quarter ended June 30

 A total of 1250 worth of advertising copy was paid for and correctly charged to the advertising expense account during the quarter. An examination of the account shows that 400 of radio ads for the business will be aired during the first week of july which is the beginning of the third quarter of operations.  

Recently, two of the top three college textbook publishers announced plans to get into the textbook rental business. On its face this seems like a good deal for college students, but the real question is whether this heralds a beginning of cheaper textbook prices or is just another pricing stunt from an industry famous for stunting.

For years, the college textbook publisher business model has been consistent. Most of the revenues the publisher gets for a new edition comes in the first semester. Over the remaining life of that edition, competition and used books chew up an increasing amount of the market share and reduce the publisher revenues to a trickle. This is why publishers charge high prices for the books so they can be sure to recoup their expenses. From a student’s perspective, the average cost of that textbook is similar — almost all copies that first semester cost full retail price, with cheaper used books making up more of the volume in subsequent semesters. Used book dealers make their money after the first semester assuming they bet correctly on the books still being in demand. (Meaning, they buy back books they think will be in need again, and decline to buy back books that won't be used and longer.)

(See how the money gets divided in the secret behind textbook costs.)

In a textbook rental scenario, things change for everyone:

• Publishers get less money that first semester (reflecting the 40-70% of retail price floated by Cengage), but continue to get similar revenue levels in subsequent semesters because there are few if any used books. Their revenue curve, which before was extremely front-loaded, is now more level. In fact, the ongoing revenue potential could in some cases extend the hyper-accelerated revision cycle leaving the same edition in play for longer (further raising the profitability of that edition.) Sounds like a win for the publisher.
• Students get to spend less that first semester for their textbook, but in subsequent semesters can end up paying more since there are no more cheap used books. (This is especially true in cases where the student wants to keep the textbook, since in the absence of used books they are forced to purchase at full price.) Sounds like a loss for the student unless they’re in that first semester.
• Used book dealers really get screwed on this one, since their supply and market both dry up entirely. A resounding LOSS for them.

For years the used book market has been kicking the publishers' asses, revenue-wise. For a while they had some success with bundling the textbook with workbooks or CDs/DVDs, knowing that bookstores wouldn’t buy those back and forcing them to replenish their stocks from the publisher (at full price). Now, with rentals, it appears that they’ve hit on another tactic that could solve their problem.

How about the college student’s problem of higher textbook costs, though? It doesn’t seem like their expenses are getting a reduction… #FAIL

 

I have been searching for revenue cycle, well the meaning. So far all I have come up with is it captures transactions including sales orders received, accounts receivable, and the payment of cash. There has got to be more out there, any suggestions are greatly appreciated.

If you aren't into college yet and have time to plan ahead, here is some good information on the whole FAFSA process and how to minimize your EFC.

One of the fun things about the holidays is the opportunity to just hang out with relatives that you don't normally see. So we're spending some time with my sister, who has a Wii console game.

Those things are addictive! I spent some time creating an avatar, then we started playing some of the sports games. (Funny, I recall when Atari and company originally started mass producing gaming consoles back in the stone age, they also started with the same basic sports games -- baseball, tennis, ping pong...)

The big difference between Atari and Wii is that if you played Atari for two hours maybe your thumb would hurt. Play the Wii for two hours, on the other hand, and look forward to aching muscles for a few days. The Wii is much more holistic an experience, with the controller forcing you to use more natural movements to mimic the sports you're playing. The bowling game, for example, pretty much behaved exactly as real bowling does. Indeed, my brother's Wii bowling score is the same as his regular league average in the real world.

Very fun, the Wii, I highly recommend it.  Unless, of course, you'd rather just go out an experience the real world -- that can be fun too.

Merry Christmas to all 

Thanks to your votes for nominations and first round of voting, College-Cram is a finalist for this year's awards in the "How To" category. Mashable recognizes social networking websites in various categories in its annual awards competition. College-Cram is nominated as "How-To" since Mashable doesn't feature a "social learning" category (yet). In fact, College-Cram.com is the only social learning site in the Open Web Awards competition this year, and it will take the help of students on campuses around the world to put them over the top in the final round of voting.

Social learning is a mashup of social networking and educational resources. Many websites offer tools or frameworks that help students organize themselves, but a true social learning site also has actual academic help for students trying to pass their courses. College-Cram is a true social learning site. Rudy Lopes, (VP of Operations) said “Maybe if we win, next year they will add a social learning category. That would be a good thing.”

