Why Are Textbooks So Expensive?

In today's job market, a college education hasSo why do textbooks prices keep going up?
become the minimum bar to enter the workforce atTextbooks, along with tuition and other fees, are
an entry level position. Many candidates are seekingaffected by inflation. By nature, a new product this
jobs with a minimum of a bachelor's degree, puttingyear is going to be less than the same new product
those candidates without one at a greatfive years from now. Inflation, however, is not the
disadvantage. What's more, employers are lessmain reason why the costs of textbooks have
concerned with the candidate's bachelor's degreeincreased in recent years. According to the GAO, one
concentration as they are with candidates' exemplaryof the main reasons contributing to increased
achievements of discipline, intelligence and focus thattextbook costs has to do with the rising costs
a degree requires. This signals to the potentialassociated with developing products designed to
employer that the applicant is more likely to beaccompany textbooks. These products include such
reliable and should make a good employee.things as CD-ROMs and other instructional
Economists refer to this as a screening/signalingsupplements requested by the instructors of the
device for employers. Based on the assumption thatcourses. Although the instructors feel these ancillary
having a college degree puts one at an advantageproducts are important, many wholesalers, retailers,
when interviewing for a job, let's then explore whyand others expressed concern that the creation of
so many American's still lack a college degree inthese new "supplements," in addition to more
today's marketplace.frequent revisions, might unnecessarily increase costs
The cost of education is usually the foremost reasonto students.
why people either never start college, or begin butWAYS TO SAVE:
later drop out. One of the main costs associated withAlthough the costs of textbooks are continually rising,
obtaining a college education, besides tuitionthere are creative ways to save. E-commerce has
expenses, are books. According to the Governmentopened up a whole new market for college
Accountability Office (GAO), the cost of collegetextbooks. Places like and (a subsidiary of eBay) allow
textbooks have increased 200% over inflation duringstudents to purchase books over the internet which
the past two decades. This is an astonishing figuremay be cheaper than their local bookstore. Once
considering textbook inflation is roughly the same asstudents finish a semester, they can go to these
tuition inflation during that same period.sites to re-sell their books online. Although buying
Students are certainly feeling the pinch from thebooks online can significantly save students money,
increased cost of textbooks. Daniel Cooper, athere are some drawbacks. First, students may not
student at Northlake College in Irving Texas said, "Ibe able to find the books they are looking for.
spent about $800 on classes last semester beforeAdditionally, when buying and selling textbooks online,
books. I was shocked when I went to the bookstoreshipping cost and time can often be a major
and found out my books cost more than mydeterrent. Although small, retail websites do charge a
classes." One of the problems Mr. Cooper faced atcommission for selling books.
the end of the semester was selling his books back.Another alternative with similarities to the
"I went to sell my books back to the library, and oute-commerce sites, are sites that provide students
of the six books I had, three of them they wouldn'twith an opportunity to buy and sell books to other
buy back, one of them I bought for $172, and theystudents at their particular college/university with no
offered me $54 for it, and the other two combined,fee. It's simply an online marketplace that lets users
I sold for $52." He continued, "Out of the threelocate their college or university, and either list a book
books they wouldn't buy, two of them were labthey want to sell or contact someone with a book
manuals for biology courses at Northlake, so if theylisted that they want to buy. This option makes it
wouldn't buy them, I have no option to sell them."somewhat easier for students since they do not
What Mr. Cooper experienced is something that a lothave to worry about shipping costs, fees, or time
of students experience at the end of each semester;frames. The one drawback, like the other
the bookstore buyback issue. Most bookstores makee-commerce sites, is book availability. However, these
an average profit margin of 22% on books they sell.sites can be helpful to students like Mr. Cooper, who
At the end of the semester, they typically buypurchased books that are only used at one particular
books back at roughly 50% of what they sold themschool.
for and then resell them for slightly less than theTextbooks are an essential part of obtaining a college
original sales price. In effect, they are selling theeducation. They are full of knowledge and need to
same books multiple times which in turn drives upbe continually updated if they are to remain current.
their profits. This is a completely logical maneuver forBy remaining focused and persistent, almost anyone
the bookstore, but unfortunately, the student getshas the intelligence to graduate college, and with a
the short end of the stick.few of these money saving tips, they can find
CONTRIBUTORS TO HIGHER COSTS:creative ways to pay for it too.