Starting April, Western Michigan University's bookstore will be managed by a private company, Follett Higher Education Group, Inc., to provide lower costs on certain goods and better services for students.
The university will enter into an initial three-year agreement, which will make the company in charge of all bookstore operations, including the sale and rental of books, clothing, technology and other items.
The decision to outsource the bookstore operations follows struggles by the university's' bookstore to generate enough revenues, which have come down due to competition from online companies in the markets.
"The challenge in the market is that all of these online companies are taking away a lot of business, like Barnes & Nobles or Follet," Sandra Steinbach, WMU's associate vice president for business and finance, told Michigan Live.
"We have to buy books at individual levels. If you can buy at national prices, you can get a better price than a local bookstore that only sells to the local community. They offer better pricing."
In Michigan alone, 10 of the state's 15 public universities have approached private firms to run their bookstores and Follett operates around 900 bookstores countrywide.
The university's bookstore had to dismiss five employees due to generation of poorer revenue, which dropped 6 percent from last year's $16 million.
Steinbach told the newspaper that as the company has maximum access to used books, it will in turn boost used book offerings and rental options for their students.
Alex Lee, a WMU senior, told the newspaper that he had spent around $600 per semester on textbooks in the past. However, after consulting his friends, he purchased his books, last semester, on Chegg.com, which proved to be cheaper.
This year, when he was forced to purchase a women's psychology book from the bookstore, it cost him $180.
Lee said that most of the times, they are required to purchase a book written by the professor, which is available only at the book store for higher prices.
Steinbach said that at the start of every academic year, the bookstore experiences increased sales, as freshmen are unaware of the prices and purchase it only from the bookstore. But, when they complete their first year, they too bank upon online sites such as Amazon for cheaper books.
