BookiT

1
BookiT

• Presented By
• Susan Maas
• Jared McCauley
• Dusty Tovrea
• Joe Valine
• John Vanover

2
Overview of Presentation

• Overview of Concept
• Industry Analysis/Target Market
• Management Team
• Finance
• Growth Strategy

3
BookiT Concept

• What is BookiT?
• Alternative to the CSUS Hornet Bookstore
• Lower cost
• How can BookiT sell at a lower price?

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2004-2005 RETAIL SALES for BOOKSTORES(unadjusted)
Period 2004 Final(Millions of Dollars) 2005(Millions of Dollars) Change2005 over 2004
January 2,070 1,969 (4.9)
February 1,072 1,027 (4.2)
March 1,036 1,038 0.2
April 987 940 (4.8)
May 1,071 1,055 (1.5)
June 1,159 1,084 (6.5)
July 1,128 1,138 0.9
August 2,043 2,079 1.8
September 1,493 1,450 (2.9)
October 1,032 988 (4.3)
November 1,044 1,066 2.1
December 2,089 2,090(p) 0.05
YTD 16,224 15,924 (1.8)
http//news.bookweb.org/news/4200.html
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Textbook Industry

• Composed of brick and mortar businesses and
  internet companies
• Estimated 6 billion
• Used books make up 28 of market and account for
  1.8 billion

http//news.bookweb.org/news/3871.html
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Target Market

• Sacramento State Students
• Price sensitive
• Working while attending school
• Need for convenience

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• Competitors
• Sacramento State Bookstore
• Largest share of the market
• Convenient
• Contains all required and recommended books for
  classes
• Large markup
• Low buyback price
• Barnes and Nobles Borders Books
• Two of the largest book selling companies
• Many locations
• Internet web site
• Specialize in books used for leisure and not
  textbooks
• Amazon.com
• Large internet company
• Convenient i.e. never closed
• Limited titles
• Customers must wait for books to be shipped

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Key Personnel Resources
Name Title Experience
Jared McCauley Co-Manager Human Resource, Management, Team Leadership
John Vanover Co-Manager Customer Service, Inventory and front end management
Susan Maas Associate Scheduling, organization and directing
Dusty Tovrea Associate Customer service and organization
Joe Valine Associate Sales, leadership, and team organization
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Management

• Jared McCauley
• FedEx Ground- Service Manager
• Human Resource Experience
• Safety, Training, Productivity
• Retention Team Leader
• John Vanover
• Safeway- Front End Manager, Head Clerk
• Recruitment and Hiring Experience
• Customer Service
• Inventory and Merchandising Experience

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Financials

• Initial 5 target for market share.
• 28,529 students, 5 1,426
• Average spending 300 per student
• Sac state expects a 2.9 growth per semester
• Low target for ½ growth per semester, and 1
  annually.
• Principal investment combined 100,000
• Angel investment combined 50,000
• Loan for sixty months for 150,000 at 10.25
• Initial startup costs total 284,646

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Financials
Year 1 Year 2 Year 3 Year 4 Year 5
Sales 966,293 1,028,986 1,404,974 1,542,942 1,709,888
COGS 749,329 668,376 702,487 771,471 854,944
Gross Profit 168,649 309,159 632,237 694,324 769,449
Operating costs 224,827 221,369 232,208 236,981 242,835
NEAT -80,278 9,632 375,929 433,242 502,514
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Long-Term Plan

• Growth/Expansion
• UC Davis
• Chico State
• Other Locations

13
Thank You