You can vote once per day for each email address you have. When you submit your vote you receive an emailed confirmation link to complete the vote. College-Cram.com made it easy to vote by pre-filling the form to the left - just add your email address and click submit.

If you are concerned about giving out your email addresses (and you should be), we voted last year and heard nary a peep back all year. This is administered by PollDaddy – the same folks who run polls for us from time to time. We trust them or we wouldn’t be asking you to participate.”

As they say, “Vote early and vote often!” Voting runs through December 14, 2008.

Auto Industry: Help! We need 25 Billion dollars right away, or we are going out of business.

Congress: Hold on here folks. You don't even have a plan. Think this through and get back to us.

Auto Industry: You were right. We need 34 Billion dollars right away, or we are going out of business.

Congress: That's more like it. Now, don't spend it all in one place. See you later.

The presidential election is over, but the Mashable 2nd Annual Open Web Awards voting is just starting. This is your chance to tell the world how you feel about College-Cram.com.

College-Cram.com has been nominated for Mashable’s Open Web awards. Our nomination is in the "How To" category. You can vote once per day for each email address you have – and I have several. They send you a confirmation link to complete the vote.

We made it easy to vote by pre-filling the form for you - just add your email address and submit the form below.

(Note: Voting is closed for this award.)

Mashable recognizes social websites in various categories each year. College-Cram is a social learning site - mashup of social networking and educational resources. (We nominated ourselves as "How-To" since they don't feature a "social learning" category.)

If you are concerned about giving out your email addresses (and you should be), I voted last year and heard nary a peep back all year. This is administered by PollDaddy – the same folks who run polls for us from time to time. We trust them or we wouldn’t be asking you to participate.

Thanks for your help. Vote early and vote often! Voting runs until December 15, 2008.

Some folks are ecstatic about Obama's landslide victory, others are not, and still others are cautiously optimistic about what he might do once inaugurated. In my efforts as a concerned citizen, I have a few suggestions for the President-elect that might make his job a bit easier and more appealing to all. Here's one for now:

Hire Joe Lieberman

I know Senator Lieberman said some harsh things about you, and went so far as to endorse your opponent for President. Still, recall that after his oh-so-close bid to become the Democratic Vice President in 2000, your party froze him out in his 2006 re-election bid and he had to rely on the kindness of Connecticut Republicans and Independents to get re-elected. (This despite calls for him to quit from party chairman Howard Dean and Hillary Clinton...)

He has continually sided with the Democrats on most issues, although continuing to question the party stance on others such as the war in Iraq. (He does know a thing or two about this, having served for years as chairman of the Homeland Security committee.) It's ironic that he's friends with Senator McCain, as Lieberman is probably McCain's counterpart as a Democratic maverick.

Now we see the Senate Majority leader Harry Reid wants to "punish" Joe for saying and doing what he's always done -- holding the party accountable for what it says and does.

This is a tough situation, President Obama, especially for a candidate who ran on the promise of change. Political retribution is very old-school, but clearly the Democratic party doesn't want Joe to play on its schoolyard anymore.

So here's my suggestion: appoint Senator Lieberman to your cabinet as Homeland Security Chief. As I said he knows a thing or two on the subject. He'd be sure to get Senate approval by Republicans who like him and Democrats who want to see him gone. His replacement would still be a Democrat, as his state has a Democratic governor. You'd be seen as somebody who is willing to listen to all sides, and take those sides into your inner circle.

Everybody wins! 

Shortly after the election, I was sent the following rant by a good friend who was trying to vent his frustrations. While I don't agree with everything he says, he makes some very excellent points. Here it is, you be the judge: 

The trouncing of the Republican Party at the recent election was far more widespread than simply the McCain-Palin ticket’s defeat by Barack Obama.  It appeared that in nearly every case, the Democrats exceeded expectations with the result that they now control all three branches of government.

What happened?

Republican pundits are looking for the license plate of the truck that hit them, and seem to be saying that the driver of the truck was either a) Obama, b) Sarah Palin, or c) the economy.  While all of those were contributors, the fault seems much deeper than that, and lies within the Republican Party itself.

Let’s start with the unpopularity of the Bush administration.  By that I don’t mean simply the President himself, but those associated with the leadership of the party, with him simply being a beneficiary of the political machine that took hold after 9/11 and, emboldened by that event, laid waste to truth, ethics and decency!

