1. 1 3/25/12 THE CAMPUS STORE COMEBACK NACAS 2014 OCTOBER 5-8 MONTRÉAL, CANADA

2. 2 3/25/12 2 PRESENTERS Sara Leoni Jared Ceja CEO Rafter, Inc. Jim Zaorski Director, Aux. Services Chaffey College Founder/CEO Sequoia Inc.

3. 3 3/25/12 STATE OF THE INDUSTRY

4. 4 3/25/12 The Perfect Storm for College Stores

5. 5 3/25/12 5 Declining enrollments Budgetary pressures State/system affordability initiatives General state of economy THE PERFECT STORM ENROLLMENTS BUDGETS AFFORDABILITY ECONOMY

6. 6 3/25/12 6 eTailers cherry-picked profitable titles Sophisticated ecommerce systems Customer Acquisition + Relationship Management (CRM) Advanced pricing & inventory systems COMPETITION: ONLINE SELLERS

7. 7 3/25/12 7 67% of students purchased textbooks from an on-campus store (in-store) OnCampus RESEARCH SAYS: Q: Where did you purchase your required course materials for the current fall term

8. 8 3/25/12 CHARTING THE COURSE

9. 9 3/25/12 9 % of students that purchased exclusively from one retailer OnCampus RESEARCH SAYS: On-Campus Store (in-store or website) 36.6% Amazon 16.1%

10. 10 3/25/12 10 Top factors that influenced purchase location PRICE AND USED BOOKS IMPACT PURCHASE LOCATION Q: What were the top factors that influenced where you purchased required course materials this fall term?

11. 11 3/25/12 11 Elastic pricing (digital shelf tags) More options (new, used, print on demand, digital, rental) “Progressive” price comparison Communicate with shoppers in the store via their smart phone Reward frequent shoppers Capture and analyze customer data to drive more sales A BETTER SHOPPING EXPERIENCE

12. 12 3/25/12 12 Integrated shopping carts (one cart, many sources) Customer Relationship Management (CRM) modules Digital Shelf Tags iBeacon TECHNOLOGY SOLUTIONS

13. 13 3/25/12 A SUCCESSFUL RESPONSE

14. 14 3/25/12 14 Public community college known as the leader in affordable education Rancho Cucamonga, CA Enrollment: 14,543 FTE Mascot: The Panther Founded: 1883 CHAFFEY COLLEGE

15. 15 3/25/12 15 Text sales per FTE: +14% Text market share: + 13.5% Non-text sales per FTE: + 143% Rental program saves their students more than $1.1M each year versus new! CHAFFEY BOOKSTORE SINCE 2009/10 +143%

16. 16 3/25/12 16 Aggressive rentals –Partnering for success –Rentals “changed everything” –The new normal Competitive versus consistent RENTALS RENT

17. 17 3/25/12 17 Traditional pricing model How “dynamic pricing” works Competing while still maintaining overall margins Digital shelf tags DYNAMIC PRICING $

18. 18 3/25/12 18 Rapid prices changes –Emerging deals Maximize rentals –Add new titles Improve communication –Students always get accurate information Save trees Save time DIGITAL SHELF TAGS

19. 19 3/25/12 19 Alternate Course Materials Sourcing –Purchasing/repurchasing rentals –Marketplace sourcing A Word about “Digital Books” SOURCING

20. 20 3/25/12 20 Nothing to hide Best prices for our students Same prices as going direct Only way the campus gets funds from on-line sales TRANSPARENCY

21. 21 3/25/12 21 GM growth driven by specialized supplies, Box Office services, gifts, and apparel Earn loyalty with text and leverage it for other growth THE SECONDARY IMPACT

22. 22 3/25/12 22 OTHER PROGRAMS

23. 23 3/25/12 23 The new normal does not happen overnight –Engage your team, the campus, and especially students Financial impact –Sales will shift categories –Short-term bumps will be experienced for long-term gains –Get in front of things with communication Flexibility is crucial –Staff that struggle with change will struggle with this THINGS TO WATCH

24. 24 3/25/12 MAKING IT WORK

25. 25 3/25/12 25 Students Stewardship Campus Involvement THREE KEYS TO SUCCESS

26. 26 3/25/12 26 Offer value –“Competitive” pricing –Excellent service Emphasize strategic advantages –Local services and convenience Invest in technology –It is what students expect –It is what your store needs TO WIN YOU HAVE TO DELIVER AGAINST YOUR STUDENTS’ NEEDS

27. 27 3/25/12 27 Understanding key drivers & benchmarks Maximizing the value of resources & inventory –ROI focus Leveraging relationships –Listening to your student staff –Partnering for success Uncharted waters Address blindspots YOU HAVE TO RELENTLESSLY MANAGE THE NUMBERS

28. 28 3/25/12 28 Listening –Input sessions –Surveys, social media –Student & Faculty senate –Employees Administrative involvement Woven into the fabric of the campus community CREATE ADVOCATES FOR YOUR BUSINESS VIA CAMPUS INVOLVEMENT

29. 29 3/25/12 Smooth Sailing

30. 30 3/25/12 Sara Leoni sara.leoni@rafter.com Jared Ceja jared.ceja@chaffey.com Jim Zaorski jim@sequoiars.com THANK YOU