IFAS Internal Management Memoranda

IFAS; Extension For-Sale Educational Resources

EFFECTIVE DATE: May 20, 2002

INTERNAL MANAGEMENT MEMORANDUM NUMBER: 6C1-6.130-6 (Revised)

SUBJECT: IFAS; Extension For-Sale Educational Resources

  1. Purpose

    The purpose of this memorandum is to outline the policy and procedures for the development and sale of IFAS educational resources resulting from UF/IFAS research and extension programming. These resources include, but are not limited to, publications, audiotapes, videos, posters, identification decks, CD-ROMS and computer software. The sale of such resources has become an essential component of delivering viable educational programs to the public. This policy covers resources developed primarily from, but not limited to, the IFAS Incidental Account that are intended for sale or are currently being sold by IFAS Communication Services from the IFAS-Extension Bookstore, including resources developed by Sea Grant, Energy, 4-H, Information Technology, the Pesticide Information Office, and other auxiliary programs.

  2. Development and Production

    IFAS Communication Services (ICS) is the lead office in assisting programs with the evaluation of target markets and calculation of production costs. ICS must review all projects prior to production for cost-effectiveness and market-worthiness, regardless of their funding source, if the item is to be sold or distributed through the IFAS-Extension Bookstore. Projects are facilitated through ICS by completing IFAS Form 2840 (Extension Transmittal: Plan of Work Projects) to start the production process. Form 2840 is available for download at http://ics.ifas.ufl.edu/forms.html. Sale Product numbers (SP#) will no longer be issued for products that have not been through the UF/IFAS departmental review process.

    The review process requires approval from the appropriate program leader that the material is consistent with the extension mission and plan of work; reasonable assurance from ICS that the product is market-worthy and can be reproduced in a cost effective manner; and final approval from the Office of the Dean for Extension prior to the production of the resource.

    Production costs, quantities, marketing, and distribution will be determined according to the audience for which the educational resource is intended, and will aid in determining the designation of an item as a for-sale product. For this reason, unit heads and/or faculty should contact ICS as soon as a product or resource generates interest beyond its use as a free resource in extension programming. Ideas for new products generated by committees and other IFAS-based groups should be presented to ICS prior to development if the IFAS-Extension Bookstore is expected to warehouse, market and sell the resource. For-sale resources resulting from collaboration with other organizations are subject to the same procedures for development, marketing and distribution as products generated internally at IFAS, and must be priced according to ICS policy if they are to be sold/distributed by the IFAS-Extension Bookstore.

  3. Promotion and Marketing

    ICS will be the lead office in coordinating the marketing and promotional activities for IFAS for-sale educational resources in order to insure that university requirements regarding the use of word marks, titles, credits, and the like, have been met and to avoid duplication of marketing efforts. No educational resources should be promoted on departmental web pages or other venues until said resource is in production and scheduled for delivery to the IFAS-Extension Bookstore.

    Faculty, county extension faculty and staff should not engage in contracting sales or distribution of products sold by IFAS-Extension Bookstore to third party resellers. All requests regarding the purchase and/or reselling of IFAS educational resources by a third party should be referred to the IFAS-Extension Bookstore manager at ICS. Faculty qualifying educational resources they have developed for Continuing Education Credits (CEC) with the University of Florida and/or other institutions should notify the IFAS-Extension Bookstore manager at ICS upon verification of CEC viability.

  4. Pricing

    ICS pricing policy operates in accordance with the University Cost Accounting Standards. Each for-sale educational resource will be developed with the objectives of recovering production costs and, where feasible, continuing support for the program of origin. In keeping with the extension education mission, the contents of extension publications are available free of charge via EDIS.

    University Cost Accounting Standards recognize the viability of educational resources in book, video and compact disc format, and allow for the recovery of costs associated with marketing and distribution of such resources to make them widely available. This allows educational resources, formerly priced for production cost recovery, to include the additional costs of making the information available in formats other than electronically in the pricing formula.

    The pricing formula is: total unit production costs + marketing costs + warehousing and exhibition costs + funds returned to the unit of origin to support programming = retail price of product. Exhibition, warehousing, and marketing costs are currently determined at 50 to 150% of production costs, and include the costs of providing complimentary copies to authors and Extension offices. Prices are adjusted in compliance with the mission of making Extension education programs and related resources available for minimal cost to the public in a competitive market.

