After 2 years of running a bookstore as part of a larger ministry the bookstore manager appeared to have increased sales decreased net revenue. We had to find out how to improve the situation.
The Challenge:
- The manager had developed a community bookstore and was running similar to other stores that he had managed.
- Many items had been added to the store such as various versions of Bibles, Commentaries and Church curriculum and communion supplies. Those tended to have a much lower margin than other resources.
- The organizations own published books including the founders resources were difficult to find, getting lost in the sheer volume of other resources.
- The discounts of self-published books and those of the founder were 75 - 90% off retail vs 30-45% on standard purchases.
- The welcome center and bookstore shared the same facility but the leadership of each section could not agree on mutual times of operation, holiday schedules, security protocols etc.
- The current night shift did not generate enough income to justify the staffing.
The Solution:
- Created a strategy to highlight the organizations resources and increase exposure and sales since it directly supported the organizations mission and realized a better margin.
- Developed a improved process to get restocked resources just in time from the on site distribution center that provided fulfillment services to on-line purchases.
- Adjusted staffing and ultimately eliminated the evening shift.
- Met with and worked out a mutually agreeable schedule with the welcome center.
The Results:
- Transitioned to a new bookstore manager.
- Broke even in the first year.
- Created a plan to grow net revenue by 10% per year.