Job Rankings

Where the (best) 6-figure jobs are
If keeping more of your paycheck is important to you, some places are much better than others.
By Jeanne Sahadi, CNNMoney.com senior writer
September 29 2006: 9:46 AM EDT


NEW YORK (CNNMoney.com) -- Making $100,000 or more is nothing to sneeze at.

Only 5 percent of earners in 2004 reported making that much, according to Census data.

WHAT $100K REALLY LOOKS LIKE
16 cities where 6FigureJobs.com and TheLadders.com have had the greatest number of six-figure job listings, and the gross salary required to replicate $100,000 after adjusting for cost-of-living.
CITY SALARY
New York $205,426
San Francisco $179,034
Los Angeles $156,106
San Diego $149,384
Washington, D.C. $141,894
Boston $137,649
Chicago $126,929
Seattle $117,037
Atlanta $102,805
Denver $102,348
Cleveland $101,986
Milwaukee $101,478
Phoenix $97,976
Dallas $93,665
Charlotte $92,991
Houston $88,977


Source: Economist Scott Moody on behalf of the Tax Foundation, using 2005 data from ACCRA. Not included are the effects of taxes and inflation, which can further alter the true value of a 6-figure salary. Not included are the effects of taxes and inflation, which can further alter the true value of a 6-figure salary.


While entering six-figure territory can be a marker of a certain level of success, it's not always a marker of a lot of buying power.

In some cities, a $100,000 salary sounds a lot better than it is because the cost of living is high, taxes are high and, as Murphy's Law would have it, even the rate of inflation runs higher than in other parts of the country.

New York is the clearest example. Its cost of living is double the national average, according to data from ACCRA. Put another way, in New York, $200,000 is the new $100,000 paycheck.

Top 50 best jobs in America
But that $200,000 doesn't really mean you can afford the same lifestyle that $100,000 could buy in lower-cost cities like Cleveland or Denver.

Consider inflation. Over the past 12 months through May, overall inflation in New York metropolitan area was 4.8 percent. In Cleveland, the rate was 3 percent. Drilling down, you also see big differences. The cost of having a roof over your head went up 5.6 percent in New York, while in Cleveland it rose just 0.8 percent.

Next, consider taxes. State and local taxes make a big difference in how much you net, but so, too, does the federal income tax. Earning a nominally higher salary ($200,000 versus $100,000) puts you in a higher tax bracket. J. Scott Moody, chief economist at the Maine Heritage Policy Center working on behalf of the Tax Foundation, notes that a single person making $205,000 in New York would have an effective tax rate of 25.4 percent, paying just over $52,000 in federal income tax, leaving him with $153,000.

If you adjust for cost of living differences, that $205,000 salary would be worth $102,000 in Cleveland or Denver. The effective federal tax rate on that amount would be just 20.4 percent, so you would pay $20,868, with $81,480 left over.

"Even though the two incomes are equivalent in terms of purchasing power, the New Yorker has an effective rate that is 5 percentage points (or 25 percent) higher than the person living in Denver. As a result, the New Yorker suffers a lower level of after-tax purchasing power," Moody said.

Of course, the greatest number of six-figure jobs tend to be in the most pricey and populous cities, but there are also plenty of opportunities in more affordable ones.

We asked job listing sites 6FigureJobs.com and The Ladders.com to provide us with a snapshot of where they have had the greatest number of listings for six-figure jobs in the past two months.

Predictably, New York, San Francisco, Los Angeles and Washington, D.C. were in the top 10. But there were also a relatively high number of such jobs in Chicago, Atlanta, Seattle, Cleveland, Denver, Philadelphia, Milwaukee, Houston, Dallas, Minneapolis and Charlotte, NC.

Besides being less costly, there is another big advantage these cities offer if you're in the running to make six figures. To attract talent, companies often will offer the same big salaries that you could earn in New York or San Francisco.

"Whenever top talent is scarce (which is always), salaries offered to those super-producers ignore any geographic pattern that would suggest a lower number," said Jim Brennan, a senior associate at the Economic Research Institute, which specializes in competitive salary surveys. "So if you want to get a key executive, you have to pay world-class dollars."

_______________________________

Interesting six-figure jobs

Tax-friendly places 2006

Best jobs in America

http://money.cnn.com/2006/07/13/pf/six_fig_farthest/index.htm?postversion=2006092909
Six-figure job: Troubleshooting scripts
Script consultants make their living making screenwriters more successful or at least better writers and story pitchers.
By Jeanne Sahadi, CNNMoney.com senior writer
April 20, 2006: 9:53 AM EDT


NEW YORK (CNNMoney.com) – It's been said that in some places you can't swing a dead cat without hitting someone who is writing a screenplay.

For all those aspiring screenwriters -- and for the very well-established ones, too -- there is a growing number of script consultants.

SIX-FIGURE JOB SERIES
Auctioneer
Stunt driver
Crime scene cleaner
Matchmaker
Professional organizer
Fashion trend forecaster
Lobbyist
Real estate appraiser
Umpire, groundskeeper and mascot
Video game artist, perfumer and perfusionist
Political pollster, media strategist and opposition researcher
Charter yacht captain, private club manager and pharmacist
Casino manager, chief security officer and medical writer
Fit model, court reporter and broadcast captioner
Makeup artist, hotel manager and more



Script consultants can help screenwriters get a script into shape before it is marketed to studios and production companies or, in the case of experienced screenwriters, after they've been commissioned to write a screenplay.

Consultants also can help adapt books into scripts. And they may even work with lawyers, doctors, bankers and others with non-E! day jobs to turn an idea into a movie screenplay. Some even offer training in how to make a successful pitch.

Script consultant services range from script evaluation to one-on-one coaching. Evaluations are rendered from both an artistic and a commercial perspective. They typically include a promised number of pages of notes with the consultant's critiques, often a follow-up phone call or meeting between the screenwriter and consultant, and may also include an agreement to re-read the work once changes are made.

The work of script consultant is not one marked by public glory. "Often it's confidential," said Michael Hauge, a script consultant and author of the soon-to-be-published book, "Selling Your Story in 60 Seconds."

Indeed, only the screenwriter gets credit when the credits roll, he noted, although a script consultant's name may appear in the "special thanks to" category on some productions.

Among the rewards of the job are nurturing writers' talent, seeing a script you worked on made into a movie or television show, and knowing that you had an influence on a writer whose career flourishes, said Linda Seger, author of "Making a Good Script Great" and the first-ever script consultant who created the field in 1981.

Beyond movies and television shows, the field of script consulting has branched out to include working with the makers of narrative-driven video games, as well as corporate and educational videos, said Derek Rydall, author of "I Could've Written a Better Movie Than That: How to Make Six Figures as a Script Consultant Even If You're not a Screenwriter."

The field, although growing, is still very small. There is no required training and no official path to becoming a script consultant, but those who do often are either screenwriters themselves, have worked at agencies that represent screenwriters or work in project development for studios or production companies, said John Johnson, executive director of the American Screenwriters Association.

But that wasn't Seger's route. Over the years she amassed a host of graduate degrees in dramatic arts, theology and religion to help her better "understand drama in its overall context as one of the humanities. ... I tend to think that people need training, not just practical but some theoretical, so it's more than just giving opinions," she said in an email written from Europe where she was conducting a series of seminars.

Working well with a writer requires more than technical, artistic and commercial know-how. "When I teach my master class in script consulting, I spend a lot of time training communication methods, because many people know what's wrong with a script, but if one can't communicate that effectively to a writer, and keep the writer's defenses down, one won't be very effective. So I work to make sure the writer sees me as a collaborator, not an adversary," Seger said.

Getting enough work to make six figures consulting on scripts alone is possible but by no means a guarantee. Your chances improve if you also teach classes and write books about script writing and consulting. And once you're well established, as Seger is, you might use your literary expertise as an expert witness in copyright cases.

But in the first few years your consulting fees are likely to be low . Newcomers to the field might charge as little as $50 to $100 for the most basic script evaluation when trying to build up referrals and somewhat more for in-depth analyses, Rydall said.

When you establish a successful track record and reputation, your fees can go up considerably. After two decades Seger, for instance, charges $200 an hour for her time at script meetings (or $1,000/day) and offers packages of services that range from $1,200 to $7,500. Hauge also charges $200 an hour for coaching (or $3,000 for 24 hours' worth), and prices his other coaching and marketing packages from $375 to $3,500.

One key to establishing a successful career in script consulting is to differentiate yourself from others in the field, Seger said. For instance, some consultants highlight their expertise in character, structure or mythology, while others may specialize in selling and marketing scripts.

http://money.cnn.com/2006/04/19/pf/sixfigs_sixteen_script/index.htm

The Top 50 More jobs: Stats on 166 titles How MONEY picked the best jobs

Rank Career
(click for CNNMoney.com snapshot) Job growth
(10-yr forecast) Average pay
(salary and bonus)
1 Software engineer 46.07% $80,427
2 College professor 31.39% $81,491
3 Financial advisor 25.92% $122,462
4 Human resources manager 23.47% $73,731
5 Physician assistant 49.65% $75,117
6 Market research analyst 20.19% $82,317
7 Computer/IT analyst 36.10% $83,427
8 Real estate appraiser 22.78% $66,216
9 Pharmacist 24.57% $91,998
10 Psychologist 19.14% $66,359
11 Advertising manager 20.34% $107,049
12 Physical therapist 36.74% $54,883
13 Technical writer 23.22% $57,841
14 Chiropractor 22.40% $84,996
15 Medical scientist 34.06% $70,053
16 Physical scientist 12.18% $80,213
17 Engineer 13.38% $76,100
18 Curriculum developer 27.53% $55,793
19 Editor 14.77% $78,242
20 Public relations specialist 22.61% $84,567
21 Sales manager 19.67% $135,903
22 Optometrist 19.73% $93,670
23 Property manager 15.30% $78,375
24 Actuary 23.16% $81,509
25 Writer 17.72% $60,519
26 Social service manager 25.52% $74,584
27 Paralegal 29.75% $61,204
28 Health services manager 22.76% $92,211
29 Advertising sales agent 16.33% $112,683
30 Physician/Surgeon 23.98% $247,536
31 Management analyst 20.12% $63,426
32 Occupational therapist 33.61% $51,973
33 Mental health counselor 27.18% $53,150
34 Landscape architect 19.43% $50,383
35 Biotechnology research scientist 17.05% $66,393
36 Urban planner 15.17% $60,891
37 Lawyer 14.97% $153,923
38 Speech-language pathologist 14.57% $58,329
39 Meeting and convention planner 22.21% $56,072
40 Dietitian/Nutritionist 18.30% $52,244
41 Biological scientist 17.03% $61,317
42 Financial analyst 17.33% $66,203
43 Dentist 13.52% $122,883
44 Accountant 22.43% $62,575
45 Environmental scientist 17.11% $59,027
46 Lab technologist 20.53% $51,502
47 Registered nurse 29.35% $68,872
48 Sales engineer 13.96% $78,875
49 Veterinarian 17.39% $79,923
50 School Administrator 14.55% $73,767
http://money.cnn.com/magazines/moneymag/bestjobs/top50/index.html
Career
(click for CNNMoney.com snapshot) Job growth
(10-yr forecast) Average pay
(salary and bonus)
Physical therapist assistants 44.20% $42,086
Dental hygienists 43.32% $68,153
Forensic science technicians 36.40% $52,604
Veterinary technologists and technicians 35.32% $29,122
Occupational therapist assistants 34.10% $42,639
Community and social service specialists 31.95% $38,579
Hydrologists 31.57% $68,192
Social and human service assistants 29.68% $52,756
Athletic trainers 29.34% $42,466
Fitness trainers and aerobics instructors 27.07% $41,966
Business operation specialists 27.04% $63,015
Epidemiologists 26.18% $59,505
Medical and public health social workers 25.93% $46,917
Computer and information scientists, research 25.63% $96,797
Marriage and family therapists 25.38% $48,058
Environmental engineering technicians 24.42% $44,405
Rehabilitation counselors 23.93% $49,998
Healthcare practitioners and technical workers 23.84% $60,051
Counselors, all other 23.14% $42,473
Health diagnosing and treating practitioners 22.51% $91,493
Health educators 22.49% $47,726
Social workers 22.02% $43,773
Nuclear medicine technologists 21.48% $66,140
Biochemists and biophysicists 21.03% $76,839
Life scientists, all other 20.63% $91,154
Education, training, and library workers 20.47% $37,418
Coaches and scouts 20.42% $47,412
Industrial-organizational psychologists 20.42% $85,109
Life, physical, and social science technicians 20.03% $48,954
Interpreters and translators 19.88% $38,159
Social workers, all other 19.56% $46,133
Child, family, and school social workers 19.03% $42,340
Directors, religious activities and education 18.51% $73,015
Primary, secondary, and special educations teachers 18.30% $50,289
Cost estimators 18.21% $54,555
Orthotists and prosthetists 17.96% $44,709
Loan counselors 17.66% $35,073
Social science research assistants 17.44% $38,723
Architects, except landscape and naval 17.33% $48,932
Microbiologists 17.22% $59,747
Biological technicians 17.20% $40,394
Occupational health and safety technicians 17.07% $50,492
General and operations managers 17.04% $98,854
Anthropologists and archeologists 17.00% $52,086
Administrative services managers 16.88% $71,585
Commercial pilots 16.81% $98,392
Chefs and head cooks 16.70% $44,176
First-line supervisors/managers of food preparation and serving workers 16.63% $47,644
Producers and directors 16.60% $45,808
Atmospheric and space scientists 16.55% $107,414
Environmental science and protection technicians, including health 16.27% $41,455
Oral and maxillofacial surgeons 16.18% $211,766
Curators 15.67% $49,420
Embalmers 15.65% $40,914
Adult literacy, remedial education, and GED teachers and instructors 15.63% $48,114
Interior designers 15.54% $50,625
First-line supervisors/managers of police and detectives 15.52% $72,048
Arbitrators, mediators, and conciliators 15.52% $64,079
Cartographers and photogrammetrists 15.26% $55,634
Claims adjusters, examiners, and investigators 15.07% $42,533
Therapists, all other 14.97% $49,662
Teachers and instructors 14.90% $36,545
Chief Executives 14.87% $254,643
Financial managers 14.80% $128,910
Educational, vocational, and school counselors 14.79% $42,020
Real estate sales agents 14.69% $27,654
Physical scientists 14.65% $89,151
Financial specialists 14.37% $88,578
Sales representatives, wholesale and manufacturing, technical and scientific products 14.36% $108,013
Camera operators, television, video, and motion picture 14.22% $49,151
Multi-media artists and animators 14.13% $47,492
Museum Technicians and Conservators 14.13% $40,084
Soil and plant Scientists 13.86% $60,075
Child care workers 13.75% $41,883
Nuclear technicians 13.69% $56,565
Natural sciences managers 13.64% $116,504
Designers, all other 13.61% $49,664
Budget analysts 13.47% $63,835
Agricultural and food science technicians 13.40% $36,080
Archivists 13.36% $44,818
Zoologists and wildlife biologists 12.95% $57,055
Animal scientists 12.91% $52,714
Cooks 12.83% $32,590
Probation officers and correctional treatment specialists 12.81% $47,583
Transportation, storage, and distribution managers 12.73% $97,332
Library assistants, clerical 12.52% $38,032
Occupational health and safety specialists 12.44% $73,029
Executive secretaries and administrative assistants 12.40% $70,599
First-line supervisors/managers of mechanics, installers, and repairers 12.39% $80,183
Clergy 12.38% $40,583
Social scientists and related workers, all other 12.33% $68,961
Agents and business managers of artists, performers, and athletes 11.84% $86,218
Compliance officers, except agriculture, construction, health and safety, and transportation 11.62% $65,571
Securities, commodities, and financial services sales agents 11.52% $130,385
Food service managers 11.50% $65,625
Art directors 11.50% $94,662
Food scientists and technologists 10.93% $61,227
Commercial and industrial designers 10.84% $56,104
Astronomers 10.45% $104,691
Music directors and composers 10.45% $49,289
Construction managers 10.37% $74,873
Merchandise displayers and window trimmers 10.32% $53,567
Administrative law judges, adjudicators, and hearing officers 10.08% $81,384
Office and administrative support workers, all other 10.05% $34,876
Psychologists 9.89% $77,734
Broadcast technicians 9.77% $36,736
Electrical and electronics repairers 9.74% $56,644
Electro-mechanical technicians 9.69% $46,501
Financial examiners 9.47% $72,558
Set and exhibit designers 9.29% $57,372
Audiologists 9.14% $57,873
First-line supervisors/managers, protective service workers 8.66% $62,394
Aerospace engineering and operations technicians 8.51% $57,086
Fashion designers 8.43% $73,290
Operations research analysts 8.39% $76,595
Wholesale and retail buyers, except farm products 8.38% $65,757
Geoscientists, except hydrologists and geographers 8.29% $63,531
Loan officers 8.26% $76,257
Office managers 8.09% $61,819
Purchasing agents, except wholesale, retail, and farm products 8.08% $83,788
Materials scientists 8.01% $81,041
Insurance underwriters 7.95% $56,978
Managers, all other 7.85% $90,790
Farm and home management advisors 7.74% $49,806
Law clerks 7.68% $39,741
Religious workers 7.43% $29,300
Political scientists 7.31% $94,458
Chemists 7.27% $68,749
Legal support workers 7.13% $39,804
Physicists 6.97% $76,759
Purchasing managers 6.96% $77,250
Judges, magistrate judges, and magistrates 6.91% $101,868
Geographers 6.75% $69,272
Foresters 6.70% $56,233
Funeral directors 6.67% $61,443
Insurance sales agents 6.55% $79,741
Geological and petroleum technicians 6.50% $52,516
Conservation scientists 6.32% $59,108
Mathematical scientists, all other 6.18% $68,852
Bookkeeping, accounting, and auditing clerks 5.87% $34,858
Recreational therapists 5.72% $40,299
Economists 5.64% $102,565
Tax examiners, collectors, and revenue agents 5.12% $53,920
Librarians 4.94% $52,977
Reporters and correspondents 4.92% $37,270
Sociologists 4.66% $68,724
Statisticians 4.65% $79,125
Architectural and civil drafters 4.64% $44,213
Insurance claims and policy processing clerks 4.54% $31,721
Chemical technicians 4.44% $47,112
Historians 4.33% $54,629
Broadcast news analysts 4.28% $65,269
Farm, ranch, and other agricultural managers 4.04% $61,020
First-line supervisors/managers of retail sales workers 3.83% $43,843
Credit analysts 3.55% $53,958
Mathematical technicians 3.40% $48,634
Respiratory therapy technicians 3.27% $41,854
First-line supervisors/managers of production and operating workers 2.70% $60,951
Legislators 1.97% $35,234
New accounts clerks 1.73% $32,444
Electrical and electronics drafters 1.22% $60,012
Industrial production managers 0.78% $92,031
Computer-controlled machine tool operators, metal and plastic -1.18% $45,852
Mathematicians -1.30% $67,053
Fire inspectors and investigators -5.51% $52,659
Semiconductor processors -7.50% $35,482

