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The main reason why book clubs are able to offer such low prices on books that always seem to cost much more online or in stores is because they buy directly from the publisher. After eliminating the distributor middleman, book clubs are able to lower prices.
Another reason why the titles carried through book clubs are much less expensive than anywhere else is because book clubs have a lot fewer expenses than bookshops and online stores have. Shops have to pay for the expenses associated with owning a store. This includes rental feels or the cost of buying a space as well as the costs of maintaining a business. Bookstores also have to pay electricity, phone and Internet bills. Both online stores and bookstores also pay a lot more for marketing, which book clubs don't need to do since they direct market only to their members.
Rather than having to market to millions of consumers, book clubs can focus entirely on marketing directly to their members. Though it's important that a book club spend a little money marketing and public relations, in order to draw people to their services, they rely more on their members and reputation to support their goals of providing low-cost books to avid readers. Instead of placing pricey advertisements in magazines or on television, book clubs have the luxury of being able to spend their money marketing the books they offer to their members.
Book clubs also tend to have less staff than large bookstores or Internet sites. Because book clubs don't have to pay the salaries of sales associates, cashiers, custodians or other employees, they can not only hire more experienced editors to select the best books, but can also charge less for their merchandise.
Another way book clubs can charge so little is by making a little money from their site and club magazines. Like many Internet businesses and publications, book clubs provide advertising space so that companies wishing to appeal to book lovers can place their ads on book club sites or in the magazines. Because book clubs are always looking out for their members, they are surprisingly selective about who they allow to advertise on their site or in their magazines. It obviously makes no sense for a clothing company or hair salon to advertise on a book site or in a reading-related magazine, so book clubs try to choose advertisers who have something to do with books and reading. This not only benefits the book club, but also benefits its members because they will be exposed to new products or services they may enjoy.
The bottom line is that book clubs have fewer expenses and can therefore offer their merchandise at a much lower price. Buying directly from book publishers, combined with the fact that book clubs don't need to pay store expenses or large staff salaries, allows them to offer members books at much lower prices than chain stores or Internet companies.
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