Outsourcing bookstore is being considered

Editor's note: This story has been changed to reflect that the Seattle U Bookstore makes $500,000 to $600,000 a year for the university and contributes $400,000 of "in kind" services like discounts and scholarships. We regret the error.

In response to rising prices and hard economic times, Seattle U administrators are currently discussing the possibility of outsourcing or leasing the student bookstore to an outside company.

Currently the bookstore is operated as a nonprofit institutional bookstore, but companies like Barnes & Noble and Follett are among the options for a takeover that would take place by the beginning of fall quarter 2009.

"Seattle University is committed to providing our students, faculty and staff with a bookstore that offers the highest quality service, instructional materials and merchandise at competitive and affordable prices," wrote Ron Smith, vice president for finance and business affairs, in an e-mail to faculty and staff. "To best serve our community, we are reviewing our current business model to determine the extent to which we deliver on this commitment in the most cost effective manner."

Smith noted 20 of the 28 Jesuit universities in the country outsource bookstore operations. But some faculty and staff oppose following that trend.

"The visual difference is striking between the two [operations]," said Bob Spencer, manager of Seattle U's bookstore. "We've basically customized this store to meet the needs of the students and faculty at Seattle University, and there are many products we carry that leasing companies don't support."

Spencer has been in the bookstore business for more than 30 years and worked for about 10 years with large leasing companies.

"I know both sides of the industry," he said. "I know specifically what the leased stores offer in terms of services to campus and in terms of money, and really the issue of outsourcing comes down to one of money."

Whereas now the bookstore is run through the university itself and makes Seattle U from $500,000 to $600,000 per year, an outside company could offer the university a lump sum up front for the bookstore and a 10 percent to 20 percent commission per year after that.

The Seattle U Bookstore also provides $400,000 of "in kind" services, such as discounts for faculty, book scholarships and donations.

"They're not giving the campus money. In effect they're loaning the campus money because they expect to make that money back," Spencer said. "And one way is raising prices."

The possibility of outsourcing raises concerns for some faculty members, who feel a larger company wouldn't have a positive impact on the Seattle University campus.

"It's not the case, as far as I can tell that prices are going to be any lower for textbooks," said Steen Halling, professor of psychology.

Whether or not prices will rise, fall or remain the same will depend upon the company chosen to run the bookstore and how they chose to operate it. Other professors worry that companies like Barnes & Noble or Follett wouldn't support the university's mission.

Whereas Spencer had supported the sale of artisan goods benefiting the poor in Nicaragua and worked to send books to poor countries, professor Gary Chamberlain feels a big chain wouldn't preserve those charitable ties.

"[Spencer] has been very helpful," said Gary Chamberlain, professor of Christian ethics. "Eight or nine years ago a number of students worked with the bookstore to make sure all of its products are sweat-free, and Bob was pretty helpful in bringing that about."

A possible takeover could mean that current employees lose their jobs.

"Would they bring in their own people, or would they allow our staff to work at the salary level that they're at now?" said Chamberlain, "Sometimes a company comes in, the staff are guaranteed their salaries for one year or maybe two, but then they're on the market again in terms of salaries-everything becomes negotiable."

Smith wrote in an e-mail that a decision hasn't been made yet but that, as in the university's outsourcing of the Office of Information Technology to SunGard Higher Education, administrators will "insist" bookstore staff be offered similar or current positions should the bookstore be outsourced.

The decision of whether to outsource or not will likely be made in the next month. The academic assembly will meet with Smith to discuss the issue Thursday.