Buying vs. Renting Textbooks: Which is Right for You?

Rent Buy Which Is Right for You? BUYING vs. RENTING TEXTBOOKS Each academic year, more and more students are confronted with smaller budgets. This financial constraint makes it all the more important to find prudent ways to cut costs. 0 The High Cost of Textbooks Textbook prices have risen significantly in the last two decades, so much so that many students cannot afford all of the books that they need. The Bureau of Labor Statistics reported that between 1990 and 2009, textbook prices rose at four times the rate of inflation. 4x 3x 2x 1x 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $1 200 According to the College Board, college students spent an average of nearly $1,200 per student on textbooks in 2010. For college stores, any When faced with the options, book or other media that is required or recommended for class it's good to know the whole story. is considered a textbook. New Print Used Print $100 - $100 - |$96.79 $90 - $90 - $80 - $80 - $82.83 $70 - $70 - $60 - $60 - $50 - $50 - $40 - $40 - $30 - $30 - $20 - $20 - $10 - $10 - $0- $0- 2010 2010 The average price of a new textbook was $96.79 in academic year 2009-2010. In academic year 2010, the average price of a used textbook was $82.83, up 3.2% from the year before. Each year between 2006 and 2010, the average price for both new and used print textbooks increased 4.1% annually. 2006 04.1% 2010 That price was up $2.93, or 3% from the previous year. The lowest year-over-year increase in the 2006-2010 period. Overall, between 2006 and 2010, the average annual price increase for new textbooks was 4.1%. Overall, the average annual increase in the price of used books sold at retail was 4.1% between 2006 and 2010, the same as for new textbooks, Spanning 2006-2010 1 20.4% 1 24.4% The average price of a new print textbook went up $16.42 (20.4%). The average price of a used print textbook went up $16.24 (24.4%). Students ranked the ability to purchase used textbooks as the number-one factor when considering which textbooks to buy. Factors that limit the market for used textbooks: BOOKS Faculty must agree to use the same title year to year. Enough books must be purchased new and sold Materials must be chosen early enough for retailers to secure used texts. back into the market used. When choosing, go with what's best for you! BUYING OR RENTING Marketing Management Kotler Keller MARKETING MANAGEMENT14E By Kotler & Keller, 14th Edition Before you jump into deciding A whether to buy or rent a book, Research & Compare! Retail Cost of a New Print Copy: ş0 $250 Price $246 Cost of a Used Print Copy Lowest $88 Average $118 Cost of a Rental Copy Lowest $45 Average $57 Current Buyback Value Highest Price $92 Average $83 Total Cost of Ownership Lowest - You make $4 Average – You make $35 Buying used or renting, either way, you save big over buying new. THE DECISION BUYING BOOK According to NACS, used textbooks are typically priced at 75% of the retail price of a new book. On average, buying a book used and selling it back at the end of the term would save a student 29% or roughly $18 over renting the same book. It all comes down to: 75% Reasons to buy: O You intend to keep the book for longer than the duration of the term. O You make a lot of marks in the text. O You're prone to losing books or damaging them. New book price Used book price O You don't want to deal with buyback at the end of the term. RENTING BOOK Increase in the number 500% of textbook rentals 2009 between fall 2009 and fall 2010, according to National Association of College Stores (NACS). 2010 5X BOOKS FOR RENT Renting a textbook may sound good because the upfront cost is less than buying the textbook, yet in many instances the student will end up paying more for the use of that book than he or she would have if he or she bought the text used and sold it back at the end of the term. With the rental option, students can now save at least 50% compared to what they'd spend if they bought their books. When renting, students almost always have the option to convert that rental to a purchase at any point during the term. NACS estimates that students can Marking up the text heavily, returning a rental late, or failing to return it at all can result in steep fees or being charged the new-print purchase price. All materials included with the rental (supplements like DVDS, models, etc.) must also be returned. Failure to do so results in being charged for all materials. generally rent a textbook for between 33% and 55% of a new printed text, Renting saves students at least half of what they would spend were they to purchase their books. V You don't need the book. Save 50% 3. V You want a hedge against resale prices. V You need immediate savings. SIMPLE REASONS TO RENT Charges apply in the cases of: failure to return the book, marking it up heavily or damaging it, returning it late. A You've made your decision. Now, where are you going to get your textbooks? Bricks-and-Mortar Store vs Online $950 million College bookstores compete with e-commerce outlets The emergence of digital materials and print-on-demand textbooks is changing popularity of students' relationship with their college bookstore. Online purchasing of college materials is growing with the Total online sales were estimated at $950 million for 2009-2010, that sell textbooks and other merchandise e-retailers and based on data from the 2011 Industry Financial Report. directly to students. e-commerce sites specific to textbooks. When making the decision you must take into consideration the following factors: How long will you need your texbook? Time comparison: Initial costs: Is it more beneficial to rent or buy within this period of time? Do you have enough time for shipping, or will you end up spending more in overnight shipping expenses? Price comparison on each texbook MAKING THE DESICION Find a company that meets your needs The prices of each textbook vary depending on the type, there might be some cheaper to buy used and others cheaper to rent, don't set your mind on one system. Find a company that meets your needs, in case you need to buy, sell or rent, all in one! Now that you know, you can shop smart based on what's best for you. SOURCES: • College Publishing Market Forecast 2011 - 2012, SIMBA Information • http://www.nacs.org/research/industrystatistics/higheredfactsfigures.aspx • http://www.communiquepr.com/blog/?p=1710 • http://www.nbcconnecticut.com/news/local/To-Rent-or-Buy-QU-Makes-Age-Old-Textbook-Dilemma-Easier-98853754.html • http://www.mint.com/blog/saving/renting-textbooks-12092010/ • http://www.bu.edu/today/2011/textbooks-rent-buy-or-ebook-it/ • http://voices.yahoo.com/renting-vs-buying-used-college-textbooks-7037294.html • http://universe.byu.edu/beta/2012/06/12/renting-versus-buying-textbooks/ • http://usatoday30.usatoday.com/news/education/2010-08-17-RentingTextbooks17_ST_N.htm • http://www.riocoupon.com/articles/buying-vs-renting-textbooks.html