http://money.cnn.com/magazines/moneymag/bestjobs/other_jobs/index.html
Special report:
Your Job 2007 Full coverage

How we picked the best jobs
We started with growing fields...and then started cutting.
April 12, 2006: 10:03 AM EDT


NEW YORK (MONEY) - To find the best jobs in America, MONEY Magazine and Salary.com, a leading provider of employee compensation data and software, began by assembling a list of positions that the Bureau of Labor Statistics projects will grow at an above-average rate over 10 years and that require at least a bachelor's degree.

Using Salary.com compensation data, we eliminated jobs with average pay below $50,000; total employment of less than 15,000; dangerous work environments; or fewer than 800 annual job openings, including both new and replacement positions.

More from Money Magazine
Top funds stand by subprime bet

Two new taxes you'll be paying by 2027

'My rich parents won't share'


Best Places to Live
Current Issue
Subscribe to Money

Next we rated positions by stress levels, flexibility in hours and working environment, creativity, and how easy it is to enter and advance in the field.

We then ranked the jobs, giving double weight to compensation and percentage growth. Data for the top 50 appear here. Any job that fell in the bottom third of two job-satisfaction categories, or in the pay or growth category, was removed from consideration for the top 10.

http://money.cnn.com/2006/04/10/pf/bestjobs_howwepicked/index.htm

100 Best Companies to Work For 2007 2006


Google: The New No. 1
Shooting straight to the top in its first appearance on our list, the Best Company to Work For in America sets the standard for Silicon Valley and beyond. (more)
Life inside Google
Google is famous for its unique company culture. Here's a quick peek at some of the fun. (more)

• A day in the life of a 'Googler'
Google's gourmet food
The cuisine at Google's 11 cafeterias on its Mountain View, Calif., campus is not only fabulous, it's free. Bon appetit! (more)

• The perks of being a Googler Why Google is No. 1
'Yes, you're going to work, but you're also going to have fun as well...'

• Google's meteoric rise
Can you pass the Google test?
How much do you know about the Best Company to Work For in America? (more)

• Working in the Googleplex



The winners circle...
See the full list of America's top 100 employers, including detailed company profiles and contact information. Plus, post your thoughts on the winners in our Best Companies blog. (more)
1. Google 6. Network Appliance
2. Genentech 7. S.C. Johnson & Son
3. Wegmans Food Markets 8. Boston Consulting Grp.
4. Container Store 9. Methodist Hospital Sys.
5. Whole Foods Market 10. W.L. Gore & Associates
• See the full list




Best employers in your state
California is home to the most companies on this year's list. See the top employers near you (including interactive maps) and the best places to live nearby. (more)
• California • Texas
• New York • See the rest



Best benefits
From generous health-care plans to free grocery delivery, these companies are standouts when it comes to the great perks they offer employees. (more)
• Health care • Telecommuting
• Child care • Sabbaticals
• Work-life balance • Unusual perks



Top-paying companies
Associates at Nixon Peabody take home an average $181,099 total compensation annually. See which other top employers offer big paychecks. (more)
• Biggest bonuses



More Stories
So you wanna work at Google?
Think you have what it takes to get a job at the world's hottest tech company? Better study our do's and don'ts. (more)
Gallery
How 5 winners keep their stars happy
Here's what innovative employers are doing to make sure top employees, from the mom to the techie, stay satisfied. (more)

Find the right company for you
What qualities are you looking for in a great employer? Use our tool to find the companies on our list that suit you best.
Company size Large Small Ignore
Number of women High Low Ignore
Ethnically diverse Yes No Ignore
Extra training Yes No Ignore
Job growth High Low Ignore
Low turnover Yes No Ignore
How it works

Special Offer:
Outside the U.S. and
Canada, click here.


State/PrAAABAEAKALAPARASAZBCCACOCTDCDEFLGAGUHIIAIDILINKSKYLAMAMBMDMEMIMNMOMSMTNBNCNDNENHNJNLNMNSNTNUNVNYOHOKONORPAPEPRQCRISCSDSKTNTXUTVAVIVTWAWIWVWYYT

Privacy Policy


The most diversity
An interactive look at which of the 100 Best Companies, by industry, have the most women and minorities. (LAUNCH)
http://money.cnn.com/magazines/fortune/bestcompanies/2007/index.html
100 Best Companies to Work For
Life inside Google
By Adam Lashinsky


Employees enjoy the "college-like" atmosphere at Google. 1 of 9

Search and enjoy
Life for Google employees at the Mountain View campus is like college. It feels like the brainiest university imaginable - one in which every kid can afford a sports car (though geeky hybrids are cooler here than hot rods).

Here the shabbily dressed engineers always will be the big men (and, yes, women) on campus. "Hard-core geeks are here because there's no place they'd rather be," says Dennis Hwang, a Google Webmaster.

Another similarity to college: New Googlers (Nooglers, in Google parlance) tend to pile on the "Google 15" when confronted with all the free food.

Full list: 100 Best Companies to Work For
MORE
1
2
3
4
5
6
7
8
9 MORE
100 Best Companies to Work For
The perks of being a Googler
By Adam Lashinsky

1 of 9

Bon Appétit
At Google it always comes back to the food. Google runs 11 free gourmet cafeterias at its Mountain View, Calif., headquarters, and offers all its employees free gourmet meals.

In addition to its cafés, Google has snack rooms which contain various cereals, candy, nuts, yogurt, carrots, fresh fruit and other snacks, and dozens of different drinks including soda and make-your-own cappuccino. Says co-founder Sergey Brin: "The cafés have always been pretty healthy, but the snacks are not, and the efforts to fix that have been remarkably challenging." Though company lore has it that Brin and co-founder Larry Page believe no worker should be more than 150 feet from a food source, clearly not all food is equal. "A lot of people like their M&Ms. But the easy access is actually what's bad for them," he says.

Of course, when it comes to America's new Best Company to Work For, the food is, well, just the appetizer.

Full list: 100 Best Companies to Work For
100 Best Companies to Work For
The perks of being a Googler
By Adam Lashinsky

1 of 9

Bon Appétit
At Google it always comes back to the food. Google runs 11 free gourmet cafeterias at its Mountain View, Calif., headquarters, and offers all its employees free gourmet meals.

In addition to its cafés, Google has snack rooms which contain various cereals, candy, nuts, yogurt, carrots, fresh fruit and other snacks, and dozens of different drinks including soda and make-your-own cappuccino. Says co-founder Sergey Brin: "The cafés have always been pretty healthy, but the snacks are not, and the efforts to fix that have been remarkably challenging." Though company lore has it that Brin and co-founder Larry Page believe no worker should be more than 150 feet from a food source, clearly not all food is equal. "A lot of people like their M&Ms. But the easy access is actually what's bad for them," he says.

Of course, when it comes to America's new Best Company to Work For, the food is, well, just the appetizer.

Full list: 100 Best Companies to Work For
100 Best Companies to Work For
The perks of being a Googler
By Adam Lashinsky

1 of 9

Bon Appétit
At Google it always comes back to the food. Google runs 11 free gourmet cafeterias at its Mountain View, Calif., headquarters, and offers all its employees free gourmet meals.

In addition to its cafés, Google has snack rooms which contain various cereals, candy, nuts, yogurt, carrots, fresh fruit and other snacks, and dozens of different drinks including soda and make-your-own cappuccino. Says co-founder Sergey Brin: "The cafés have always been pretty healthy, but the snacks are not, and the efforts to fix that have been remarkably challenging." Though company lore has it that Brin and co-founder Larry Page believe no worker should be more than 150 feet from a food source, clearly not all food is equal. "A lot of people like their M&Ms. But the easy access is actually what's bad for them," he says.

Of course, when it comes to America's new Best Company to Work For, the food is, well, just the appetizer.

Full list: 100 Best Companies to Work For
100 Best Companies to Work For 2007

Full list
Best benefits
Job growth Companies
Pay
Turnover States
Bonus
Women Size
All stars
Minorities

Full list
Rank Company Job growth % Company size U.S. employees
1 Google 67 Medium 6,500
2 Genentech 25 Medium 9,979
3 Wegmans Food Markets 8 Large 33,737
4 Container Store 14 Medium 2,866
5 Whole Foods Market 15 Large 37,806
6 Network Appliance 33 Medium 3,553
7 S.C. Johnson & Son 0 Medium 3,400
8 Boston Consulting Grp. 15 Small 1,434
9 Methodist Hospital Sys. 5 Medium 9,424
10 W.L. Gore & Associates 9 Medium 4,945
11 Cisco Systems 3 Large 27,493
12 David Weekley Homes 19 Small 1,622
13 Nugget Market 1 Small 1,099
14 Qualcomm 17 Medium 8,860
15 American Century Invest. 1 Small 1,783
16 Starbucks Coffee 15 Large 109,873
17 Quicken Loans 19 Medium 3,512
18 Station Casinos 27 Large 13,957
19 Alston & Bird 6 Small 1,598
20 QuikTrip 0 Medium 7,833
21 Griffin Hospital 6 Small 1,098
22 Valero Energy 12 Large 18,730
23 Vision Service Plan 3 Small 1,968
24 Nordstrom 6 Large 48,374
25 Ernst & Young 6 Large 24,995
26 Arnold & Porter -8 Small 1,292
27 Recreational Equip. (REI) 16 Medium 8,522
28 Kimley-Horn & Assoc. 23 Small 2,173
29 Edward Jones 2 Large 30,326
30 Russell Investment Grp. 12 Small 1,206
31 Adobe Systems 33 Medium 3,604
32 Plante & Moran 11 Small 1,501
33 Intuit 6 Medium 6,889
34 Umpqua Bank 8 Small 1,435
35 Children's Healthcare of Atlanta 7 Medium 5,256
36 Goldman Sachs 6 Large 12,542
37 Northwest Community Hospital 7 Medium 3,299
38 Robert W. Baird -2 Small 2,080
39 J.M. Smucker -4 Medium 2,853
40 Amgen 21 Large 13,554
41 JM Family Enterprises 8 Medium 4,452
42 PCL Construction 19 Medium 3,020
43 Genzyme 10 Medium 5,920
44 Yahoo 26 Medium 6,840
45 Bain & Co. 11 Small 1,370
46 First Horizon National -6 Large 12,491
47 American Fidelity Assur. -2 Small 1,358
48 SAS Institute 2 Medium 5,239
49 Nixon Peabody 2 Small 1,511
50 Microsoft 13 Large 44,298
51 Stew Leonard's 5 Small 1,899
52 OhioHealth 7 Large 10,836
53 Four Seasons Hotels 10 Large 11,584
54 Baptist Health Care 0 Medium 4,095
55 Dow Corning 8 Medium 4,052
56 Granite Construction 7 Medium 4,662
57 Publix Super Markets 6 Large 136,863
58 PricewaterhouseCoopers 8 Large 28,463
59 Pella 9 Medium 9,331
60 MITRE 3 Medium 5,759
61 SRA International 21 Medium 4,861
62 Mayo Clinic 4 Large 39,457
63 Booz Allen Hamilton 8 Large 16,691
64 Perkins Coie -1 Small 1,519
65 Alcon Laboratories 4 Medium 6,460
66 Jones Lang LaSalle 26 Medium 7,812
67 HomeBanc Mortgage -2 Small 1,312
68 Procter & Gamble 2 Large 34,142
69 Nike 5 Large 13,664
70 Paychex 9 Large 10,911
71 AstraZeneca 1 Large 12,263
72 Medtronic 8 Large 21,648
73 Aflac 7 Medium 4,326
74 American Express -4 Large 29,145
75 Quad/Graphics -1 Large 10,099
76 Deloitte & Touche USA 9 Large 34,011
77 Principal Financial Grp. 3 Large 13,075
78 Timberland 6 Small 2,016
79 TDIndustries 4 Small 1,345
80 Lehigh Valley Hospital & Health Ntwrk. 12 Medium 7,838
81 Baptist Health S. Florida 4 Medium 9,446
82 CDW 8 Medium 4,293
83 EOG Resources 17 Small 1,181
84 Capital One Financial 59 Large 19,047
85 Standard Pacific 25 Medium 2,856
86 National Instruments 6 Small 2,294
87 Texas Instruments -7 Large 15,274
88 CarMax 10 Large 12,553
89 Marriott International -1 Large 124,350
90 Men's Wearhouse 4 Large 11,508
91 Memorial Health 10 Medium 4,685
92 Bright Horizons 4 Large 14,164
93 Milliken 1 Medium 9,500
94 Bingham McCutchen 4 Small 1,618
95 Vanguard 6 Large 11,410
96 IKEA North America 21 Large 11,157
97 KPMG 4 Large 21,042
98 Synovus 4 Large 12,474
99 A.G. Edwards 1 Large 15,794
100 Stanley 6 Small 2,309

From the January 22, 2007 issue
Notes:
N.A.: Not available. U.S. employees includes part-timers as of time of survey. Job growth, new jobs, and voluntary turnover are full-time only. Revenues are for 2005 or latest fiscal year. All data based on U.S. employees.
* Average annual pay: yearly pay rate plus additional cash compensation for the largest classification of salaried and hourly employees.
http://money.cnn.com/magazines/fortune/bestcompanies/2007/full_list/
Best compensation

