More books for the buck: textbook rental programs help students keep more money in their pockets

University Business, May, 2005 by Julie A. Varughese

Stephanie Huck knows a deal when she sees it. Or rents it.

After transferring in from another school Huck was excited to learn that she would save 60 percent on her textbook bill each semester thanks to Southeast Missouri State University's rental program. Now, she pays only $85 per semester for all of her books.

"Whenever you would return the books, you would not even get half of that back," the senior marketing major says of her previous school's traditional purchase system.

Although the Public Interest Research Group (PIRG) claims the average college student spends close to $g00 on textbooks per year, the American Association of Publishers disputes that figure. "No other source is available to support this assertion. Research by Student Monitor says the average four-year undergraduate spends approximately $625 a year on textbooks. Textbook spending equals six cents of the average student's education dollar, according to the College Board," states a release by the AAP.

Still, it is no wonder students have been on the hunt for alternative, cheaper sources for books: online stores, online auctions, or even illegally photocopying books.

Stores can try to keep them from going through different channels for books by creating rental programs. But only a few IHEs across the country have experimented with them, with varying degrees of success.

For IHEs considering starting their own rental program, Ed Schlichenmayer, senior vice president of the National Association of College Stores (NACS), suggests to first consult professors. "One common denominator among every IHE [considering a rental program] is not to restrict the academic freedom of faculty."

Another factor, of course, is financial resources. According to a study conducted by Illinois' Board of Higher Education, startup costs can be as high as $15 million.

One thing to keep in mind, however, is that rental programs are created in the best interest of the student body; profits, if any, are an after-effect. Schools thinking profit first will come away financially bruised, according to industry authorities, due to unpredictable variables like rate of return and returned-book condition.

But that doesn't mean a school can't minimize costs--and keep its student body happy--through a little creativity and experimentation.

Rental Implementation on the Cheap

In the fall of 2001, Sarah Emerson, former bookstore manager, instituted Hillsborough Community College's (Fla.) textbook rental program at a cost Schlichenmayer calls "negligible."

Emerson's cost-conscious tactics may not seem plausible for a larger school. A community college, on the other hand, caters to a student body that is often taking introductory level courses, which have large enrollments, making it easier to predict how many books may be rented out and returned to the store. Her motivation was driven by one factor--needy students. More often than not, those students went through whole semesters sitting through classes without textbooks because they couldn't afford it.

"Every year, it was getting harder and harder to get books because of money. That's why they live at home."

When Emerson spoke one-on-one with faculty members about implementing a rental program, she recalls, "They were going to do whatever it took," to get students to buy books.

But Emerson checked out 15 other rental programs across the country, and not one was a good fit for Hillsborough. That's because the community college depends heavily on the bookstore's revenue.

She first spoke about her ideas with the five campus presidents, each of whom she was on a first-name basis with, and after she convinced them, Emerson says, she had overcome her biggest obstacle: persuading administrators. "I didn't even have to convince my own boss because they convinced her."

Starting with 80 titles, Emerson began renting textbooks at 40 percent off in the first semester. The rental program's publicity campaign kicked off with a large advertising banner that hung atop the bookstore's cash registers. At this point, "the only person ready to do me in was a private store down the street," she quips.

"I think it's important in retail to give students a choice," Emerson stresses. Rental books were marked down 40 percent for new or used books, or they could buy them. "They flew off the shelves. Used books are always selling like melting ice in the middle of a Florida summer. Students were so thrilled."

By the second semester, the rental price was dropped to 50 percent because "it had been going so well."

Emerson's belief in quality customer service led to her manning an aisle every day that students were allowed to rent. "I made sure to work the aisles in one of the stores. Students would ask, 'Well should I rent or should I buy?' And I would ask them, 'Are you a math major?' If not, then I would say rent. 'But if you're a math major you might want to buy your book and keep it.'"

Emerson stresses setting strict rules for issuance and returns. "You have to be very firm and upfront about what is going to happen if they don't return the book."