vbc 2015 why rent? presentation
TRANSCRIPT
Why Rent?: An Introduction to Multi-Partner
Rentals with Verba
VBC 2015
SPRING 2014
VERBASOFTWARE.COM (415)
WHAT WE’LL COVER
‣ Why we think renting books is a good idea
‣ Why we think you should be concerned about your rental price
‣ Why we focus on multi-partner, rebate-based rentals
‣ The difficulties of renting with multiple partners, and what
Dynamic Rental can do to help
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How many of you have a rental program at
your store?
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VBC 2015
12.3%Percentage of units rented
rather than sold by Verba
stores for
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0%
18%
35%
53%
70%
88%
Fall 2007
Spring 2008
Fall 2008
Spring 2009
Fall 2009
Spring 2010
Fall 2010
Spring 2011
Fall 2011
Spring 2012
Fall 2012
Spring 2013
Fall 2013
Spring 2014
Fall 2014
New Used Rental Digital
verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
36%Year-over-year increase in
rental units as percentage of
total store unit sales
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If your rental price is not competitive, students
will choose a competitor.
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Verba Matr ix : Store Rentals vs. Onl ine Rentals
‣ The left of the graph shows when the store price is $20 less, and moves rightward to $20 more
KEY:
‣ Y axis: Store’s win rate
‣ X axis: Difference between store’s price and online price
-20 -10 0 10 20 $%
win
50
25
75
SPRING 2014
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RENTAL PROGRAMS: DEFINED.
‣ Kiosk/Fully-Managed Programs - Partnership with wholesaler or rental party who
owns the stock
‣ Store/Self-Managed Programs - Self-financing or rebate program
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Question: What kind of rental program do you have?
SPRING 2014
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K iosk Pros and Cons
‣ Kiosk/Fully-Managed Pros
- Get paid for book as if used retail sale has occurred
- Another party responsible for getting book back (less risk)
‣ Kiosk/Fully-Managed Cons
- Less control over pricing
- Multiple student transactions
- For most programs, have to pay for the book if you’d like to keep it
- Often requires a rigid contract
- Some programs commission-based
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Averaged Store-Managed vs. Ful ly-Managed rental retai l pr ic ing
0
20
40
60
80
New Used
$42.62$64.25 $49.49$76.28
Fully-Managed Pricing Store-Managed Pricing
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Best Store-Managed vs. Average Ful ly-Managed rental retai l pr ic ing
0
20
40
60
80
New Used
$35.30$55.54 $49.49$76.28
Fully-Managed Pricing Store-Managed Pricing
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VBC 2015
37%Percentage by which fully-
managed/kiosk programs
are
best store-managed
programs on new titles
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VBC 2015
40%Percentage by which fully-
managed/kiosk programs
are more expensive than
best store-managed
programs on used
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A multi-partner rebate-based rental program (done well) is your best
bet for for your students.
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Or, more practically:
RETAIL PRICE
- REBATE
RENTAL PRICE
SPRING 2014
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BEST WAYS TO LOWER PRICE
‣ Lowering cost
‣ Raising rebate value
SPRING 2014
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LOWERING COST
You can do this by sourcing your books at a lower
price.
‣ Buyback Pricing
‣ Online Sourcing
SPRING 2014
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Raise your rebates by using multiple
partners.
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What’s the difference between getting a single offer versus many?
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D i f ference in rebate value based on the number of rebate partners
0
7.5
15
22.5
30
1 3 5 9
$24.91
$17.94
$11.03
$0.00
Difference between Max and Min
SPRING 2014
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WHAT MAKES REBATE MANAGEMENT HARD?
‣ Difficult to compare rebates and find the best offer in order to
price your rentals
‣ Difficult to track where the book goes at the end of the term
after deciding on the winner
SPRING 2014
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WHAT DOES DYNAMIC RENTAL DO TO HELP?
‣ Rebate Comparison tool for finding the best offer among your
rebate partners
‣ Rebate export showing best offers for each ISBN
‣ Scanning interface for assigning and allocating books to the right
rental partner at the end of the term
‣ The Verba Marketplace and Ingram: additional ways to maximize
your rental revenue
SPRING 2014
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WANT TO LEARN MORE?
Check out our next, in-depth session, where you will
learn:
‣ How to use Dynamic Rental
‣ Best workflow based on your term
‣ How other stores are using the tool
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QUESTIONS?
415-738-2374
NOW OR LATER