Salaried employees Hourly employees

Rank Company Best companies rank Most common job title Average
annual pay*
1 Nixon Peabody 49 Associate Attorney $181,099
2 Bingham McCutchen 94 Associate $180,050
3 Alston & Bird 19 Associate Attorney $166,300
4 Adobe Systems 31 Senior Computer Scientist $161,127
5 Arnold & Porter 26 Associates $155,929
6 EOG Resources 83 Engineer $145,750
7 Perkins Coie 64 Associate $142,027
8 SRA International 61 Project Manager $129,642
9 Boston Consulting Grp. 8 Consultant $129,071
10 Goldman Sachs 36 Other Exempt (Analyst, Program Analyst and Associate) $129,000
11 Network Appliance 6 MTS Software 4 $129,000
12 Yahoo 44 Technical Yahoo Senior $126,000
13 Cisco Systems 11 Software Engineer IV $123,021
14 Microsoft 50 Software Developer $118,500
15 Jones Lang LaSalle 66 Vice President $116,566
16 Robert W. Baird 38 Financial Analyst $116,000
17 Kimley-Horn & Assoc. 28 Project Manager $115,938
18 MITRE 60 Lead Information Systems Engineer $112,656
19 Texas Instruments 87 Electrical Design Engineer $109,223
20 American Century Invest. 15 Programmer/Analyst Specialist $105,000
21 S.C. Johnson & Son 7 Sr. Research Scientist $104,192
22 Publix Super Markets 57 Store Manager $103,981
23 Dow Corning 55 Supply Chain $102,093
24 Alcon Laboratories 65 Sales Representative $100,998
25 Booz Allen Hamilton 63 Associate $100,800
26 Capital One Financial 84 Project Manager $100,393
27 American Express 74 Project Manager-Technologies $99,221
28 Nugget Market 13 Store Director $98,833
29 AstraZeneca 71 Pharmaceutical Sales Specialist $97,835
30 SAS Institute 48 Systems developer $97,276
31 Ernst & Young 25 Manager - a client serving position $95,905
32 Qualcomm 14 Engineer, Senior $95,345
33 Baptist Health S. Florida 81 Assistant Manager, Patient Care $93,498
34 Principal Financial Grp. 77 IT Application Analyst Sr. $93,419
35 Paychex 70 Sales Representative $91,774
36 Vision Service Plan 23 Application Developer III $90,296
37 Medtronic 72 Engineer $89,985
38 PCL Construction 42 Superintendent $88,300
39 Recreational Equip. (REI) 27 Retail Store Manager $87,519
40 Procter & Gamble 68 Production Department Manager $87,400
41 Valero Energy 22 IS Specialist $86,915
42 Methodist Hospital Sys. 9 Manager, Nursing $86,783
43 David Weekley Homes 12 Sales Consultant $86,659
44 PricewaterhouseCoopers 58 Manager/Supervisor $86,307
45 Genzyme 43 Researcher/Scientist $85,973
46 Memorial Health 91 Registered Nurse Clinical Mgr $83,170
47 Quicken Loans 17 Mortgage Banker $82,000
48 Northwest Community Hospital 37 Clinical Coordinator $81,224
49 Men's Wearhouse 90 Professional (Information & Technology) $80,289
50 Deloitte & Touche USA 76 Senior/Senior Consultant $77,011
51 Genentech 2 Research Associate $76,000
52 Edward Jones 29 Senior Programmer Analyst $75,616
53 Whole Foods Market 5 Associate Store Team Leader $72,894
54 A.G. Edwards 99 Headquarters Management & Professional Support $71,548
55 National Instruments 86 Engineer 2 Staff $69,866
56 TDIndustries 79 Superintendent $69,706
57 Standard Pacific 85 Construction Manager $69,400
58 First Horizon National 46 Enterprise Technician $68,926
59 OhioHealth 52 Case Manager $68,755
60 Granite Construction 56 Engineering $67,497
61 Synovus 98 Program Analyst $67,491
62 Lehigh Valley Hospital & Health Ntwrk. 80 Patient Care Coordinator $66,565
63 Plante & Moran 32 Auditor $65,000
64 Milliken 93 Product/Process Improvement $62,000
65 Stew Leonard's 51 Store Manager $60,870
66 QuikTrip 20 Store Manager $60,525
67 CarMax 88 Buyers $59,385
68 CDW 82 Account Manager $58,520
69 IKEA North America 96 Sales Manager $58,487
70 Aflac 73 Supervisor $57,363
71 Pella 59 Department Manager $57,172
72 Stanley 100 Systems Analyst II $56,867
73 Timberland 78 Manager Store Sales $54,453
74 Marriott International 89 Sales Manager $54,274
75 KPMG 97 Associate $53,880
76 Bright Horizons 92 Director $53,000
77 J.M. Smucker 39 Production Supervisor $51,713
78 HomeBanc Mortgage 67 Underwriters $51,624
79 Umpqua Bank 34 Store Manager $50,078
80 Baptist Health Care 54 Manager $48,921
81 Nordstrom 24 Sales Department Manager $48,500
82 Wegmans Food Markets 3 Store Department Manager $47,775
83 Four Seasons Hotels 53 Assistant Food & Beverage Manager $47,256
84 Starbucks Coffee 16 Store Manager $43,598
85 Station Casinos 18 Casino Floorperson $43,427
86 Container Store 4 Store Sales $42,630
87 Children's Healthcare of Atlanta 35 Business Operations Coordinator $42,354
88 Nike 69 MGR/Department/Retail $39,128
89 JM Family Enterprises 41 Operations Account Representative $36,350
90 American Fidelity Assur. 47 Account Representative $33,559

From the January 22, 2007 issue
Notes:
*For employees in that role
Notes:
N.A.: Not available. U.S. employees includes part-timers as of time of survey. Job growth, new jobs, and voluntary turnover are full-time only. Revenues are for 2005 or latest fiscal year. All data based on U.S. employees.
* Average annual pay: yearly pay rate plus additional cash compensation for the largest classification of salaried and hourly employees.
http://money.cnn.com/magazines/fortune/bestcompanies/2007/pay/
Best compensation

Salaried employees Hourly employees

Rank Company Best companies
rank Most common job title Average
annual pay*
1 Valero Energy 22 Technician IV $84,141
2 Methodist Hospital Sys. 9 Registered Nurse-Clinical Colleague $75,776
3 Adobe Systems 31 Senior Administrative Assistant $70,569
4 Nixon Peabody 49 Secretary $68,857
5 Bingham McCutchen 94 Legal Secretary $68,807
6 Memorial Health 91 Registered Nurse $68,297
7 Griffin Hospital 21 RN - Nurse $67,619
8 Northwest Community Hospital 37 Acute Care Staff Nurse $67,246
9 Baptist Health S. Florida 81 Clinical Nurse 1 $66,631
10 PCL Construction 42 Carpenter $65,382
11 Qualcomm 14 IT Engineer $63,686
12 Children's Healthcare of Atlanta 35 Staff Nurse Colleague $63,228
13 EOG Resources 83 Lease Operator $62,645
14 Alston & Bird 19 Legal Secretary $62,100
15 Jones Lang LaSalle 66 Technician $61,897
16 Boston Consulting Grp. 8 Executive Assistant $59,251
17 Perkins Coie 64 Legal Secretary $58,807
18 Lehigh Valley Hospital & Health Ntwrk. 80 Registered Nurse $58,575
19 Cisco Systems 11 Sales Administrator $58,069
20 Booz Allen Hamilton 63 Executive Assistant $57,900
21 Genzyme 43 Cytogenetic Technicians/Technologists $57,670
22 Arnold & Porter 26 Legal Secretaries $56,764
23 Network Appliance 6 Administrative Assistant 3 $56,200
24 Station Casinos 18 Table Games Dealer $55,688
25 OhioHealth 52 Registered Nurse $55,574
26 Ernst & Young 25 Administrative Assistant $55,324
27 Genentech 2 Manufacturing Technician- Bioprocess $54,900
28 Quicken Loans 17 Client Care Specialist $53,797
29 Dow Corning 55 Supply Chain $52,802
30 Microsoft 50 Administrative Support $52,560
31 PricewaterhouseCoopers 58 Executive Assistant $52,278
32 Deloitte & Touche USA 76 Administrative assistant $51,666
33 Baptist Health Care 54 Registered Nurse $50,860
34 MITRE 60 Technical Project Support III $50,687
35 CarMax 88 Technicians $48,766
36 S.C. Johnson & Son 7 Admin Assistant $48,734
37 Procter & Gamble 68 Technician $48,673
38 First Horizon National 46 Loan Processor $45,361
39 TDIndustries 79 Skilled Craftperson $45,180
40 Kimley-Horn & Assoc. 28 Clerical $43,868
41 SAS Institute 48 Office administrator $43,379
42 KPMG 97 Administrative Assistant $42,178
43 SRA International 61 Administrative Assistant $41,814
44 Pella 59 Assembler $41,398
45 Texas Instruments 87 Wafer Fab Specialist $40,990
46 Yahoo 44 Customer Care Agent I $40,840
47 QuikTrip 20 Night Assistant Manager $40,483
48 CDW 82 Pick Pack $39,764
49 David Weekley Homes 12 Builder Service Representative $38,924
50 A.G. Edwards 99 Branch Support Employee $38,597
51 American Express 74 Travel Counselor $38,340
52 Milliken 93 Senior Machine Operator $38,000
53 Robert W. Baird 38 Client Relationship Assistant $37,900
54 Alcon Laboratories 65 Operator $37,433
55 Vision Service Plan 23 Customer Service Representative II $36,074
56 HomeBanc Mortgage 67 Customer Service Specialist $35,988
57 Starbucks Coffee 16 Coordinator II $35,680
58 Paychex 70 Payroll Specialist $35,246
59 Nordstrom 24 Salesperson $35,200
60 AstraZeneca 71 Product Operator $35,131
61 Plante & Moran 32 Secretary $34,825
62 Medtronic 72 Assembler $34,144
63 Nugget Market 13 Checker $33,722
64 J.M. Smucker 39 Customer Service Representative $33,346
65 National Instruments 86 Administrative Specialist 2 $33,111
66 Capital One Financial 84 Risk Associate $32,836
67 Nike 69 Material Handling Assistant $32,764
68 Men's Wearhouse 90 Full-time tailors $32,741
69 Granite Construction 56 Journeyman $31,777
70 Edward Jones 29 Branch Office Administrator $31,078
71 Stew Leonard's 51 Production Assistant $31,033
72 American Fidelity Assur. 47 Representative, Customer Service II $30,612
73 Container Store 4 Distribution Center $30,508
74 American Century Invest. 15 Account Representative $30,000
75 JM Family Enterprises 41 Customer Account Representative $29,824
76 Standard Pacific 85 Sales Assistant $29,585
77 Principal Financial Grp. 77 Account Representative I $28,613
78 Whole Foods Market 5 Service Team Member $27,803
79 Aflac 73 Customer Service Specialist II $27,458
80 Publix Super Markets 57 Grocery Stock Clerk $27,353
81 Timberland 78 Assistant Manager Sales $26,858
82 Wegmans Food Markets 3 Customer Service $26,586
83 Umpqua Bank 34 Universal Associate $26,162
84 Four Seasons Hotels 53 AM Guest Room Attendant $25,842
85 Bright Horizons 92 Teacher $24,675
86 Stanley 100 Passport Associate 1 $24,400
87 Marriott International 89 Housekeeper $23,407
88 Recreational Equip. (REI) 27 Retail Sales Specialist $22,453
89 Synovus 98 Machine Operator 1 $22,451
90 IKEA North America 96 Sales Coworker $15,415

From the January 22, 2007 issue
Notes:
*For employees in that role

http://money.cnn.com/magazines/fortune/bestcompanies/2007/pay/hourly.html

Degree-Salary Equivalency

Most lucrative degrees for college grads
Survey finds best job market in 4 years, with most college majors seeing salary growth and some students receiving multiple job offers.
By Rob Kelley, CNNMoney.com staff writer
October 27 2006: 12:42 PM EDT


NEW YORK (CNNMoney.com) -- Employers continue to boost starting salaries for the Class of 2006, which is enjoying the strongest job market in four years, according to a recent survey.

The biggest beneficiaries are graduates who majored in information sciences and systems: they are taking home 7.5 percent more than they did last year, according to the Fall 2006 edition of Salary Survey, a quarterly report by the National Association of Colleges and Employers (NACE).

Quiz Take the quiz

Will you succeed in your new job? Whether you're changing positions mid-career or starting your first real job out of college, new hires face common pitfalls. Do you know how to avoid them?

1. Five minutes from now, you will step on to an elevator whose only other passenger is your company's CEO, whom you haven't met before. You are most likely to:
Be completely tongue-tied and say nothing.
Introduce yourself and give a 30-second summary of the work you're doing and why you're excited about it.
Chat about the weather.



Employers have made a strong effort to attract college seniors and new grads through on-campus recruiting, career fairs, information sessions, and intern and co-op recruiting, according to NACE.

Top 50: Companies with most entry-level jobs for grads
"These salary increases combined with the results of a recent poll of Salary Survey participants indicate that 2005-06 has been the best job market in the past four years," said NACE executive director Marilyn Mackes in a statement.

According to the survey, majors that have seen some of the biggest increases in average starting salaries are:

Information sciences and systems: Up 7.5 percent to $47,182

Economics/finance: Up 6.2 percent to $44,588

Civil engineering: Up 5.3 percent to $46,084

Chemical engineering: Up 4.9 percent to $56,269

Accounting: Up 4.6 percent to $44,928

Business administration/management: Up 4.2 percent to $41,155

History: Up 4.2 percent to $33,071

For others, modest increases, some declines
Other majors also experienced slightly higher entry-level offers, but the increases from last year's offers didn't outpace inflation.

Mechanical engineering: Up 3.3 percent to $51,732

Electrical engineering: Up 2.9 percent to $53,500

Psychology: Up 1 percent to $30,369

Computer science: Up 0.3 percent to $50,744

Political science and government: Up 0.3 percent to $33,094

And in a few cases, starting offers actually declined. This was true for a few of the liberal arts majors, which only saw a 0.2 percent increase overall as a category.

English: Down 0.2 percent to $31,385

Sociology: Down 0.9 percent to $31,096

100 Top MBA Employers

Student loans: A life sentence

Where the (best) 6-figure jobs are


http://money.cnn.com/2006/10/27/pf/college/lucrative_degree/index.htm?postversion=2006102712

Most lucrative degrees for 2007 grads
Marketing, business administration and engineering students see the biggest increases in average starting offers.
By Jeanne Sahadi, CNNMoney.com senior writer
February 8 2007: 1:24 PM EST


NEW YORK (CNNMoney.com) -- With less than four months to go before saying sayonara to the quad for good, the class of 2007 is finding it easier than recent classes to get their foot in the work world.

Employers have said they expect to hire 17.4 percent more college grads than they did last year, and in many instances they plan to pay them more, too, according to a survey released this week by the National Association of Colleges and Employers (NACE).

The students faring the best are marketing and business administration majors.

The average starting offer for seniors majoring in marketing is up 14 percent from last year to $41,323.

Those majoring in business administration are seeing a 9.2 percent jump to $43,523 in average starting salaries.

Others who are seeing pay increases, albeit some far more modest than others, are seniors majoring in:

Mechanical engineering: Up 7.7 percent to $54,587
Chemical engineering: Up 7.4 percent to $60,054
Management information systems: Up 5.5 percent to $46,568
Civil engineering: Up 4.8 percent to $47,145
Electrical engineering: Up 3.2 percent to $54,599
Computer science: Up 2 percent to $51,070
Accounting: Up 1.7 percent to $46,508
There are no prior year comparisons for two majors because in prior NACE surveys they were grouped together as one. However, based on prior years' average starting offers in the category (in 2006 it was $45,191), NACE characterized these average starting salaries as "respectable."

Finance: $47,905
Economics: $51,631
There have been slight decreases in the average starting salary offers for just a few majors, but NACE notes that given that it's still early in the hiring season and the job market is strong for college grads, salary offers may improve in the next few months:

Logistics/Materials management: Down 1.8 percent to $43,294
Liberal arts (including psychology, political science history, English): Down 1.1 percent to $30,502
SAVE | EMAIL | PRINT | | REPRINT
http://money.cnn.com/2007/02/08/pf/college/lucrative_degrees_winter07/index.htm

Investers Upbeat for Next Year

As Doubts on Economy Grow,
Stock Investors Stay Upbeat
By JOHN HARWOOD
March 7, 2007; Page A6

WASHINGTON -- Americans have become more pessimistic about the health of the economy, but investors remain confident about stocks despite recent market fluctuations.

