The impact of inaccurate buying can be felt in every function of the textbook department. While it is virtually impossible to routinely predict the exact number of textbooks needed for every class, buyers should be aware that habitual errors could affect both the profitability and credibility of their departments.

Finding a balance between overbuying and underbuying is critical and a primary reason why accurate record keeping is vital to a successful textbook department.

Overbuying
Overbuying increases costs and reduces margin, in large part, because returns cost money with respect to the following:

1. Freight. The store pays for the freight in and then back out when leftover stock is returned.



2. Personnel. Every time an employee handles a book—to receive, price, move, shelve, pull, package, or ship it—it costs money. Personnel costs for books destined for return are at least twice as high as for those that sell, since the time and effort necessary to deal with these books is doubled.



3. Inventory. Books on the shelf represent money invested in inventory. Books that languish tie up space. Returns cans be reduced at the outset by placing the most accurate orders possible.



4. Space. Space is usually the primary concern for college stores and increased storage requirements may result in decreased selling space.



5. Publisher/Vendor Relations. High returns may undermine the store's relationship with publishers and suppliers. Some publishers impose a penalty on stores that don't meet the requirements of their returns policies. Keeping returns to a minimum will help maintain the store's credibility while containing costs.

Underbuying & Reordering