CSU East Bay Textbook Affordability Strategies

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CSU East Bay Textbook Affordability Strategies
C. Brown January 21, 2009
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Will these strategies work for all courses?

• Its critical to understand that the following
  strategies may not work for all courses.
• For these strategies to be successful, they
  cannot be used to the detriment of the academic
  process. As such, our faculty must be the ones to
  determine which strategies work and for which
  courses.
• Not all strategies will work well with all
  courses. It is important that we not utilize a
  one size fits all approach.
• However, a solid review of available options can
  surely cut student costs while preserving
  academic integrity.

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Key Strategies to Save Students Money

• 1. Gross Margin Reduction
• 2. Custom Course Materials
• 3. Textbook Rentals
• 4. Increase Used Book Ratio
• 5. Digital Materials

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Potential Student Savings

• 1. Margin Reduction 225,000
• 2. Custom Materials 320,000
• 3. Textbook Rental Program 176,000
• 4. Increase Used Book Ratio to 40 430,000
• 5. Digital Materials (unable to accurately
  estimate)
• Potential Annual Student Savings 1,151,000

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Strategy 1 Gross Margin Reduction

• Reduced Gross margin to from 29 to 26 through
• our partnership with Follett
• Estimated annual student savings 225,000

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Strategy 2 Custom Materials

• Identify key core classes and work with the
  faculty to create standard course materials
  (example English, Math, Economics) for all
  sections.
• Publishers will create a custom textbook which
  can equate to a savings of up to 50 off a
  standard textbook cost.
• Requires faculty support and a longer adoption
  period. This would require significant support
  from Faculty, Deans and the Provost.
• Significant savings in addition to the new
  savings, students would still have access to sell
  back the custom materials and also buy used
  materials.
• Many successes such as National University and
  Rio Salado College.

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Strategy 2 Custom Materials

• Potential Drawbacks
• Returns are stricter as vendors require 80 new
  units sold each quarter for titles in the program
• Books in the program bought back at 20 of
  selling price

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Strategy 2 Custom Materials

• Example
• Assume 20 titles in custom program
• Regular Textbook Price 80
• Custom Text Price 40
• Sell 100 copies per title
• 20 titles x 100 units x 80 160,000
• 20 titles x 100 units x 40 80,000
• Net quarterly student savings 80,000
• Net annual student savings 320,000
• Rio Salado currently has 130 titles in program
  so 20 titles is quite conservative for these
  estimates.

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Strategy 3 Textbook Rental Program

• Rent-a-Text Program Parameters
• Books are rented at a 45-65 discount from
  selling price depending on length of faculty
  adoption commitment
• Faculty would need to commit to a particular
  edition of a textbook for 8-12 consecutive
  academic terms
• Students who do not return the books are charged
  the difference of the rental fee and the current
  selling price of the book

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Communications

• Work with colleges/faculty to identify eligible
  texts
• Offer students the option to purchase or rent
• Stickers on books eligible for rent
• Shelf talkers on books eligible for rent
• Posted rental return dates on the store website
  and in store promotional signs

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Estimated Student Savings with Rental Program

• Example rent 50 of the books used in the
  courses below
• Net Savings Based on
• Course Units 3 year Adoption
• Math 0950 100 8,400
• Math 0900 150 12,500
• BIOL 1401 75 8,800
• GS 1011 425 15,300
• Math 1130 90 10,000
• Stat 1000 100 9,000
• Estimated Quarterly Student Savings 64,000
• Estimated Annual Student Savings 256,000
• Calculation excludes buyback funds
  that would be paid to students who purchased
  books at full price.

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Textbook Rental Summary

• Potential issues
• Faculty members perception of reduced flexibility
  
• 8-12 consecutive quarter commitment to a textbook
• Results from Fall 2008 CSUN pilot
• Only 4 titles selected for the pilot
• Positive student and faculty support
• Resulted in 924 copies of basic math book rented
  (84) and saved students 98,400
• Potential for even much greater savings

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Strategy 5 Increase Used Book Ratio

• The least expensive book is still one bought as
  used and then sold back when readopted by the
  faculty.
• Timely adoptions are the key to availability of
  used books by 50

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Strategy 5 Digital Materials

• Searchable
• Portable
• Often less expensive
• Instructor controlled
• Easy to update/change between quarters
• MyScribe/CaféScribe Web Tool
• Sustainable 1 tree is used to make every 11
  books