A new Wall Street Journal/NBC News poll of American adults shows a significant decline in economic confidence since the year began. About 31% of Americans now expect the economy to get worse over the next year, double the proportion who said so in January.

Yet a smaller group of Americans with some stock-market investments remains bullish. Among those who say they have at least $5,000 in the market, 46% expect the market to move higher over the next year, while just 16% expect the market to fall. One-third expect the market to stay the same.

Investors "don't appear to be particularly shaken," says Democratic pollster Peter Hart, who conducted the Journal/NBC survey with Republican counterpart Neil Newhouse. But lagging spirits about the economy overall, Mr. Hart added, show the broader public mood is "anything but great."

WALL STREET JOURNAL VIDEO



WSJ's John Harwood discusses the latest poll, noting greater-than-expected resilience in the investor community.The telephone poll of 1,007 adults was conducted March 2-5, following turbulence in American financial markets; the margin of error is 3.1 percentage points. About 45% of respondents say they have at least $5,000 invested in stocks and mutual funds, while 48% say they don't.

Last week's drop in the Dow Jones Industrial Average was linked to market declines in Asia. That followed remarks by former Federal Reserve Chairman Alan Greenspan signaling the possibility of a U.S. economic recession.

Whether influenced by reporting of Mr. Greenspan's remarks, or simply by their own experience, Americans as a whole are growing gloomier. Last fall, a month before the 2006 elections, American voters split evenly on whether the economy would get better or worse; by January, a slight plurality expected better times.

But now, the poll shows, just 16% expect the economy to strengthen while 31% expect it to weaken. About half of respondents say the economy will remain "about the same."

By contrast, self-described investors show confidence the value of their holdings will appreciate. The 46% who envision a rising market is slightly below the 55% who did in January 2003, and the 56% who did in July 2002.

But it exceeds the 35% expressing bullishness at the outset of the Bush administration -- as the economy was heading toward recession, and for the final three years of the Clinton administration. In Oct. 1999, 30% of Americans expected markets to rise, 26% expected them to fall, and 39% expected them to remain about the same.

Write to John Harwood at john.harwood@wsj.com

Mortgage Apps Up as Rates Decline

Press Release - Weekly Application Survey

PRINT | E-Mail

--------------------------------------------------------------------------------
Title: 03/07/07 Refinance Applications Jump As Mortgage Rates Decline
Source: MBA
Date: 3/7/2007
Contacts:
Name: Phone: Email:
Aleis Stokes (202) 557-2741 astokes@mortgagebankers.org


--------------------------------------------------------------------------------
WASHINGTON, D.C. (March 7, 2007) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 2, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 671.6, an increase of 7.3 percent on a seasonally adjusted basis from 626.1 one week earlier. On an unadjusted basis, the Index increased 19.9 percent compared with the previous week and was up 15.6 percent compared with the same week one year earlier.
The Refinance Index increased 15 percent to 2234.2 from 1943.5 the previous week and the seasonally adjusted Purchase Index increased 1 percent to 405.3 from 401.3 one week earlier. The seasonally adjusted Conventional Index increased 7.7 percent to 1000.4 from 928.9 the previous week, and the seasonally adjusted Government Index increased 1.8 percent to 123.5 from 121.3 the previous week.

The four week moving average for the seasonally adjusted Market Index is up 1.7 percent to 636 from 625.6. The four week moving average is up slightly to 397.2 from 397 for the Purchase Index, while this average is up 3.7 percent to 2032.6 from 1959.9 for the Refinance Index.

The refinance share of mortgage activity increased to 46.1 percent of total applications from 43.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 21.4 from 21.1 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.04 percent from 6.16 percent, with points increasing to 1.27 from 1.05 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest rate since December 08, 2006.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.73 from 5.84 percent, with points increasing to 1.24 from 1.19 (including the origination fee) for 80 percent LTV loans. This is the lowest rate since December 1, 2006.

The average contract interest rate for one-year ARMs decreased to 5.79 from 5.92 percent, with points increasing to 0.8 from 0.77 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.


###

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.



http://www.mortgagebankers.org/NewsandMedia/PressCenter/50675.htm

How to Win CNBC's Million

How to Win CNBC's Million-Dollar Challenge
By Bill Barker
February 12, 2007
Driving to work the other day, I was listening to CNBC on my satellite radio, and I heard (for what must be the 40th time this week) that CNBC is sponsoring its "Million-Dollar Portfolio Challenge."

I got to thinking, "Hey, what's the strategy for actually winning this thing, or placing second-best? How can I share the information with as many readers as possible, so that I increase my chances of winding up in some rich person's will?"

So here's the information that I think will help improve your chances of winning (cue the drumroll, pause for effect, and zoom into the face of Dr. Evil) ...

One MILLION dollars!

(Sort of.)

Sort of?
Although this contest is advertised (and it's a pretty advertisement!) as carrying a $1 million prize, the fine print reveals that it will be paid out over 25 years as an annuity. It has a net present value of about $617,000. After taxes, it's probably worth a bit less than half a million. Definitely less if you're paying income taxes in the District of Columbia. Still, let's be sporting and round up to $500,000.

According to Wikipedia, 150,221 people entered last year. Given increased familiarity and more promotion, I'm guessing there should be 200,000 to 250,000 entrants this year. All things being equal, you've got about a 1 in 225,000 chance of winning this lottery.

But all things are definitely not equal in this game. Playing the right way, I think you can increase your odds.

Lessons from last year's winner
To promote the contest on its website, CNBC demands that you ask yourself: "Is Your Investment Strategy Worth $1 Million?" But, as you'll see, this contest has stunningly little to do with "investment strategy," and everything to do with maximum risk-taking.

Consider that last year's winner turned the notional $1,000,000 that a contestant starts with into more than $5 million in a period of only eight weeks.

Now, you might think that the winner must be a heckuva investor, which he might be. But according to MSN Money, his strategy was, after a good initial run of trading his way from the notional $1 million to $2 million, to put his whole "portfolio" into one stock.

Escala, if you can believe it. Yes, the winning "investing strategy" was to go all-in on a scandal-ridden fiasco of a company -- one that has subsequently seen its management group indicted, and the bet (no one would call it an "investing strategy") was made at a perfect moment as the stock recovered a portion of its price -- briefly, as things turned out.

Now, taking all of an actual $2 million portfolio and investing in a company embroiled in a Ponzi scheme investigation is reckless stupidity of the highest order. But within the context of an online stock-trading contest, where the winner gets a huge prize and the other couple hundred thousand players get nothing, it's brilliance.

That's because doing anything other than the riskiest thing possible with your play money is just accepting a loss. Somebody out of a couple hundred thousand people is going to at least triple his or her money over the course of the game. There's no real money to lose with a bad bet, and everything to gain by catching lightning in a bottle. Or if not everything....

One MILLION dollars!

(Sort of.)

Where's this year's Escala?
In this game, you really want to be "invested" in one or two stocks at a time. You'll do well fishing around the lowest market cap the game allows ($500 million), seeking stocks with high betas or other indicators of extreme volatility, and prices in or near the single digits. Popular, volatile stocks where emotions run high on both sides -- Rambus (Nasdaq: RMBS), Advanced Micro Devices (NYSE: AMD), or Apple (Nasdaq: AAPL) -- seem like good choices for the game, but really are too big to make the jumps you need. The chance that these three stocks could double quickly is infinitesimal.

Far better companies would be ones like CMGI, with a market cap of $600 million and a share prices less than $2. Sirius Satellite (Nasdaq: SIRI) has the right share price, but the market cap is bigger than I'd like. Ballard Power (Nasdaq: BLDP) is a pretty good choice, but I'm not sure what the definitive catalyst would be over the limited time period that the contest occurs.

I do know of one, though, that is virtually certain to take a violent move up or down during the contest.

All or nothing -- scheduled for March
AtheroGenics (Nasdaq: AGIX) is a stock tailor-made for this game. I learned about it from Charly Travers, our resident Rule Breakers biotech guru. It's a company with essentially all its eggs in one basket -- the drug AGI-1067, a coronary artery disease treatment, is in phase 3 clinical trials in co-development with AstraZeneca (NYSE: AZN). According to the company, test results are due out in early March, and there is a huge market opportunity for the drug -- if trial results are successful. According to Charly, after results are announced, the company will either be worth much, much more, or perhaps as much as 70% less -- immediately.

Hey, that's perfect! If the trial results are announced in early March and come in positive, you'll be virtually guaranteed a spot near the top of the pile. And if it misses, you won't have to worry about the rest of the contest. You'll be out of the running quickly, with no real money ever lost.

Now, there are only two drawbacks to using Atherogenics -- at a market cap of $480 million, the company is just shy of qualifying for the game at today's price. Also, the trial news could be released just before the contest starts on March 5.

But even if AtheroGenics releases early, there are other companies in the same vein. So if you hope to compete in CNBC's game, that's my advice to you: Find a small, volatile stock with a potential catalyst coming in the next two months. It's not a good bet in real life, but it's your best bet to win ...

One MILLION dollars!

(Sort of.)

Our Motley Fool CAPS research service might be a good place to hunt for such a stock. Click here to sign up for free.

Bill Barker wants to send a shout-out to CNBC's Mark Haines for his years of professionalism. Bill owns shares of no company mentioned in this article. The Fool has a disclosure policy.
http://www.fool.com/investing/general/2007/02/12/how-to-win-cnbcs-million-dollar-challenge.aspx

