University of Virginia Library

Committee Finds Co-op Unfeasible;
Capital Required Proves Prohibitive

By Gary Melton

Following an intensive study, a
Student Council committee has
determined that the establishment of a
student co-operative bookstore at the
University is unfeasible.

The committee added, however, that a
part-time bookstore run as an adjunct to
the present Newcomb Hall Bookstore is
still being regarded a possibility.

According to Scott Parker, the
chairman of the committee which is
looking into alternatives to the present
bookstore situation, "the cost of a student
co-operative at this point would be
prohibitive."

Mr. Parker said that a minimum of $200,000
capital would be necessary to start a successful
co-operative. He added that a "successful
co-operative has not been started since some
time in the 1940's in this country."

Corroborate Williams

The committee's findings corroborate the
contention of John "Billy" Williams, president
of Anderson Brothers and University
Bookstores. In the Virginia Law Weekly of
November 13, 1970, Mr. Williams stated that
student co-operatives "require a minimum of
$300,000 capital and 25,000 students to be a
success. There's no market for one here."

According to the committee chairman, the
proposed adjunct to the Newcomb Hall
Bookstore would offer a discount of about 10
percent and would give an additional savings to
student by not charges a sales tax. It would
operate only one month a semester and would
sell hardback books.

Vice President of Student Affairs, D. Alan
Williams, revealed in a memorandum dated
November 9 that the Newcomb Hall Bookstore
has been restricted in its sale of hardback books
by an"unwritten practice."

Mr. Parker noted that the gross margin on
hardback books is only 20 percent at most.
"The effect of this is that they make very little if
any money on hardbacks," he said.

Absolute Minimum

Therefore, in order to sell hardbacks at a
discount, the committee found that overhead
would have to be held at an absolute minimum.
The principal cost would be student labor
during the two months a year in which the
bookstore would be open.

It is unlikely that the proposed adjunct
could give credit, as do the Corner bookstores.
"If we wanted to finance it, we would have to
finance it by borrowing money," Mr. Parker
said. The interest charges would add to the
overhead and make offering discount prices
more difficult.

The proposed bookstore might utilize
national credit services, such as Bankamericard
and Master Charge, he continued. However, this
possibility is also slight, because the credit
services would levy a charge of five percent on
the bookstore.

Mr. Parker said his committee
investigated two possible sites for the proposed
discount bookstore, One is the pool room in
the basement of Newcomb Hall. "We could just
stack the books right there and the one we
didn't sell we could send back to the
publishers,"he stated.

However, he added the University Union is
considering a conversion of the Newcomb Hall
basement into a rathskeller. In such an event,
this space would be unavailable.

The committee is also considering placing
the bookstore adjunct in the basement of one of
the McCormick Road dormitories.

The committee has negotiated with the
management of the present Newcomb Hall
Bookstore about the possibility of running the
operation of the proposed adjunct through the
accounting procedures of the Newcomb Hall
store.

According to the Virginia Law Weekly.
Newcomb Hall administrators contend that
selling textbooks at discount prices would be
"price war" and would be attacked because the
store would have the privileges of a state
institution.