Essay About Textbook Industry And Are Textbooks

The Textbook Industry and Competitor Analysis
Industry & Competitor Analysis[pic 1][pic 2][pic 3][pic 4][pic 5][pic 6][pic 7][pic 8][pic 9][pic 10][pic 11]Avery Brumit[pic 12][pic 13][pic 14]Table of ContentsAbstract……………………………………………………………….……..3Why Are Textbooks So Expensive?…………………………………………4Used Books, Rentals, and Buyback Options…………………………5Competitors…………………………………………………………………5        Chegg…………………………………………………………..        ……..5        Amazon……………………………………………………………….6        Follett’s……………………………………………………………….7        eTextbooks…………………………………………………………..8Pass It On………………………………………………………………….10Conclusion………………………………………………………………..10Bibliography……………………………………………………………….11AbstractThis report will explain different aspects of the textbook industry. It will first discuss the huge increase in textbook prices throughout the years and attempt to explain why those increases exist. Textbook rentals and used books are growing in popularity to try and save college students a bit of money. The main competitors in the industry, Chegg, Amazon, Follett’s, and eTextbooks, will be introduced with advantages and disadvantages of each. Last, the report will discuss a new app that will allow students to buy and sell textbooks directly to one another.Why Are Textbooks So Expensive?Over the years, college students have seen a huge spike in textbook prices. In fact, textbook prices have increased an astonishing 812% since 1978. In comparison, new homes have increased by 325%, less than half of the increase in textbook prices. According to College Board, the average student spends $1,200 on books each year (“Understanding College Costs.”) On top of tuition, room and board, and other costs, the amount of money spent on college really ads up. [pic 15][pic 16]These high prices may have a bigger impact than one may realize. In a study done at the University of Michigan, 10% of students never obtained a copy of their textbooks. In the same study, it was discovered that “If textbooks are more expensive, students are less likely to buy them” (Nicholls, 2012.) Since textbooks are an in-depth explanation of each topic a course covers, it is easy to see how a lack of textbooks could be harmful to student success.To understand the prices of textbooks, one must consider all of the different components that go into the cost. Typically, bookstores sell their books to students at a 25-28% markup (Crockett, 2013.) This may seem high, but this covers many costs that the bookstore incurs. With that percentage, bookstores must pay their employees, upkeep their facility, and pay taxes and utilities. The National Association of College Stores found that after all deductions, bookstores “make a profit of only 6.3 cents from every dollar spent on a new textbook” (Crockett, 2013.)  Although this doesn’t seem like a lot, there is still more to consider. Since publishers update their textbooks every couple of years or universities switch textbooks, the bookstores must accommodate for the costs of switching books. When all of these costs and factors are considered, it is easier to see why the prices of textbooks seem so high.[pic 17][pic 18]