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The Great Ideas Letter Forum
Profit Potential Of 2nd Hand Books
Posted By: Michael Ross
Date: Wednesday, 27 October 2004, at 2:18 a.m.
In the Oct 6 issue of the online Great Ideas Letter we mentioned the idea of creating a Mobile Book Exchange.
Here is the kind of profit available in 2nd hand books...
The large 2nd hand book store near my place currently has a book for sale for $9.90.
Many of their business books are $25 - $30. Which is a bit steep for a 2nd hand book in my opinion. But when a book is not readily available, and with some of those books selling for high prices on abe books, I think this store is pricing according to abe books.
Anyway. This $9.90 book has the price written in pencil on the inside page. This is where this store writes ALL their prices.
On the front cover written in texta is the price of 55¢. I assume the store bought the book at a garage sale, or as part of a "lot" of books.
If they paid the full price of 55¢, then by selling it for $9.90 they are getting a 1800% mark-up. Or making 18 times their money.
When you consider that stores that sell new books only ever get a 50% profit (the books they sell for $20 cost them $10 from the supplier/wholesaler), you can see who is in a better position. And it isn't the new book store.
The 2nd hand has much more inventory for less cost. And has a bigger profit margin per book.
Something to think about.
Michael Ross
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