BookiT Presented By: Susan Maas Jared McCauley Dusty Tovrea Joe Valine John Vanover

Overview of Presentation Overview of Concept Industry Analysis/Target Market Management Team Finance Growth Strategy

BookiT Concept What is BookiT? Alternative to the CSUS Hornet Bookstore Lower cost How can BookiT sell at a lower price?

RETAIL SALES for BOOKSTORES (unadjusted) Period2004 Final (Millions of Dollars) 2005 (Millions of Dollars) % Change 2005 over 2004 January2,0701,969(4.9) February1,0721,027(4.2) March1,0361, April987940(4.8) May1,0711,055(1.5) June1,1591,084(6.5) July1,1281, August2,0432, September1,4931,450(2.9) October1,032988(4.3) November1,0441, December2,0892,090(p)0.05 YTD16,22415,924(1.8)

Textbook Industry Composed of brick and mortar businesses and internet companies Estimated $6 billion Used books make up 28% of market and account for $1.8 billion

Target Market Sacramento State Students Price sensitive Working while attending school Need for convenience

Competitors Sacramento State Bookstore Largest share of the market Convenient Contains all required and recommended books for classes Large markup Low buyback price Barnes and Nobles & Borders Books Two of the largest book selling companies Many locations Internet web site Specialize in books used for leisure and not textbooks Amazon.com Large internet company Convenient i.e. never closed Limited titles Customers must wait for books to be shipped

Key Personnel Resources Name:Title:Experience: Jared McCauleyCo-ManagerHuman Resource, Management, Team Leadership John VanoverCo-ManagerCustomer Service, Inventory and front end management Susan MaasAssociateScheduling, organization and directing Dusty TovreaAssociateCustomer service and organization Joe ValineAssociateSales, leadership, and team organization

Management Jared McCauley FedEx Ground- Service Manager Human Resource Experience Safety, Training, Productivity Retention Team Leader John Vanover Safeway- Front End Manager, Head Clerk Recruitment and Hiring Experience Customer Service Inventory and Merchandising Experience

Financials Initial 5% target for market share. 28,529 students, 5% = 1,426 Average spending $300 per student Sac state expects a 2.9% growth per semester Low target for ½% growth per semester, and 1% annually. Principal investment combined = $100,000 Angel investment combined = $50,000 Loan for sixty months for $150,000 at 10.25% Initial startup costs total $284,646

Financials Year 1 Year 2 Year 3 Year 4 Year 5 Sales$966,293$1,028,986$1,404,974$1,542,942$1,709,888 COGS$749,329$668,376$702,487$771,471$854,944 Gross Profit$168,649$309,159$632,237$694,324$769,449 Operating costs$224,827$221,369$232,208$236,981$242,835 NEAT-$80,278$9,632$375,929$433,242$502,514

Long-Term Plan Growth/Expansion UC Davis Chico State Other Locations

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