{"id":507,"date":"2009-03-08T14:38:22","date_gmt":"2009-03-08T21:38:22","guid":{"rendered":"http:\/\/rickyopaterny.com\/blog\/?p=507"},"modified":"2009-03-08T14:38:22","modified_gmt":"2009-03-08T21:38:22","slug":"why-independent-bookstores-lose-to-barnes-noble","status":"publish","type":"post","link":"https:\/\/gen-o.com\/blog\/2009\/03\/08\/why-independent-bookstores-lose-to-barnes-noble\/","title":{"rendered":"Why independent bookstores lose to Barnes &#038; Noble"},"content":{"rendered":"<p>One reason why independently owned bookstores have a tough time competing with BN is that they have a higher cost of equity. In <a href=\"http:\/\/echo360.stern.nyu.edu:8080\/ess\/echo\/presentation\/3efbe902-970c-4c1e-b7b5-086e24ea2242\/media.m4v\" target=\"_blank\">this lecture,<\/a> <a href=\"http:\/\/aswathdamodaran.blogspot.com\/\" target=\"_blank\">Aswath Damodaran<\/a> of NYU estimates the cost of equity for a New York indie bookstore to be around 14%, while it&#8217;s only 8% for BN. This analysis makes the manner in which Kepler&#8217;s raised money from 20+ investors in 2005 look smart. The investors provide the diversification that Kepler&#8217;s can&#8217;t get from the public market like BN does. If you want more reading on the subject, click <a href=\"http:\/\/www.hss.caltech.edu\/courses\/2005-06\/Spring\/bem107\/Readings%20for%20Course\/Damodaran%20Book\/Chap5.pdf\" target=\"_blank\">here,<\/a> though I recommend the watching the lecture over reading the linked chapter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One reason why independently owned bookstores have a tough time competing with BN is that they have a higher cost of equity. In this lecture, Aswath Damodaran of NYU estimates the cost of equity for a New York indie bookstore to be around 14%, while it&#8217;s only 8% for BN. This analysis makes the manner [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1,5],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/posts\/507"}],"collection":[{"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/comments?post=507"}],"version-history":[{"count":1,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/posts\/507\/revisions"}],"predecessor-version":[{"id":508,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/posts\/507\/revisions\/508"}],"wp:attachment":[{"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/media?parent=507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/categories?post=507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gen-o.com\/blog\/wp-json\/wp\/v2\/tags?post=507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}