  5. Sales Tax

    Sales tax is not collected on IFAS Educational Resources sold to County Extension Offices, Research and Education Centers, IFAS student organizations, entities possessing a State of Florida tax-exempt certificate, or entities possessing state-issued reseller certificates. The University of Florida's tax-exempt status as a state agency does not extend to any other campus or professional organization under its auspice. The IFAS-Extension Bookstore and other IFAS entities must collect the appropriate sales tax on sales of educational resources to the general public. Sales tax collected by the IFAS-Extension Bookstore follows State of Florida Sales Tax Rules and Regulations. County Extension Offices have the option of obtaining their own tax resale number, and must collect and report all taxes (percentage added to state 6% by county government) in their county.

  6. Revenue

    Pro-rated revenue from the sale of educational resources is returned to the department or research and education center to support the program of the faculty member(s) who produced the publication. Revenue from printed products will be returned quarterly to departments at the rate of 5% of the price of the product on all printed materials in inventory on January 1, 2002. There should be no expectation on the part of department or research and education center for revenue return in large amounts from for-sales unless a product has wide appeal in a viable market. ICS negotiates with IFAS units a revenue return rate on all new printed products entering the IFAS-Extension Bookstore inventory after January 1, 2002. The rate of return in most cases will be 10% and will become part of the pricing formula for new print products. However, ICS reserves the right to negotiate with the unit of origin a return rate that can be higher than 10% based on how the production of a product may have been funded, i.e. from grants or other sources outside of the incidental accounts. The chair or director of the unit of origin and author(s) of the resource are responsible for determining how the returned revenue will be used.

    The revenue return rate on the sales of software products to departments will be 70% of the total sales, returned quarterly. The revenue return rate to departments on video products and other types of multimedia will be 40% of total sales or other negotiated rates, returned quarterly. ICS and the unit of origin may negotiate a return rate on video products and other types of multimedia different from 40% based on how the production of a product may have been funded.

    The revenue from sales returned to the for-sale program in ICS is used to fund the printing and production of new items in the IFAS-Extension Bookstore; revise and reproduce existing projects and products; fund marketing materials used by the bookstore and provided to the county offices; the travel and exhibit fees necessary to promote the resources at conferences and trade shows; complimentary copies necessary to marketing efforts and published reviews; and continue to find new products for the IFAS-Extension Bookstore inventory.

  7. Discounts

    To maximize exposure and delivery of IFAS Extension educational resources, discounts will be provided to publishing houses and other bulk quantity buyers. Discounts now apply to most, but not all, educational resources sold by the IFAS-Extension Bookstore as follows:

    40% Discount: A 40% discount off the retail price is given to in-house buyers and resellers. In-house buyers include all faculty, staff, and student organizations of IFAS purchasing quantities of 10 or more. Student organizations within IFAS may use this discount to purchase resources to be resold as fundraisers.

    Community/professional organizations in which IFAS faculty, staff or students serve as members or officers do not qualify as "IFAS organizations" and may not purchase resources to be resold for revenue (see 25% discount).

    Resellers are defined as those persons or businesses possessing a valid tax resale certificate and purchasing in quantities of 10 or more. Resellers include book/retail stores, museum gift shops, online stores, catalog publishers, and the like.

    In recognition of the fact that IFAS cannot fund unlimited complimentary copies to authors, editors and graphic designers who worked on a resource, the 40% discount is also extended to faculty authors purchasing additional copies of their own works, and to editors and graphic designers purchasing additional copies of resources on which they worked. In this instance only, the 10-item minimum is waived and the discount is good on any quantity.

    25% Discount: A 25% discount off the retail price is given to anyone outside IFAS purchasing 25 or more resources for personal/educational use - not for resale. This includes, but is not limited to, trade and professional organizations, education associations, nonprofit organizations, singular customers and companies buying resources in quantity to be used for employee training.

  8. Distribution
    A limited number of complimentary samples are distributed as follows: copy to the appropriate extension agent in some or all county offices, copy to each District Extension Director, ten copies to the author or department of origin, one copy to the department chair or director, and samples as needed to support the marketing efforts of the IFAS-Extension Bookstore.
    The primary point of sale for all extension educational resources is:

    IFAS-Extension Bookstore
    Building 440, Mowry Road
    PO Box 110011
    Gainesville, FL 32611-0011
    352-392-1764

    This location services telephone orders, mail orders, web-page orders and walk-in customers.

  9. Questions

    Questions about production of for-sale resources, pricing, discounts, third party sales, marketing materials and consignments should be directed to:

    1. Jenny L Mooney
      Building 440, Mowry Road
      PO Box 110011
      Gainesville, FL 32611-0011
      352-392-1764, ext. 224
      jmooney@ufl.edu