Bookstores need to have a gross margin of about 40 percent to be profitable, according to Michael Kaplan in an interview with the Miami Herald News. In other words, if the book is sold at $20 retail, the bookstore bought the book for $12. As a bookstore, you're expected to have them in stock.
Are bookstores a dying business?
Your Favorite Bookstores Are Dying. They Told Us How We Can Help. Here's something that might surprise you: Despite the fact that the U.S. economy is suffering more than it ever has in living memory, book sales have risen more than 6 percent so far this year compared with last year, according to NPD BookScan.27 Oct 2020
Is owning a bookstore profitable?
Sales at independent bookstores rose nearly 5 percent in 2018, with average annual growth of 7.5 percent over the past five years, according to the American Booksellers Association. On average, its members are profitable, Mr. Teicher said.23 Jun 2019
Do bookstores make a lot of money?
Independent bookselling has never been particularly lucrative. Many bookstores stock their inventory at a 30% to 45% wholesale discount, but after expenses, that translates into a profit margin of 2% to 3% even for the cost-savvy, says Donna Garban, co-owner of Hoboken's Little City Books.10 Jul 2017
How much money do I need to open a bookstore?
Combining rent, insurance, payroll and inventory, you're looking at first-month expenses of around $60,000 minimum to open a small independent bookstore.