Quote:
Originally Posted by WillAdams
Isn't remaindering for books a function of a change in the tax laws?
AIUI, time was that one could defer any payment of tax on unsold inventory until such time as the item was sold --- this was changed in the late 70s or early 80s requiring taxing of the inventory each year.
I distinctly remember a news article about Librarian associations picketing Congress over this --- any accountants care to weigh in w/ facts?
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To an extent.
But a bigger reason is that the returns system means bookstores stock books on consignment so they have very little to lose by overordering. As the recent catfight proved, publishers take weeks to fulfill an order and if a store runs out of stock on a book they will likely lose the sale. So they overorder and return the unsold books.
Publishers are then faced with the cost of transporting, sorting and either warehousing or pulping the return books or letting them be remaindered at a much lower price. Remaindered books save them the return costs.