How to generate flexible dollars with auxiliary unit revenue
The majority of non-athletic auxiliary units generate enough revenue to cover their own costs and debt service. And many of these units return a portion of surplus revenue to central administration, though the budgeting mechanism varies. Absent specific state restrictions, auxiliary revenue returned to central administration is highly fungible and can be used to fund other priorities. One of the best opportunities for institutions to improve auxiliary contributions to the institution, without passing costs onto students, is to increase auxiliary efficiency.
Our efficiency “cheat sheets”—a supplement to our study Increasing Central Fungible Dollars—are designed to help business executives identify opportunities for improvement and cost savings. We focus on four units: the bookstore, dining, housing, and parking.
‘Cheat sheets’ for different auxiliary units
Bookstore
Sample tactics include: allowing payment with students’ accounts, offering student-worker bonus as bookstore credit, and opening an in-store coffee shop and convenience stores to increase revenue and drive store traffic.
Dining
Sample tactics include: developing catering services for on-campus events, establishing contracts with local businesses and charities, offering meal plans for faculty and staff, and centralizing campus dining locations.
Housing
Sample tactics include: filling new facilities first, establishing learning-living communities, and crafting residency requirements.
Parking
Sample tactics include: installing lighted advertising panels, deploying rooftop solar panels, leasing space for special events, and establishing parking maintenance fund.
Interested in learning more about auxiliary efficiency?
Read the chapter in the full study.
Instill efficiency and accountability in Facilities operations
It can be tough to pinpoint the success metrics for individual departments. But without that information, it’s even tougher to keep units accountable.
Access this resource to learn how a Facilities dashboard can measure departments’ progress toward highest-priority goals.
This resource requires EAB partnership access to view.
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