Adam Taylor
After having reared a sudden sequence of fledgling business ventures on campus, the Pierce College Bookstore is finally getting some peace and quiet as it recovers from an exhausting year.
The last fiscal year, July 2005 to June 2006, brought with it a slew of expensive new undertakings-the Freudian Sip, CopyTech, the Equestrian Education Center and the Farm Store, to name a few.
Responsible for these venues, and every other revenue-generating function of Pierce, is an on-campus institution known as Enterprise. As a subdivision of Enterprise, it’s been the Bookstore’s job to financially sustain new businesses while they get on their feet.
Consequently, the Bookstore ran a deficit last year of about $200,000, according to College Enterprise Manager Larry Kraus.
“The Sip had a tremendous amount of costs associated with it,” he said, “and those costs have to be picked up by somebody.”
That deficit, however, was not such a drawback on all accounts.
“It wasn’t even really a deficit,” Bookstore Manager Greg Osweiler explained, “because there were carry-over balances from profits that had built up over the years. We were using some of that money to help start up the Enterprise Office and some of the other improvements around the campus…. Last year is the first year that, I guess, on paper it showed the Bookstore lost money. But there were all these new ventures coming up, so they took that 1 or 2 percent profit and applied it to those.”
The 1.6 percent profit margin to which Osweiler was referring is what’s left “after everyone dips in and takes what is legislated by the state.” Of the Bookstore’s gross sales, 1 percent goes to the district, 3 percent goes to campus improvement reserves and 3 percent goes to what is called the inventory reserves.
That fund, also known as the operating reserves, is what pays the Bookstore’s bills before the rush begins each new semester. “We start buying in May, June, July, but we don’t start selling those books until September. So you have to have something that tides you over,” said Kraus.
The rest of the Bookstore’s revenue, according to Osweiler, goes to the college-academic departments, plant facilities, maintenance and employee salaries.
Finally, about 1 percent of the Bookstore’s potential revenue sneaks out the side door in the hands of thieves. While low in comparison to other retail enterprises, a 1 percent loss due to theft still poses a significant problem. For each textbook stolen, the bookstore must sell about four of the same textbook at a 27.7 percent markup to compensate.
In addition to theft, one of the greatest problems facing college bookstores today is the Internet.
“People are using alternative ways of buying books,” said Kraus. “As far as retail sales, a lot of schools are up and down. There’s so many variables. One year they’re showing positive, another year they’re negative.”
Pierce’s Bookstore, it so happens, is among those that show positive this year. Right now, according to Osweiler, Pierce is running a positive balance of about $100,000.
Also turning out to be a success this year is the Freudian Sip. Set up in cooperation with its counterpart at CSUN to maintain their logo, atmosphere and coffee taste profile, the popular cybercafe has no doubt turned out to be a worthwhile business endeavor.
Due to the licensing agreement with CSUN’s Freudian Sip, 5 percent of the revenue generated goes back to them. The rest of its profits, according to Osweiler, go into Pierce’s general fund.
From here on out, Pierce’s fiscal future looks bright. Enterprise projects that by 2008, the college will generate $1.8 million in revenue per year.