Text Book Costs -Report by GAO

General Accounting Office Report on Textbook Costs


COLLEGE TEXTBOOKS
Enhanced Offerings Appear to Drive
Recent Price Increases
In the last two decades, college textbook prices have increased at twice the
rate of inflation but have followed close behind tuition increases. Increasing
at an average of 6 percent per year, textbook prices nearly tripled from
December 1986 to December 2004, while tuition and fees increased by 240
percent and overall inflation was 72 percent. The cost of textbooks as well
as supplies as a percentage of tuition and fees varies for first-time, full-time,
degree-seeking students by the type of institution attended—72 percent at
2-year public institutions, 26 percent at 4-year public institutions, and
8 percent for 4-year private institutions.
Annual Percentage Increase in College Textbook Prices, College Tuition and Fees, and
Overall Price Inflation, December 1986 to December 2004
While many factors affect textbook pricing, the increasing costs associated
with developing products designed to accompany textbooks, such as CDROMs
and other instructional supplements, best explain price increases in
recent years. Publishers say they have increased investments in developing
supplements in response to demand from instructors. Wholesalers, retailers,
and others expressed concern that the proliferation of supplements and
more frequent revisions might unnecessarily increase costs to students.
U.S. college textbook prices may exceed prices in other countries because
prices reflect market conditions found in each country, such as the
willingness and ability of students to purchase the textbook. While
geographical barriers have historically limited the reentry of textbooks
intended for international distribution back into the United States, known as
reimportation, recent advances in electronic commerce have broken down
this barrier. In response to concerns that the international availability of less
expensive textbooks might negatively affect textbook sales, publishers have
taken steps to limit large-scale textbook reimportation.
The federal government strives to
make postsecondary education
accessible and affordable, primarily
by providing financial aid to
students and their families. Given
that nearly half of undergraduates
receive federal financial aid,
Congress is interested in the
overall cost of attendance,
including the cost of textbooks. We
were asked to determine (1) what
has been the change in textbook
prices, (2) what factors have
contributed to changes in textbook
prices, and (3) what factors explain
why a given U.S. textbook may
retail outside the United States for
a different price.
We received technical comments
from the Department of Labor. The
Department of Education had no
comments. The National
Association of College Stores
generally agreed with the report’s
findings. The Association of
American Publishers agreed with
some findings but expressed
concern about the data sources we
used and the characterizations
made by retailers and wholesalers
regarding the impact of publisher
practices on students. We carefully
reviewed the data sources available
on college textbook pricing and
found the data we used to be the
most complete and reliable data
available for our purposes.
Additionally, we sought
perspectives from publishers,
retailers, and used book
wholesalers to ensure our
characterization of the textbook
industry was balanced and
complete.
Page i GAO-05-806 College Textbooks
Letter 1
Results in Brief 2
Background 4
College Textbook Prices Have Grown at Twice the Rate of
Inflation, Trailing Annual Tuition Increases 8
Publisher Investments in New Products Have Contributed to
Increases in Textbook Prices 11
The Price of U.S. Textbooks Sold in Other Countries Varies
according to Local Market Conditions 21
Concluding Observations 25
Agency Comments 26
Appendix I Objectives, Scope, and Methodology 31
Appendix II Consumer Price Index Average Annual Percentage
Growth, Academic Years 1987-1988 to 2003-2004 35
Appendix III Comments from the National Association of College
Stores 36
Appendix IV Comments from the Association of American
Publishers 38
Appendix V GAO Contact and Staff Acknowledgments 46
Tables
Table 1: Illustration of Typical Textbook Pricing Practice for $100
Publisher-Priced Book 13
Table 2: Source and Methodology for CPI College Textbook
Research Series Data 31
Contents
Page ii GAO-05-806 College Textbooks
Figures
Figure 1: The Typical Life Cycle of a College Textbook 5
Figure 2: Annual Percentage Increase in College Textbook Prices,
College Tuition and Fees, and Overall Price Inflation,
December 1986 to December 2004 9
Figure 3: Estimated Cost of Textbooks and Supplies as a
Percentage of Tuition and Fees, Academic Year 2003-2004 11
Abbreviations
AAP Association of American Publishers
BLS Bureau of Labor Statistics
CPI Consumer Price Index
IPEDS Integrated Postsecondary Education Data System
NACS National Association of College Stores
This is a work of the U.S. government and is not subject to copyright protection in the
United States. It may be reproduced and distributed in its entirety without further
permission from GAO. However, because this work may contain copyrighted images or
other material, permission from the copyright holder may be necessary if you wish to
reproduce this material separately.
Page 1 GAO-05-806 College Textbooks
July 29, 2005
Congressional Requesters
The federal government endeavors to improve access to and affordability
of postsecondary education, primarily by providing financial aid to
students and their families. Consequently, the overall cost of
postsecondary attendance, including components such as tuition and
textbooks, is of national importance because escalating costs can have
negative effects on access and affordability. In academic year 2003-2004,
students and their families spent over $6 billion on new and used
textbooks.1 Given that nearly half of undergraduates receive federal
financial aid and the cost of textbooks is one component considered in
making these awards, escalating textbook prices can impact federal
spending. Because of the impact on access, affordability, and federal
spending, recent reports of escalating textbook prices and instances in
which publishers sell U.S. textbooks in other countries at lower prices
have heightened congressional concern and raised questions about
textbook pricing practices. You asked us to determine (1) what has been
the increase, if any, in textbook prices? (2) what factors have contributed
to changes in textbook prices? and (3) what factors explain why a given
U.S. textbook may retail outside the United States for a different price?
To quantify the change in college textbook prices, the Department of
Labor’s Bureau of Labor Statistics (BLS) constructed for GAO’s use a
Consumer Price Index (CPI) data series that shows how the price of
textbooks for consumers has changed since December 1986, the earliest
date for which college textbook prices are available as part of BLS’s
research index. In drawing samples to compute price indices, BLS defines
a textbook as any book required for a course, including books intended for
general readership and packages containing the textbook and related
supplements when the textbook alone has not been ordered. In order to
put the price of a textbook into context, we examined the cost of tuition
and fees to students and their families as tracked by the CPI since 1980.
We also examined data from the Department of Education’s (Education)
Integrated Postsecondary Education Data System (IPEDS) to gain an
1National Association of College Stores, 2005 College Store Industry Financial Report
(Oberlin, Ohio: 2005).
United States Government Accountability Office
Washington, DC 20548
Page 2 GAO-05-806 College Textbooks
understanding of the cost of textbooks and supplies (IPEDS does not
disaggregate textbooks and supplies) for first-time, full-time, degreeseeking
students during the course of an entire academic year, as
estimated by postsecondary institutions, and the portion of the total
estimated cost of tuition and fees that books and supplies represent. To
determine what factors have contributed to the change in college textbook
prices, we interviewed executives from five textbook publishers that
account for more than 80 percent of new textbook sales; the three major
national used textbook wholesalers; three companies that operate over
1,300 college textbook retail stores, or 29 percent of stores nationwide; the
National Association of College Stores; the Association of American
Publishers; the California and state Public Interest Research Groups; and
various other industry experts. To determine what factors have led to
differences in the price of some textbooks in U.S. and non-U.S. markets,
we reviewed relevant economic theory and interviewed major industry
players. Specifically, we spoke to representatives from textbook
publishers, operators of textbook retail stores, and used book wholesalers
to determine the extent to which books may be available in other
countries at lower prices, and the reasons behind these price differences.
A more detailed explanation of our methodology, including more
information about our data sources, is in appendix I. We conducted our
work between November 2004 and June 2005 in accordance with generally
accepted government accounting standards.
College textbook prices have risen at twice the rate of annual inflation
over the last two decades, following close behind annual increases in
tuition and fees at postsecondary institutions. Rising at an average of
6 percent each year since academic year 1987-1988, compared with overall
average price increases of 3 percent per year, college textbook prices
trailed tuition and fee increases, which averaged 7 percent per year. Since
December of 1986, textbook prices have nearly tripled, increasing by
186 percent, while tuition and fees increased by 240 percent and overall
prices grew by 72 percent. While increases in textbook prices have
followed increases in tuition and fees, the cost of textbooks and supplies
for degree-seeking students as a percentage of tuition and fees varies by
the type of institution attended. For example, the average estimated cost
of books and supplies per first-time, full-time student for academic year
2003-2004 was $898 at 4-year public institutions, or about 26 percent of the
cost of tuition and fees. At 2-year public institutions, where low-income
students are more likely to pursue a degree program and tuition and fees
are lower, the average estimated cost of books and supplies per first-time,
Results in Brief
Page 3 GAO-05-806 College Textbooks
full-time student was $886 in academic year 2003-2004, representing
almost three-quarters of the cost of tuition and fees.
While there are many factors that affect textbook pricing, the price of
textbooks has increased in recent years, according to experts we spoke
with, as a result of the increase in costs associated with new features, such
as Web sites and other instructional supplements. Other factors that affect
pricing include production costs, availability of used books, and the
demand for textbooks. Publishers say they have increased their
investments in the development of supplements to meet the demands of a
changing postsecondary market. For example, publishers we spoke with
cited increases in part-time faculty who need additional teaching support
as a key factor that has increased demand for instructional supplements.
Publishers also said instructors are requesting more supplements, such as
Web-based tutorials and self-assessment tools, to enhance student
learning. However, wholesalers, retailers, and others suggest that while
supplements may be of value to students, the increasing practice of
packaging them with textbooks effectively limits the students’ ability to
purchase less expensive used books. Industry representatives and public
interest groups also suggested that publishers are revising textbooks more
frequently, and some expressed concern about the financial impact on
students. Their concern is that more frequent revisions limit the
opportunity students have to reduce their costs by purchasing used
textbooks and selling their textbooks back to bookstores at the end of the
term. While publishers generally agreed that the revision cycle for many
books is 3 to 4 years, compared with 4 to 5 years that were standard 10 to
20 years ago, they said revisions were necessary to keep the materials
current for faculty and to recoup their investments.
The price of a U.S. textbook may differ when the book is sold in other
countries primarily because publishers price their textbooks in order to
compete in local markets, and conditions exist that limit the resale of
books from lower-priced markets back to the United States. Publishers
told us that they produce textbooks primarily for the U.S. market and once
they have incurred development costs, they can sell textbooks at a lower
price in other countries because the cost of printing additional copies to
sell outside the United States is relatively low. Publishers told us they
price textbooks in other countries based on local market conditions, such
as income levels, the extent to which students are required to purchase
textbooks, and the availability of locally published textbooks. For
example, publishers told us that some U.S. textbooks are priced lower in
the United Kingdom because they must compete with locally produced
textbooks that are less expensive. Price differences between the United
Page 4 GAO-05-806 College Textbooks
States and other countries persist because there are barriers that limit the
reentry of textbooks into the United States. In some cases the cost of
locating lower-priced textbooks and shipping them to the United States
would result in a higher cost than purchasing them in the United States. In
other cases, purchases are restricted by agreements between publishers
and foreign distributors. For instance, some publishers told us that their
agreements with one online retailer outside the United States limit the
number of copies that can be shipped back to the United States.
We provided copies of a draft of this report to the Department of Labor
and the Department of Education for review and comment. The
Department of Labor provided technical comments on the use of its CPI
data, which we incorporated as appropriate. The Department of Education
did not have any comments. We received written comments from the
National Association of College Stores (NACS) and the Association of
American Publishers (AAP), the trade groups representing the companies
we interviewed for this study. NACS generally agreed with our findings,
stating that the report accurately portrayed the textbook industry. AAP
agreed with some findings in the report, but expressed concern with
respect to the data sources we used in our analyses and with
characterizations provided by retailers and wholesalers on the impact of
publisher practices on students. We carefully reviewed the data sources
available on college textbook pricing, and found the data we used to be
the most complete and reliable data available for our purposes.
Additionally, we sought perspectives from publishers, retailers, and used
book wholesalers, to ensure our characterization of the textbook industry
was balanced and complete. Both NACS and AAP also provided technical
comments, which we incorporated where appropriate.
The college textbook market is complex, comprised of many publishers,
retailers, and used book wholesalers. Textbooks include new and used
books and can be combined with supplemental learning materials.
Figure 1 illustrates the typical life cycle of a textbook and the roles of
publishers, instructors, bookstores, wholesalers, and students.
Background
Page 5 GAO-05-806 College Textbooks
Figure 1: The Typical Life Cycle of a College Textbook
Publishers develop and produce textbooks and accompanying materials
for instructors and students. While there are hundreds of college textbook
publishers, there has been substantial industry consolidation in recent
years, with sales at five of the largest publishers representing over
80 percent of the market in 2004. Because developing a textbook involves
a significant investment of time and resources, publishers carefully
consider the potential risks and rewards before publishing a new
textbook. Publishers consider market needs, including the size of the
market and competing products. They also consider how the textbook
would fit into their existing portfolios because they are more likely to
publish in subject areas that complement successful existing textbooks.
For example, a publisher that has successful textbooks for calculus might
want to develop a textbook in an adjacent area like statistics. Publishers
Development Distribution Purchase
Publishers produce
textbooks and market them
to instructors, who choose
and assign textbooks
Bookstores stock new and
used textbooks
Student pays retail
price for new, or 75%
of the new retail price
for used, if available
Bookstore buys used
book
Student gets 50% of
new retail price
Instructor reorders
book
Instructor does not
reorder book
Wholesaler buys used
book
Student gets 5 to 35%
of new retail price
Student keeps book,
gets no money back
Students purchase and use books,
then decide whether to keep or sell them
Student trades/sells
book to friend or
online buyer, may
get some money
back
New edition released
or no buyback
possible, student
gets no money back
·
·
·
·
·
Bookstore buys used
books from
wholesalers for 50%
of new retail price
Instructors ·
Publishers
Bookstores
Wholesaler Bookstore buyback
Students
Source: GAO analysis (presentation). Art Explosion and Clipart.com (images).
Page 6 GAO-05-806 College Textbooks
may also consider what value they can add by publishing a given textbook
to move beyond reproducing what is already available in the market.
Publishers direct their marketing efforts at instructors, and sometimes
academic departments that make the decision about the course materials
they will use and ultimately require their students to purchase. Publishers
employ sales representatives who often call on instructors in person to
discuss product options and provide instructors with free sample
textbooks and instructional materials for consideration. Publishers also
market their products at professional conferences and meetings, as well as
through targeted mailings. Sales representatives typically receive a base
salary and have the opportunity to earn commissions based on the volume
of new course materials that are sold. They receive no compensation for
materials that students purchase used.
College textbook retailers collect information about the materials
instructors have selected for their courses and stock them for student
purchases. Located both on and off campus, college textbook retailers are
made up of a diverse group of businesses including independent
booksellers, campus cooperatives, and large retail chains. The National
Association of College Stores reports that about half of college textbook
stores are owned by the postsecondary institution they serve and one-third
are operated through lease agreements by outside companies. The
companies that operate stores on college and university campuses through
lease agreements typically pay a commission based on the total volume of
sales to the postsecondary institutions in lieu of rent. It is not uncommon
for the colleges and universities that contract with them to limit the
margin on textbooks.
As bookstores receive information from instructors on the books required
for the upcoming term, they determine the number of textbooks to order
based on factors such as estimated enrollment and previous sales. Even
with information on the number of students enrolled in the class, it can be
difficult to estimate the number of books students will buy because many
colleges and universities are served by more than one bookstore and
students may also obtain textbooks from a variety of other sources.
According to the National Association of College Stores, over
900 postsecondary institutions are served by multiple bookstores, with
over 70 bookstores serving the 10 largest colleges and universities.
Additionally, because students now have the opportunity to purchase their
textbooks via the Internet from online retailers, no bookstore is without
competition.
Page 7 GAO-05-806 College Textbooks
Retailers also attempt to make used books available to students,
recognizing that many students prefer to purchase used books because
they are generally less expensive. Bookstores generally buy as many used
textbooks from their students as possible and then turn to used textbook
wholesalers to obtain additional copies. However, the demand for used
textbooks is much greater than the available supply, which is estimated to
be between 25 and 30 percent of all textbooks in the market. The ability of
bookstores to make used books available depends, in part, on how early
they are aware an instructor will use a certain title. Receiving an order for
a textbook by the end of a term increases the ability bookstores have to
purchase used textbooks, particularly if the book is currently being used
and they can buy back the book directly from students who have finished
using it. Once the supply of used books has been exhausted, bookstores
complete their orders with new textbooks from publishers. When
instructors require new editions or materials that publishers have
customized specifically for their course, bookstores must rely exclusively
on publishers to fulfill their orders.
Wholesale companies facilitate the circulation of used textbooks by
purchasing used books from retailers and directly from students to
distribute to other retailers in need of used textbooks. Three major
wholesale companies distribute textbooks nationally, and several smaller
wholesalers distribute textbooks in specific regions of the country. Two of
the national wholesalers also operate retail bookstores, and the other is
tied to a retail chain through common ownership. Wholesalers have
developed a complex model for determining the wholesale value of any
given textbook based on factors such as demand, the available supply, and
when a new edition is likely to be released. Because the supply of used
books is limited and demand is high, wholesalers rank retailers in order to
determine which will get first priority in receiving the used books they
desire. Generally, national wholesalers give first priority to retailers that
supply them with the most used books and do not return many of the
books they purchase. To encourage bookstores to supply used books,
wholesalers pay a commission and cover the cost of shipping the books to
their warehouses.
While students have little choice over which textbooks they must
purchase, they have some choice in where they buy their textbooks. Many
campuses are served by multiple bookstores, and students may also be
able to obtain their books through book exchanges on their campus.
Advances in technology have allowed students to bypass traditional
textbook outlets with expanded purchasing options online. A local
bookstore may provide convenience, speed, and return options, while
Page 8 GAO-05-806 College Textbooks
online retailers and student-to-student exchanges may offer lower prices.
In some cases, textbooks meant to be sold in international markets at
lower prices are also available to U.S. students through online retailers.
In addition, students can sometimes offset their costs by selling back their
