1 / 0

UNIVERSITY OF CALIFORNIA, DAVIS

UNIVERSITY OF CALIFORNIA, DAVIS. “ You can be the low price leader! ”. Shelf Tag Example. Bookstore market share – 40-50% The near-monopoly days are over, but things are still good! What other industry can boast those figures? We need to re-shift our focus.

varian
Download Presentation

UNIVERSITY OF CALIFORNIA, DAVIS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. UNIVERSITY OF CALIFORNIA, DAVIS “You can be the low price leader!”
  2. Shelf Tag Example
  3. Bookstore market share – 40-50% The near-monopoly days are over, but things are still good! What other industry can boast those figures? We need to re-shift our focus. Let’s not strive for something unsustainable. Let’s step away from the gloom and doom. Let’s figure out how to be competitive. Price Competitively & Offer In-Store Rental
  4. How to price competitively: Offer rental on as many titles as possible You need to have the biggest impact on the large enrollment titles. 80% of your sales probably come from 20% of your titles- pricing that 20% competitively is important. Don’t try to have the lowest price on all items; no one retailer in any industry can do that. What books do you need to price competitively? Newer editions- much easier to compete on these titles High volume titles Jason lorgan – uc-davis BOOKSTORE
  5. Jason lorgan – uc-davis BOOKSTORE
  6. Jason lorgan – uc-davis BOOKSTORE
  7. In addition: Don’t have to reinvent the wheel to choose your prices There are tools out there to help you price and show students online price comparison Verba Compete and Verba Compare Integrated with MBS Text Applications Integrated into MBS Systems inSite e-commerce product Can be used with other college store management systems as a stand alone product Rental price comparisons are available with this product Jason lorgan – uc-davis BOOKSTORE
  8. Offering in-store rental: In-store rental puts you in the game. Your store is the LOWEST price option a student can find on most titles you rent. A lot of stores think you have to sacrifice margin when you offer rental, but you don’t! Many stores, including UC Davis, achieve the same gross margin with rental as with purchased books. Jason lorgan – uc-davis BOOKSTORE
  9. In Store Rental Program UC Davis has partnered with Follett, MBS and Nebraska. Currently an agreement with Texas Book Company is in our Business Contracts Office The more wholesaler programs you sign up for, the more options you have and the larger program you can develop
  10. Affiliate Rental Programs Recommended to supplement an in store rental program Can be done without an in store program, but your margin will be significantly less Chegg, Bookrenter, Follett are the most common
  11. Once you have adoptions… Send a title list via spreadsheet or your management system to the wholesalers They will respond with a rebate amount for each title If more than one vendor supports a title for rental, if you pick the highest rebate, your price will be the most competitive
  12. Enter Rental Prices into Database
  13. System will track student rentals
  14. UC-Davis rental price formula: New Retail - Wholesaler Rebate = New Rental Price Used Retail - Wholesaler Rebate = Used Rental Price Assuming a $100 New Retail, $75 Used Retail and $46 Rental Rebate…. $100 New - $46 Rebate = $54 New Rental Price $75 Used - $46 Rebate = $29 Used Rental Price Please note this formula allows us to maintain our EXISTING margins in dollars In other words, rental and purchase margins are identical in dollars Jason lorgan – uc-davis BOOKSTORE
  15. UC-Davis Bookstore Rental Overview: Fall Quarter 2010, we rented 246 titles Winter Quarter 2011, we rented 350 titles Spring Quarter 2011, we rented 426 titles Fall Quarter 2011, we rented 930 titles Winter Quarter 2012, we have set a goal of 1400 titles UC Davis averages 2300 titles per quarter The fear of going into rental was worse than the reality. Recent Systems Rental enhancements has made the process much easier! Jason lorgan – uc-davis BOOKSTORE
  16. Look at how much our students can save!
  17. Thank you! Jason Lorgan 530-752-9075 jplorgan@ucdavis.edu
More Related