<p>It’s well known that traditional bookstores markup ~40%. Larger bookstores can get away with lower margins. B&N has a 30% profit margin (<a href=“http://www.barnesandnobleinc.com/for_investors/annual_reports/Barnes_%26_Noble_2007_Annual_Report.pdf[/url]”>http://www.barnesandnobleinc.com/for_investors/annual_reports/Barnes_%26_Noble_2007_Annual_Report.pdf</a>). Keep in mind that their cost of sales includes transportation costs so the raw markup is higher. </p>
<p>If we assume a 40% markup, then that $100 book you bought at the bookstore came with an almost $30 markup. Take that to the bank. Or, better yet, donate it. Do what you want with your money, not what the University Book Store wants.</p>
<p>Reading this thread makes me chuckle.</p>
<p>^The article explicitly states that it surveyed the bookstores and all of them stated they had 17-25% profit margins on new textbooks. That’s “markup” as a percent of the bookstore’s revenue, not cost. Divide those by 100%-X. It ends up being 21-33% markup on new texts.</p>
<p>As the article mentions, used textbooks have higher markups. The real markup would depend on how much of the bookstore’s business is in used texts. 40% may be too high, but it’s no where near 20%.</p>
<p>Post #23- the best attitude when posters veer from the asked question. Students- buy your books where it makes the most sense for you. That is the moral/ethical way to do it. This is a business decision- all choices have factored in making the most profit in their pricing. Any perceived social benefits are part of their marketing strategies. Factor in your total costs- time, convenience, dollars spent. Consider the tax angle- the 5.5% Wis tax paid may make a book bought locally cheaper than in some states. You have choices, well listed in an early post.</p>