books at the end of the term. Generally, if a book is in good condition and
will be used on the campus again, bookstores will pay students 50 percent
of the original price paid. If the bookstore has not received a faculty order
for the book at the end of the term and the edition is still current,
bookstores may offer students the wholesale price of the book, which
could range from 5 to 35 percent of the new retail price. This practice
allows bookstores to provide an added service to students while
supporting the national availability of used books. Students can also sell
their books online to a wholesaler or to an individual. However, if a new
edition of the book is forthcoming, students would not generally be able to
sell back the book.
College textbook prices have risen at double the rate of inflation for the
last two decades but have followed the trend of tuition increases at
postsecondary institutions. The average growth in college textbook prices
has been 6 percent per year since academic year 1987-1988, ranging from
4 percent in 1993-1994 to 9 percent in 1989-1990.2 Meanwhile, tuition and
fees have increased at an average of 7 percent per academic year during
the same period, while overall price increases averaged 3 percent per
academic year. Not only have textbook prices steadily increased each
year, but the overall change in textbook prices has been substantial.
According to a BLS research series on the CPI for college textbooks
shown in figure 2, prices in December of 2004 were 186 percent higher
than they were in December of 1986, the first month in which data were
available, compared with a 240 percent increase in the cost of tuition and
fees at colleges, universities, and professional schools.3 Overall price
inflation was 72 percent during the same time period.
2An academic year is defined as September through August for this analysis.
3The CPI measures the average change over time in the prices paid by urban consumers for
consumer goods and services, and the CPI for college textbooks measures the average
change over time of the price that students and their families pay for college textbooks.
College Textbook
Prices Have Grown at
Twice the Rate of
Inflation, Trailing
Annual Tuition
Increases
Page 9 GAO-05-806 College Textbooks
Figure 2: Annual Percentage Increase in College Textbook Prices, College Tuition
and Fees, and Overall Price Inflation, December 1986 to December 2004
Note: Data have not been seasonally adjusted.
With certain publisher packaging practices, supplementary products may
sometimes be included in the price of the textbook for this index, but it is
not possible with available data to determine the extent to which these
practices may have contributed to price increases. The prices collected for
BLS’s textbook index represent new college textbook prices at colleges,
universities, and professional schools at which textbooks are required.4
Because only the price of the textbook is collected, the prices of any
supplementary materials that may be available are typically not reflected
4Although only new textbook prices are collected, standard industry pricing practices
generally result in used book prices tracking the movement of new book prices.
Wholesalers and retailers agree that the standard pricing practice for used books is to
assign a price that is equal to 75 percent of the new price of the same book, so that if the
new book price increases by 3 percent, the used book also increases by 3 percent.
Page 10 GAO-05-806 College Textbooks
in the index. However, if the textbook is only available at the bookstore in
combination with some other course material—a practice commonly
referred to as bundling—then the price of the entire bundle is collected.
Officials at the Bureau of Labor Statistics told us that the practice of
bundling has become increasingly prevalent in recent years. However, they
told us it is not possible to determine with the information available the
extent to which bundling may have contributed to increases in college
textbook prices. For more information about the methodology used for
constructing this index, please refer to appendix I.
Increases in college textbook prices were particularly high for the
academic years 1989-1990 and 2001-2002, at 9 percent and 8 percent
respectively. Since 2001-2002, the growth in textbook prices has been
slowed, increasing by 5 percent in 2003-2004. Appendix II contains more
details on average annual changes in textbook prices.
While increases in textbook prices have not followed far behind hikes in
college tuition and fees, the cost of textbooks and supplies as a percentage
of tuition and fees varies for degree-seeking students attending different
types of institutions. According to data from Education’s Integrated
Postsecondary Education Data System, first-time, full-time students
attending 4-year private, nonprofit colleges were estimated to spend $850
for books and supplies in their first year, or 8 percent of the cost of tuition
and fees during academic year 2003-2004, as shown in figure 3.5 In
contrast, first-time, full-time students paying in-state tuition at 4-year
public colleges or universities were estimated to spend 26 percent of the
cost of tuition and fees on books and supplies, or $898, during the same
period. At 2-year public colleges, where low-income students are more
likely to begin their studies and tuition and fees are lower, first-time, fulltime
students are estimated to spend 72 percent of the cost of tuition and
fees on books and supplies.6 Specifically, 2-year public colleges estimated
that their first-time, full-time students would spend about $886 in 2003-
2004 on books and supplies. In 2002-2003, the last year for which
5We did not validate the methodology the institutions used to derive these estimates. These
estimates are gross, that is, they do not estimate what students might receive if they resell
their books. Because retailers may pay up to 50 percent of the retail price for used
textbooks, students’ net costs may be reduced substantially. Also, while these figures
include the cost of supplies, we cannot disaggregate those cost from the totals. More detail
on Education’s definition of supplies is in appendix I.
6Estimates for 2-year students are for students who are legal residents of the locality in
which they attend school and thus receive any reduced tuition charges that may be offered
by the institution.
Page 11 GAO-05-806 College Textbooks
enrollment data are available, students attending 2-year public colleges
represented 42 percent of all postsecondary students.
Figure 3: Estimated Cost of Textbooks and Supplies as a Percentage of Tuition and
Fees, Academic Year 2003-2004
While publishers, retailers, and wholesalers all play a role in textbook
pricing, the primary factor contributing to increases in the price of
textbooks has been the increased investment publishers have made in new
products to enhance instruction and learning according to industry
executives we interviewed. In particular, publishers point to the high cost
associated with the development of technology applications that
supplement traditional textbooks. Publishers told us they have made these
investments to meet changing needs of higher education, such as the
increase in part-time faculty who require greater instructional support and
supplements that will enhance student learning of the subject matter.
While wholesalers, retailers, and others do not question the quality of
these materials, they have expressed concern that the publishers’ practice
of packaging supplements with a textbook to sell as one unit limits the
opportunity students have to purchase less expensive used books.
Additionally, wholesalers, retailers, and others have expressed concern
Publisher Investments
in New Products
Have Contributed to
Increases in Textbook
Prices
Page 12 GAO-05-806 College Textbooks
about how certain publisher practices, such as revising textbooks more
frequently and increasing the availability of custom publishing options for
instructors, have affected their ability to help students save money by
providing used textbooks and buyback services.
Publishers set the net price, or the price bookstores pay publishers to
obtain the textbook, based on development and production costs,
expected sales, and competition from comparable products available in
the market. While the amount spent on development and production varies
across publishers and specific titles, the publishers to whom we spoke
underscored the substantial investments they make before a single
textbook is sold. These include the cost of author advances, the
development of content for the textbook and supplements, copyrights and
permissions for illustrations and photographs, along with the cost of
typesetting and printing enough copies to provide sample copies and cover
expected sales.
In estimating expected sales of textbooks, publishers must consider the
size of the overall market for a given textbook, the amount of market share
they can reasonably capture based on the availability of competing
products, and the availability of used books in subsequent years. The
publishers we talked to focus heavily on publishing textbooks for
introductory-level courses because the market is larger, even though
competition for market share tends to be greater. Publishing in smaller
markets can still be attractive, though, according to one publishing
executive, because publishers may be able to attain greater market share,
as there are generally fewer competing titles. Regardless of the market for
a particular textbook, publishers told us that new textbook sales are
highest in the first year an edition is available, with sales declining each
year as the supply of used books becomes greater.
Publishers told us that they must price their textbooks based on what
similar textbooks in the market are selling for, even if it will not generate
enough revenue to offset their costs or they could lose sales to more
competitively priced products. As a result, publishers noted that textbooks
may not realize a profit in the first year of publication. Publishers told us
that they are willing to take this financial risk because of the long-term
rewards they expect for successful textbooks.
While each college store determines its own pricing model, many utilize a
similar approach for determining the price of new and used textbooks.
Bookstores set the retail price to ensure a certain percentage of the selling
How Textbooks Are Priced
Page 13 GAO-05-806 College Textbooks
price goes to the bookstore. This percentage, commonly referred to by
retailers as the margin,7 covers bookstore costs and may allow the store to
realize a profit. While the margin may vary at different individual
bookstores, the average margin on new college textbooks among stores
reporting to the National Association of College Stores is about
23 percent.8 The margin on used textbooks, however, is typically higher.
Used textbook prices are directly linked to new textbook prices as
retailers and wholesalers typically follow a traditional pricing practice.
According to this practice, retailers purchase used books from
wholesalers at 50 percent of the new retail price and in turn charge
students 75 percent of the new retail price to purchase the book. This
pricing practice results in a 33 percent margin on used books for
bookstores. Table 1 illustrates the typical pricing practice for a new and
used textbook. College bookstores justify higher margins on used
textbooks based on increased inventory risks and resources involved in
preparing the books for resale.9
Table 1: Illustration of Typical Textbook Pricing Practice for $100 Publisher-Priced
Book
Net price Retail price Price increase
Margin (price
increase ÷ retail
price)
New textbook $100 $129 $29 23%
Used
textbook $65 $97 $32 33%
Source: GAO analysis.
Note: Prices rounded to the nearest dollar.
7Two terms, markup and margin, are commonly used to describe the difference between
the net (or publisher) price and the retail price of textbooks. Publishers commonly refer to
the markup, or the price increase relative to the publisher price, while college bookstores
typically refer to the margin, the percentage of the retail price that they keep.
8National Association of College Stores, 2005 College Store Industry Financial Report
(Oberlin, Ohio: 2005).
9For example, buying back books from students represents an inventory risk because it
requires a substantial financial investment, which bookstores cannot recoup until they sell
the books to another student or a wholesaler.
Page 14 GAO-05-806 College Textbooks
The factors that publishers consider in determining the price of their
textbooks has not changed over time, but the nature of offerings from
higher education publishers has changed in recent years. Publishers say
they have invested heavily in developing additional textbook supplements
for instructors and students, particularly resource-intensive technology
applications, and ensuring that the content they provide is updated with
the most current pedagogy and examples. Publishers told us they are
making these investments in response to the changing needs of the higher
education community and to remain competitive in the marketplace. While
supplements are not new, publishers told us the number and variety of
supplements available for a given textbook have increased substantially in
the last 10 years.
Even though there has been widespread consolidation among textbook
publishers over the last 20 years, publishers characterized the textbook
market as intensely competitive and said this competition drives what
products they offer and ultimately how they price their textbooks.
Because the adoption process in which instructors select the textbooks
and materials they wish to use in their courses is central to ensuring sales,
publishers told us that they focus their efforts on developing textbooks
and accompanying materials that will meet the diverse needs of
instructors and their students. To ensure their products are appealing to
instructors, publishers say they must offer a wide range of materials that
accommodate a variety of teaching and learning styles. Publishers fear
that if they are unable to keep up with offerings of their competitors they
will lose adoptions and ultimately market share. One industry analyst we
spoke to speculated that the consolidation of publishers and a lack of new
entrants are largely factors of the enormous investments required to
compete in the marketplace. The analyst said that by consolidating,
publishers may gain economies of scale and spread their overhead and
other costs across more titles.
Publishers say the investments they are making in product development
are largely in response to changes in higher education that have resulted in
publishers playing a more central role in facilitating instruction and
learning. For example, publishers have always provided no-cost
instructional supplements to help faculty teach their courses, but these
offerings have intensified in recent years. In particular, publishers told us
that the increased demand for instructional technology applications has
resulted in high development costs. They say that since the advent of the
Internet, postsecondary institutions have made substantial investments in
technology and increased their expectations for instructors to make use of
technology in the classroom. In response to this demand, publishers have
Publishers Have
Developed New Product
Options to Meet Perceived
Needs of Instructors and
Students
Page 15 GAO-05-806 College Textbooks
invested millions of dollars in developing content that can be delivered via
technological applications, such as Web sites and CD-ROMs, to
accompany their textbooks. Some of these applications are designed to
help instructors be more effective in the classroom, while others are
intended for student use to enhance their learning of the material.
Publishers told us that they have tailored their instructional supplements
to enhance instructor productivity and teaching, largely to meet the needs
of instructors in an environment of funding cuts. Publishers say tools
designed to enhance instructor productivity are in demand because
reductions in the number of teaching assistants available to help
instructors have increased the administrative burden for instructors. For
example, publishers have developed online homework and quizzes that
allow instructors to track student progress quickly, saving instructors
time. The homework and quizzes students complete online can be graded
immediately to provide both the instructor and students with immediate
feedback on performance. The need for greater teaching support is
another area in which publishers told us there has been increased demand,
stemming largely from a reduction in the employment of full-time tenure
track faculty at institutions across the country. Publishers say they are
now providing more extensive curricular support including lesson plans,
homework sets, multimedia lectures, and even workshops on specific
teaching approaches. While these materials are provided at no cost to
instructors, the cost of developing them is built into the price of the
textbook.
Publishers also described a wide array of supplements that faculty can
adopt that are intended to enhance student learning and success in the
course. Publishers say there is a growing demand for these products
because the number of students who are unprepared for college-level
work has been increasing. Student supplements are either sold separately
or bundled with the textbook, but the bulk of the development costs are
typically built into the price of the textbook, according to publishers.
While publishers produce print supplements, such as study guides and
solutions manuals to accompany their textbooks, technology content
represents the area in which publishers say they are investing more
substantially. For example, one publisher told us the company had
invested over $1 million in the development of a CD-ROM that provides
three-dimensional images to enhance learning in anatomy. In the short
term, these investments are very costly for publishers, but publishers are
predicting increased demand for these products over time, with more
content delivered digitally. Electronic content is appealing to publishers
because sales of these products would be less affected over time by the
Page 16 GAO-05-806 College Textbooks
used textbook market than print products, which can more easily be
bought and sold in the used textbook market. Specifically, passwords to
restricted access Web sites cannot be resold, and there is no national used
market for other types of electronic products, such as CD-ROMS and
software, because retailers and wholesalers cannot easily verify that the
products are functional once they have been used.
Wholesalers, retailers, and some public interest groups acknowledge that
publishers are making substantial investments to develop textbooks and
supplementary materials, but they have expressed concern about the
impact some publisher practices may have on student costs. In particular,
they think some of the strategies employed by publishers, such as
bundling textbooks with supplements and revising textbooks more
frequently, may limit the ability students have to decrease their costs by
purchasing less expensive used textbooks.
Wholesalers, retailers, and some public interest groups agree that there
has been a proliferation of supplements in recent years, and they have
expressed concern about the increasing practice of selling supplements
and textbooks bundled together in a package. While wholesalers and
retailers do not question the quality of these materials, they suggest the
practice of combining these supplements with textbooks limits students’
ability to reduce their costs by purchasing less expensive used books and
choosing which, if any, supplements they want to purchase. Retailers told
us that when bundling started becoming more common, it became difficult
for them to obtain supplements separately from publishers to provide
students the option of buying a used book and selected supplements.
Though publishers say that most supplements are now available
separately, retailers said that because publishers often discount bundles,
most of the savings students could expect from purchasing a used
textbook would be negated if they bought the supplements separately. For
example, a new book may be bundled with an access code to a companion
Web site at no additional cost to the student. Students who choose to buy
a less expensive used textbook will have to purchase the access code
separately, but the combined cost of the used book and the access code
will be similar to the price of the new course materials sold in a bundle.
One retailer also noted that publishers assign every product a unique
identification number, whether sold individually or bundled. Because the
identification number for a bundle varies based on the specific
combination of materials included in the package, the retailer told us it
can be difficult to identify the individual components in the bundle to
order them separately from publishers or, when available, through the
Wholesalers, Retailers, and
Others Express Concern
That Some Publisher
Practices May
Unnecessarily Increase
Costs to Students
Concerns about Bundling
Page 17 GAO-05-806 College Textbooks
used textbook market. Publishers note, however, that the standard
industry practice of assigning each bundle a unique identification number
is intended to make it easy for students, retailers, and wholesalers to
obtain a complete description of the bundle’s contents by entering the
identification number online.
Publishers told us that textbook sales representatives work to identify
materials that will best meet a given instructor’s needs and generally
bundle course materials with the textbook when the instructor desires it.
However, retailers said that instructors are often unaware that the course
materials they selected will come bundled, based on routine follow-up
discussions that stores have had with instructors. Retailers told us that
many instructors want the supplements to be available for their students
but also want students to have the option of buying a used book. However,
some publishers say that the discounts available on bundles are a selling
point with instructors, along with the assurance that students will
purchase the correct course materials.
While publishers typically allow retailers to return new textbooks that are
not sold without penalty if the textbooks are in new condition, when
course materials are bundled together they can be returned only if the seal
is unbroken. Retailers explained that their stores offer generous return
policies to accommodate students who, for example, buy the wrong
course materials or drop a course. If a student has broken the seal of the
bundle, retailers say they will not be able to return the materials to the
publisher for a refund. One retailer told us that its stores will generally
accept returns of unsealed bundles to minimize ill will with students but
that they would have to absorb the return as a loss.
Some publishers acknowledged that there has been resistance to the
practice of bundling, and some told us they are now more carefully
considering when bundling may be appropriate. While the practice is
designed to provide students with greater value, publishers understand
that students must perceive that value for a bundle to sell. Publishers say
they are also beginning to understand that as students may be sensitive to
