Pearson changes terms of trade to net pricing

Yesterday, May 1, 2012, Pearson moved away from the industry standard trading terms of RRP less discount to a ‘net price model’. In future they will determine only the price at which a product is purchased from Pearson (the net price) and the re-seller can determine their own selling price as guided by market dynamics and their own business models.

They believe the new arrangement will give booksellers the flexibility to price in a way that reflects the competitive environment they operate, their own business metrics and any other material influences on what the end consumer pays.

“We are thrilled to be taking this step to a model that provides retailers with the flexibility to determine the price to the end consumer,” says Adrian Keane, Managing Director, Pearson. “Our business is active across primary, secondary & higher education, we export across the globe and also engage directly with government. The one size fits all of RRP less discount does not work well across the wide range of customers and segments where we are active.”


Footnote:


Adrian Keane may be " thrilled to be taking this step to a model that provides retailers with the flexibility to determine the price to the end consumer,” but I can assure him that juding by the communications I have received there is fury out there among the educational booksellers, especially the campus bookstores, who see this as nothing more than Pearson cynically increasing their prices for text books across the board while at the same time reducing booksellers margins. Watch this space. Much water has yet to flow under this particular bridge.