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Higher Education Retail Market
Facts & Figures 2009
The National Association of College Stores (NACS)
plays a key role in serving its members by tracking the
higher education retail market and reporting the latest findings.
According to these figures, 70% of the total spent on textbooks ($702 x 70% = $491) was spent at a college store or its web site. These results are highly consistent with the latest data obtained in the NACS Financial Survey reported above.
| 2006-07 | 2007-08 | |
| Average price of a "new textbook" | $56 | $57 |
| Average price of a "used textbook" | $50 | $49 |
Anyone who has gone into a college store and picked up a chemistry or other "textbook" may question these figures. Calculating an average follows a standard mathematical formula that does not change regardless of who is doing the calculation. However, the definition of a textbook can vary greatly depending on who is providing that definition. It is the definition of a textbook that matters when computing the average price.
In college stores, textbooks are defined as "materials which appear on instructor course lists as required or recommended for purchase by students." This definition will include many books and materials not published as textbooks. A few examples would be Jane Austen novels for literature classes, biographies for history courses, current paperbacks for sociology or political science students are not published textbooks, but they are considered textbooks in college stores. This broader definition results in significant differences in estimates of textbook prices and the total textbook market, compared to estimates based only on "published textbooks." It is important to know that a significant portion of materials in college stores that are purchased as textbooks are just general books.
While some college stores may have a closer ratio, a higher ratio is more typical for most campuses. There are multiple factors that limit the total market of used textbooks. Faculty must agree to use the same title year-to-year; adoptions must be received in time for stores to obtain used texts; and there had to be sufficient new text sales of the desired titles to come back into the market as used books. While there are basic courses that fit this model, if all college course offerings are considered, it is easier to see where used books could not be a significant option.
Based on data from the 2009 College Store Industry Financial Report, total online sales at U.S. college stores for 2007-08 were estimated at $765 million, or 7.8% of all U.S. college store sales. With a "click and mortar" strategy, the college store offers the best of both worlds to students - the convenience of web ordering, paired with:
- ease of returns
- the ability to pick up items for immediate use
- one-stop shopping
- accurate textbook information students need for their courses
It is important to note that just over 10% of U.S. universities have enrollments greater than 10,000 students. That's just 430 schools with large student bodies. That leaves roughly 90% of colleges with enrollments below 10,000 students. Of this large group, a full 40% have enrollments below 1,000 students. That's more than 1,700 schools with fewer than 1,000 students. The remaining 50% of U.S. higher education [approx. 2,150 schools] has enrollment between 1,000 and 10,000 students.
Percentage of U.S. Colleges & Universities by Enrollment
While college students are often referred to by age and student status as a single market, the college market is actually quite diverse, formed from a wide mix of consumers wielding substantial buying power. This market is also diverse geographically, as reflected in the distribution of enrollments in higher education.
There were 17.7 million college students in Fall 2006 of which -
| 86% were undergraduates; |
| 63% were at four-year institutions; |
| 57% were women; |
| 32% were minorities; |
| 62% were full-time students; |
| 37% were over the age of 25; |
| 74% were at public institutions, only 26% at private schools; even though private |
| institutions make up 60% of higher education. |
These figures were reported in Almanac 2008-2009, published by The Chronicle of Higher Education, August 29, 2008. To see more information on students and enrollment, go to www.nces.ed.gov/fastfacts
The largest percentage of college stores are owned or operated by the institution. On-campus stores are mostly institutional, but they may also be operated under contract, as cooperatives, or by student associations. Off-campus stores are typically private businesses.
Sales volume in college stores is determined by many factors, but the major influence on sales seems most closely tied to the size of the institution it serves. Average sales for U.S. college stores were $6 million in 2007-08; median sales were half that, at $3 million. As seen in the following graph, a much greater number of NACS members have sales below $3 million, consistent with the large percentage [60%] of institutions that are private colleges or universities, and the large percentage [50%] having enrollments less than 1,000 students.
View Gross Margins Table (PDF) | View Stock Turns Table (PDF)
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