2008 Woodie Awards
$1.7 million deficit forces changes in bookstore
Rose Bittner
Issue date: 1/17/06 Section: News
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"We're making changes because the bookstore has struggled to make a profit or break even over the past few years," said Rick Anderson, assistant vice chancellor for administration. "We have begun affiliating our bookstore with Columbia as they are the eighth largest in the country and know how to run a retail company."
He added the company is, in its field, the third most profitable in the country with an impeccable record.
"The affiliation would gain us economies of scale, increased technology, marketing and promotions," said Anderson.
The bookstore's financial headaches started long ago. According to Anderson, the deficit is attributed to 15 years of obsolete books not returned for credit in a timely manner
"We could have continued to operate it ourselves at a 5 percent profit, but Columbia will bring in a 10 percent profit range and help us pay off the deficit much faster."
Eventually all bookstore profits will be allocated to UMKC student programs and scholarships. Anderson estimates it will take three-and-a-half to four years to pay off the $1.7 million deficit.
Sales from used books are expected to increase, one reason more students may frequent the bookstore. The bookstore will also offer many new student services. Ultimately, the bookstore has started conserving money by cutting jobs and reducing the pay of employees.
"From what I heard the employee transition didn't go very well. It just wasn't handled right," said former bookstore employee Ruby Jemison. "They offered me a job but I didn't take it because the pay wasn't good. They dropped the pay for my job as a receiving manager drastically from the previous $31,000 to $20,000 per year. The pay just wasn't worth it."
Current bookstore employees were uncomfortable with interview questions.
"To be quite honest, most of us thought that we would be rehired," said a former bookstore employee still with the University who requested his name be withheld. "I worked in the bookstore for five years. There was not a big interview process. I did have to answer a series of questions. Time wore on and I was eventually handed a letter saying it was time for me to go. Three quarters of bookstore employees were displaced in some way.
