http://totalcandor.com/blog/2009/08/are-textbook-sellers-greedy/ A Conversation About Income, Wealth, and the Steps in Between Thu, 18 Mar 2010 01:33:32 -0700 http://wordpress.org/?v=2.8.5 hourly 1 http://totalcandor.com/blog/2009/08/are-textbook-sellers-greedy/comment-page-1/#comment-146068 Michael Fri, 28 Aug 2009 13:27:45 +0000 http://totalcandor.com/blog/?p=732#comment-146068 @Dallon: I don't know for sure. However, I found <a href="http://bookstore.swau.edu/Hows and Whys of Textbook Economics.htm" rel="nofollow">this article</a> which suggests an after-tax profit of 7.6%. It's not a particularly meaningful number however, as we'd really want to know its gross margin. Clearly the lower number of units sold means the publisher must charge more per book to recoup development costs. But aren't they sowing the seeds of their own destruction? As you say, you'd have gladly paid more for a new book if its price were close. You're not shopping completely by price, but it has to be a factor. @Dallon: I don’t know for sure. However, I found this article which suggests an after-tax profit of 7.6%. It’s not a particularly meaningful number however, as we’d really want to know its gross margin. Clearly the lower number of units sold means the publisher must charge more per book to recoup development costs. But aren’t they sowing the seeds of their own destruction? As you say, you’d have gladly paid more for a new book if its price were close. You’re not shopping completely by price, but it has to be a factor.

]]> http://totalcandor.com/blog/2009/08/are-textbook-sellers-greedy/comment-page-1/#comment-146057 Dallon Christensen Fri, 28 Aug 2009 10:50:00 +0000 http://totalcandor.com/blog/?p=732#comment-146057 Michael, do you know what the publisher's take is of each new book? The only reason I could think that the publishing industry gets a hefty percentage of each book and wants to reduce its marketing expenses, so they artificially keep supply low to keep prices high. Out of all industries, I would think publishing would want volume to lower shipping rates and material costs. I constantly purchased used books even though I hated it (I wanted to annotate my own books), and I would have easily bought new books if they were close to the same price as my used books. Michael, do you know what the publisher’s take is of each new book? The only reason I could think that the publishing industry gets a hefty percentage of each book and wants to reduce its marketing expenses, so they artificially keep supply low to keep prices high. Out of all industries, I would think publishing would want volume to lower shipping rates and material costs. I constantly purchased used books even though I hated it (I wanted to annotate my own books), and I would have easily bought new books if they were close to the same price as my used books.

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