The Cost of Textbooks is Too Damn High!
Texts.com Founders Peter Frank and Ben Halpern with Jimmy "The Rent is Too Damn High" McMillan
Background on Costs, The Oligopoly, Tactics
CollegeBoard estimates that the average student at a four-year public college spends $1,200 on textbooks per year.[i] This problem has been building for decades, with the price of textbooks rising steadily since the 1970s. Studies have shown that the price of textbooks has risen by 812% in the past 35 years. That rise is three times the average increase for goods and services broadly.[ii]
The industry is essentially an oligopoly, with the top five publishers controlling about 80% of college text sales. These publishers include Thomson, Wiley, Houghton-Mifflin, Pearson and the McGraw Hill companies.[iii] Like any oligopoly, these companies have the luxury to suppress competition, keeping prices high due to the immense demand and limited supply.[iv]
Noting that they are losing money in the used-textbook market, publishers are increasingly bundling their textbooks with online content and one-time access codes.[v] Another tactic is “upgrading” editions with cosmetic changes or adjustments to problem sets, forcing students to purchase a new version.
New Suite of Student Options
The used-book market is serviced by a fleet of new companies such as TextbookRentals.com, ValoreBooks.com, and Chegg, in addition to the old-guard of Amazon and Half.com. These services provide students choice on the open-market, and frees them from the monopolies of campus bookstores.[vi]
Additionally, students are increasingly making use of digital alternatives from companies such as FlatWorld Knowledge and Boundless. These companies provide textbooks – often bundled with digital content – at a much lower price point than traditional publishers. There are also a number of initiatives to develop free and open-source textbooks, though their widespread adoption is likely at least a few years off.
Though renting and digital alternatives are a great, cost-saving option, there exists a more immediate and efficient solution for today’ student: buying and selling books with on-campus peers. Though much attention is given to the cost of textbooks, seldom covered is the paltry buyback market. It’s common for students to sell back their books, after just a few months of use, for only 10-20% of the purchase price; sometimes, these books are even deemed “worthless” at the campus bookstore due to an edition change.
Texts.com’s Solution
Texts.com hosts a free student exchange where students are able to buy and sell books with their on-campus peers. There are no fees or commissions for student deals, and the platform is seamlessly and securely designed to work with verified on-campus networks (all users must authenticate with their .EDU e-mail).
When there are no student listings available, Texts.com employs a price-comparison engine to find deals at a wide range of retailers. These used, rental, and new options, will usually save students up to 70% off the list / bookstore price.
By coupling these options: a free exchange platform, and a price-comparison engine, Texts.com is able to provide students their best-possible textbook buying/selling options in one place. It breaks the monopoly of the bookstore, empowers student-sellers to find buyers at a fair price, and opens the free market of textbook options to the buyer. If you haven’t already, search for a book on Texts.com and prepare to be blown away by the speed, simplicity, but mostly the substantial savings.
- Thanks to Chando Mapoma for providing substantial background research and providing the first draft of this post.
[i] https://bigfuture.collegeboard.org/pay-for-college/college-costs/quick-guide-college-costs
[ii] http://www.aei-ideas.org/2012/12/the-college-textbook-bubble-and-how-the-open-educational-resources-movement-is-going-up-against-the-textbook-cartel/
[iii]http://www.businessweek.com/bschools/content/aug2009/bs20090826_069900.htm
[iv] http://www.aei-ideas.org/2012/12/the-college-textbook-bubble-and-how-the-open-educational-resources-movement-is-going-up-against-the-textbook-cartel/
[v] http://blog.boundless.com/2012/04/8m-in-funding-and-a-lawsuit-to-boot-game-on/
[vi] http://college.usatoday.com/2014/01/15/college-bookstores-pull-out-all-the-stops-to-stay-competitive/