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Monday, October 10, 2005

Are Dollars Lying on the Used Book Table?

Jeff Hayes of the market research firm InfoTrends says used bookstores do not try to get the best price they can for their textbooks:

In the Used-Book Market, Textbooks Rule, by Alex Mindlin, NY Times: Textbooks dominate the offline used-book market, according to a study ... by the Book Industry Study Group... The study found that educational books made up 93 percent of all used-book sales in brick-and-mortar bookstores in 2004... Textbooks are more expensive than other used books, said Jeff Hayes, director of market research for InfoTrends... Besides being more expensive, used textbooks also sell in volume; they are about 70 percent more common on bookstore shelves than other used books. "Many of them try to give the student as good a price as they can," Mr. Hayes said. "They're not trying to maximize their profit."

I have a feeling most students would disagree. Is InfoTrends saying that a low margin, high volume sales strategy is inconsistent with profit maximization?

    Posted by on Monday, October 10, 2005 at 12:09 AM in Economics, Press | Permalink  TrackBack (0)  Comments (7)

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