West Valley
College
Bookstore
By working together we can lower the cost of
books for West Valley students
West Valley College
Lowering The Cost of Textbooks
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Industry Update
How Prices are Determined
Revenue to WVC
Textbook Order Process
Importance of Early adoptions
Importance of Used Books
West Valley College
The new world
West Valley College
What students…
Textbooks
Do
Prefer
Demand
65% Compare prices
50% Used
Convenience
60% Purchase all required
21% New/used combo
Value
32% Share
14% New
Choice
22% Skip
5%
Rentals
16% Swap
3%
eTextbooks
11% Photocopy
Source: Student Monitor LLC and Barnes & Noble company research
West Valley College
What faculty…
Textbooks
Do/would do
69%
Consider price when choosing a textbook
72%
Would support giving students a choice of renting a book for their courses
42%
Would be more inclined to submit their adoptions to the bookstore if rentals were
an option
52%
Would consider using the same book for a period of two years if it meant a rental
would be available
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7% of faculty always or often already do
Source: Barnes & Noble company research
West Valley College
How Prices are Determined
• College stores operate on “margin”
• Margin is the difference between cost and retail
• Publisher sets the “cost” and bookstore calculates
the retail shelf price based on contractual terms
• Average margin on course materials is 27% (NACS)
West Valley College
How Textbooks are Priced
75% OF EVERY NEW
TEXTBOOK DOLLAR
GOES TO THE
PUBLISHER AND
AUTHOR.
Publisher
Author
Freight 4%
WVMCC District
10%
Bookstore
Salaries
and
expenses
10%
Bookstore
Earnings 1%
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West Valley College
Revenue for WVC
• Financial Terms Academic Year 2009/2010
– 25% margin pricing on new textbooks
– $325,000. Guarantee
• 10.5% up to $2,000,000.
• 11% $2,000,000-$3,500,000.
• 13% over $3,500,000.
– $20,000 annual donation
– $125,000 one time payment
– $200,000 capital
$3,445,135. sales = $355,565.to WVC
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West Valley College
Revenue for WVC
• Financial Terms Academic Year 2010/2011
– 20% margin pricing on new textbooks
– $275,000. Guarantee
• 7% up to $2,000,000.
• 8% $2,000,000-$3,500,000.
• 10% over $3,500,000.
Increased sales in the bookstore = Increased revenue
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West Valley College
How Prices are Determined
• Previous Pricing: New Textbooks sold at a 25% margin
• $75.00 cost = $100.00 shelf price
• New Pricing: New Textbooks sold at a 20% margin
• $75.00 Cost = $93.75 shelf price
• Used Textbooks are sold at 75% of the new book price
• $100.00 New = $75.00 Used
• $ 93.75 New = $70.35 Used
West Valley College
Cash back to students
Used Textbooks = Cash Back
• If book orders received early students receive 50% back
Example:
– $100.00 New Book = $50.00 Net Cost to Students
– $75.00 Used book = $37.50 Net Cost to Students
• WVC Bookstore paid $316,463. to students
this academic year
West Valley College
Book Order Process
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Faculty select and submit order to store
Store verification and acknowledgement
Ordering practices based on enrollment and history
Textbook sourcing
– Buyback from Students
– Used Book Wholesalers
• Early Orders mean more used books!
• As of today we have 65% of book orders for Fall vs.
60% LY.
West Valley College
Bookstore Role
Facilitate low cost options
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Follow-up with faculty-calls, emails and presentations
Communicate un-bundled options and price
Research edition status and availability
Communicate advantages of early orders
Registration Integration- gives students early access to
used books
• Work with Student Senate and Library
Objective = provide low cost options and have books
available for students
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West Valley College
Impact of Late Text Orders
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Limited buyback
Limited used books
Books not on the shelf by the first day of class
Publisher shipping delays
Student learning disadvantage
Student anxiety
West Valley College
How the bookstore works with WVC to
lower the cost of books
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HEOA
TAP Committee
Collaboration on price reduction strategies
ISBN and price available online July 2010
Publishers must provide faculty with price and offer
unbundled materials
• Inform students on how to save money on textbooks
• Increase number of used books available
• Rental program pending
West Valley College
Net Cost to Students
Customer
New
Used
Digital
$100
$75
$65
$37.50* Net
(Approximate)
Net
$50* Net
* If bought back
Rental
$45
(Approximate)
Net Cost
West Valley College
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West Valley College
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West Valley College
Rentals
Details
• Pricing: more than 50% off new
textbook price
• Rental period: entire term
• Normal use/highlighting
allowed
• Student given option to
purchase book at end of term
• Multiple forms of payment
accepted either online or instore
Books for rent
Eligibility determined by:
- Edition status
- Reuse rate of book on both local
campus and across company
- Single vs. multi-use (Single use-online
components and access codes, study
guides etc)
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West Valley College
Our vision
A new world requires a new outlook
• To deliver a wealth of content
—all the information, ideas, and insights students need to get ahead
• To bring it to you in all formats, and through all channels
—new, used, digital, rental, in-store, online, mobile
• To build loyalty by being the only destination where
customers can find everything they need and want, at the
best price possible
Only Barnes & Noble offers the breadth of ideas and resources
to succeed in this new world.
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