Campus Book Store facing drop in profits
August 30, 1995
Since Iowa State implemented its university charge program two years ago, Campus Book Store has seen a 34 percent drop in business, store officials said.
The store cannot survive if business continues to be lost at that rate, said Graham Gillette of Des Moines’ Gordon C. James Public Relations firm, which represents the store.
“There’s no doubt that we cannot continue to lose this percentage of business every semester,” Gillette said.
Gillette said Campus Book Store, 2300 Lincoln Way, is searching for a level playing field. Students are allowed to charge their book purchases at the University Bookstore in the Memorial Union to their university bills with student ID cards. The Campus Book Store has requested the same privileges, but has met resistance from the university.
ISU President Martin Jischke, Warren Madden, vice president for business and finance, and Campus Book Store representatives met on Monday to try to resolve the issue. The discussion was mediated by Wayne Richey of the state Board of Regents.
Madden said he agreed to look into a Campus Book Store proposal to use the university charge program if the store did its own billing, carried its own debt and purchased its own software. But, Madden said, he remained skeptical about putting the university between students and private business.
“It has been our view that we should limit the use of that [charge] account to on-campus facilities,” he said. “We don’t want the university in the middle of a billing debate between students and private business.”
Madden said Campus Book Store isn’t the only private business that competes with services offered to students by the university. He said apartment complexes, restaurants and health care offices all offer competing services, and to expect ISU to provide them access to a charge account is unrealistic.
“The goal we have is to help assist students at Iowa State,” Madden said. “Many students spend $400-$500 at the beginning of the academic term, and that’s a significant cash outlay. We’re trying to make that process easier.”
Gillette said he understands ISU’s motivation for the charge program and he doesn’t think the university is making a concerted effort to drive the bookstore, owned locally by Floyd and Sandra Ballein, out of business. But ISU’s reluctance to allow students to charge books purchased on their university accounts at private businesses, he said, makes it impossible to compete.
“We would carry our own debt, do our own billing and purchase our own software,” Gillette said. “All we’re asking is for a level playing field.”
Before the university expanded its charge program, the Campus Book Store annually commanded about 30 percent of the book sale business at ISU, Gillette said.
That, he said, is an indication that the campus community can support two bookstores and that students welcome the competition.
“It’s our belief that when there’s competition, students are going to benefit,” he said. “It’s a nice check and balance.”
Gillette said he is hoping Madden will allow Campus Book Store to use the university charge system, but store officials are prepared to take the issue further.
Options, he said, include asking the Regents for help, pushing for state legislation or exploring other legal avenues.