Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 987]

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984

BOARD OF TRUSTEES

[June

28

1940, at 2 o'clock p.m. Under the University Statutes the Board of Trustees should be represented at this opening. Does the Board desire to delegate authority to its President or the President of the University to approve the award of contracts to lowest bidders, provided they are within the funds available for this building, since it is desirable that construction be started as soon as possible in order that the complete hall may be ready for occupancy by September 1, 1941. O n m o t i o n o f D r . M e y e r , t h e P r e s i d e n t of t h e U n i v e r s i t y w a s authorized to a w a r d contracts to the lowest acceptable bidders. 1LLINI U N I O N BUILDING BOOKSTORE (20) T h e Advisory Committee on the Operation of the Mini Union Building recommends adoption of the following policies governing the operation of the bookstore: T h e building budget policies of the Mini Union Building state that no attempt will be made to make a profit in the operation of the Mini Union Bookstore. Therefore, it seems that the best method of operation would be that of a true cooperative. It would not be necessary to charge a fee to join—this would be one of the privileges available to those paying the Mini Union Building service charge. It is suggested that dividends, based on the net profits of the store, be distributed annually, with the requirement that total purchases amount to $5.00 or more during the fiscal year before the purchaser is entitled to any dividend. A cooperative store has many advantages over any other method of operating a store if profits are to be returned to customers. In the case of cash discounts, one can be accused by other merchants of cutting prices and it might eventually lead to a price war. It is felt that the aim of the Mini Union Bookstore should be to maintain friendly relations with all competitors. Further, there are certain cases where it is impossible to give cash discounts due to existing Fair T r a d e laws. T h e cooperative method is preferred over the cash discount because of the difficulty in determining a fixed cash discount that would allow one to operate at the "break even" point. Since the store must meet its operating overhead, such a method would be hazardous. T h e cooperative also offers an advantage in that the amount of the dividends returned to the students and faculty depend entirely on their support, which should encourage their patronage. It is the policy of competing stores to give the instructional staff a cash discount of id% on all purchases and it is suggested that the Mini Union Bookstore. operate under the same policy. This suggestion is based on the fact that any faculty member can order directly from publishers and secure a 20% discount. Those members of the faculty who pay the Mini Union Building service charge should also be permitted to participate in the dividends. It is felt that the bookstore should deal in new and used books, paying a maximum of 50% of list price in cash purchases of used books from students. T h e condition of the book and the probability of its use will govern the price to be paid. The maximum resale price on these books should be not more than 20% off list price, generally 25% to 30% off list. Consigned books should be handled on a 20% commission of the sale price. In no case should books be consigned at higher prices than 20% off list price. It is proposed that accounts receivable be accepted from both faculty and students. W i t h close supervision and care, losses should be negligible. This is a service rendered by competitors and the Mini Union Bookstore should be able to grant the same service. O n m o t i o n of M r . J e n s e n , t h e s e p o l i c i e s w e r e a p p r o v e d . CONTRACT CHANGE ORDERS ON P.W.A. PROJECTS (21) Pursuant to the authorization of the Board of Trustees I have approved the following contract change orders and request confirmation of such approval: