Can't read this entire thread without a comment.
Bouught a Kindle and sold it--can't really surf the net.
Down loaded Nook and Kindle software to my PC. I like to buy individual copies of newpapers NY times, WSJ, etc. Can't do that on Kindle-PC can do it on Nook-PC. (Can do it on the Kindle itself). I think the News papers are trying to keep Amazon in line.
I think that is why Barnes and noble is making an effort to ENHANCE the "buy it at the store" experience.
DVDs have done this pretty well... it is very common to see special features, additional disks and even a toy or t-shirt included with the DVD you buy.
Downloading the movie (or pirating the movie) gets you just the movie. The hope is that all the special features or "freebies" entice you enough to buy a hard copy at the store.
I love the blu ray combo packs that have the bluray, dvd and digital copy... all for $25-30 bucks! Beautiful!
it is not only about just love for a place here....
We have to evolve....in our business model to survive....
Let's wake up now...the unemployment is very high still...
There is a huge gap in earnings between workers in the US now...
few make 6-7 figures and majority are having difficulty making end meet...
So your reality of not caring to pay more does not apply to most customers...
Look at the trend in NYC...Barnes and nobles closed quite of few stores...AStor place
66th street and the other on 21st near chelsea area...I used to go to all these places...
Now they are all closed....
It seems like most of you are not living the current US financial reality....
I am willing to pay 5-8 dollars for a book in Barnes and NObles but if they are charding 23 dollars more for the same book...i don't see the reason how most of us would react.....
Gotta love pop'n. Very sensible person.
We have to factor in the eBook situation here too. I'd call it #2a. It's where B&N really have knocked out the competition of late. Odds are if you're even thinking the Amazon route you're already immerced in the internet. Which means you may have an ereader already. B&N cut in on their eBook profits (which has been reported) and gained a few inches on them.
BTW; I'm still marking BKS as a sell. I explicitly said to sell at $17.50 in another post, which happened to be the top out. I'm still listing it as a sell b/c I think we'll see $15-$15.50 (as I've said all along) but if you're holding right now, you may want to consider riding out the storm. Buy more at $15, it's the very bottom.
"All I am saying if I was doing consulting for Barnes and NObles they have to change their model and evolve along...... "
You don't think NookColor is good enough to evolve BKS? Just do your research on NookColor first.
Try googling "Rooting NookColor" and see what you can do with the $250 NookColor.
The only way BKS is going to lose on NookColor is if Apple introduce iPad2 with starting price of $399 and drop the old iPad price to $250 or less. Until then, the future of BKS is bright with NookColor.
I think analysts and highly analytical customers try to see things in terms of the best value for the money. But I just don't think that many customers map out their purchases in such a strict, rational fashion.
Take me, for example...
1. I go to Barnes and Noble and spend money because I think the girl behind the counter is cute.
2. I don't spend at Amazon because I just plain don't like them.
In general, I think most purchasers follow a logic somewhere along the lines of...
1. Do I want to make a purchase?
2. If yes, than do I believe I can afford it? If I can, than I buy.
3. If no, than is there an acceptable, cheaper option that I can afford?
Due to the economy, I think a lot of people are getting to point 3- that helps Amazon in book sales (and Barnes and Noble in nook color sales). To me, the above story sounds like an example of this.
The hitch is that, if the economy improves, more people won't go past point 2. That favors companies that are good at drumming up demand in the first place, instead of just undercutting. Amazon is actually pretty good at both- but they don't compete for the same type of attention as BKS.
The six million dollar question is whether the economy will improve. If not I believe the nook is a good hedge.
I agree, and nowhere do I predict (or think!) that brick and mortar locations will become extinct.
The fact remains though, their market share is dwindling, and they may need to update some of their business model to stop shrinking and grow again.
My brother bought a Nook Color last week, not because he likes it better, he told me that he wanted B&N survive so that he and his buddy can hang out at the cafe from time to time. There are a lot of Amazon haters out there.
You might think it is pathetic, but B&N is not Best Buy, customers do love them. I have talked to a lot of my friends, they told me that they want to buy items from the bookstore just because they have good feelings toward them through the years. Besides, it is not huge difference. For some best selling books, you would sell a few bucks order from Amazon, if the price is under $20, most middle class don't mind that much.