Textbooks for Tightwads

(page 2 of 2)

Another possibility: the retailer is trying to unload a stash of new books before a new edition arrives, much like a new car dealer offering rock-bottom prices to clear the lot for new models.

Buy vs. Rent

In general, though, used copies of books are cheaper than new ones—sometimes a lot cheaper. In many cases, used prices are just a fraction of the list price and a substantial discount over the cost of a new book. In some cases, used textbooks can go for as little as $1.

Of course, buying isn't the only option. Chegg.com rents textbooks to students by the semester, as do campusbookrentals.com and bookrenter.com. Chegg's current incarnation (with a name that comes from the combination of "chicken" and "egg") was launched nationally in 2007 by Osman Rashid and Aayush Phumbhra, who experienced their own share of frustration with the amount they spent on textbooks while in school. Students save between 65% and 85% off list price, according to CEO Jim Safka, getting what he believes is the "best possible value." Chegg.com has a revenue-sharing agreement with McGraw-Hill, covering 25 titles.

"Rentals are good for certain students," says Charles Schmidt, director of public relations at NACS. Rented textbooks might be good, for instance, for students who otherwise wouldn't be able to afford the books at all, or for students taking required classes about material they'll never think about again.

Amid all the low-cost textbook options available to students, campus bookstores would seem to be at a disadvantage. But for many students they're still the default choice, owing to convenience, the in-store shopping experience, and a sense that by patronizing a campus store they're giving back to their school. That's not likely to change.

Government Support

Besides relying on their own initiative—a quality that should be in every business student's DNA—textbook shoppers can also look to support from the federal government. The Higher Education Opportunity Act of 2008 requires publishers to disclose the wholesale prices of textbooks, content revisions made in new editions, and other information designed to make it easier for professors to choose the most budget-friendly books for their courses. It also calls for the unbundling of CD-ROMs and other materials, making it possible for students to purchase only the materials they need. Finally, it will require that colleges publish textbook requirements in course catalogs, giving students more time to find deals on the books they need.

Schmidt expects these changes to bring increased transparency to the faculty-publisher relationship. Already, some professors are trying to help students spend less by sticking with old editions or choosing unbundled books. They're also joining textbook advisory committees with students and administrators, Schmidt says, to make sure "everyone's on the same page."

Rachel Z. Arndt is a reporter for BusinessWeek.

Business Exchange

Track and share business topics across the Web.