A word about Logos
Bookstores
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Logos bookstores are independent retail stores whose primary goal is to
effectively communicate Christian truth in contemporary society. This is
achieved through welcoming people, both Christian and non Christian, to
our stores, many of whom may be unaware of the wealth of materials
available which address their specific needs and interests in light of our
current culture. Merchandise — books, Bibles, cards, gifts, and music
for example — is selected, and store layout is designed, to appeal to
these needs and interests. Additionally, Logos Bookstores are dedicated to
supporting church and parachurch organizations through in-store and
community activities/events, serving as a local Christian resource center
to all.
A brief history
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The year was 1968, and the first Logos Bookstore was opened in Ann
Arbor, Michigan under the auspices of InterVarsity Christian Fellowship.
Early success with this location piqued the interest of people in
communities across the country, resulting in the opening of additional
Logos stores nationwide.
With 30 locations across the United States, the Association of Logos
Bookstores was formed in 1974 as a nonprofit trade association, serving as
a coordinating and support organization for all member stores. The
individual member stores own and control the Association, which is managed
by a director and support staff. The Association exists to serve current
member stores and to aid in the development and opening of new store
locations. In 1994, the membership voted to accept selected existing
bookstores with different names as members of the Association of Logos
Bookstores.
Appeal & ministry
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Customers are attracted to Logos Bookstores through a thoughtful
selection of merchandise, contemporary store design, and most of all, the
personal touch of a caring staff who provide a wealth of knowledge about
existing products, sensitivity to customer needs, a commitment to a
deepening relationship with Christ, and outstanding personal service.
Guided by the verse, “Whatever is true, lovely, and of good
report...think on these things” (Philippians 4:8), stores in the
Association are encouraged to stock a large selection of fiction and
nonfiction books, Bibles, and children’s books from both Christian and
selected general publishers. Though decidedly Christian in its majority,
book inventory does vary from store to store, reflecting the reading needs
and tastes of each community. The majority of Association members also
carry unique and specialized selections of greeting cards, music, and gift
items. Quality products are chosen to reflect the character of God and to
help accomplish the overall mission of each store.
It is the dual purpose of Logos Bookstores to reach out — to serve as
a bridge — to seeking believers and nonbelievers, as well as to equip
the church for renewal and growth. As stewards in God’s service, it is
our hope that those on a spiritual journey will find their walk deepened
and strengthened through a connection with Logos Bookstores.
Membership benefits & services
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The Association offers an outstanding array of services to benefit
independent stores, ranging from marketing services to product discounts. While
most of these services are available at no charge to the
membership, a few may require additional expense beyond the membership
fees, and are so noted in the description.
Marketing assistance
Free initial e-commerce website set-up and maintenance
Consumer-oriented quarterly newsletter which can be customized
in-store and distributed to customers through direct mail or as a
bag stuffer
Merchandising ideas calendar produced twice a year for store
staff
Comprehensive monthly newsletters, partially compiled from member
store contributions, sharing ideas, expertise, and product
information
Weekly fax with timely information such as publisher specials and
closeouts
Seasonal or topical promotion packages coordinated with product
and ready-to-use merchandising tools sent to interested stores at
reduced prices
Two major catalog promotions each year
Four-color catalogs produced each Spring and Christmas with the
first 3000 catalogs free and additional copies at nominal cost
Free store imprints including several descriptive lines
Free freight
Free central mail processing from your database to customers and
store, with no risk of mailing lists being sold or distributed
Savings on central mail postage
Free annual conference
Free (no fee) informational, training conference held annually
and you pay only for your travel/lodging/personal expenses
Scheduled to coincide with CBA
Workshops presented for shared wisdom, practical solutions, and
what works/what doesn’t in retail bookselling
Opportunities to meet with other Logos managers, authors,
musicians, and publishers
Vendor partnerships
Central buying on key new titles and selected remainder titles
Spring Arbor incentive program including free freight, discounts,
and rebates
David C. Cook curriculum incentive including discounts and free
freight
Telescan listening centers available at reduced prices
