Memorandum

To: Melanie Farley, Hamline University Bookstore General Manager

From: Chelsey Bonsante
Date: March 16, 2015
Subject: Book rental program feasibility study
Purpose
The purpose of this memorandum requests permission to research the feasibility of Hamline
Universitys ability to extend its current book rental program to all undergraduate students. After
approval has been received, I will produce a report on the feasibility of this project, and I will
submit this report on April 26, 2015.
Summary
The current problem is that there are 2,211 undergraduate students at Hamline University, and
only freshman and sophomore students are allowed to use the rental program (U.S. News and
World Report, 2015). Students in the book rental program have the opportunity to pay a flat rate
of $270 per semester to rent any textbook required for classes.
Within my peer groups, I have heard junior and senior students suggest that the rental program
be extended to all students to aid financial costs. I propose to research Hamline student body
attitudes regarding the current book rental program. In addition, I will review the plans for the
book rental program for the 2015-2016 school year, and I will analyze nationwide book rental
trends.
Given the research I have already completed, I will have no issue finding further information in
order to make an informed recommendation. This recommendation will be completed no later
than April 26, 2015.
Introduction
Textbooks are a major cost for any college student. A report released by The Government
Accountability Office (GAO, 2005) finds that the average student spends nearly $900 on
textbooks and supplies, or 26% of tuition and fees per year at typical public four-year colleges.
Textbook prices have increased 186% since 1986, or about 6% per year (GAO, 2005). This
report was released in 2005, so with the 6% inflation rate, students currently spend
approximately $1,440 on textbooks and coursework supplies.
High costs occur partly because there are new editions of textbooks created every year.
Publishers contend their new products aid learning, and help overworked teachers instruct and
evaluate (GAO, 2005). Alternatively, critics say, Publishers are gouging students, "bundling"
their products with unnecessary add-ons and undermining the market for used textbooks by
coming out with new editions (GAO 2005, para 3).

Since 2010, the number of university bookstores offering textbook rental programs in the U.S.
has skyrocketed, from just a handful to more than 2,000. At Penn State, across 22 of its 24
campuses, students have saved more than $5.5 million since the rental program started (Penn
State, 2012). Renting is an attractive option for students because a rented textbook costs
approximately 50% less than a new book. Also, the rental option is attractive for bookstores
because the lower prices entice the students into the store instead of purchasing online (Penn
State, 2012).
Two years ago, Hamline University instituted a book rental program called the BookSmart
Rental Program. This program is required for all freshman and sophomore students. The logistics
of the program are quite simple. The bookstore has a database of every student in the program
and each class he or she is taking. Once class registration is complete, the store has the ability to
package all the books needed for the next semester. The student then must come to the store, pick
up the textbooks, and return them during finals week. Each students pays a flat rate of $270 per
semester, and this rate is applied to the tuition bill.
Many students who are juniors and seniors have wanted to participate in the rental program
because it is simple and cost effective, but the program is not available for them. Students and
the book store would benefit from this program. This program allows students to save
approximately $870 per year if the average student pays $1,440 per year in books and supplies.
In addition, the BookSmart program keeps the students as customers at the bookstore. Most
students choose to seek cheaper versions of the textbooks online at sites such as Amazon or
eBay.
The following paragraphs consist of the research I have completed, the research I plan to
complete, and the criteria that I will base my recommendation upon. In addition, I have included
my personal qualifications and experiences that have prepared me to conduct this research along
with a schedule of completion for this feasibility project.
Proposed procedure
The following section will describe the research, both completed and proposed, and the criteria
that will be used to make my recommendation.

Completed Research
I have identified the number of current undergraduate students participating in the book
rental program.

The savings per year to undergraduate students has been researched and calculated.
The benefits of renting versus buying textbooks have been analyzed.
I have researched the inflation rates of textbooks over the last 30 years.
I have researched the logistics of the BookSmart program.
The symbiotic relationship between the students and the bookstore has been researched.

Future Research
I will conduct a student survey researching how many students would like to have the
option of participating in the book rental program rather than not being able to participate
or forced participation.
I will research which majors would specifically benefit from this program.
I will research the cost of implementing the program to all students versus only allowing
freshman and sophomore students participate.
I will conduct an interview with the bookstore management to find out the future plans of
the book rental program.
I will research national book rental trends.
Criteria
Upon completion of my research, I will make a recommendation based upon the following:
Are Hamline University undergraduate students willing to continue their participation in
the BookSmart program?
Do junior and senior students want to participate in the book rental program?
Does Hamline University monetarily benefit from extending the program to all students?
Qualifications and credentials
I am currently an undergraduate student participating in the BookSmart program provided by
Hamline University. I understand the logistics and procedures that go into renting and returning
all textbooks assigned by professors. In addition, I have completed research studies on pyramid
schemes occurring on college campuses and the feasibility of providing weekend transportation
to undergraduate students.

Completion Schedule
Task

Completed by Date

Questionnaire
Progress Report
Feasibility Graphics
Feasibility Rough Draft
Final Feasibility Report
Power Point Presentation

March 22, 2015

March 29, 2015
April 5, 2015
April 12, 2015
April 26, 2015
May 3, 2015

References
U.S. News and World Report. (n.d.). Hamline University.
Retrieved from http://colleges.usnews.rankingsandreviews.com/best-colleges/hamlineuniversity-2354
U.S. Government Accountability Office. (2005). College textbooks: Enhanced offerings appear
to drive recent prices. Washington, DC: Author.
Retrieved from http://www.gao.gov/assets/250/247332.pdf
Penn State. (2012). News. Textbook rentals: a growing trend in higher education.
Retrieved from http://news.psu.edu/story/149169/2012/05/03/textbook-rentals-growing-trendhigher-education