Buying from Others—Four Ways to Source Used Books (2)

Separate Volume: The Complete Guide to Sourcing Books 3 (2)

Purchasing and Secondhand Dealer Licenses

The second way to source used books is to purchase them from people. Many readers have likely sold books they no longer need—from their own collections or their workplaces—to a used bookstore. In a sense, this means buying used books from individuals or corporations, which is the reverse of that position.

To conduct purchases, you need a "Secondhand Dealer" (Type 1 Business) permit based on the Secondhand Articles Dealer Act. Furthermore, the criteria for joining a used book association include holding this secondhand dealer permit.

To obtain a secondhand dealer permit, you must go to the crime prevention section of the police station that has jurisdiction over the location where you will conduct the purchases. You will apply there. Since there are many required documents, it is best to inquire in advance or ask directly at the counter. There are various categories ranging from books to art and automobiles, and you can apply for multiple categories at once if necessary. There is a fee of 19,000 yen.

The reason why secondhand dealers are under the jurisdiction of the National Police Agency in the first place is the possibility that stolen goods might circulate. To deter theft and discover damages early, secondhand dealing is a permit-based system. In cases where a crime has occurred in the neighborhood, you may be required to cooperate with investigations.

Note that if you wish to host a market for other secondhand dealers, such as an exchange meeting, you will need a separate "Secondhand Market Operator" (Type 2 Business) permit. If you operate an online auction site yourself, you will need a "Secondhand Auction Intermediary" (Type 3 Business) permit.

How to Purchase

There are arguably three main ways to purchase books: having the books brought to the store, having them mailed, or traveling to the location where the books are kept. Some used bookstores do all of these, while others specialize in one.

For example, if you have a physical store, having customers bring books to the shop creates a reciprocal relationship with the store's selection. If you are buying from a customer who likes your store's selection, the probability of buying good products is relatively high. On the other hand, if you use the mail-in method, you can operate from anywhere in the country, even without a physical store. However, since there are many large-scale used bookstores that advertise primarily on the internet, you will be competing with them. Traveling to the location where the books are kept is, above all, convenient for the customer. There is also a high possibility of being able to purchase in large quantities.

While there are other features and attractions to each method, what is common to all purchasing is that the way you set prices is where your skill is tested. Especially when you have to present a purchase price on the spot at the store or during a visit, you must rely on your own knowledge and intuition to set the price. When you have time, you can check the market value on the internet, so you can set the price while searching. Although it is just a guideline, it is said to be safe to purchase at 10% to 30% of the selling price. In other words, if you think you would set a price of 1,000 yen to sell it, you should source it for about 100 to 300 yen. It may feel cheap, but unlike new books, used books cannot be returned, and there is always inventory risk. The market is also small, and the variety is vast, so the probability of meeting someone who wants that specific book is relatively low. If you source at 10% to 30% of the selling price, even if the book remains unsold, there is a high possibility that it will fetch a higher price at a market.

Of course, if you are confident that it will definitely sell if you put it on your store's shelves, you can make a profit even if you buy it at 70% or 80% of the selling price, so everything depends on you.

Taking Over a Collection

Purchasing books means taking over an individual's collection. It also means putting a price on something that is like a map of interests that an individual has built up over a long time, or an extension of their own mind.

As a used bookstore, naturally, the profit margin is higher if you can buy at the lowest possible price. On the other hand, if you set an extremely low price on such a personal collection, the owner might be disappointed, or some might even get angry. Originally, you are supposed to be pricing the value of each book, but it often feels as if you are putting a price on the person themselves, or as if a price has been put on you, which can be unsettling for both the buyer and the seller. Although most collections end up scattered in the end, a collection as a whole has a unique charm.

Also, the most common timing for purchasing is when the owner of the collection passes away. When the bereaved family of the deceased parts with the collection, the used bookstore has a responsibility to take care of what that person spent their whole life accumulating.

For this, you will surely need to gain experience for a while to build your own stance. If you are going to be dealing with books for a long time, since it is a one-on-one relationship, it is better to have at least your own sense of purpose to be able to work comfortably.

※Reprinted from "A Reader for Future Bookstores," pp. 150-153