Date: Tue, 24 Jun 2008 22:40:33 -0400 (EDT)
From: dicconf <dicconf at radix.net>
To: WSFA members <WSFAlist at KeithLynch.net>
Subject: [WSFA] Re: Olssons Sale ends Friday
Reply-To: WSFA members <WSFAlist at KeithLynch.net>

On Tue, 24 Jun 2008, Keith F. Lynch wrote:

> "Michael Walsh" <mjw at press.jhu.edu> wrote:
>
>> "Last 4 Days!  The Entire Penn Quarter Store closes this Friday.
>> Everything 60-75% off in the Penn Quarter store only."
>
>> I wouldn't be surprised if they're moving some inventory in from
>> other stores, just to try to get rid of it.
>
> If retail margins are as tight as everyone claims, I've never
> understood why stores have 60-75% off sales rather than just
> moving their inventory to another store.

There are several likely reasons.

Keeping books on the shelves longer than expected counts
as a business cost.  If two titles each would make the same
amount of profit per book, but one sells at a rate of one
copy a week and the other sells at a rate of two copies a
week, the faster-selling one makes double the profit for
the store owner.  Reducing the price may make some of the
slower-moving, unsold inventory sell.  Books that sell
don't have to be moved.

Moving the books adds labor cost (and gas money) to the
original purchase price, and requires storage once they've
been moved.

Also, bookstores are taxed on their inventory.  Reducing
inventory means lower moving costs, lower taxes, and getting
rid of the stock that didn't sell at full price.

I believe they also can take off some of the original cost
as losses against profits, which also lowers their taxes.

=Tamar Lindsay