The truth is, the political tactics of the Republican administration, and the lengths to which they would go to increase their power, have become apparent to an increasing number of Americans (including myself).  The evidence is clear to any informed person:

• Iraq invaded over mythical WMD’s – This started the process, with the policy determined and the evidence selectively presented to justify the invasion.  Bad Intelligence does not fully explain the extent to which information was twisted, including what Colin Powell was tricked into presenting at the U.N. to justify a pre-emptive attack.  The mistakes made after that just compounded things, including the decision to “fire” the army, leaving hundreds of thousands of unemployed trained and armed men hanging around just waiting to be scooped up by the insurgency.

• Katrina – In the aftermath of 9/11, the Department of Homeland Security was given authority over many things, including FEMA, in order to make it a powerful cabinet department.  Having FEMA under them proved to be a disaster when they were unprepared to respond to Katrina, even given days of advanced notice of its potential.  President Bush’s congratulating of Secretary Brown’s “Great Job” was a clueless and typically wrong assessment that demonstrated that cronyism was valued over performance.

• Hiring and Firing at the Justice Department – It would appear that the Republicans were using litmus tests to fill any vacancies in the various branches of government, especially the Justice Department.  Anyone whose illegal back ground checks (including Internet searches) did not establish their staunch Republican credentials need not apply.  The firing of 8 U.S Attorneys for (at least) flimsy and political reasons was a pattern that politicized a department that should be about justice, not ideology.

• Editing Science – There are numerous instances where scientific reports were edited and parts removed or changed to match the administration’s view of the “facts”, specifically with respect to global warming.  The scientific method does not and should not have an agenda.  If the administration did not agree with the findings, they were free to offer a rebuttal, but by censoring the studies before they were issued they proved that they are only interested in truth if they agree with it.

• Executive Privilege - Dick Cheney’s repeated stonewalling of the public’s right to know how government is making decisions and spending their money is an affront to democracy exceeded only by the Watergate coverup.  He has repeatedly demonstrated his contempt for the public interest through a policy of secret deals and catering to special interests of the military and oil establishments that he came from.

Now, let us get to the election.  Despite the unpopularity of the Republican President, Senator McCain appeared to have a real chance of victory in the election.  Part of his appeal was his having not “gone along” with the administration on many counts.  Being a “maverick” of a party whose leader was so unpopular had potential.  Even favoring current policy on the war was not a disqualifying factor since his military credentials left many thinking that if we’re in it anyway, he could be the one to get it right.  Given that, the Republican Party did Senator McCain no favors.  While the real stories are sure to come out, it would appear that the Republican Party undermined Senator McCain’s efforts at several critical points.  

• The choice of Sara Palin was clearly not his, and was obviously forced on him to satisfy the Party’s Right Wing.  It undermined his best campaign strategy – to attack Obama’s lack of experience - and fed on the fears people had that McCain was too old, since Palin would be the President in case of McCain’s death.  She was clearly being “handled”, with carefully picked interviews and no open press conferences.  Even that back-fired as the Katie Couric interview was a disaster and confirmed people’s tendency to consider her unprepared and cost Senator McCain credibility on his judgment.

• While negative campaigns are common to both sides, the type of dirty tricks employed by the Republicans was so out of character for Senator McCain that it tarnished his image, which a key part of his appeal.  Robo-calls and “surveys” that spread misinformation were both elements of the “politics of personal destruction” that Republicans had so decried when practiced by the Clintons in the 1990’s.  The Republicans seem to have perfected this approach, led by Karl Rove, and I find it abhorrent.  Above all, John McCain has always been a decent and respectful person, proving it by bucking his own party with initiatives to reform campaign financing and eliminate pork-barrel spending.  He would have been better served to let that part of his character be reflected in the campaign.

The financial crisis that hit just weeks before the election certainly hurt Senator McCain’s chances, since the incumbent party will always be blamed for a downturn in the economy – as evidenced by the favorite slogan of the Clinton campaign in 1992 – “It’s the Economy, stupid”.  In many cases, including President Bush I in 1992, it is simply unfortunate timing tied to a typical economic cycle.  This year, though, it is a justified blame since the Bush administration regulators have been asleep at the switch while easy credit and imaginative Wall Street investment houses were allowed to run amok and manufacture ways to make money out of nothing and build a house of cards of debt that came crashing down at the worst possible time.

The net result of this is that the Republicans cannot be trusted.  They appear to be willing to do whatever it takes to gain and keep power.  The pattern of deceit, unethical practices and arrogance has not gone unnoticed, with many moderates such as myself disgusted with what they have seen and many abandoning the party choice despite his simply being smeared by those around him.  

I am embarrassed to say I am a Republican.

Wow, powerful stuff.