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What resources or information would help you defend your store against being leased?
LEASE CALCULATOR

Lease-to-independent Store Contribution Calculator

One of the biggest topics of discussion when institutions consider leasing their bookstore to contractors is the claim that outsourced stores financially outperform self-operated stores.

Citing economies of scale and group purchasing power, lease operators often attempt to convince institutions that their contribution to the bottom line will be greater than what’s experienced with the independent store. 

This is an important calculation, and one that shouldn’t be overlooked. Store directors facing lease discussions can use our contribution Comparison Calculator to get an estimate of how their store’s income, expenses, and margins would compare to the commissions offered in a typical lease contract.

Use this online calculator to get a ballpark figure of how the bottom line contribution would compare to in a lease environment. The results are typically favorable toward the independent store, so feel free to print the final document and share it with your administrator!

Evaluating Outsourcing Contracts

When an institution is considering the decision to outsource the campus bookstore, it’s important to consider all related costs, including transition and service costs that are often overlooked. Read this guide to get a better understanding of the real financial impacts of transition to lease.

INSTRUCTIONS
This tool is intended to provide a ballpark estimate of how your store’s campus contributions would compare to a lease store with the same sales. Several fields are locked to prevent calculation errors. You are able to modify the fields necessary to complete the comparison.
  • Add your store name at the top of the tool.
  • Select the date range in the dropdown box to the right.
  • Enter your sales by category in the Actual column. The categories that are not typically commissionable by a lease operator will remain zero in the Leased Store column; all other sales numbers will automatically update.
  • Enter the total of General Merchandise Sales that were discounted or below 25% margin in the Lease Store column only. These sales figures should have already been included in the Actual column in one of these categories: General Book, Supply Sales, Insignia Product Sales, and All Other Sales. This should not include the following categories that have already been excluded: Course Book Rental Income, Digital Course Materials, Technology Products, and Regalia.
  • Enter your Net Income (before commissions) at the top of the second section. The Leased column will automatically update.
  • Enter your commissions, donations, and other campus contributions. 
    12% is set as a default percentage for lease store commission on eligible sales. This field can be updated if you believe that percentage should be higher or lower for your particular store.
  • Enter your rent and utilities. The Lease Store column will automatically update to the same amount. If you believe that these numbers should be higher or lower, you’re able to modify these fields.

    Compare the total net benefit to the university. It’s shown in dollars and by percentage of total sales in the bottom two rows of data.
  • Print your data. Use your browser's print feature to print and save your data for future reference.


Login to access the Comparison Calculator.

To view this information, you must be a full college store member of NACS and logged in.  If you are logged in and still unable to view the information please contact Member Concierge Services at membership@nacs.org.

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