How to get a textbook broker to pay for your education
A new study finds that for most students, textbook brokers are just as bad as textbook publishers.
The new research from The Wall Street Journal’s Robert Kuttner and Paul Hilderbrand shows that while textbook publishers earn a lot of money, the textbook brokers make much less than booksellers.
“If a textbook publisher gets a $10,000 loan, it can buy $1.5 million worth of textbooks,” said Robert Kuttsner, a professor of economics at New York University.
“A textbook broker will get the same kind of loan, but will only pay $100,000 or $200,000 of interest.”
The researchers found that for every $1,000 a textbook seller spends on textbook marketing, book brokers earn $3.15, and bookseller-firms only make $1 for every one book.
And when the researchers compared book brokers with booksells, the brokers were almost identical.
But the authors also found that the textbook sellers were actually more profitable than book brokers.
The book publishers were about as profitable as booksellies, the researchers found, with a profit margin of only 6.7%.
In fact, the book publishers and book brokers were similar in the way they used their money.
When they did get a loan, they were more likely to use it for stock dividends, which is what book brokers do.
But for the textbook publishers, the profit margins were actually much higher.
Book brokers earned between 8.5% and 10.4% of their profits from stock dividends.
Book sellers made up about 11% of the book sales, with book brokers earning nearly 17%.
The study also found a pattern of behavior in which book sellers used their profits to buy more books.
The textbook sellers bought more books than the book brokers, and the book buyers bought more than the textbook book brokers and book sellers.
Booksellers took home the biggest profit, but they were also the most likely to sell fewer books than book buyers.
Book buyers were also more likely than book sellers to sell only a few books, and they bought fewer books overall.
The authors concluded that book sellers and book broker-fans “may well be a good proxy for book buyers and book buyers, since they are likely to have similar tastes and desires.”
“Book buyers and publishers are highly correlated,” Kuttners said.
“The book buyers want the best quality, the publishers want the cheapest price, the publisher wants the most customers and the sellers want the highest return.
That makes sense.”