Retail prices of books found in bookstores represent their sticker price, which may also appear in online bookstores such as Amazon.com. Likewise, retail prices listed in online bookstores such as Amazon reflect this practice.
The retail price can refer to any good or service sold through retail channels; for example, clothing in a clothing store or meals at restaurants are all sold at retail. As its name implies, retail pricing refers to what consumers pay for goods or services sold this way.
When purchasing books, retail pricing refers to the sticker price set by publishers – usually seen on book jackets or covers. “Retail” also encompasses other goods and services such as clothing, electronics, or automobiles.
Retail prices exist to give consumers an idea of what the product costs and help retailers generate a profit; to achieve this goal, retailers mark up prices from wholesale price – this means the amount the retailer paid the publisher or distributor – until reaching retail.
Markups may differ depending on the type of book being sold; mass-market paperbacks often carry lower markups due to being less costly to produce than hardcover volumes.
Markups vary between retailers. Big-box stores such as Walmart and Target can afford to sell books at lower prices due to bulk purchasing power and reduced overhead compared to independent bookstores.
Price is one of the primary indicators of book success. If a book is priced too high, it will sell; if it is too low, there will be no profit. To determine an ideal retail price for their books, publishers and retailers must consider production costs, demand levels, and competition factors.