable and competitive prices. The Cabrillo
Bookstore is a fully functional cost-recovery operation that is meeting its mission. There are
presently no general fund dollars allocated to this operation.
The Bookstore is covering the costs of facility maintenance, custodial, and utilities, and has
established a building reserve.
The Bookstore is currently making regular annual contributions to its fund balance, which is
currently at $794,125.
ADEQUATE FACILITY
The Bookstore is looking forward to a major improvement in meeting student needs with the
move to the new Student Activity Center (SAC) in the summer of 2007. The current facility was
built to accommodate 3000 students. The new facility will provide 9,600 square feet, and
although significantly lower than the industry basic space formula for a college bookstore with
FTE of 5,000 to 10,000 of 2 to 3 square feet per student, will provide the space to meet many of
the original business plan goals including a self-service course materials department, course
materials reservation program and cash terminals that provide fifteen minute turn-around at peak
periods. Mid-project facilities changes in the SAC project plan are going to provide challenges
to achieving the original business plan goals of providing additional services such as a yearround buyback and operational efficiencies in such areas as web shipping, asset protection,
merchandise receiving and staffing.
REDUCED BOOK PRICES
The Bookstore has been successful in reenergizing the Bookstore Committee that was inactive
from 2000 until 2004. The compelling objective was to educate Cabrillo stakeholders on issues
affecting the price of course materials and developing strategies to reduce the cost of books for
students. Success has been measured by increase in on-time requisitions, increase in availability
of lower priced used books, implementation of a 2% discount on texts over $100 and a strong
Library Reserve Textbook program. Attempts to engage faculty in other text price issues such as
negotiating with publishers to provide needed content at reduced prices have been unsuccessful.
Further progress is limited if faculty remains passive on the issue of price.
Page 1 of 22
STAFFING
Two of the three key classified Bookstore positions are staffed by people over fifty. The
Bookstore Manager’s retirement is imminent. The salaries of these key positions are 12% to
18% below the average of those of institutionally owned Community College Bookstores in
Northern California. The last two hires in these positions left after thirty days, hired away by
competition that offered significantly higher starting salaries. Recruitment and retention of
excellent staff is a challenge with non-competitive salaries.
Historically the Bookstore has participated in college-wide hiring freezes and budget reductions
in areas such as travel and staff development even though the Bookstore is an enterprise fund and
these reductions have no effect on the General Fund. Financial history shows that these
economies reduced the Bookstore’s ability to meet income and service objectives and were
counter-productive.
TRENDS
Customers want more quality, convenience, service, transparency and efficiency. They want less
cost and time expended. Our students are busier, older, more diverse, and more computer
literate. The Bookstore is meeting these demands with web services on www.cabrillobooks.net.
This transparency has also made it easier for students to shop Bookstore competitors and
compare prices. It is estimated that as high as 20% of book sales may have been lost to
Amazon.com, half.com and other internet sites over the last five years. Promoting our
commitment to an aggressive used book program, excellent customer service, competitive prices
and the convenience and efficiency of the new facility will provide a strategic advantage.
The Bookstore will need to be even more proactive about understanding retail market trends,
new technology, and changing customer expectations if we want to remain a viable part of the
course materials delivery system and a part of the campus we serve.
Page 2 of 22
1
Goal
Design Bookstore space
to maximize access to
student services.
Strategy
A. Remove barriers to access (hours,
location, prices)
Timeline
A. Expand hours of operation to meet
customer expectations within financial
constraints (review annually) 2/08
B. Develop innovative programs.
B. Implement space dependent
customer-service programs such as:
open text department, year-round buy
back, textbook rentals. 2/09 (review
annually)
C. Implement multiple delivery
methods such as: textbook
reservations, web sales, downloads
and podcasts.
A. Abandoned in SAC
C. Provide multiple delivery
methods.
2
3
Construct Bookstore
facility consistent with
campus needs and
industry benchmarks.
Bookstore staffing
consistent with campus
needs and industry.
Benchmarks.
A. Construct new facility with
adequate space as defined by
industry formula.
B. Construct new facility with short
term adjacent parking
B. SAC contains 26 adjacent
parking spaces.
C. Construct new facility with access
for direct shipping and receiving.
C. Abandoned in SAC
D. Create a retail environment to
meet campus mission and enhance
customer experience.
A. Provide staffing to improve
operational efficiency and meet
financial and operational objectives.
D. Begin Fall sales by
8/20/2007
B. Review and revise organizational
structure within Community College
Ed. Code and District constraints.
B. Implement fair and competitive
compensation program.
C. Revise Bookstore Manager job
description and develop recruiting
documents.
C. Hire Bookstore Manager by 1/08
Page 3 of 22
A. Recruit and hire Bookstore
Assistants and Assistant Manager by
8/1/07.
4
Bookstore financial goals
are achieved.
A. Develop resources through
product diversification
A. Grow non-book department from
10% (2006) to 50% (2010)
B. Reduce text prices to increase
student access to tools for success.
B. Reduce text prices through
aggressive programs which may
include: used book programs, faculty
partnerships, alternate delivery
methods, coursebook adoption
programs, community partnerships
and grants. (ongoing)
C. Provide funding for student
success
C. Provide Bookstore scholarships/and
or discounts. 5/08
D. Provide funding for expanded
buyback.
D. Reserves allocated for
buyback growth. 7/07
(ongoing)
E. Double sales within 6 years
of occupancy.
E. Achieve industry average for
sales per FTES.
F. Grow inventory to support sales
goals.
