How to Stay Independent How to accurately compare

How to Stay Independent How to accurately compare your #’s to a lease proposal Aligning your operation with the Campus Mission

What are your campus values? • Affordability versus profit on Course Materials • Student Success or Corporate Profits

What are your Campus Values? If the answer is affordability… • • Be sure you are marketing affordability with examples not found in leased stores Examples: Price Comparison, Dynamic Pricing, Lower margins on Digital, scholarship programs

What are your campus values? If the answer is Student Success… • What examples do you have that a lease operator would not have? • Digital Writing Resource Pilot • Online Tutoring Pilot using publisher resources

Student Success, Retention, Time to Completion • • How can a store participate in these campus goals? Remedial education- ALECS pilot

What are your system values? How can you tie your store into them? • Example: University of California system seeks to be the first University in the world to achieve carbon neutrality by 2025 • Store program to plant 500 trees to sequester carbon

What are your campus or system values and how can you tie into them? • Examples from the group?

Does your store mission statement speak to the campus mission?

Our Mission is to provide the UC Davis community with products, services, and technologies that ensure academic success, promote campus pride and enhance the lifestyle of our community. This is achieved through excellent customer service, competitive pricing and campus wide collaboration. As an independent and selfsupporting division of Student Affairs, our financial contributions benefit student programs at our worldclass, comprehensive research institution.

How to read a lease proposal and make it comparable to your store • Key takeaway: Do you book your contributions to campus as operating expenses?

Finding the real numbers in a proposal • Many proposals are 100+ pages long • Most pages are identical to those made to other campuses • Impressive graphics • Impressive client lists • Maps with location of nearby clients

Finding the real numbers • Out of the many pages, focus on Financial Considerations • This is usually just a few pages long • Do not overlook ‘*’ and definitions

Finding the real numbers • Revenue to the campus is often defined as “commission” • Often calculated as a % of sales • Not all sales are equal!

Finding the real numbers • What are the exceptions? (not all proposals have the same exceptions) • Computer hardware • Lower margin items • No margin items • Items with margins less than 20% • These exceptions are sometimes referred to as rent or commission exempt

Comparing to your numbers • UC Davis Sales $17, 891, 318 • UC Davis Net Income or bottom line $947, 417 • $947, 417/$17, 891, 318=5. 3% of gross sales go to campus

Recalculating your results • Total Sales $17, 891, 318 - Technology Sales $3, 114, 763= $14, 776, 555 • When calculating our return to campus, we will now consider $14, 776, 555 as our adjusted sales number • Next, we need to figure out what expenses we pay to the campus that are taken out above our bottom line and consider those expenses as income to the campus

Thank you! Jason Lorgan jplorgan@ucdavis. edu