After their first look at college textbook prices, most students balk at the cost. But common statements, such as "How could it be that much for just a few books?" and "The bookstore must make a killing," show how little consumers know about the textbook world.
Students make assumptions about textbook buyback, stocking and pricing, which may or may not be true.
The Logic Behind Buyback
Low buyback prices are one of the first things students complain about. But buyback can have benefits for both students and bookstores, said Mike Lickteig, Jayhawk Bookstore textbook manager.
"It's an advantage for the student because a textbook is virtually the only product you can return when you're done with it," Lickteig said. "And typically, if you can get the best buyback price, it's a good value. For us, it's an easy way to acquire the book. We don't have to pay for shipping because here it is."
Students can get the best value if they buy used books and then sell them back. Used books are priced at 75 percent of the new value. And at buyback, the bookstore pays 50 percent of that value. If students get the full buyback price, then they will have used the book for only 25 percent of the price it would cost to buy it new.
But getting that prime buyback rate depends on whether the book is going to be used in a class the next semester.
"That requires cooperation from the faculty member to readopt that same book," said Estella McCollum, KU Bookstore business manager. "We'll only buy books that professors tell us they're going to reuse."
Bookstores pays less for books that won't be used again. When students get nothing for a book, it's usually because the book is "dead." Dead books usually have come out in a new edition or have outlived their average two-year life spans.
Chris Armstrong, University Book Shop textbook manager, said the bookshop sells dead books to specialty bookstores for 50 cents to $1.
"Basically, we're just getting rid of them," Armstrong said. "We're just recycling them."
Steve Rhodes, KU Bookstore director, said buyback prices depend a lot on what books professors choose.
"Publishers don't like it, but if professors use the same book for many semesters in a row, it's much better for the students," Rhodes said.
But Annette Becker, Lenora sophomore, said even knowing the buyback logic doesn't help explain some anomalies.
"This book I was trying to sell back, well these books, I know they were being used in a class again," Becker said. "I know they were being used in the same class this semester, and they didn't take them back. And I have no clue why."
For the three college bookstores in Lawrence, gathering textbooks for the upcoming semester begins long before the previous semester even ends. / Video by Nora Simon
Stocking Textbooks
Bookstores prefer to buy used textbooks, which they can get most easily through student buyback.
"Our profit margins are better with used books than new books," Armstrong said.
Students and parents often wonder why it costs so much to buy textbooks, and they think that the bookstores may be ripping them off. In reality, bookstores only make a fraction of every dollar that it costs to be a new textbook. Most of the profits go to the publisher. Chris Armstrong, University Book Shop textbook manager, said that bookstores preferred to sell used textbooks because there is a higher profit margin for used than new. / Graphic from National Association of College Stores Web site
But if buyback generates too few used books, bookstores turn to textbook wholesalers to get a big enough stock.
Once professors submit textbook choices, called adoptions, bookstores immediately start looking for used copies of the book.
If textbook managers can't find a book used, they must purchase new books directly from publishers.
"Once we determine what used books will be available, we will order from publishers, and that's usually the large part of the price," Lickteig said. "So we start the ordering process almost immediately."
McCollum said the bookstores made educated guesses about class enrollment to figure out how many books to order.
Lickteig said he also considered the store's estimated market share, or how many enrolled students would actually shop there.
"We will guess what we believe our share of the market to be," Lickteig said. "A lot of it is frankly guessing. I would like to say it's very structured and formulaic, but there is some guesswork to it."
After purchasing a book, the bookstores mark up the price. The bookstores add between 1 cent and 4 cents per $1, depending on whether the book is new or used. That markup pays for employee, receiving and shipping costs. And because KU Bookstore is a non-profit, any other profits go to student activities, scholarships and campus resources.
What People Don't See
Students often complain about price gouging, unavailable books, or bundled books, and they generally believe that the bookstore is at fault.
If a book isn't available, it's probably because professors submitted their textbook adoptions late. Other reasons could be that a new edition is still going to print, the book is hard to acquire, or the book is out of print, McCollum said. But publishers, not the bookstores, ultimately decide the prices, she said.
"It's a pricing game to keep the publishers in business, I'm thinking," McCollum said. "But they have a company to run, too, I guess."
Students also encounter bundled or shrink-wrapped books that include both a textbook and a workbook. That often happens because publishing representatives suggest new editions and custom editions of books to professors.
Lickteig said publishers and professors dictate what a bookstore sells and at what price. He said students think the bookstores only stock expensive products to turn a profit.
"I think that they believe we play a larger role in determining what product is placed in their hands than we do," he said. "We have no say in what an instructor selects. I think the students believe we are benefiting by only selling them that as a package. And we have no say in it whatsoever."