Page 4 of 22
F. Negotiate vendor
agreements and allocate cash
reserves to meet cash flow
needs while growing the
business. 5/07
Section
2
Program Description
The Cabrillo College Bookstore has been serving the students, faculty and staff of Cabrillo College since
1959. The mission of Cabrillo College is to enhance the intellectual, cultural and economic vitality of
our diverse community by assisting all students in their quest for lifelong learning and success in an
ever-changing world. The Bookstore contributes and supports the learning environment by:
Making available the tools for a successful education at Cabrillo (communication and
information competency)
Making jobs available for students (personal responsibility and professional development)
Increasing access to low cost textbooks (global awareness).
The Bookstore provides a convenient source of the required and recommended textbooks for all
classes (Goal 4: Student success and retention) offered by Cabrillo College. The textbook staff works
closely with the faculty and with the academic departments to assure that the correct textbooks are
ordered, stocked and available when the students need them for their classes (Goal 4: Student
success and retention). General school supplies and reference books as well as supplies specifically
requested by the faculty for use by their students are stocked in the Bookstore.
Textbooks are available in the Aptos Bookstore, the Watsonville Bookstore and on line at
www.cabrillobooks.net. Our web site makes it convenient for students to order their textbooks on
line and to serve students enrolled in distance education courses (Goal 4: Student success and
retention and Goal 5: Update technology infrastructure)
The Bookstore is institutionally owned and the total costs of providing goods and services to students
and staff are financed through user charges and earned income. This enterprise fund accounts for the
total operation of the Bookstore, which includes payments to the District of occupancy and
administrative fees and contributes annually to the Cabrillo Student Senate Library Reserve book fund
for students.
The Bookstore is an employer of a large number of students allowing them to succeed with their
goals by both studying and working on campus (1.4 Workforce development)
An integrated point of sale software application is utilized to order, receive, and return books and
merchandise (4.4 Develop and implement student services infrastructure.). It allows the Bookstore
to have current textbook information available to the Cabrillo community on the web. Using point of
sale terminals the inventory information is kept current by recording the sales information in real time.
Page 5 of 22
Highlights of the recent efforts made by the Cabrillo Bookstore to improve its fiscal
performance and meet operational goals (Goal 6 Develop and manage physical and financial
resources) include:
Augmentation of existing staff (3.3 Classified staffing)
Increasing mark-ons and product-mix in non-text areas
Planned markdowns
Creative promotional planning
Collection of department materials fees
Development of a web-site offering textbook information including ISBNs, web sales, and
on line textbook requisition submission
Implementation of a textbook adoption document for instructors confirming textbook order
information including ISBN and new and used prices where available
Participation in industry benchmarking, surveys, college bookstore meetings and retail
conference.
Currently, the store is a cost-recovery operation and does not receive any general fund
appropriations. It has successfully built a strong infrastructure to support operations. Over the
course of this year, the store participated in a variety of self-assessment tools from the National
Association of College Stores (NACS), the Independent College Bookstore Association (ICBA),
and the Bay Ten College Bookstore group of Northern California. These included the annual
2004-05 financial surveys (a1.3 benchmarking tool).
Page 6 of 22
Section
3
Update on 2000
Program Review
The following are the goals identified in the 2000 review with annotation to the outcome of these
goals.
1. Review project priorities and participate in the planning and development of new facility
to meet Bookstore operational and service goals.
New facility under construction and scheduled for occupancy in late spring 2007.
Significant changes have been made to the initial plan that created major challenges
to operational goals.
Fixture bid plans and bid document are currently under development. Final review
and revision of operational goals for new Bookstore to be completed late 2006.
Development and implementation of staffing plan for new operation to be complete
early 2007.
2. Develop and implement an aggressive Bookstore website
A Bookstore website was deemed necessary to meet customer expectations and
provide excellent customer service for off campus and distant education programs.
ePOS, a web commerce application that interfaces with the installed Sequoia Store
Control System (SCS), was purchased, installed and went operational as
www.cabrillobooks.net in 2000. The first module available was the course book list.
The web application was integrated into the Bookstore SCS point-of-sale system to
provide text information, current prices and ISBNs (International Standard Book
Numbers) for Fall 2000 classes.
Catalog and schedules were also made available for web sales. The original plan was
to go live with web textbook sales in the new location for summer session 2001, when
there would be adequate back room space to process web orders. This plan was
postponed when the SAC project was put on hold.
In June 2005, the Bookstore Storekeeper, hired in July of 2004, developed and
initiated a plan to go live with web sales in the current location in August 2005. The
site did $70,177 in sales for Fall 2005 and $65,699 in sales Spring 2006. The site
increased access and customer service without reducing sales.
On-line faculty textbook requisitions and insignia sales are scheduled to be
implemented in Fall of 2006.
3. Develop a financially viable plan to increase Bookstore support to off-campus and
weekend instruction.
Page 7 of 22
The new 800 square foot Watsonville Center Bookstore was opened in Fall 1999.
Sell through on Watsonville titles is still low, approximately 40% of texts requested.
Although this operation is not yet at the breakeven point, the system is working well
with the financial support of the Aptos Bookstore. It is projected that the location
will break even when enrollment reaches 3000. Watsonville sales for FY2005 were
$183,428, $161 sales per FTES, and $229 sales per sq. ft.
The Bookstore will support the San Lorenzo Valley Center and other off campus sites
through the Bookstore website.
Weekend classes are supported through approximately six Saturday openings a year.
Additional weekend hours will be tested in the new SAC location and will be
maintained if and when financially viable.
