Book Prices (and what Chapters can't do about it)

Now that the Canadian dollar's more than par with the American dollar, complaints have grown about the discrepancy in prices for books, which are very noticeable since they're usually printed on the back cover.

It's been getting a lot of media attention lately, what with Wal-Mart announcing that they'll sell books and greeting cards at US prices, which they probably can because it's likely a loss leader to draw people in to buy other things rather than having it as a major part of their revenue source.

Then there's this article about how prices are established months in advance and how titles NOW are reflective of the exchange rate of previous months.

Finally, there's this column venting on Chapters-Indigo and calling on the company to cut prices because it's so big that it gets HUGE discounts from publishers, moreso than small retailers, and that it should do it because,

"sure, they'll lose on some stock but it would make them heroes and they'd sell lots more books than usual."

Will Chapters-Indigo really be hailed as heroes, even in the figurative sense? I doubt that. Here's why.

If they were to completely sell all merchandise at US prices, yes, the consumer wins out and conceivably people may buy more at Chapters-Indigo locations. However, as that columnist stated, small booksellers don't get the discounts Chapters does and they've bought their merchandise at the prices set months prior. So now, not only are they competing against Chapter's purchasing discounts, but they would also have to face the new price competition that Chapters, the bookselling giant that they are in Canada. Will they be able to sell at US prices and take the loss that she thinks Chapters can so easily absorb? I doubt it. How long before we hear small booksellers complaining that Chapters is undercutting them and thereby killing the downtown, Main Street 'mom-and-pop' bookstores?

Chapters-Indigo would get villified just the same. They're in a (insert Joseph Heller reference here). So don't expect Chapters-Indigo to do much except say that they're waiting on the publishers to adjust the prices (which is what my friends the employees have been trained to say). They don't gain anything from action, so inaction will be the status-quo.

Therefore, please don't complain to Chapters-Indigo employees about the price discrepancy...they know it sucks. They're the book buying public too. And don't bother telling them that you'll only buy at US prices or you'll walk out. They don't care. They don't have to because the opportunity cost for the book was clearly higher than what you were willing to pay for anyhow (especially since you can get almost-US prices online anyhow, so what the hell were you doing in the store in the first place). Otherwise, you would own the book now.

It's basic economics. The sale was never there.