Book Buyer Math

This class from our 2024 Inventory Management Course introduces you to the central formulas necessary to book buying - how to calculate COGS (cost of goods sold). We believe everyone in the book industry should know how to calculate COGS, but as a buyer you absolutely have to master this concept as it informs everyday decisions of where you should order titles: directly from the publisher or indirectly from a wholesaler.

Inventory is the biggest bookstore expense and as such COGS is one of the main drivers of store profitability and longevity. Cash flow is nearly as important as profitability and managing section space and turns well can help keep your store off credit/shipping hold. The basic formulas for these calculations are very simple so don’t let a fear of math stop you!