4. Provide staff development opportunities to increase morale, improve effectiveness and
broaden perspective of all Bookstore staff.
Funds have been budgeted every year since FY 2000-01 for staff development. Staff
attended regional CACS workshops, national NACS seminars, Sequoia POS users
group trainings, trade shows and California community college bookstore tours.
5. Recruit, hire and train vacant Bookstore positions.
Hiring for key positions has been a challenge and resulted in multiple vacancies since
2000. Difficulty in filling the Merchandise Buyer and Text Buyer positions and long
term vacancies followed the resignation of newly hired staff leaving for better offers
within 30 days of hire. Both positions were filled in 2004. Survey of California
Community College institutional Bookstores suggests that salaries for these key
positions are not competitive and a barrier to recruiting the best qualified staff. Data
also confirms that financial objectives are meet when the store is fully staffed with
trained personnel.
Given the pending retirement of the Bookstore Manager, the ability to recruit and
retain professional staff will be critical to ongoing success.
6. Actively participate in and support the Bookstore Ad Hoc Committee in order to develop
effective strategies to increase communication and improve operations.
The Bookstore Committee started actively meeting in 2004 after a number of years of
disinterest and inactivity. The compelling issue was the Public Interest Research
Group (PIRG) report “RIPOFF 101”, published in 2004. Current committee focus is
communicating textbook price issues and reducing textbook prices for students. In
FY2005-06 the Bookstore Committee:
Produced one page focused documents to faculty on key textbook issues such as
old vs. new editions, order quantities and web requisition process.
Participated in KUSP “Talk of the Bay” broadcast on textbook prices in August
2005.
Delivered a presentation to the Instruction Council on textbook prices and the
requisition process in December 2006.
Delivered FLEX week presentations to HASS and HWPEA Divisions on the web
requisition process and the importance of on-time requisitions in February 2006.
Received 82% of Spring 2006 requisitions by deadline. Received 814 Fall 2006
Page 8 of 22
requisitions early or on time compared to 697 for Fall 2005. Instruction Division
Assistants and the Bookstore Text Buyer are commended for their efforts in
facilitating this improvement
Increased used book sales $244,766 from March 2004 to March 2006, a 44%
increase.
Provided savings of $271,484 to students on used books over new books this year
to date.
Participated in the organizing of the Bay 10 Bookstores group to investigate group
buying, custom editions and other strategies to lower textbook prices for students.
The group consists of managers of 14 institutionally owned and operated
Community College bookstores from 10 Districts in the bay area.
Attended the SMCCD District Board study session on Current Textbook Issues as
a special guest representing the Bay 10 Bookstores Group in January 2006.
Published Bookstore Committee minutes and agendas on www.cabrillobooks.net.
Implemented web sales on www.cabrillobooks.net in August 2005.
Implemented web requisitions on www.cabrillobooks.net in January 2006.
As a result of these efforts “on-time” requisitions were increased, used book sales
increased, used book buyback increased and there was transparency in book price and
information.
Ongoing Bookstore Committee efforts include:
Utilize all-faculty emails to provide information on perceived book value at the
beginning of the semester and the connection of on-time requisitions to buy back
value at end of term.
Provide faculty with index cards showing information on each text ordered,
highlighting new and used prices.
Maintain an aggressive used book buy back program. Paid students $527,442 for
used books since June 2004.
Fund the Student Senate library reserve book project enabling the library to
provide one copy of every required textbook over $50. 375 books are in the
collection.
Provide a 2% cash discount on all new texts over $100.
Maintain 100% book availability on the first day of class for on-time requisitions.
Monitor legislation related to textbook costs in California.
Page 9 of 22
Section
4
Program Staff
The Bookstore staff includes the following:
Textbook Buyer (1 full-time/12 month)
Merchandise Buyer (1 full-time/12 month)
Operations Assistant (1 full-time/12 month)
Bookstore Purchasing Assistant (1 full-time/12 month)
Storekeeper II (1 full-time/12 month)
Watsonville Center Bookstore Assistants I/II (2 60%/10 month)
Aptos Campus Bookstore Assistants II (2 60%/12month)
Student Assistants and temporaries Approximately 10 part-time student staff assist with
cashiering, receiving, textbook customer service during the semester. Up to 16 additional
temporary staff are hired at the beginning of the semester for rush duty.
Bay 10 Bookstores
2004-2005
CCC District
$Sales Volume
Cabrillo
$3,238,559
Chabot
$4,086,734
Contra Costa
$11,642,308
Foothill Deanza
$10,508,595
Ohlone
$2,499,281
San Francisco
$8,446,357
San Jose/Evergreen
$4,381,122
San Mateo
$8,296,019
Santa Rosa
$6,670,470
Solano
$3,699,969
Average
$6,346,941
Net
FTES Profit (Loss)
11,402
2.93%
10,017
2.11%
27,289
5.63%
34,850
-2.16%
6,942
0.34%
37,672
1.99%
13,648
2.54%
22,173
-0.84%
20,744
5.31%
8,743
-2.89%
19,348
1.50%
Salary Benefits
# Mgt
Exp %
%
#Stores Super
11.33%
3.72%
2
1
16.72%
4.86%
1
2
13.56%
4.12%
3
4
17.53%
5.23%
2
3
11.61%
2.96%
1
1
13.61%
3.84%
1
6
16.62%
2.92%
2
2
15.04%
4.56%
3
4
12.07%
4.34%
1
3
10.54%
4.52%
1
1
13.86% 4.11%
1.7
2.7
Comparing Cabrillo Bookstore salaries and benefits (as a percentage of sales volume) with the
member stores of the Bay 10 group, Cabrillo salaries are 19.4% lower than the average. Of the
districts surveyed, Cabrillo ranks 9th out of 10. Cabrillo is the only store in the group currently
operating a clerk service course book department, the most expensive delivery system, making
the difference more pronounced.
