Is the bookstore exloploiting its students?
September 10, 2002
Do the business practices by the California State University, Sacramento officials exploit the students? I am not sure the answer to this question. After attending the University, when considering the explicit behavior of the officials and the practices, I say the answer to this is in the negative. However, this may have been a normative conclusion rather than a conclusion based on empirical data.
I have observed one practice over the past years, which grabbed my attention. Every semester while purchasing books for the courses I enrolled in, I always looked to purchase used books. I am not sure the exact percentages, but I imagine that I bought more used books than new books while attending CSUS. In addition, I suspect that many of the students attending CSUS have followed the same pattern. They had the intent to purchasing used books due to the lower prices.
CSUS should have established practices that lead to a collection of funds only needed to manage the university at is current condition. That is, when the bookstore decides how much to charge for its goods and services, the collected funds should not be more than what is needed to manage the bookstore. The bookstore should not be profiting. If the bookstore has the plan to profit with the intention of expanding or improving the goods and services, then the students should have some decision making power in this process. The bookstore should only charge prices that result in a profit with the consent of the students who benefit from this expansion or improved goods and services.
However, what I have observed in a bookstore that is managed for profit. For instance, if you purchase a used book for $40 for a course, then the professor reorders it for the next semester, and you resell it to the bookstore for $16 (49% which is high for a resell) the bookstore gains $24. Therefore, you borrowed the book for $24. The bookstore then resells it to the next student for $40 (which is what is going on the price is not decreasing on most of the books I have been observing). The next student then uses it and resells it for $16 (if the professor wants to reuse it, which they usually will for at least one year) and the bookstore makes another $24. $48 in two semesters involving around 10,000 to 15,000 students is a lot of money ($480,000-$720,000). If the professor wants to continue to use a book, the bookstore receives the continued benefit of the used book, however if the Professor does not, the bookstore loses nothing (once in a while the bookstore offers a low price for the book, such as a dollar).
This provides a clean example, Nevertheless, I think the reader understands. I could have incorporated other issues, such as the bookstore not paying $0% for a number of reasons or a price increase or decrease due the price of the newer version. In addition, much of the business transactions in the bookstore probably involve new books, which have lead to many other observations, which I will discuss at another time. I should mention though that I had a discussion with a professor while the professor decided what books to have the students purchase for a course. The professor encountered a few books and requested that I look at one of the books. I examined the book and asked the Professor how much the book would cost, because I think I will purchase it. The Professor located the cost at the bookstore (using the internet). The price was reasonable, around $30; however, the Professor commented, I wonder how much the bookstore will mark it up. I am not sure the mark up, but I imagine it is high maybe even outrageous to the point of exploiting the students. I will leave this discussion for another time.
I wrote this editorial with the intent of encouraging others to watch the prices the bookstore presents and complain when the prices and return value leaves you feeling exploited. In addition, I hope this encourages others to watch the practices at the University. Other practices have a similar result and may be more severe. I recognize those individuals out there that say, it is only a few hundred dollars. However, I buy the slippery slope argument, and when others observe you as an individual willing to take a loss here and there, they will continue to take and take and sooner or later either you will have nothing left or you will be dependent and with little or no choices but to give a cut. Then I say to those, how do we control this tyrannical institution now? Obviously, I am not saying the bookstore will become a tyrannical ruler, what I am saying is that if you will take it here you will take it in other parts of your life, such as when the state or the federal government acts.
Therefore, why not expect institutions like CSUS to act a certain way. Well, if it does not, I probably could attend another institution. The problem is when one institution can do it, their all doing, particularly when the action results in more funds for the institution.
No, maybe I will pay the prices and be willing; and when I observe these types of actions in other situations, I will continue to pay the prices and be willing, and why not: everybody else is paying the price and are willing.