Financial Reporting
To Improve Operational Metrics
To Lower the Odds of Being Outsourced
DENNIS MEKELBURG
SENIOR CONSULTANT, INDICO
CSANC, JUNE 3RD, 2015
Goals for Today
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An Interactive Conversation
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Talk about why we should report financial (and other) information
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Provide some information and ideas to use in our stores
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Learn about some of the language of outsourcing
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Talk about contractor interests and language
How often do the contractors
communicate with your administration?
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At least once a month?
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Several times a year?
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NACAS and NACUBO publications
NACAS and NACUBO meetings
Direct communication
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Mailings
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Personal contacts
So – What does that mean relative to
financial reporting?
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To whom do want your administration to listen?
Why Would Your Campus Outsource
the Bookstore?
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Financial – Perceived or Real
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Textbook sales declining – fear about future sales
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Fear of the future – digital textbooks
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Perceived lack of customer satisfaction
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Lack of communication from the bookstore
Why Would Your Campus Outsource
the Bookstore?

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Are the contractors communicating with your administration?
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NACAS
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NACUBO
What are they telling your administrators?
How to Address Pressures to Outsource
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Financial
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Know your numbers!
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Especially what the total contribution to the campus is
Improve each primary measurement
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Examples:
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Cash flow
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Textbook inventory arrival/return management
Three Guys - $30
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Make Sure the numbers make sense!
How to Address Pressures to Outsource
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Textbook sales declining?
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Know Why!
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Category Sales (New, Used, Rental, Digital)
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Unit Sales
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Rental Units increasing or declining?
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More course materials through the campus LMS?
What is the customer feedback?
How to Address Pressures to Outsource
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Fear of the future – digital textbooks
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Do you believe these Ads in NACAS magazines by contractors?
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“Only xxx can help you seamlessly manage the transition to digital course materials…..”
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“XXX is the undisputed leader in helping you create a superior campus store experience”
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“We’re your faculty’s advocate – empowering them with groundbreaking textbook research
and adoption tools”
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“We’re your campus’ retail expert – fueling school spirit with dynamic in-store and online
shopping experiences”
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“We’re your school’s hands-on partner – delivering what’s next to drive your academic and
business success”
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“Original and inventive, our solutions are as unique as the bookstores they benefit”
How to Address Pressures to Outsource
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Know what the contractors are saying
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“We’re your students trusted ally – saving them the most money on course
materials and providing the most options”
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How are they the trusted ally?
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What are the metrics for “saving the most money”
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What options do they provide that others do not?
Reducing the Odds
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Maintain a list of all services that the current store provides
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Include with financial reports
Track every nickel that you provide for your campus and administration
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Profit
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“Rent”
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Utilities
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Assessments for administration, IT support, etc.
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Required contributions for employee benefits
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Contributions to R&R
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Departmental, faculty/staff discounts
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Contributions to campus related organizations
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Are they of high value to some constituency?
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Find out if customers care about the services
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What is the dollar value of them being provided?
How to Address Pressures to Outsource
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Be the course materials expert on your campus
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Access code sales in the store and online
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Sell through academic departments
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Through LMS (Blackboard, etc.)
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Fee based, included in tuition
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Support faculty publication of digital materials
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Multiple licenses, delivered to individual students through the LMS, charged to the academic
department
Example - RedShelf as a partner
Know about the competitors
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Amazon
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Akademos
How to Address Pressures to Outsource
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Perceived lack of customer satisfaction
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How often do you measure customer satisfaction?
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What was the action plan formulated from the last survey?
Reducing the Odds
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Know the institutions goals for the store
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Are goals for the store clearly stated?
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Are they realistic?
Communicate/Communicate/Communicate
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Tell – Keep a current list of all that the store provides
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Ask
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Have you asked for exclusivity for textbook (or other) sales on campus?
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Exclusivity is a condition of the contract for most outsourced stores
Reducing the Odds
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Operate the store as if it was outsourced
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Financial Goals Achieved
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Student Satisfaction
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Positive Messages
Reducing the Odds – Tell the Story!
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Know what you bring to the table
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Complete access for all constituencies
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Policies and Procedures locally derived
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All course materials decisions make in the store
Access to all technologies for price comparison and sourcing
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Not subject to corporate policies, procedures and dictates
Professional, campus specific knowledge
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On campus, off campus, faculty, alumni and staff
Examples - Verba / Sidewalk / Rafter
Access to technologies for digital migration
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Example - RedShelf
Reducing the Odds – Two Things:
1. If you have additional strategies that will enhance and supplement our
endeavors – please send to me!
2. THANK YOU!
Contact Information:
Dennis Mekelburg
Senior Consultant
indiCo
dmekelburg@nacs.org