Surveys of key positions also found that Cabrillo salaries were not competitive or conducive to
recruiting and retaining key positions. The Text Buyer is 11.3% below average, Merchandise
Buyer is 8.7% below average and Bookstore Manager is 14.3% below average.
Page 10 of 22
Section
5
Financial Data
Bookstore gross sales are approximately $3.3 million per year (see Comparative Income
Statement and FY2006 Annual Budget).
The Bookstore has participated in benchmarking studies since 1978. As part of this assessment
in 2005 the Bookstore participated in benchmarking surveys sponsored by National Association
of College Stores (NACS), Independent College Bookstore Association (ICBA) and the
California Association of College Stores (CACS) Community College Bookstore Committee.
These studies highlighted several areas worth further exploration.
All CCC Districts
Description
TOTAL INCOME
COST OF SALES
GROSS PROFIT OR (LOSS)
EXPENDITURES:
Classified Salaries
Employee Benefits
Supplies and Materials
Other Operating Expenses and Services
Capital Outlay
TOTAL EXPENDITURES
NET PROFIT OR (LOSS)
OTHER FINANCING SOURCES
OTHER OUTGO
NET INCREASE/(DECREASE) IN RETAINED EARNINGS
Beginning Fund Balance:
Net Beginning Balance, July 1
Prior Year's Adjustment
Adjusted Beginning Balance
ENDING FUND BALANCE, JUNE 30, 2005
CCC
CCC
Cabrillo
Cabrillo
Total
Average
04-05
05-06
$279,529,023 $3,367,820 $3,209,850 $3,268,391
$206,588,637 $2,489,020 $2,446,996 $2,370,129
$72,940,485
$878,801
$762,854
$898,262
$11,454
$36,059,460
$434,451
$366,872
$370,727
$11,037,012
$132,976
$90,274
$99,953
$1,037,499
$3,932
$7,252
$13,845,638
$177,508
$229,077
$203,579
$456,981
$62,438,044
$752,266
$690,155
$681,511
$10,502,408
$126,535
$72,699
$216,751
$1,281,670
$28,709
$91,682
$9,353,562
$141,721
$47,729
$6,625
$2,480,367
$29,884
$6,396
$172,318
$90,361,060 $1,158,475 $1,427,969 $1,434,365
$3,279,867
$0
$0
$93,620,927 $1,200,268 $1,427,969 $1,434,365
$95,977,433 $1,225,352 $1,434,365 $1,606,683
26.09%
3.76%
12.90%
3.95%
83
Gross Margin % of total income
Net Profit or (Loss) as a % of total income
Classified Salary Expense as a % of total income
Benefits Expense as a % of total income
Number of institutionally owned stores in district
Page 11 of 22
26.09%
3.76%
12.90%
3.95%
1.2
23.77%
0.20%
8.60%
2.81%
2
27.48%
5.27%
9.11%
3.06%
2
Sales Figures
Annual Sales
Gross Margin
Operating Exp
Net Income
5 Year Summary of Key Financial Data
FY01
FY02
FY03
FY04
$3,268,392 $3,212,882 $3,207,388 $3,255,159
$651,766
$890,024
$719,594
$762,854
$561,286
$633,478
$688,624
$690,155
$155,055
$169,273
$158
$6,396
FY05-06
$3,268,391
$898,262
$681,511
$172,318
Compared to the average institutional operated California Community College store, salary and
benefits expenses as a percentage of total sales were 5.4 points below average in 2004-2005.
Gross Margin and Net Profit both 3 points below the CCC average reflects the effects of vacant
positions, entry level hires and hires with no previous college store experience. Improvement in
both areas is shown after vacancies are filled, experience is gained and there is a commitment to
training.
Book Buyback
Demographics show that 83% of students prefer used books, and the staff make efforts to secure
as many as possible. The Cabrillo Bookstore conducts book buybacks two times per semester.
Both buybacks are coordinated and performed by Bookstore personnel. Aggressive advertising
and promotional efforts are used to attract the student population to the buybacks. This is the
best source for obtaining inventory with no freight cost. Compared to the industry average, used
books as a percentage of total sales are 7.4 points above average (26.6% vs. 19.2%), putting the
Bookstore in the 75th percentile. The Cabrillo Bookstore has a higher percentage of used book
sales due to an aggressive used book program and faculty communication. This is a strategic
advantage for the Bookstore.
Term
Spring 2001
Fall 2001
Spring 2002
Fall 2002
Spring 2003
Fall 2003
Spring 2004
Fall 2004
Spring 2005
Fall 2005
Spring 2006
Fall 2006
Buy Back Data
Purchased for
Purchased for
Store Stock
Wholesaler
$ 91,971
$19,683
$ 82,590
$14,389
$102,021
$14,171
$ 98,418
$ 7,436
$ 83,313
$37,128
$ 89,771
$16,254
$ 80,642
$29,564
$123,476
$25,507
$100,254
$21,598
$126,998
$19,064
$109,316
$23,391
$132,873
$22,822
Page 12 of 22
TOTAL
$111,654
$ 96,979
$116,193
$105,854
$120,441
$106,025
$110,206
$148,983
$121,853
$146,061
$132,707
$155,695
Merchandise Sales
Compared to the industry norm, merchandise sales as a percentage of total sales are 9.3 points
below average (8.6% vs. 17.9%), putting the Bookstore in the 25th percentile. This is attributed
to physical plant constraints and difficulty in recruiting and retaining an experienced
Merchandise Buyer since 2000.