Use-what-you-choose management expertise
Annual visits from the Executive Director or Board member for
consultation, evaluation, instruction, and encouragement
Computer consultation and inventory management system assistance
on-site at negotiated rates
Staff selection/hiring packet and training videos available for
loan
Financial review assistance by Executive Director
Instruction, management direction, and troubleshooting upon
request
Customized store supplies and retail items
Custom CDs and cassettes coordinated with Christmas Catalog, at
greatly reduced prices
Group buys on customized bags and advertising bookmarks
Custom forms, office supplies, and staff clothing/accessories at
discounted prices
Independence, freedom, and cooperation
Each store is independently owned and operated
Recognition that each Logos store is distinctive with unique
markets and customers
Encouragement and fellowship with other booksellers committed to
ministry
Prayerful support from, and close rapport with, Association staff
and each other
Getting started
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Four essential factors are necessary for opening and maintaining a
successful Logos Bookstore — market, mix, money and manager:
An adequate market and location, location, location
The numerical size of the potential market is flexible depending on the
income and educational level of the population and the number and quality
of other bookstores in the area. Potential viable markets could include
the following:
A section of a larger city that is heavily populated with
working professionals
A suburban environment with a large proportion of college
graduates
A city of 50,000+ with a major residential college campus
A smaller town with a shopping population draw of 50,000 and
little competition
Exact locations within a suitable market are could include:
A shopping strip with heavy traffic
A downtown retail area
A retail shopping center on or near a university campus
A shopping mall
The annual rent could vary from $10 per square foot per year to over
$30 per square foot per year, depending on such factors as amount of foot
traffic, economic level of the area, demand for rental space, and size of
store. These and other factors are taken into consideration when helping
in the site selection of a new Logos Bookstore.
A balanced and exciting product mix
Selection of inventory for a store is crucial to its ministry and
success. The inventory must appeal to a wide range of interests and needs
in the community. Inventory mix will depend upon the market being served
and will reflect the philosophy expressed in the Logos mission statement.
The Association is able to offer valuable and specific advice in
product mix selection for each new store, based upon the experience and
data accumulated through the opening of multiple store types in diverse
communities. Product inventory listings are maintained and can be used to
form the foundation for each new store’s inventory. The individual store
manager is then offered assistance in tailoring the store’s inventory to
the potential customer market for the area.
Sufficient equity capital
Generally, one individual or a small group prayerfully works toward the
establishment of a store by gathering a group of interested investors.
Occasionally, an individual or couple will be the sole investor.
Regardless of ownership format, proper initial funding is essential for a
healthy store that is able to maintain itself in the marketplace. The
amount of invested capital varies with the situation, but the range is
$125,000 to $200,000. Typically one half of this amount is needed prior to
opening, one quarter during the first two months of operation, and one
quarter during the next twelve months.
After an initial period of growth, uniquely determined by each
location, a new store is able to cover its operating expenses, including
salaries, out of its gross profit margin. An older, mature store, if
properly managed, should show an approximate net profit of five percent of
sales. Since this net profit cannot be achieved if significant interest
charges on working capital must be paid out of the gross margin, we
strongly recommend that a large majority of the invested capital be in the
form of equity capital.
More specific information regarding actual budgets and operating
statements of existing stores is available upon request.
Talented and trained manger
The manager is the single greatest asset of the store. The market can
be correctly assessed, the site properly chosen, the merchandise carefully
selected, and the store adequately capitalized, but if the manager lacks
the creativity, personality, enthusiasm, and training to do outstanding
work, the store will not reach its full potential.
The manager must love God, people, and books, have a strong work ethic,
and a positive attitude. It is especially helpful if there is an
understanding of the use of aesthetics in communicating truth. Preferably
the manager will hold a college degree and will have had some prior
successful work experience, with retailing being a plus. It is essential
for the manager to have the ability to relate to a diverse group of people
who may hold to doctrines or beliefs which might differ from his own.