Textbook retailers really don't make as much money on college textbooks than people think they do. / Graphic from National Association of College Stores Web site
Students make assumptions about textbook buyback, stocking and pricing, which may or may not be true.
The Logic Behind Buyback
Low buyback prices are one of the first things students complain about. But buyback can have benefits for both students and bookstores, said Mike Lickteig, Jayhawk Bookstore textbook manager.
"It's an advantage for the student because a textbook is virtually the only product you can return when you're done with it," Lickteig said. "And typically, if you can get the best buyback price, it's a good value. For us, it's an easy way to acquire the book. We don't have to pay for shipping because here it is."
Students can get the best value if they buy used books and then sell them back. Used books are priced at 75 percent of the new value. And at buyback, the bookstore pays 50 percent of that value. If students get the full buyback price, then they will have used the book for only 25 percent of the price it would cost to buy it new.
But getting that prime buyback rate depends on whether the book is going to be used in a class the next semester.
"That requires cooperation from the faculty member to readopt that same book," said Estella McCollum, KU Bookstore business manager. "We'll only buy books that professors tell us they're going to reuse."
Bookstores pays less for books that won't be used again. When students get nothing for a book, it's usually because the book is "dead." Dead books usually have come out in a new edition or have outlived their average two-year life spans.
Chris Armstrong, University Book Shop textbook manager, said the bookshop sells dead books to specialty bookstores for 50 cents to $1.
"Basically, we're just getting rid of them," Armstrong said. "We're just recycling them."
Steve Rhodes, KU Bookstore director, said buyback prices depend a lot on what books professors choose.
"Publishers don't like it, but if professors use the same book for many semesters in a row, it's much better for the students," Rhodes said.
But Annette Becker, Lenora sophomore, said even knowing the buyback logic doesn't help explain some anomalies.
"This book I was trying to sell back, well these books, I know they were being used in a class again," Becker said. "I know they were being used in the same class this semester, and they didn't take them back. And I have no clue why."
For the three college bookstores in Lawrence, gathering textbooks for the upcoming semester begins long before the previous semester even ends. / Video by Nora Simon
Stocking Textbooks
Bookstores prefer to buy used textbooks, which they can get most easily through student buyback.
"Our profit margins are better with used books than new books," Armstrong said.
Students and parents often wonder why it costs so much to buy textbooks, and they think that the bookstores may be ripping them off. In reality, bookstores only make a fraction of every dollar that it costs to be a new textbook. Most of the profits go to the publisher. Chris Armstrong, University Book Shop textbook manager, said that bookstores preferred to sell used textbooks because there is a higher profit margin for used than new. / Graphic from National Association of College Stores Web site
But if buyback generates too few used books, bookstores turn to textbook wholesalers to get a big enough stock.
Once professors submit textbook choices, called adoptions, bookstores immediately start looking for used copies of the book.
If textbook managers can't find a book used, they must purchase new books directly from publishers.
"Once we determine what used books will be available, we will order from publishers, and that's usually the large part of the price," Lickteig said. "So we start the ordering process almost immediately."
McCollum said the bookstores made educated guesses about class enrollment to figure out how many books to order.
Lickteig said he also considered the store's estimated market share, or how many enrolled students would actually shop there.
"We will guess what we believe our share of the market to be," Lickteig said. "A lot of it is frankly guessing. I would like to say it's very structured and formulaic, but there is some guesswork to it."
After purchasing a book, the bookstores mark up the price. The bookstores add between 1 cent and 4 cents per $1, depending on whether the book is new or used. That markup pays for employee, receiving and shipping costs. And because KU Bookstore is a non-profit, any other profits go to student activities, scholarships and campus resources.
What People Don't See
Students often complain about price gouging, unavailable books, or bundled books, and they generally believe that the bookstore is at fault.
If a book isn't available, it's probably because professors submitted their textbook adoptions late. Other reasons could be that a new edition is still going to print, the book is hard to acquire, or the book is out of print, McCollum said. But publishers, not the bookstores, ultimately decide the prices, she said.
"It's a pricing game to keep the publishers in business, I'm thinking," McCollum said. "But they have a company to run, too, I guess."
Students also encounter bundled or shrink-wrapped books that include both a textbook and a workbook. That often happens because publishing representatives suggest new editions and custom editions of books to professors.
Lickteig said publishers and professors dictate what a bookstore sells and at what price. He said students think the bookstores only stock expensive products to turn a profit.
"I think that they believe we play a larger role in determining what product is placed in their hands than we do," he said. "We have no say in what an instructor selects. I think the students believe we are benefiting by only selling them that as a package. And we have no say in it whatsoever."
Textbook retailers really don't make as much money on college textbooks than people think they do. / Graphic from National Association of College Stores Web site
