vbc 2015 why rent? presentation
TRANSCRIPT
![Page 1: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/1.jpg)
Why Rent?: An Introduction to Multi-Partner
Rentals with Verba
VBC 2015
![Page 2: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/2.jpg)
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
![Page 4: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/4.jpg)
verbasoftware.comVERBASOFTWARE.COM (415)
How many of you have a rental program at
your store?
![Page 5: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/5.jpg)
verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
12.3%Percentage of units rented
rather than sold by Verba
stores for
![Page 6: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/6.jpg)
VERBASOFTWARE.COM (415)
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
![Page 7: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/7.jpg)
verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
36%Year-over-year increase in
rental units as percentage of
total store unit sales
![Page 9: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/9.jpg)
VERBASOFTWARE.COM (415)
If your rental price is not competitive, students
will choose a competitor.
![Page 10: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/10.jpg)
VERBASOFTWARE.COM (415)
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
![Page 12: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/12.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
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
![Page 13: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/13.jpg)
verbasoftware.comVERBASOFTWARE.COM (415)
Question: What kind of rental program do you have?
![Page 14: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/14.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
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
![Page 16: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/16.jpg)
VERBASOFTWARE.COM (415)
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
![Page 17: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/17.jpg)
VERBASOFTWARE.COM (415)
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
![Page 18: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/18.jpg)
verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
37%Percentage by which fully-
managed/kiosk programs
are
best store-managed
programs on new titles
![Page 19: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/19.jpg)
verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
40%Percentage by which fully-
managed/kiosk programs
are more expensive than
best store-managed
programs on used
![Page 20: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/20.jpg)
VERBASOFTWARE.COM (415)
A multi-partner rebate-based rental program (done well) is your best
bet for for your students.
![Page 24: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/24.jpg)
VERBASOFTWARE.COM (415)
Or, more practically:
RETAIL PRICE
- REBATE
RENTAL PRICE
![Page 25: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/25.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
BEST WAYS TO LOWER PRICE
‣ Lowering cost
‣ Raising rebate value
![Page 26: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/26.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
LOWERING COST
You can do this by sourcing your books at a lower
price.
‣ Buyback Pricing
‣ Online Sourcing
![Page 27: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/27.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
Raise your rebates by using multiple
partners.
![Page 28: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/28.jpg)
VERBASOFTWARE.COM (415)
What’s the difference between getting a single offer versus many?
![Page 29: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/29.jpg)
VERBASOFTWARE.COM (415)
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
![Page 33: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/33.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
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
![Page 34: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/34.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
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
![Page 35: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/35.jpg)
SPRING 2014
VERBASOFTWARE.COM (415)
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
![Page 36: VBC 2015 Why Rent? Presentation](https://reader033.vdocuments.site/reader033/viewer/2022051213/55c5ab6abb61eb541f8b4703/html5/thumbnails/36.jpg)
VERBASOFTWARE.COM (415) verbasoftware.comVERBASOFTWARE.COM (415)
QUESTIONS?
415-738-2374
NOW OR LATER