Exactly. When given the choice, students are not shopping with Follett for their books. Financial aid is really the only reason they would. Spend some time online on other sites and hear firsthand what students are doing for books. They're downloading pdfs, they're borrowing from friends, they're using their libraries, or they're buying older editions for next to nothing on Amazon. Follett's reliance on the "old ways" of CM is k–ling them. Physical Course Materials, as a sustainable business, is not going to last. We all can see that. Follett can't even do digital right. We're still using physical access codes for so many products that are often more expensive and take longer to get than simply getting instant access directly from the publisher for cheaper. So many schools going remote has really made this issue glaringly obvious.
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follett operated a retail shell game. They'd use the cost of acquiring a new store to offset the costs of existing stores. They'd heap re-model costs, management costs, training costs on the the new contract All of the labor came in the form of high priced senior staff from other area stores. The donating stores were relieved of their high priced salary for a few weeks a year. If there was a log retail plan, follett's business model worked.
Students found better deals online. They found online buyers for the used books. They learned they weren't captive any longer. They also learned that even if the professor wanted the newest edition of text, the older texts would still work. They discovered torrenting books worked. They found solutions to the skyrocketing cost of education. If gasoline prices increased at the same pace education and educational materials costs increased, we'd have found many alternatives to the gasoline engine by now.
Follett stays with what made them successful, but no longer will today except with financial aid. Lock in schools to Follett so it is difficult to change operators, lock in students to only purchase from the college store. Today's retail is all about efficient distribution, innovation, open competition, and of course low prices. Follett sells a commodity that is available from many places. The commissions is similar to rent that other retailers pay. Follett does not act like a retailer and does not compete. They succeed where there is no competition.
Your words are as true today as they were 10 years ago. Paying commissions to be on campus, paying to rehab stores, top line revenue projections that never materialized, special side deals and the list goes on and on.