high prices, they must strike a balance between quality and price. For
example, one publisher provided an example of a bundle that did not sell
well because the number of components increased the price beyond what
students were willing to pay. While the publisher knew that the textbook
and the individual components would retail separately for much more,
students perceived the price as too high. Publishers also told us that
bundling is most effective when instructors make use of all the materials
included in the bundle and stress their importance to students. Publishers
Page 18 GAO-05-806 College Textbooks
understand that when students spend money for course materials that are
never used they may perceive the purchase as unnecessary.
Industry representatives and some public interest groups also suggested
that publishers are revising textbooks more frequently, and some
expressed concern about the financial impact revisions have on students.
Retailers and wholesalers told us that because instructors typically use the
most current edition of textbooks in their courses, the previous edition
becomes obsolete once a new edition is released. Once retailers and
wholesalers learn of a pending new edition, typically several months in
advance of the release date, they said the buyback value drops rapidly to
zero. Once a new edition is released, retailers say they generally cannot
buy back an old edition from students, a practice that helps students
reduce their costs.
Publishers agreed that the revision cycle for many books has accelerated
over time, but most said that it has been stable in recent years. While
textbook revision cycles can vary based on several factors, such as the
level of the course and the discipline, publishers told us that textbooks are
generally revised every 3 to 4 years, compared with cycles of 4 to 5 years
that were standard 10 to 20 years ago. Publishers say that the revision
cycle is driven by instructors who want the most current material and may
seek products from competitors if they are unable to meet the demand.
Publishers cited a recent poll of 1,029 college professors commissioned by
the Association of American Publishers that found that 80 percent of those
polled think it is important that the material in the textbook be as current
as possible.10 However, this may not be universal across disciplines. For
example, over 700 mathematics and physics instructors from 150
universities across the country have petitioned one publisher to delay
revisions until there have been substantial changes in content or teaching
methods that merit revision.11
Publishers noted that while not every revision results in substantial
content changes, revisions must also be made for other reasons, such as
changing teaching methods. For example, one publisher cited a teaching
10Zogby International, The Attitudes of College Faculty on the Textbooks Used in Their
Courses (Utica, New York: December 2004).
11As part of the state Public Research Interest Group’s efforts to advocate for lower prices
for students, a number of faculty members signed a letter dated April 2004 calling on one
publisher to change certain practices.
Concerns about the Frequency
of Revisions
Page 19 GAO-05-806 College Textbooks
approach from the 1980s that has regained popularity in calculus.
Revisions may be based on current events, such as including recent
accounting scandals in textbooks for business law and ethics courses, or
recent elections in political science textbooks. Publishers told us that
changes in industry standards that are relevant to a discipline may also
necessitate out-of-cycle revisions or updates, such as pronouncements
issued by the Financial Accounting Standards Board for accounting
textbooks.
Some wholesalers and retailers think that the revision cycle for some
textbooks has the effect of limiting the used market. For example, retailers
and wholesalers have observed that books for introductory-level classes
are on a shorter revision cycle than other books, possibly because there is
a greater supply of used books, as students are less likely to keep them.
One publisher we talked to said that books for introductory classes are
typically revised more frequently because demand for current content and
technology applications is greater in these courses. Most publishers
maintain that their decisions to revise a book are based on factors other
than sales patterns. However, one publisher we spoke with said that the
current revision cycle at the company is tied to the pattern of sales
revenues, which all publishers agreed decline the longer the textbook is on
the market and more used copies become available. Publishers estimated
that in the second year of an edition they might sell 25 percent to 70
percent of the textbooks that were sold in the first year, depending on
level and discipline. Moreover, publishers say that they count on textbook
revisions to recoup the initial investment costs of developing the textbook.
They told us that first-edition textbooks are highly risky and that only
about 20 to 30 percent of their first-edition textbooks are ever revised.
However, they said that they are willing to take on this risk based on the
long-term rewards they expect to receive from successful textbooks that
are revised.
Wholesalers, retailers, and some public interest groups have also raised
concerns about other publisher practices that may limit students’ ability to
purchase used textbooks, such as custom publishing, which allows
instructors to customize their course materials by adding or deleting
chapters from a single textbook or multiple textbooks. According to
publishers, technological advances have made the practice more costeffective
and the adoption of custom materials has been increasing.
Publishers say that custom publishing appeals to instructors because it
allows them to consolidate material from multiple sources into one
textbook for their students. Publishers also think it provides students with
good value because instructors are more likely to use all of the material
Concerns about Other
Publisher Practices
Page 20 GAO-05-806 College Textbooks
they select. Because the price of custom publishing is based on the
content, the price of custom textbooks may be lower than for a traditional
textbook, according to publishers. For example, students might pay less
for one custom textbook than they would for several books the instructor
might have required if customization was not available. Some publishers
also observed that sales of custom materials tend to be better because
instructors are committed to using all of the material, and there is no
national used textbook market for them.
Retailers and wholesalers said that because there is no resale market for a
given custom textbook outside the campus where it was originally used,
students may lose out on the ability to save money by buying used books
and selling them back at the end of the term. One retailer expressed
particular concern about a few specific instances in which textbook
covers had been customized with the mascot or logo of a specific
institution, but the content of the textbook was the same. Because these
textbooks are designed for a specific campus and have a unique
identification number, there is no national used market for them. In
addition, retailers say that publishers place strict return limits—typically
10 percent—on custom textbooks, even though traditional textbooks are
usually fully returnable to the publisher. As a result, retailers say that they
have to carefully balance their commitment to carrying an adequate supply
of custom materials for students against the risk of exceeding the return
limit if they do not sell enough copies.
Wholesalers, retailers, and others are also concerned about the long-term
cost implications for students that may result from publisher practices to
provide lower-cost alternatives to the traditional textbook. Among these
alternatives are loose-leaf textbooks that are designed to be placed in a
binder and electronic textbooks that are available for purchase online.
While these options may save students money initially, wholesalers and
retailers are concerned about the long-term cost implications for students.
For example, students may initially pay less for a loose-leaf textbook than
they would for a textbook that is bound, but wholesalers and retailers said
students would be unable to sell a loose-leaf book back because it is not
possible to determine whether all the pages are intact. With electronic
textbooks, students may pay about half of the price of a new textbook for
password-protected access to an online version of the textbook. Until the
password expires, students can access the textbook as many times as they
wish, either reviewing the chapters online or printing a hard copy. Some
public interest groups initially embraced the idea of electronic textbooks
but now point out that students may run into technical difficulties if they
have to rely on Internet access. Additionally, because access to the
Page 21 GAO-05-806 College Textbooks
textbook may expire, students may not have the option at the end of the
term to keep the textbook. According to publishers, electronic textbooks
have not caught on with students, and sales of these products have been
unsuccessful.
College textbook prices in the United States may exceed prices in other
countries because textbook publishers assign prices that reflect the
market conditions found in each country. The demand for textbooks can
vary across countries because of, for example, differences in income levels
or in the classroom role of textbooks. Publishers typically incur
substantial costs in order to develop textbooks, but once these
development costs have been undertaken, the additional cost of producing
more copies is quite low. As a result, a publisher may be able to profitably
sell textbooks in one country at prices that are closer to actual costs of
printing and distributing additional copies while charging higher prices in
the United States that reflect the substantial development costs
undertaken. Two factors are typically cited as enabling a seller, such as a
publisher, to profitably charge different prices to different buyers, such as
textbook buyers in different countries. The seller must be able to
distinguish among groups with differences in their willingness and ability
to pay a given price, and the ability for these groups to buy and sell among
one another must be restricted. Traditionally, the geographical separation
of markets has made it difficult for U.S. students to acquire lower-priced
textbooks from other countries. More recent developments in Internet
commerce have reduced the costs for buyers in the United States to
acquire textbooks from other countries, causing publishers to reexamine
their distribution arrangements.
Textbook publishers told us that college textbooks are developed
primarily for sale in the United States, based on cost considerations and
demand forecasts for the North American market, but that they sell
textbooks in other markets when there is international demand.
Textbooks developed for certain academic disciplines are more likely to
have broader international appeal than others, according to publishers.
For example, the content found in many mathematics, science, and
engineering textbooks is essentially global in its applicability. However,
the content found in textbooks used in other disciplines, such as political
science, may pertain much more specifically to U.S. experiences,
institutions, or culture. If international demand for a textbook exists,
publishers may sell the same textbook that is sold in the United States, an
international edition produced with less expensive materials, or an
The Price of U.S.
Textbooks Sold in
Other Countries
Varies according to
Local Market
Conditions
Varying Local Market
Conditions and Barriers to
Importation Help Explain
Textbook Price
Differences between the
United States and Other
Countries
Page 22 GAO-05-806 College Textbooks
adaptation of the textbook that includes locally relevant examples. In
international markets where the primary language spoken is not English,
publishers may sell the rights to translate the textbook into the local
language.
In assigning prices to the different versions of U.S. textbooks sold in the
international marketplace, publishers told us that they consider local
market conditions and the willingness and ability of students to purchase
the textbook. As there can be significant intercountry differences in the
demand for textbooks, publishers told us that they make country-bycountry
and book-by-book distribution and pricing decisions. Specifically,
publishers told us that factors they consider in making pricing decisions
are income levels, the cost of living, the role of the textbook in the
classroom, intellectual property protections, the strength of the local
currency, and the prices of competing textbooks sold in that marketplace.
In some cases, international prices may be substantially lower than prices
at which the textbook is sold in the United States, while in other cases,
they may be the same as or higher than U.S. prices. For example,
publishers told us that in many developing countries, incomes are
generally too low for students to buy textbooks at U.S. prices. However, in
areas where the cost of living is generally higher than in the United States,
such as in Scandinavian countries, textbook prices may be higher.
Publishers told us that they have to be particularly concerned about
pricing at a level that is affordable to students in developing countries
because of the threat of piracy in these countries. Although they already
grapple with piracy in many of these markets, publishers say that even
fewer legitimate copies would be sold in these markets if prices were too
high. According to publishers, some countries do not have a strong
commitment to intellectual property protections, but governments have
been more responsive in dealing with piracy cases when textbooks are
priced at a level that local students can afford.
In addition to income levels, differences in instructional styles and
systems of higher education influence publishers’ pricing decisions. For
example, publishers told us that even though average income levels are
high in the United Kingdom, textbooks tend to sell for lower prices than in
the United States because the demand for textbooks is lower. Specifically,
they said that instructors in the United Kingdom are more likely to
recommend several textbooks for students to consider, rather than
requiring a specific textbook. Additionally, publishers told us that there is
less demand for electronic and print supplements to support teaching and
learning in non-U.S. markets. Publishers also told us that because higher
Page 23 GAO-05-806 College Textbooks
education funding tends to be highly subsidized in the United Kingdom
and European countries, students may not be willing to pay out-of-pocket
costs for textbooks at U.S. prices. According to publishers, textbook
prices in Canada and Australia tend to be similar to those in the United
States because the instructional styles are similar in that instructors select
specific textbooks for their classes. However, publishers noted that in
these markets there is also greater demand for U.S. textbooks that have
been adapted to the local culture or economy.
The National Association of College Stores has criticized the practice of
differential pricing, or the publisher practice of charging lower prices in
some countries, saying that it is unfair for U.S. students to pay more for
the same textbooks. However, the practice of differential pricing is not
exclusive to textbook publishing and occurs both within and outside the
United States. For example, GAO has reported on differential pricing in
the airline industry, where business travelers typically pay much higher
fares than leisure travelers.12 Likewise, we have reported on differential
pricing of prescription drugs in the pharmaceutical industry.13 Publishers
can afford to sell textbooks at prices that are sometimes lower outside the
United States because once development costs have been incurred for the
U.S. market, the incremental cost of producing additional copies for the
international market is low. This allows publishers to sell textbooks in
other countries at prices that are closer to printing and distribution costs
while charging prices in the United States that better reflect the high costs
of development. The publishers we talked to estimated that international
sales make up from 5 to 15 percent of their total revenues. Some
publishers speculated that without the added revenues from international
sales, they would feel more cost pressure and would have to either
increase U.S. prices or invest less in certain products.
In order for international pricing differences to persist, there must be
barriers that limit mass importation of less expensive U.S. textbooks from
other countries. Such barriers ensure that individuals and businesses
purchase from the intended distribution channels and insulate students
12GAO, Aviation Competition: Restricting Airline Ticketing Rules Unlikely to Help
Consumers, GAO-01-831 (Washington, D.C.: Jul. 31, 2001).
13GAO, Prescription Drugs: Companies Typically Charge More in the United States than
in Canada, GAO/HRD-92-110 (Washington, D.C.: Sept. 30, 1992); and GAO, Prescription
Drugs: Companies Typically Charge More in the United States than in the United
Kingdom, GAO/HEHS-94-29 (Washington, D.C.: Jan. 12, 1994).
Page 24 GAO-05-806 College Textbooks
from awareness of price differences in other countries. Historically, the
geographic separation of countries served as a natural barrier preventing
such trade from occurring. Geographic distances and lack of information
made it difficult for individuals or businesses in the United States to save
money on textbooks by purchasing lower-priced textbooks in other
countries and having them shipped to the United States, a practice
commonly referred to as reimportation. However, recent technological
developments in electronic commerce have diminished the effects of this
natural barrier, increasing awareness of prices in other countries and
making it easier for students and retailers to purchase lower-priced
textbooks from international markets.
Retailers and publishers have expressed concern about the reimportation
of lower-priced textbooks from international locations. Specifically, they
cited the ability students have to purchase books from online distribution
channels outside the United States at lower prices, which may result in a
loss of sales for U.S. retailers. Additionally, the availability of lower-priced
textbooks through these channels has heightened distrust and frustration
among students regarding textbook prices, and college stores find it
difficult to explain why their textbook prices are higher, according to the
National Association of College Stores. Retailers and publishers have also
been concerned that some U.S. retailers may have engaged in
reimportation on a large scale by ordering textbooks for entire courses at
lower prices from international distribution channels. Concerned about
the effects of differential pricing on college stores, the National
Association of College Stores has called on publishers to stop the practice
of selling textbooks at lower prices outside the United States.
Publishers told us that they intend for the textbooks they distribute in
other countries to be sold for use in those countries, not for resale to the
United States, and so have taken recent actions to limit large-scale
reimportation. Most of the publishers with whom we spoke say they are
particularly concerned about the actions of foreign distributors and U.S.
retailers that may result in large-scale reimportation of textbooks. As a
result, publishers told us they have taken recent steps to limit the
reimportation of textbooks in large quantities. Specifically, publishers told
us that they have strengthened their agreements with foreign wholesalers
to prevent the large-scale sale of U.S. textbooks back to the United States.
Some publishers also said they have made an agreement with an online
retailer outside the United States to limit the number of copies of a given
textbook that can be delivered to a single U.S. address in one order.
Because these measures target large-scale reimportation of U.S. textbooks
Publishers Have Taken
Recent Steps to Limit the
Reentry of Their
Textbooks into the U.S.
Market
Page 25 GAO-05-806 College Textbooks
from international sources at lower prices, they will not prevent U.S.
students from purchasing single copies of textbooks from international
sources.
College textbook prices have risen steadily, along with tuition and fees,
and appear to have been largely driven by investments in supplements.
While price increases have resulted in increasing costs for students and
their families, they reflect a change in the characteristics of postsecondary
education. Just as teaching and learning have changed with increasing
reliance on technology, the college textbook has evolved from a standalone
text to include a variety of ancillary products designed to enhance
the educational experience for instructors and students. By increasingly
becoming involved in the development of instructional aids, publishers are
assuming roles that have traditionally belonged to postsecondary
institutions. If publishers continue to increase these investments,
particularly in technology, the cost to produce a textbook is likely to
continue to increase in the future.
Although changes in the nature of college textbooks are evident, it is
difficult to assess the impact of these changes on students. Instructors can
now select from a much wider variety of supplements to tailor their
courses to the needs of their students, but these additional textbook
offerings may come at an increased cost to students. While textbook
prices have risen with tuition costs, these costs can vary greatly depending
on the type of institution a student is attending. Because textbooks may
represent a substantial portion of the cost of tuition and fees for students
attending some public institutions, any increase in textbook prices may
affect affordability and access disproportionately for some students.
Consequently, while students may benefit from the advances in textbook
supplements, they may not feel the price increases are justified relative to
what they spend on tuition. Students may also think the amount they have
to pay for their textbooks is unfair, especially if some of the same
textbooks are available at lower prices outside the United States.
Because the cost to students may not be the primary factor considered
when publishers are developing textbooks that students are ultimately
required to buy, the rate of textbook price increases is not likely to slow.
Students may lower their costs by purchasing used textbooks and may
search for lower-priced textbooks from online sources, including
international retailers, and directly from other students. However, these
options are unlikely to provide a sustainable source of lower prices
because the supply of these textbooks is limited and international prices
are subject to change. In addition, because publishers, wholesalers, and
Concluding
Observations
Page 26 GAO-05-806 College Textbooks
many retailers are profit-seeking firms, any widespread action that would
lower costs to students at the expense of profits would be met with