Opening a store
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Preparation for opening a new store has varied from three months to two
years. Much depends on availability of the capital, location, and manager.
Once these three ingredients dovetail in a community and an application is
approved by the Screening Committee of the Association, the training and
preparation for opening can begin.
Methods of financing
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The following are various methods by which a retail bookstore may be
financed, each having its own distinct advantages and disadvantages:
Sole proprietorship
Advantages
The simplest of the methods, the sole proprietorship does not
need to attract other investors
An individual owner/manager can have the fewest conflicts with
management of the store because he/she is the final authority
Disadvantages
The demands for a large personal investment of capital and time
Personal liability may be incurred
Partnership
Advantages
Shared investment with another person reduces individual
capital investment
Sharing financial investment and management responsibilities
allows for enhanced decision-making as there are multiple
viewpoints and resources which may be tapped
Disadvantages
Greater chance of conflict as multiple personalities and
viewpoints come into play, and management decisions must be shared
Personal liability may be incurred
Limited partnership
Advantages
A General Partner, who is the prime mover behind the
partnership legally forms a Limited Partnership and solicits
limited partners for financial resources
Limited partners have limited responsibilities associated with
the store’s operation, allowing for greater autonomy on the part
of the general partner
Disadvantages
Limited partners have limited liabilities, thereby increasing
the risk on the part of the general partner
A check and balance system is not as effective in this set-up
as with a standard corporation
Standard C Corporation
Advantages
The most common form of ownership for Logos Bookstores
Shareholders elect a Board of Directors to oversee operation of
the store, which in turn hires a manager who is not a shareholder
Changes in management can occur easily when there is no capital
investment on the part of the manager
Good check and balance system as the manager reports to a
board, who is looking out for the investors
Liability is limited to the corporation
Disadvantages
Managers who are not investors may be harder to motivate due to
the lack of a vested interest in the welfare of the store
S Corporation
Advantages
Same set-up as corporation regarding board/investors/manager
Safeguard of the corporation, with no personal liability except
for any personal investment
Operational losses can be proportioned to each investor as a
direct income tax write-off
Disadvantages
Managers who are not investors may be harder to motivate due to
the lack of a vested interest in the welfare of the store
In choosing the method of financing your new store, the Association
urges you to consult with an attorney and/or accountant to determine which
may be most suitable for you.
Return on investment
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In general, profit will not occur during the first two years of
operation. With proper management, it is possible for breakeven to occur
in the second year of business with profits realized thereafter.
Even though profits are not likely during the early years of the store,
there may be increased value to the investment in the store because of
potential future earnings. After the first two years, it is possible for
Logos investors to earn a return on their investment.
Many variables determine the success/profitability of each store. Net
profitability varies depending upon expenses, especially the variable
expense of salary. If the owners of the store should decide to pay
themselves, or their manager, a larger salary, then the net profit will be
proportionately reduced. If bottom line profit is to be achieved, salaries
should not exceed approximately 15% of the total annual sales volume.
A very important non-financial return on investment is the aspect of
ministry to the community. Through the financial investment, a long-term
quality store can be established which will have a daily outreach to the
non-Christian world.
Note:
If an investor needs to receive immediate yearly income from the
investment, a new retail operation is not a wise choice. If however, the
investor is also the manager, then a yearly income could be realized in
the form of a salary. Investors who are not managers should invest only
savings that are not essential to their livelihood.
Each investor should fully understand that because of the many
variables that influence a successful store operation, nothing in this
Prospectus is, or should be, deemed a guarantee of any specific return on
investment.
Introductory membership & fees
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In the past, there has been an initial entry fee for membership in the
Association. This one-time entry fee of $2,500 is being waived to
encourage participation. The special membership offer is a one year
introductory membership, subject to a fee of $1,900 which is one half of
the maximum capped membership fee, to be paid in advance at the time of
acceptance. This is a non-refundable fee.