The new Student Activity Center is scheduled to open in mid 2007. With the added space,
attractive retail environment and Soquel Drive location, the opportunity exists for significant
growth in the merchandise department and is a focus of the business plan being developed.
Category
Texts (New)
Texts (Used)
Trade
Supplies
Softgoods
Electronics
Sundry
Software
Other
Bookstore Sales by Category
FY01
FY02
FY03
$2,051,260
$2,158,244
$2,282,864
$684,214
$773,144
$645,168
$25,551
$26,203
$21,315
$105,066
$103,504
$107,555
$24,433
$28,815
$22,189
$33,433
$27,616
$19,657
$42,514
$50,217
$50,494
$62,708
$68,884
$40,385
$19,673
$18,532
$17,761
FY04
$2,157,748
$786,804
$12,699
$103,897
$23,170
$16,991
$49,630
$45,044
$16,899
FY05-06
$2,118,398
$868,337
$13,805
$109,884
$20,659
$20,445
$43,634
$55,284
$17,937
Textbooks are, by far, the number one category for sales volume. The bookstore has no real brick
and mortar competition in the Aptos market for textbooks, especially used ones. However, the
textbook product mix and pricing are the areas where the staff has virtually no control. Faculty
determine which textbooks will be needed, which ultimately sets the parameters for the textbook
staff to operate. Basically, the bookstore staff serves a logistical function of getting the right
product here at the lowest possible price.
A general industry trend of rising text prices coupled with increasing freight costs provides a
difficult challenge for bookstore staff. They must ensure that orders are placed early enough to
allow long lead times for the lowest possible freight cost.
Page 13 of 22
Section
6
Resources and Facilities
Resources
The Cabrillo Bookstore is fully staffed for the first time since 2000. Further augmentation of
classified staff is planned with the creation of a night supervisor/manager position and the
increase in Bookstore Assistant positions and the decrease in Student Assistant positions to
support expanded operations in the new SAC facility.
Historically, when there was a freeze on General Fund hiring or staff development funds, the
Bookstore has participated in the freeze. Financial data shows that this has a negative effect
on revenue generation and may not be in the best interest of the College in the future. A
renewed commitment to staff development was made in 2004.
Staff Development Funds
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06
The building of a new Aptos Campus Bookstore facility was approved by the Cabrillo
College Board in 1991. Since that time, income generated by the Bookstore has been
invested to support the costs associated with the new facility. As of June 2005 this fund
equaled $794,125. These funds are being budgeted for capital equipment and inventory
expansion in the new facility.
Page 14 of 22
Facilities
The current Aptos facility has approximately 4,484 square feet dedicated to retail operations.
The Aptos campus store was built to serve an enrollment of 3,000 FTE. Operational and web
sales support for all District classes are housed in the Aptos facility. Although the Aptos
Bookstore has undergone continuous facility repairs and minor renovations, it has been a
challenge to provide excellent customer service with inadequate space and infrastructure to
support modern retail operations.
In anticipation of the new facility, an integrated Point of Sale system and register terminals
were installed in 1999. Since that time the system has been upgraded from DOS to Windows
to meet standards for Bank Card security and internet processing of charges.
9,630 square feet is planned for the Bookstore facility in the new SAC project. The business
plan for the new facility will enable fifteen minute customer turn around during peak periods,
a major improvement in customer service that meets the expectations of today’s retail
customer.
Page 15 of 22
Section
7
Environmental Scan
Internal Factors Affecting Program
RECRUITING AND RETAINING STAFF
The Bookstore was understaffed due to vacancies in 1999 and not fully staffed until 2004.
Recruiting for key staff, Merchandise Buyer and Text Buyer, was a challenge due to county
housing costs, noncompetitive salaries and unappealing physical plant. The Bookstore has had
four merchandise buyers and four text buyers since 1999. A Text Buyer and a Merchandise
Buyer both left after 30 days in the position when they were made an offer that was too good to
refuse. With the Bookstore Manager nearing retirement age, recruiting under the current salary
schedule is a barrier to attracting and retaining experienced professionals.
PHYSICAL PLANT
The physical plant was built to accommodate 3000 students. The extreme constraints of the
current physical plant were the impetus for operating a clerk service text department, one of the
few left in the country. The NACS industry standard for College Bookstores with FTE of 5,000
to 10,000 is 2 to 3 square feet per student.
With the opening of a new facility in the SAC in mid 2007, many of the extreme constraints of
the existing facility will be removed. The 9,600 sq. ft. new facility will allow for adequate cash
stations; an open, self-serve textbook department; improved shipping, receiving and storage area;
adequate school supply and merchandise area; and adjacent short-term parking. The goal in the
new facility is for a customer to be able to get in and out of the store in fifteen minutes during
peak periods.
Page 16 of 22
EXTERNAL FACTORS
Technological Dimension
There are two facets of technology that directly affect the college bookstore industry. The first is
the rapid growth and expansion of information technology and the second is the development of
on-line shopping.
