Forums: Discussions for entrepreneurs and small business.

The reason I asked your location is that we just had a fella from Indonesia who wanted to build a book rental business. There, government intervention, social structure, and getting distribution was a major problem.

But for Michigan, you`re in a different situation. I remember one of the best models I ever saw for this, was a used book store around the corner from me. I was broke again, at the time, and wanted to read.

In that store, you bought a book for 75-cents if it was paperback, and $1.50 if it was hardcover. It was yours. BUT...! If you wanted to bring it back, the owner bought it back from you for 20-cents paperpack, 50-cents hardcover.

When I bought the book, I owned it. If I wanted to keep it in my own library, I never gave it a second thought. But when I was done reading it, if I didn`t want to keep it, I knew I could get some money back. Not a lot...but some.

Note the prices, too.

Think about the difference between a) used-book store, b) library, c) secondhand bookstore, and d) rental book shop.

What`s different about "rent?" Why does anyone rent anything? Isn`t it because it`s a high-ticket or low-usage item and they don`t want to invest in ownership? A single book isn`t a big-ticket item. Textbooks are only a high expense because so many of them are *required* and have to be purchased at the same time.

On the other hand, how many students just toss out their old textbooks? What about soliciting students for some pocket change to buy their used books? Instead of charging a percentage of face value, why not sell them really cheaply and buy them back like the guy in my story above?

Hi Craig,

Thank you very much for your response. You definitely have a point and it made us go back to the drawing board.

Appreciate your input.

Regards,
Atul

Research how to offer downloadable textbooks to PDAs or even how to do podcasts of textbooks. Sort of like an audiobook except downloadable to PDA. Textbook rental is an ok idea, however, you`ll be buying the textbook, renting them for maybe 4 semesters, and then the required books change for the class. It will be hard to make money. Beleive it or not, there is a financial gain made by the Universities and the professors in choosing which textbooks to use. Another idea is textbook sharing. Find a way for two people to use the same textbook, cut their cost in half, you profit, everyone is happy.

Thinks ahead of eveeryone else. What will make a student`s life easier, cheaper, what will make them smarter, or better looking.

Just a few thoughts.

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Get Out of Debt

check this out
http://www.maketextbooksaffordable.org/newsroom.asp?id2=1810 7
might this be of help?

You didn`t mention this, but I hope you remembered to factor in one very important expense for this business: author royalties.

Failure to pay royalties based on multiple users could and most likely will result in lawsuits from the Authors Guild, the publishers, and the authors. Unlike libraries, you will be sharing these books for a profit, which can leave you open to copyright infringement lawsuits. Make sure you purchase a multiple user license for each book you acquire. You can do this by contacting the publishers of the books. It would probably be in your best interest to buy the books directly from the publishers, along with the license.

As an author and a publisher, I can tell you we take copyright issues very seriously. In fact, there has been a movement (for quite some time) by some authors and publishers (not me or my company) to charge libraries for multiple-use licenses. Most authors do not make enough money to quit their day jobs, so royalties are a touchy subject with them. Good luck with your venture.

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Claddagh Publishing
Claddagh Ltd.
Your First Choice ~ The Right Choice
CladdaghPublishing

Claddagh,
You make a good point on the royalties, and the difference between a lending library and rental for money.

As for the potential lawsuit, I think it`s hogwash. As an author myself, I`d rather sell more books for a larger percentage, than go after ways to improve the operational bottom line and "attack" libraries. I think a lot of authors are looking more at self-publishing, online distribution, and better royalty percentages. I wouldn`t be surprised if it isn`t the *publishers* or those people who work for the Guild who are contemplating the lawsuit.

Always with the "on behalf of the little guy" appearance, so they look like caring concerned citizens. :-)