Nearing the end of the one-year introductory membership, an evaluation
will occur to determine whether the relationship has been mutually beneficial. At
that time, a vote of approval by the Board of Directors will be taken and
membership fees based on monthly adjusted sales and capped at the current
rate of $3,800 will begin. For example, stores with sales of $500,000
annually would pay $3,800. Stores with sales of $100,000 would pay only
$1,000.
Because of the diversity in expertise in new store applicants, we will
work with any new store to determine which of the services listed below
would be most beneficial and calculate costs on an as-needed basis.
Consultation
Site selection
Manager selection
Marketing analysis
Incorporation
Lease negotiations
Store layout/design, fixtures, and décor
Initial opening, inventory, sourcing, and quantities
Provision for
Initial and first year’s budgets
Introduction to primary publishers and suppliers
Training new manager
Basic philosophy of Logos Bookstore
Nature and methods of bookstore ministry
Definition of markets and how best to reach them
Fiscal management — accounting/bookkeeping procedures
Personnel policies and management
Knowledge of publishers, suppliers, authors, and titles
Inventory control systems
Cost and time-saving operational methods
Merchandising philosophy and methods
Selling philosophy and methods
Advertising philosophy and methods
Pricing and discounting policies
Buying and returns policies/practices
Processing purchase orders, receiving merchandise
Processing special orders
Conducting book fairs and book tables
Conducting sales, promotions, and grand openings
In-store assistance prior to opening
Actual on-site assistance by Association staff member prior to
and/or during opening of new store is available
Costs incurred by store for this service would include travel
expenses, room, and board
Relationships with bookselling associations
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All Logos Bookstores are encouraged to join one or more trade
organizations including the Christian Booksellers Association (CBA), the
American Booksellers Association (ABA), or the Canadian Booksellers
Association. Each of these trade organizations provides informative
journals, important annual trade conventions, and valuable training
material. CBA is home to a wide spectrum of Christian bookstores,
publishers and suppliers. ABA is an association oriented toward general
bookstores, publishers and suppliers.
What’s in a name?
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The benefits of an established name are of course, intangible. The
Logos name however, has been known by publishers, Christian organizations,
and individual customers alike for more than 25 years. Additionally, it is
protected by trademark.
While the use of the Logos Bookstore name is preferred, existing stores
will not be required to change their name to Logos Bookstore. The store
will be required however, to identify itself as part of the Association
through the use of a window decal and inclusion of either a member of
the Logos Bookstore Association or a Logos Bookstore as an
addendum to their name in any print material such as catalogs,
newsletters, and advertising pieces.
Statement of Beliefs & Purpose
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Purpose
Logos Bookstores were born out of Christian concern to communicate the
historic Christian gospel in contemporary society. This concern is shared
by many Christians from a wide range of backgrounds and denominations.
Although there is much freedom for diversity of “style” within Logos,
one must accept a basic statement of beliefs and purpose to be comfortable
with the Logos philosophy, and to be accepted into the Logos Association.
Statement of Beliefs
The unique divine inspiration, trustworthiness, and authority of
the Bible
The deity of Jesus Christ
The necessity of the substitutionary death of Jesus Christ for
the redemption of the world, and the historic fact of His bodily
resurrection
The presence and power of the Holy Spirit in the work of
regeneration
The expectation of the personal return of our Lord Jesus Christ
What’s next?
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We invite you to consider the advantages of becoming a member of the
Logos Bookstore Association. It would be our pleasure to answer any
questions you might have. Please feel free to call us if you need any
additional information. We look forward to getting to know you, and the
prospects of partnering with you in this unique ministry/business to which
we have been called.
Please keep in touch
For Info
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Please contact us if there is any way in which we can help you
regarding a decision about becoming a Logos Bookstore...
Becky Gorczyca, Executive Director
Association of Logos Bookstores
1949 SR 59, Suite 203
Kent, OH 44240-8113
Phone: 330.677.8086 or
toll-free: 1.888.746.3588
Fax: 330.677.8049
e-mail: becky@logosbookstores.com
web: www.logosbookstores.com
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