College bookstores are learning to manage the enrollment, financial aid, and ordering/
distribution processes in one easy-to-use system. This requires coordinating multiple platforms
of information into one integrated package. Textbook management systems allow instructors to
requisition their own books on-line. Increased access to the Internet means that bookstores have
developed interactive web sites that appeal to faculty, staff, and students. Because of the
availability of more detailed potential student data, bookstores have multiple opportunities for
more targeted marketing at their alumni, student, and faculty/staff population. Internet access
has rapidly changed how books are sold and is having a significant impact on the college
bookstore industry.
In the retail trade book industry, on-line retail sales are estimated at 20% of book sales. On-line
selling directly impacts the college market as its customers have easy access to the internet and
are conditioned to purchase more on-line. College stores will have to adopt more competitive
solutions to reposition for the future and remain relevant.
Digital Delivery
In 2006, wholesaler MBS Textbook Exchange will increase the number of college stores, books,
and titles participating in an e-book pilot program it began in the fall of 2005. The program is
called Universal Digital Textbooks (UDT). This is the first time college stores are directing instore sales of digital books.
MBS teamed with five publishers to offer hundreds of titles accessible on the web, using a card
purchased at 10 college stores for 33% less than the cost of a traditional textbook.
Also in 2005, Random House and Simon & Schuster joined Penguin Group (USA), Scholastic,
and others who sell books, including textbooks, directly from their Web sites. Meanwhile,
Amazon.com prepared to start selling books by the page in 2006. Google, Microsoft, Yahoo, and
Random House also have expressed an interest in such a venture
ISBN Changes
A new ISBN standard for the college store industry became effective in March. The new
standard for identifying used books conforms to upcoming international changes in retail product
identification and prepares stores for the switch from 10- to 13-digit ISBNs. The change begins
Jan. 1, 2007.
Page 17 of 22
Social Dimension
Community colleges are expecting a massive enrollment boom over the next 10 years, mostly
from older students going back to school. State researchers say community colleges will serve
more than 2.1 million students in California by 2014, a 27 percent increase from today.
Political Dimension
Textbook prices have troubled lawmakers, as well as student activists. In 2004 the inflation of
new textbook prices through merchandising practices developed by major publishers emerged as
a higher education industry issue.
The Cabrillo Governing Board passed Resolution 032-04 in support of AB 2477 in April of
2004, encouraging faculty to consider price in book selection and work with publishers to adopt
policies that are responsive to price concerns
AB 2477 (Liu) became section 66406 of the Education Code in January of 2005. The law
addresses the need for colleges, faculty, bookstores and academic senates to assist in any way
they can in keeping textbook prices as low as possible.
The release of the GAO report on textbook pricing stirred up an old higher education debate on a
national stage. The report—"Enhanced Offerings Appear to Drive Recent Price Increases" —
was the culmination of more than a year of attention textbook pricing received from Capitol Hill.
According to the GAO report, publishing enhancements, such as CD-ROMS and other
supplements, appear to be the major contributing factor to pushing up the price of college
textbooks. Furthermore, textbook prices have increased at twice the rate of inflation the last two
decades, and "the rate of textbook price increases is not likely to slow," the report concluded.
The biggest challenges moving forward are dealing with state officials trying to solve pricing
concerns over course materials through legislation. Since most legislation doesn't solve students'
problems or benefit college stores or publishers, working on grassroots level college stores can
become a major part of the problem-solving strategies at the state level.
Economic Dimension
Three years ago, 43 percent of the students surveyed by the National Association of College
Stores indicated they "always purchase required textbooks." Last fall, the figure sank to 35
percent.
A College Board report released in June estimated that students at public two-year colleges spent
$942 on books and supplies this school year. Another analysis found that hardcover college
textbooks are selling new for an average of $120.
The trends frustrate college-bookstore operators vying for the estimated $7 billion a year that
students spend on new and used texts. The National Association of College noted that students
increasingly balk at buying textbooks even as they purchase iPods for $200 and cell phone
service for $600 a year. There has definitely been a value shift.
Page 18 of 22
The Future of Collegiate Retailing
For more than a year collegiate booksellers, have been contemplating what the future holds. The
five broad areas college stores will have to address and possibly make changes in to remain
relevant and competitive in the future are:
Course materials and digital content/delivery
Rapidly developing retail technology
Retail merchandising
Retail services
The college store as a resource center.
Page 19 of 22
Section
8
Program Assessment
And Work Plan
New Facility
The new facility is scheduled for occupancy in the summer of 2007. It is the goal in the new
facility to allow customers to purchase books at peak periods in fifteen minutes. Operational
plans are being developed to enhance the customer experience and improve operational
efficiency to meet this goal.
Retail Merchandising
Sales are projected to increase by 62% within 5 years in the new facility. Sales per FTES are
projected to increase till they meet the national median for two-year institutions, currently $687.
This growth will be in the merchandise and service departments. To attract and keep the
attention of consumers in a marketplace overflowing with choice, forward-looking college stores
are offering more exciting product selections. The gross-margin percentages in merchandise
categories are comparatively strong. There is a fine balance that can be achieved optimizing
margins while offering competitive prices. The business plan being developed includes a
detailed assessment of the appropriate product-mix, space allocations, merchandising plans and
overall marketing.
Course Materials and Digital Content Delivery
The Cabrillo Bookstore has an aggressive used book program. In 2005-06 used books were
29.7% of book sales and are budgeted to exceed 30% of book sales in 2006-07, above the
national median for two-year institutions. Used books are projected to peak at 40% of book sales
in the new store. A business plan is being developed to meet this goal. Ideas being discussed are
year-round buy back service and marketing opportunities. This change in product mix is
anticipated to increase unit sales beyond that gained from enrollment increases.