changes in their business practices, such as changing distribution patterns.
We provided copies of a draft of this report to the Department of Labor
and the Department of Education for review and comment. The
Department of Labor provided technical comments on the use of its CPI
data, which we incorporated as appropriate. The Department of Education
did not have any comments. We also sought comments on our
characterization of the textbook industry from the National Association of
College Stores and the Association of American Publishers, the trade
groups representing the companies we interviewed for this study.
NACS generally agreed with our findings, stating that the report accurately
portrayed the textbook industry. NACS also provided technical comments
that we incorporated as appropriate. NACS’s comments appear in
appendix III.
AAP agreed with some findings in the report but expressed concern with
respect to the data sources we used in our analyses and the tone and
objectivity of the report.
With respect to the data sources we used, AAP expressed concern about
the limitations of the data we used in determining textbook price increases
over time, and the proportion of tuition and fees that spending on
textbooks and supplies represent for students at different types of
postsecondary institutions. AAP also suggested alternative data sources
for addressing these issues, but we found that they were not sufficiently
reliable for our purposes.
While AAP disagreed with our use of CPI data from BLS, these are the
most complete and reliable data on textbook prices available. Further, we
clearly disclose the limitations and definitions of the CPI data in the
report. AAP’s claim that BLS data do not capture the “penetration of
lower-cost alternatives” is not accurate. The college textbooks CPI is an
index designed to capture the prices of assigned textbooks. To the extent
that lower cost alternatives are assigned, they would be fully reflected in
BLS’s index. AAP also suggested that the availability of alternative data
from Student Monitor that differ substantially from the BLS data call into
question our decision to use BLS data as a sole source. We disagree
because the two data sources are not comparable. Student Monitor data
are measuring annual changes in student spending, while BLS data
measure annual price changes.
Agency Comments
Page 27 GAO-05-806 College Textbooks
AAP also expressed concerns about the use of Education’s IPEDS data, in
particular that estimates are for textbooks and supplies and that we did
not validate the estimates postsecondary institutions provided. We use
IPEDS data because they are the most complete data available on
estimated student spending. As we state in appendix I, we tested IPEDS
for reliability and note that other available data sources are not as
complete or reliable. AAP also questions the appropriateness of
measuring estimated spending on textbooks and supplies as a percentage
of tuition. We present these data to provide perspective on college
affordability—a primary federal policy concern. To address AAP’s
concerns about what constitutes supplies, we have noted in appendix I
that supplies are defined as usual costs incurred by a majority of students.
AAP also expressed concern that in discussing estimates of student
spending on textbooks, we did not take into account the extent to which
students lower their costs through buyback. We have added this context
where we discuss costs to students.
AAP also provided additional data sources for consideration and
expressed concern that deadlines prevented us from giving these sources
appropriate consideration. We considered other sources available that
provide estimates of student spending. Time was not a factor in our
decision not to use the data, but rather we found these sources to be not
as complete or as reliable as the IPEDS data. Student Monitor, one of the
sources suggested by AAP, provides market research for those targeting
college students as a consumer group. Student Monitor employs a
nonprobabilistic sampling methodology using an intercept-based quota
sample of 1,200 students covering 100 colleges and universities. Because
of the sample selection process used, it cannot be used to estimate to the
college student population as a whole for the purpose of addressing a key
finding. Other industry sources AAP suggested provide estimates on the
total size of the market, but they cannot be used to provide representative
estimates on student spending for textbooks.
AAP expressed concern about the tone and objectivity of the report,
particularly the characterizations of retailers and wholesalers on the
impact of publisher practices on students. In most instances we had
already discussed issues raised by AAP in other sections of our report.
AAP took issue with comments made by wholesalers and retailers
regarding the impact of textbook revisions, bundling, and custom
publishing on students’ ability to pursue lower-cost, used textbooks. We
specifically provide information on the views of wholesalers and retailers
to add balance and include more perspectives in our report. We provide
publisher perspectives on why they revise textbooks and characterize why
and how the revision cycle has changed over the last two decades. We
Page 28 GAO-05-806 College Textbooks
also extensively discuss in our report publisher perspectives on
supplements, bundling, and other options, such as custom publishing,
while capturing publisher views regarding their benefits. Wholesalers and
retailers provided a different perspective on these practices as they relate
to potential costs to students, which we captured in our report.
More generally, GAO’s approach to this study was to rely primarily on
publishers to provide information on how they price textbooks and gain
their perspectives on the factors that influence price changes. We also
sought out other experts in the field, including retailers and wholesalers,
to better understand how students obtain textbooks and what factors
affect the cost to the student. Retailers and wholesalers did not place
blame on publishers but pointed out the impact of some publisher
practices on students. We do not place any blame in our report on the
publishers and do in fact note that they offer a variety of options for
students, sometimes at a discount. We also note in our report that faculty
have primary responsibility for determining what students are required to
buy.
AAP stated in its letter that it agreed with the findings related to
international price differences and the report’s concluding observations.
AAP also provided technical comments, which we incorporated as
appropriate. AAP’s comments appear in appendix IV.
As arranged with your offices, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 30 days from its
issue date. At that time, we will send copies of this report to the
congressional committees and subcommittees responsible for the Higher
Education Act, the Secretary of Education, the Secretary of Labor, and
other interested parties. Copies will also be made available to others upon
request. In addition, this report will be available at no charge on GAO’s
Web site at http://www.gao.gov.
Page 29 GAO-05-806 College Textbooks
If you have any questions about this report, please contact me on (202)
512-7215. Key contributors to this report are listed in appendix IV.
Cornelia M. Ashby
Director, Education, Workforce,
and Income Security Issues
Page 30 GAO-05-806 College Textbooks
List of Requesters
The Honorable George Miller
Ranking Minority Member
Committee on Education and the Workforce
House of Representatives
The Honorable Dale Kildee
Ranking Minority Member
Subcommittee on 21st Century Competitiveness
Committee on Education and the Workforce
House of Representatives
The Honorable Major Owens
Ranking Minority Member
Subcommittee on Workforce Protections
Committee on Education and the Workforce
House of Representatives
The Honorable Dennis Cardoza
The Honorable Raul Grijalva
The Honorable Maurice Hinchey
The Honorable Dennis Kucinich
The Honorable Carolyn McCarthy
The Honorable Betty McCollum
The Honorable Michael McNulty
The Honorable Donald Payne
The Honorable Bobby Rush
The Honorable Tim Ryan
The Honorable David Wu
House of Representatives
Appendix I: Objectives, Scope, and
Methodology
Page 31 GAO-05-806 College Textbooks
To determine the extent to which textbook prices have changed over time,
we reviewed college textbook pricing data from the Bureau of Labor
Statistics’ Consumer Price Index (CPI).1 The CPI measures the average
change over time in the prices paid by urban consumers for consumer
goods and services, and in the case of textbooks represents an index of
change over time of the retail price of college textbooks, or the price that
students and their families pay. While college textbooks have been
included in the CPI since 1964, data on textbooks in the Bureau of Labor
Statistics’ (BLS) research database only go back to 1986, when BLS
collected textbook prices as part of an index on the price of books and
supplies. The agency began publishing a separate CPI series on textbooks
in 2001. Using these data, BLS constructed an unpublished research series
on college textbooks for GAO for the period of December 1986 through
December 2004. The index was compiled from three separate index series,
as outlined in table 2. The implications on the index of these differences in
methodology are discussed below.
Table 2: Source and Methodology for CPI College Textbook Research Series Data
Time period Source and methodology
December 1986 to
December 1998
BLS produced the index using data collected for the
Educational Books and Supplies CPI series.
December 1998 to
December 2001
BLS applied a standard BLS calculation procedure to
college textbook price data in order to generate the index.
December 2001 to
December 2004
BLS used the published index for college textbooks, which
employs quality adjustment methods.a
Source: BLS.
aFor a detailed analysis of these quality adjustment methods, see BLS, Hedonic Quality Adjustment
Methods for College Textbooks in the U.S. CPI (Washington, DC.: October 2001).
The college textbook CPI is constructed using a probability-based
selection process that identifies bookstores as well as textbooks that are
assigned for use in courses of higher education. Prices for specific books
are taken from a variety of bookstores located on and off campus, as well
as from Web-based retailers, reflecting prices at public and private
postsecondary institutions, including 2-year, 4-year, graduate, and
professional schools. The sample composition changes each year for the
following reasons: (1) books assigned to classes change over time,
1Data for the college textbooks CPI have not been seasonally adjusted. Seasonal
adjustment removes the effects of recurring seasonal influences from many economic
series, including consumer prices.
Appendix I: Objectives, Scope, and
Methodology
Appendix I: Objectives, Scope, and
Methodology
Page 32 GAO-05-806 College Textbooks
(2) some books cycle out of circulation, and (3) a quarter of the sample
rotates out annually. Similarly, the sample size for this research series
varies over time as sampling procedures are modified and may range from
200 to 500 price quotes. This variation in sample size does not affect the
value of the index, though fewer observations may affect the variance of
the index. Overall, BLS reports that the response rate for college textbook
CPI data collection is very high, 88 percent.
Most of the textbooks included in the sample are designated as required
texts for courses offered by the college or university associated with each
sampled bookstore. In some cases, the selected textbook may not be
available for pricing because the course has been terminated, the course
requires a different textbook, or the course is not offered every term. In
instances in which the course is no longer offered and the textbook is not
used in any other course, then the assigned textbook for a similar course
is selected as a substitute. If the textbook is no longer used for the
selected course, it is replaced with the textbook that is currently used for
the selected course. If the book is temporarily out of use (for example, the
course associated with the book is offered only in the fall semester), then
the book is listed as temporarily not available and the price change is
imputed based on the price changes of the other books.
An important limitation to this research series is that prior to 2001, prices
for such substitute books were not usually compared and no adjustments
were made for any qualitative changes between the previous and
substitute books.2 With the introduction of quality adjustment in 2001, the
index is adjusted when certain characteristics of a textbook change, such
as a move from a major to a smaller publisher or a considerable change in
the number of pages. If the new version of the textbook contains
substantially different characteristics and quality adjustment values are
not available, the price movement is imputed based on the prices of
comparable textbooks. Because hedonic quality adjustment is
implemented only for the published portion of the research series, for the
periods before 2001, the index may have higher variance than the
published index, which begins in 2001.
In addition, BLS officials pointed out that textbooks are increasingly
wrapped in packages along with additional materials, making it difficult to
2Prices were compared only if the same book or a new edition of the same book was
priced.
Appendix I: Objectives, Scope, and
Methodology
Page 33 GAO-05-806 College Textbooks
collect all of the qualitative characteristics of the textbook. If the selected
textbook is sold by itself, then only the textbook is priced. However, if the
selected textbook is automatically sold with another item, such as a CD or
workbook, then the agency must price the entire package. As a result of
these packaging practices, it is sometimes difficult for BLS to obtain the
information necessary for quality adjustment, and other times the price
recorded as the textbook price may also include ancillary materials.
To put changes in textbook prices into the context of other changes in the
cost of higher education, we also reviewed CPI data on tuition and fees,
which are constructed using a probability-based selection process and
reflect the cost of tuition and fees at 2-year and 4-year institutions and
professional schools.3
We analyzed data from the Department of Education’s (Education)
Integrated Postsecondary Data System (IPEDS) to determine the
proportion of tuition and fees that expenditures for textbooks and
supplies represent.4 Specifically, postsecondary institutions estimate the
amount first-time, full-time, degree-seeking students will spend for an
entire academic year on textbooks and supplies and report on the amount
of tuition and fees. IPEDS defines books and supplies as the average cost
of books and supplies for a typical student for an entire academic year (or
program). Supplies are to include usual costs that are incurred by a
majority of students. Supplies required of special groups of students, such
as engineering or art majors, would not be counted unless they constituted
a majority of students at the institution. The Department of Education has
not established a comprehensive definition of what supplies are.
However, an Education official told us that supplies can include such
things as allowances for personal computers, but such expenses should be
reported only if they are required for a majority of students at the
institution.
3Since the CPI for college textbooks is not seasonally adjusted, we relied on nonseasonally
adjusted data for the overall CPI as well as the CPI for tuition and fees. There are no longterm
significant differences between the nonseasonally adjusted and seasonally adjusted
indexes.
4IPEDS is a system of surveys designed to collect data from all primary providers of
postsecondary education. These surveys collect institution-level data in such areas as
enrollments, program completions, faculty, staff, and finances. Data are collected annually
from approximately 9,600 postsecondary institutions, including over 6,000 institutions
eligible for the federal student aid programs.
Appendix I: Objectives, Scope, and
Methodology
Page 34 GAO-05-806 College Textbooks
To assess the completeness of the IPEDS data, we reviewed the National
Center for Education Statistics’ documentation on how the data were
collected and performed electronic tests to look for missing or out-ofrange
values. On the basis of these reviews and tests, we found the data
sufficiently reliable for our purposes. We did not validate the methodology
the institutions used to derive their estimates for the cost of books and
supplies, and there has been no review of how well these institutional
estimates actually predict student spending on textbooks and supplies.
There are other sources available that provide estimates of student
spending on college textbooks that we considered, but we did not find
these sources to be as complete or reliable as IPEDS. The College Board
collects estimates from postsecondary institutions on spending for books
and supplies for full-time undergraduate students as part of its Annual
Survey of Colleges. While the methodology employed was similar to that
used for IPEDS, the survey included responses from a smaller population
of institutions than IPEDS. Another source, Student Monitor, estimates
spending on college textbooks based on student-reported expenditures.
Student Monitor provides market research for those targeting college
students as a consumer group. Student Monitor employs a
nonprobabilistic sampling methodology using an intercept-based quota
sample of 1,200 students covering 100 colleges and universities. Because
of the sample selection process used, it cannot be used to estimate to the
college student population as a whole for the purpose of addressing a key
finding.
To determine what factors have contributed to the change in college
textbook prices, we interviewed executives from five of the largest
textbook publishers, representing more than 80 percent of new textbook
sales; the three national used textbook wholesalers; three companies that
operate over 1,300 college textbook retail stores, or 29 percent of stores
nationwide; the National Association of College Stores; the Association of
American Publishers; and various other industry experts.
To determine what factors have led to differences in the price of some U.S.
textbooks in non-U.S. markets, we conducted a review of economic theory
and relevant GAO work on differential pricing. We interviewed
representatives from textbook publishers, operators of textbook retail
stores, and used book wholesalers to determine the extent to which books
may be available in other countries at lower prices, their analysis of the
reasons behind these price discrepancies, and their concerns about pricing
differences.
Appendix II: Consumer Price Index Average
Annual Percentage Growth, Academic Years
1987-1988 to 2003-2004
Page 35 GAO-05-806 College Textbooks
CPI average annual percent increasea
Academic year, September-August College textbooks Tuition and fees Overall prices
1987-1988b 7.8 7.3 4.0
1988-1989 6.9 8.0 4.7
1989-1990 9.3 8.0 4.8
1990-1991 5.8 8.8 5.3
1991-1992 6.7 11.6 3.0
1992-1993 4.5 9.8 3.1
1993-1994 4.2 7.6 2.6
1994-1995 4.4 6.3 2.8
1995-1996 5.5 5.8 2.8
1996-1997 5.2 5.3 2.7
1997-1998 5.1 4.5 1.7
1998-1999 6.5 3.9 1.8
1999-2000 5.8 4.0 3.1
2000-2001 6.2 4.6 3.3
2001-2002 8.1 6.5 1.6
2002-2003 6.7 7.5 2.3
2003-2004 5.2 9.8 2.3
Average per year, 1987-2004 6.0 7.0 3.0
Source: BLS published Tuition and Fees CPI and overall CPI, unpublished College Textbook CPI research series.
aData are not seasonally adjusted.
bAcademic year 1987-1988 shows the growth in prices over the previous academic year, 1986-1987.
Data for the 1986-1987 estimate lack the months of September through November, as data became
available in December of 1986. As a result, the average price level in 1986-1987 is based on
9 months of data rather than 12.
Appendix II: Consumer Price Index Average
Annual Percentage Growth, Academic Years
1987-1988 to 2003-2004
Appendix III: Comments from the National
Association of College Stores
Page 36 GAO-05-806 College Textbooks
Appendix III: Comments from the National
Association of College Stores
Appendix III: Comments from the National
Association of College Stores
Page 37 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 38 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association
of American Publishers
Appendix IV: Comments from the Association of American Publishers
Page 39 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 40 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 41 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 42 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 43 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 44 GAO-05-806 College Textbooks
Appendix IV: Comments from the Association of American Publishers
Page 45 GAO-05-806 College Textbooks
Appendix V: GAO Contact and Staff
Acknowledgments
Page 46 GAO-05-806 College Textbooks
Cornelia M. Ashby, Director, (202) 512-7215, ashbyc@gao.gov
Bryon Gordon, Assistant Director
Debra Prescott, Analyst-in-Charge
Whitney Schott, Analyst
In addition to those named above, Stephen Brown, Jonathan McMurray,
and John Mingus made significant contributions to this report.
Appendix V: GAO Contact and Staff
Acknowledgments
GAO Contact
Staff
Acknowledgments
(130413)
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO’s
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO’s Web site (www.gao.gov). Each weekday, GAO posts
newly released reports, testimony, and correspondence on its Web site. To
have GAO e-mail you a list of newly posted products every afternoon, go
to www.gao.gov and select “Subscribe to Updates.”
The first copy of each printed report is free. Additional copies are $2 each.
A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or
more copies mailed to a single address are discounted 25 percent. Orders
should be sent to:
U.S. Government Accountability Office
441 G Street NW, Room LM
Washington, D.C. 20548
To order by Phone: Voice: (202) 512-6000
TDD: (202) 512-2537
Fax: (202) 512-6061
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm
E-mail: fraudnet@gao.gov
Automated answering system: (800) 424-5454 or (202) 512-7470
Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 512-4400
U.S. Government Accountability Office, 441 G Street NW, Room 7125
Washington, D.C. 20548
Paul Anderson, Managing Director, AndersonP1@gao.gov (202) 512-4800
U.S. Government Accountability Office, 441 G Street NW, Room 7149
Washington, D.C. 20548
GAO’s Mission
Obtaining Copies of
GAO Reports and
Testimony
Order by Mail or Phone
To Report Fraud,
Waste, and Abuse in
Federal Programs
Congressional
Relations
Public Affairs
PRINTED ON RECYCLED PAPER

Report to Congressional RequestersUnited States Government Accountability OfficeGAOJuly 2005COLLEGETEXTBOOKSEnhanced OfferingsAppear to DriveRecent PriceIncreasesGAO-05-806What GAO FoundUnited States Government Accountability OfficeWhy GAO Did This StudyHighlightsAccountability Integrity Reliabilitywww.gao.gov/cgi-bin/getrpt?GAO-05-806.To view the full product, including the scopeand methodology, click on the link above.For more information, contact Cornelia M.Ashby at (202) 512-7215 orashbyc@gao.gov.Highlights of GAO-05-806, a report tocongressional requestersJuly 2005