Tag Archives: Bookselling

Renting Out Your Textbooks – A nice Annuity for Students

18 Mar

There’s something malign about paying 3 figures for a hunk of dead trees, only to see its price plunge seventy percent in a case of weeks. College kids selling textbooks know the sensation well.  Turning in books to the campus book shop is a demonstration of giving up assets for nickels on the buck.  “There’s a general disgust,” asserts Alan Martin,  Chief Executive Officer  of CampusBookRentals, a corporation that leases out textbooks to students.

“It’s not only that they cost so much, but they get so very little back in return.” Naturally, there are options.  Amazon, eBay and other online channels offer decent prospects for scraping back face value but there’s risk if the books don’t sell.  And since online customers expect to buy used titles at a steep discount, scholars still leave money on the table.  One proved way to squish value and even a pleasant profit out of textbooks : rent them.  Firms  like CampusBookRentals and Chegg have built multimillion-dollar enterprises on the model.

Lease  out a $120 book for $40 4 times, say, then sell it for $30.

Multiply that eventuality several thousand times and the mathematics adds up pleasantly.  CampusBookRentals now wants to insert the scholar into that equation.  With a programme called Rentback, the Utah-based company inspires scholars to send in their used textbooks, which CBR then leases out per the typical process.  Scholars , who continue to officially own the books though out collect the results of each rental minus a $19 exchange charge that covers shipping, selling, logistics and a little profit for the company.  For a textbook like Physics, for instance, released by Wiley &  Boys , CBR is expecting to hire the book for $54 at first, and for smaller quantities 3 further times. Whether or not the price declines by $5 for each successive rental, scholars sending in the title still stand to make $110 during the course of 2 years. At any time between rentals they can take the book back and sell it on their lonesome if they believe the economics make little sense.  A new version of the same title sells for $172 on Amazon.  The tradeoff is easy : CBR gets an inexpensive stock of textbooks while promoting goodwill among its consumers.  Martin admits the programme isn’t engineered to serve as an addition cash stream, but to deepen shopper faithfulness and fortify the organization’s brand cachet.

To avoid getting stuck with bad inventory, the company only accepts books that have proved demand.  Don’t send in this title as an example.  Though   best commonly known as a customer brand, CBR is increasingly targeted on introducing its technology into school bookstores.  The company powers the textbook renting services of two hundred and fifty campus bookstores through white-label partnerships, running touchscreen kiosks, iPhone programs and inventory management software.  “Those stores will be the number one partners and drivers of Rentback,” Martin explains. Every one publicizes the money making chance to its student body.  Martin asserts that 1.2 million scholars attend universities with a CBR-partnered bookstore. A mirrored image of its shifting focus, CBR is differentiating its purchaser business from bookstore efforts, branding the second as  Path .

One reason for the raised attention on bookstores : the digital threat.  Published  textbooks still rule today’s landscape, but what about 10 years from now?  “We need to take the industry endpoints,” Martin strains.

“That’s going to give us the chance to be the main digital distributors as well.”  Though   still made to look tiny by Chegg’s reported $200 million in 2011 sales, CBR has grown at a quick clip since Martin set up the company with $250,000 in bank card debts in 2007.  The company posted sales of $28 million last year, treble its 2010 take of $9 million.  Martin is expecting to lease out 1,000,000 books in 2013 and top 2012 cash by twenty p.c. while refining the corporation’s book shop technology.

Unlike Chegg, CBR has been rewarding since 2009.  Martin reveals that CBR also partners with “frenemies” like Amazon and eBay to meet order for their book rental programs.  “Publishers,” from the other standpoint, “are always going to intend we were nonexistent.”.

The Textbook Shell Game

23 Sep

It is the time of the year when the price of further education comes face to face with students that must make a crucial call that will haunt them for years come.  They select their textbooks.  Many pay for these books with loans which will take decades to reimburse.  Most would think the student makes a straightforward call primarily based on the prerequisites of the course. The structure of the book, be it hard cover or e-textbook, the seller may be online or at the campus book shop, the length of use as a rental book or purchase, and ultimately new or secondhand.  It sounds very simple. It’s a shell game that each student plays and most lose Who are the criminals in this textbook shell game? I’ll identify some of the players and you can decide.  Textbook publishers are at the very top of this market.  They invest money and time into making the content for textbooks. It’s a dear process which has not modified in numerous lifetimes.  They sell all the new books and try and make as much money as practicable on the 1st sale.  Once a book is employed, the publisher may not make any cash on that book.  The publishers do many things to help in making new books an obligation.  They sell custom books, like selling single use e-textbooks, and sell books at the campus book shop with needed codes that can’t be reused.  They try and keep scholars purchasing new books.  Textbook wholesalers purchase used textbooks and resell those books to several sellers.

They buy, ship, warehouse and return the used books to the market.  They try to buy used textbooks at a reasonable price and resell them at a reasonable profit.

It appears that they control the supply of the market so that costs don’t become too low.

They try and make as much money as feasible before the used books become outmoded and a new version takes its place.

Schools  rely on textbooks to help professors and teaching aides deliver high-value content for teaching.  They run the campus bookstores, so they work with publishers, wholesalers and book stores management firms.

The book shop profits help to support schools and schools. There are several other pieces and players in this giant shell game.  Many sellers, resellers, and others all compete in this market and try and make as much cash as practical on each textbook sale.  Who are the wrongdoers?  I think that it is the entire system.  It is damaged.  It is conditional upon making so much money on each sale.  I also know who loses playing this game, the scholars that pay for this damaged mess.  At our company we have made a new model for scholars that is founded upon them saving money on the textbook purchase, getting fair resale values, as well as alternative ways to help them economize as a campus group. To be successful while playing the textbook shell game, scholars have to know who’s got the best the costs at that point.  Scholars  use our free comparison search that shows the available textbook options and costs at that point.  This is an instance of real search results from a freshman English textbook released this year :

New from: $101.75 Range: $101.75 – $130.98 | Net Savings: $29.23

Used from: $105.73 Range: $105.73 – $142.15 | Net Savings: $36.42

Rent from: $49.92 Range: $49.92 – $202.31 | Net Savings: $152.39

Sell Book Back value Range: $37.80 – $52.75 | Best Price: $52.75

Our results found the new text was less expensive than the used text, hiring being the cheapest at this time, and if you may sell the book at the end of the class, there might be no savings in leasing the book.  This is a unique example, as used costs are often lower than new book costs, but the clamor for the used book could be pushing it past some new costs.

This example also illustrates the price goes from the various different sellers. You may choose to hire all of your books from one seller.

Perhaps you selected the seller leasing this title for $49, or perhaps you make a boo boo in this situation and spend $202.31 leasing this textbook. It’s a difficult game that scholars can’t win without fair, thorough info.  Scholars  can win the textbook shell game by understanding what costs and options are under loads of shells. Choose the correct shell and you win.

Original post on edtech digest | By: Jeff Lorton