In response to concerns about increasing use of technology in classrooms and digital delivery,
the Cabrillo Bookstore needs to build new business models to help enhance our role in the
distribution of digitally delivered content and course materials.
Page 20 of 22
Retail Technology
In 1999, the Bookstore installed an integrated Point of Sale System in anticipation of the move to
the new facility. The original system has since been augmented with an integrated web site
providing transparency of price and product information, web sales and web requisitions. In fall
2005, the Bookstore implemented internet clearing of credit cards which increased the speed of
register transactions by 20%. At that time, credit cards accounted for 54% of transaction
payments and this percentage is growing. Upgrade to thermal printers is planned for Fall 2006,
again decreasing transaction time and reducing lines to meet customer expectations for higher
levels of service.
Customer Relationships
The Bookstore has an ongoing goal of delivering excellent customer service. The 2005 Cabrillo
College Customer Satisfaction survey showed significant improvement in the overall Bookstore
experience. A Bookstore Customer Service survey in May 2005 showed that the Bookstore
outperformed the national average in all but 2 cases. This survey will be performed annually to
identify trends and improve customer service. Ways to encourage greater participation by
faculty and staff will need to be developed
Comparison of Cabrillo Survey with National Survey
GENERAL AREAS
NACS
CABRILLO
DELTA
Knowledgeable bookstore staff
4.15
4.31
0.16
Warm and friendly bookstore staff
4.16
4.53
0.37
Resolution of problems
4.05
4.09
0.04
Adequate number of staff on hand
4.05
4.19
0.14
Responsiveness to special orders
4.00
3.93
-0.07
Speed of service at non-rush times
4.22
4.30
0.08
Speed of service during first week of classes
3.78
3.89
0.11
Selection of school supplies
4.17
4.15
-0.02
Convenient store hours
3.95
4.14
0.19
Page 21 of 22
Textbook Areas
NACS
CABRILLO
DELTA
Textbooks available when classes start
3.75
4.17
0.42
Competitively priced textbooks
3.12
3.28
0.16
Fair refund/exchange policies
3.86
3.99
0.13
Fair prices when selling back textbooks
Communication about arrival of out-ofstock textbooks
2.68
3.42
0.74
3.58
4.02
0.44
Availability of used textbooks
3.48
3.91
0.43
Convenience of selling back textbooks
3.51
3.95
0.44
Competitive prices overall
3.24
3.76
0.52
5= strongly agree
1= strongly disagree
Additionally, survey instruments will be developed and implemented to identify opportunities in
the merchandise department and refine product mix.
Staffing
A plan is being developed for staff augmentation to support increased sales projected for the new
operation. The immediate need for an assistant manager has been identified by the Bookstore
staff. A job description is currently being developed for approval. Also planned is addition of
two full-time Bookstore Assistant positions in 2007-08.
An ongoing challenge will be the recruitment and retention of key personnel without a
competitive salary schedule.
Page 22 of 22
Bookstore Sales by Category
Category
Texts (new)
Texts
(Used)
Trade
Supplies
Softgoods
Electronics
Sundry
Software
Other
FY01
$2,051,260
FY02
$2,158,244
FY03
$2,282,864
FY04
$2,157,748
FY05-06
$2,118,398
$684,214
$25,551
$105,066
$24,433
$33,433
$42,514
$62,708
$19,673
$773,144
$26,203
$103,504
$28,815
$27,616
$50,217
$68,884
$18,532
$645,168
$21,315
$107,555
$22,189
$19,657
$50,494
$40,385
$17,761
$786,804
$12,699
$103,897
$23,170
$16,991
$49,630
$45,044
$16,899
$868,337
$13,805
$109,884
$20,659
$20,445
$43,634
$55,284
$17,937
Staff Development Funds
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
1999 00
2000 01
2001 02
2002 03
2003 04
2004 05
2005 06
All CCC Districts
Description
CCC
Total
CCC
Average
Cabrillo
04-05
Cabrillo
05-06
TOTAL INCOME
$279,529,023 $3,367,820 $3,209,850 $3,268,391
COST OF SALES
$206,588,637 $2,489,020 $2,446,996 $2,370,129
GROSS PROFIT OR (LOSS)
EXPENDITURES:
Classified Salaries
Employee Benefits
Supplies and Materials
Other Operating Expenses and Services
Capital Outlay
$72,940,485
$11,454
$36,059,460
$11,037,012
$1,037,499
$13,845,638
$456,981
$878,801
$762,854
$898,262
$434,451
$132,976
$177,508
$366,872
$90,274
$3,932
$229,077
$370,727
$99,953
$7,252
$203,579
TOTAL EXPENDITURES
$62,438,044
$752,266
$690,155
$681,511
NET PROFIT OR (LOSS)
$10,502,408
$126,535
$72,699
$216,751
$28,709
$91,682
OTHER FINANCING SOURCES
$1,281,670
OTHER OUTGO
NET INCREASE/(DECREASE) IN
RETAINED EARNINGS
Beginning Fund Balance:
Net Beginning Balance, July 1
Prior Year's Adjustment
Adjusted Beginning Balance
$9,353,562
$141,721
$47,729
$6,625
$2,480,367
$29,884
$6,396
$172,318
$90,361,060 $1,158,475 $1,427,969 $1,434,365
