For new textbooks, college stores typically obtain the books they sell directly from publishers. Publishers establish the amount they charge college stores for each title. College stores then establish a retail price (the amount a student pays for the textbook). The difference between what the college store paid for the textbook and the amount they charge the student is called the gross margin. This gross margin is used to cover the personnel costs, the cost of freight, and other costs related to operating the store (utilities, insurance, etc.). The average gross margin on new textbooks is currently 22.5% according to NACS’ 2005 College Store Industry Financial Report.
In the case of used textbooks, the gross margin is higher (34.9%), but used textbooks require more handling, and incur more operating expenses. For instance, the store has the additional costs of cleaning and re-shelving these books. They also present a higher risk to the store. Unlike new textbooks, used textbooks can’t be returned if they’re not sold. There’s also a chance that a new edition of the textbook may make them obsolete.
Find the lowest prices on college textbooks at DavesCampus.com.
