Scholastic Cuts Cash Profit for Book Fairs

By Debra Lau Whelan -- School Library Journal, 8/25/2009 4:46:00 PM

Many school librarians will see a five percent drop in the cash profit they earn from Scholastic book fairs—and they’re unhappy about it.

Media specialists returning from their summer vacations received a letter from the New York-based publisher announcing the introduction of Scholastic Dollars as part of an improved profit and rewards plan for those participating in its book fairs.

But the news means that the 23,000 school librarians nationwide who exceed $3,000 in sales at these fairs—and qualify to keep 30 percent in cash profit—will now see their incentive reduced to 25 percent.

“They’re keeping five percent of my profit,” Lisa Hunt, an elementary school librarian with Oklahoma’s Moore Public Schools, told SLJ. “That five percent cut equals about $500 a year for me—and because of that I’m going to have to reevaluate my decision to continue these book fairs.”

Hunt was one of several who posted complaints about the change on LM_NET, an online discussion board for school librarians. Another was Tony Pope, a media specialist at McHenry Primary School in Rome, GA, who says the change translates to about $150 to $200 less cash for his media center. After digging through his financial records, which date back 20 years, he discovered this wasn’t the first time that Scholastic reduced its revenue to school librarians. Pope says his Scholastic book fair cash profit was also slashed from 35 percent to 30 percent sometime around the summer of 1997.

“I am more disappointed than upset,” Pope told SLJ, saying he understands that these are tough economic times. “But if times are tough and helping Scholastic means my profit is reduced, is it going to be raised when times get better? With the drop in our profit percentage about 12 years ago, we are now making 10 percent less!”

Alan Boyko, president of Scholastic book fairs, defends the move, saying the introduction of Scholastic Dollars is meant to simplify the reward program and offer more options to customers, with the primary goal giving “all kids access to wonderful new books.” And in the end, he expects libraries to break even because they’ll be selling more books and new product offerings.

The Scholastic Dollars rewards program works like this: librarians whose book fairs exceed $3,000 in sales qualify for 25 percent in cash profits, plus an additional five percent in Scholastic Dollars, which can be used to purchase hundreds of product—like furniture—as well as a range of other materials, including books from Scholastic and leading publishers such as Simon & Schuster and Random House.

“Now with Scholastic Dollars, customers can not only purchase library-bound books but also Smart Boards, magazines, audio visual aids, and thousands of other resources,” Boyko says, adding that even those schools generating the smallest revenue have more “purchasing power” because instead of the free books they once received, they now qualify for Scholastic Dollars, which are “as good as—or even more valuable—than cash.”

But that doesn’t matter to Hunt, who says the reduced cash profit limits her options. She likes the flexibility of using her extra book fair cash to pay for author visits and equipment like classroom listening centers, which she says she found elsewhere much cheaper and better quality.

Equally important, Hunt says she wants to preserve the eight existing relationships she has with other publishers and vendors such as Follett.

“I’m not a sole source person—I also have a great relationship with my Capstone representative,” Hunt explains. “I am already doing business with Scholastic. They’re already a monopoly because there are no viable book fair options.”

Jennifer England, a lower school media specialist at Heritage Hall School in Oklahoma City, OK, says Scholastic book fairs are the only fundraising effort for her library.

“My 30 percent cash profit goes a long way,” says England, who grossed about $2,000 in sales last year, giving her about $600 extra cash on hand. “It’s more frustrating thinking about all the work that goes into a successful fair and not having that 30 percent.”

Scholastic delivered more than 120,000 book fairs in 2008-2009, generating $399.5 million in revenue for its book fair division in FY2009. Prior to the change, 23,000 K-8 schools qualified for a 30 percent cash profit, and participating schools nationwide earned more than $100 million from their Scholastic book fairs, Boyko says.