$3,279,867
$0
$0
$93,620,927 $1,200,268 $1,427,969 $1,434,365
ENDING FUND BALANCE, JUNE 30, 2005
$95,977,433 $1,225,352 $1,434,365 $1,606,683
Bay 10 Bookstores
2004-2005
CCC District
Cabrillo
Chabot
Contra Costa
Foothill Deanza
Ohlone
San Francisco
San Jose/Evergreen
San Mateo
Santa Rosa
Solano
Average
$ Sales
Volume
$3,238,559
$4,086,734
$11,642,308
$10,508,595
$2,499,281
$8,446,357
$4,381,122
$8,296,019
$6,670,470
$3,699,969
$6,346,941
FTES
11,402
10,017
27,289
34,850
6,942
37,672
13,648
22,173
20,744
8,743
19,348
Net
Profit
(Loss)
2.93%
2.11%
5.63%
-2.16%
0.34%
1.99%
2.54%
-0.84%
5.31%
-2.89%
1.50%
Salary
Exp %
11.33%
16.72%
13.56%
17.53%
11.61%
13.61%
16.62%
15.04%
12.07%
10.54%
13.86%
Benefits
# Mgt
%
#Stores Super
3.72%
2
1
4.86%
1
2
4.12%
3
4
5.23%
2
3
2.96%
1
1
3.84%
1
6
2.92%
2
2
4.56%
3
4
4.34%
1
3
4.52%
1
1
4.11%
1.7
2.7
Summary of Key Financial Data
Sales Figures
Annual Sales
Gross Margin
Operating Exp
Net Income
FY01
$3,268,392
$651,766
$561,286
$155,055
FY02
$3,212,882
$890,024
$633,478
$169,273
FY03
$3,207,388
$719,594
$688,624
$158
FY04
$3,255,159
$762,854
$690,155
$6,396
FY05-06
$3,268,391
$898,262
$681,511
$172,318
Bookstore Department Goals, Strategies and
Timelines
Goal
Strategy
1 Design Bookstore
A. Remove barriers to access
space to maximize
(hours, location, prices)
access to student
services.
B. Develop innovative
programs.
C. Provide multiple delivery
methods.
2 Construct Bookstore
facility consistent
with campus needs
and industry
benchmarks.
3 Bookstore staffing
consistent with
campus needs and
industry.
benchmarks.
A. Construct new facility with
adequate space as defined by
industry formula.
Timeline
A. Expand hours of operation to
meet customer expectations within
financial constraints (review
annually) 2/08
B. Implement space dependent
customer-service programs such as:
open text department, year-round
buy back, textbook rentals. 2/09
(review annually)
C. Implement multiple delivery
methods such as: textbook
reservations, web sales, downloads
and podcasts.
A. Abandoned in SAC
B. Construct new facility with
short term adjacent parking
C. Construct new facility with
access for direct shipping and
receiving.
D. Create a retail environment
to meet campus mission and
enhance customer experience.
A. Provide staffing to improve
operational efficiency and
meet financial and operational
objectives.
B. SAC contains 26 adjacent
parking spaces.
C. Abandoned in SAC
B. Review and revise
organizational structure within
Community College Ed. Code
and District constraints.
C. Revise Bookstore Manager
job description and develop
recruiting documents.
B. Implement fair and competitive
compensation program.
D. Begin Fall sales by 8/20/2007
A. Recruit and hire Bookstore
Assistants and Assistant Manager
by 8/1/07.
C. Hire Bookstore Manager by 1/08
4 Bookstore financial
goals are achieved.
A. Develop resources through
product diversification
B. Reduce text prices to
increase student access to tools
for success.
C. Provide funding for student
success
D. Provide funding for
expanded buyback.
E. Achieve industry average
for sales per FTES.
F. Grow inventory to support
sales goals.
A.. Grow non-book department
from 10% (2006) to 50% (2010)
B. Reduce text prices through
aggressive programs which may
include: used book programs,
faculty partnerships, alternate
delivery methods, course book
adoption programs, community
partnerships and grants. (ongoing)
C. Provide Bookstore
scholarships/and or discounts. 5/08
D. Reserves allocated for buyback
growth. 7/07 (ongoing)
E. Double sales within 6 years of
occupancy.
F. Negotiate vendor agreements and
allocate cash reserves to meet cash
flow needs while growing the
business. 5/07
Timelines for completion of Bookstore Six-Year Plan
Goal
1. Design Bookstore
space to maximize
access to student
services.
2. Construct Bookstore
facility consistent with
campus needs and
industry benchmarks.
3. Bookstore staffing
consistent with campus
needs and industry.
benchmarks.
4. Bookstore financial
goals are achieved.
2007
2008
50% complete
75%
complete
2009
75%
complete
2010
2011
2012
100%
complete
100% complete
81% complete
86%
complete
91%
complete
97%
complete
Dependent on
campus
climate and
revenues
100%
complete
Buy Back Data
Term
Spring 2001
Fall 2001
Spring 2002
Fall 2002
Spring 2003
Fall 2003
Spring 2004
Fall 2004
Spring 2005
Fall 2005
Spring 2006
Fall 2006
Purchased for
Store Stock
$ 91,971
$ 82,590
$102,021
$ 98,418
$ 83,313
$ 89,771
$ 80,642
$123,476
$100,254
$126,998
$109,316
$132,873
Purchased for
Wholesaler
$19,683
$14,389
$14,171
$ 7,436
$37,128
$16,254
$29,564
$25,507
$21,598
$19,064
$23,391
$22,822
TOTAL
$111,654
$ 96,979
$116,193
$105,854
$120,441
$106,025
$110,206
$148,983
$121,853
$146,061
$132,707
$155,695