
Howdy again..
This may post numero uno of dos posts today, but I'm not promising anything. I just found this freaking fabulous illustration on one of the Pearson websites at work today and wanted to put it up in here. It is mostly relevant because 1.) it's from a website of the company by which I am employed, and 2.) we got this huge email today telling us about how we as textbook publishers were being represented in these MASSIVE Student Financial Assistance hearings they are having in D.C. now. They're trying to determine how to handle the cost of textbooks at universities (in many cases, they want to create a rental system where the colleges will buy the books for, like, 4 years or whatever, then *rent* them out to students for the span of that time... thereby not buying any new books or updating or finding any new software or ancillary materials or anything else for that span of time). It sucks and it's a very bad plan in terms of giving students the best and most updated education. April has to deal with a couple rental schools in Florida, I think, and it's a huge pain in the ass because they created no revenue for their rental period *and* the editors and sales reps associated with the school can't create any kind of long-standing relationship with the profs because they only need to communicate every 4 years to get new books. So it's like starting new every time. Boo.
My bosses actually saw that I found the mailing really interesting, so they asked me to read through it all and report back to them... so I may be doing that later this afternoon and consequently updating one of my gournals about it with more quotes. The reps they got to represent the various textbook companies seem pretty decent in terms of their points and forcefulness in disputing false, inaccurate claims, so I'm excited to continue reading.
Also, once upon a time I had this print out that told where each cent of the dollar you pay for your textbooks go... but for some reason I never put it up after the move to 501.. so unless I find it in the next few minutes, I can't share that info. AHA!
Of $1.00...
11.5 cents- Author Income
9.9 cents- Publisher General/Administrative (taxes and such)
32.1 cents- Paper, manufacturing, editorial costs by publisher
7.1 cents- Publisher's Income (after tax)
11.4 cents- College store personnel
1.3 cents- Freight from warehouse/bindery
6.7 cents- College bookstore operations (overhead)
4.7 cents- College bookstore Income (pre-tax)
15.3 cents- Marketing costs by publisher
_________________________
So in the end, only 23.3% of anything you buy ends up being income for any of the three big handlers of your textbooks. Devastating. And any income the publisher makes goes back into "new product development, author advances, market research, and dividends to stockholders."
Thank God this whole education thing is emotional rewarding.. cuz it's not really the most lucrative business ever.