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Textbook Pricing

Publisher's Income

After-tax income from which the publisher pays for new product development, author advances, market research and dividends to stockholders.

Publisher's Paper, Prinitng, Editorial Costs

All manufacturing costs from editing to paper costs to distribution, as well as storage, record keeping, billing, publisher's offices, employee's salaries and benefits.

Author Income

Author's royalty payment from which author pays research and writing expenses.

Publisher's General & Administrative


Publisher's Marketing Costs

Marketing, advertising, promotion, publisher's field staff, professors' free copies.

College Store Personnel

Store employee's salaries and benefits to handle ordering, receiving, pricing, shelving, cashiers, customer service, refund desk and sending extra textbooks back to the publisher.

Freight Expense

The cost of getting books from the publisher's warehouse or bindery to the college store. Part of cost of goods sold paid to freight company.

College Store Operations

Insurance, utilities, building and equipment rent and maintenance, accounting and data processing charges and other overhead paid by college stores.

College Store Income

Note: The amount of federal, state and/or local tax, and therefore the amount and use of any after-tax profit, is determined by the store's ownership, and usually depends on whether the college store is owned by an institution of higher education, a contract management company, a cooperative, a foundation, or by private individuals

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