Comments on: Amazon’s price war with Walmart http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/ News & views on e-books, libraries, publishing and related topics Mon, 22 Mar 2010 00:37:38 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: Windwalker http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147319 Windwalker Wed, 21 Oct 2009 12:13:00 +0000 http://www.teleread.org/?p=30750#comment-1147319 And here's another. Might we be on to something? "Deb Sullivan, co-owner of the Book Oasis, Stoneham, Mass., writes: "As a very small retailer of new hardcover releases, I'm embarrassed to say I might consider buying them from a big box at these prices. Why would I want to be forced into buying case quantities of hot titles when I only want three? With free shipping, I can still sell them at 30%-40% off cover and make a profit while getting customers into my store that will hopefully buy other full price items or more profitable second-hand titles." And here’s another. Might we be on to something?

“Deb Sullivan, co-owner of the Book Oasis, Stoneham, Mass., writes:

“As a very small retailer of new hardcover releases, I’m embarrassed to say I might consider buying them from a big box at these prices. Why would I want to be forced into buying case quantities of hot titles when I only want three? With free shipping, I can still sell them at 30%-40% off cover and make a profit while getting customers into my store that will hopefully buy other full price items or more profitable second-hand titles.”

]]> By: Windwalker http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147318 Windwalker Wed, 21 Oct 2009 12:11:31 +0000 http://www.teleread.org/?p=30750#comment-1147318 I just came across this interesting tidbit from Shelf Awareness: "Arsen Kashkashian, inventory manager at the Boulder Book Store, Boulder, Colo., writes: "Perhaps the price wars are really a positive thing for independent bookstores. We are looking at canceling our orders from the publishers on these books and ordering them from Amazon, Wal-Mart or Target. We will save almost $10 per book on some of the titles. I figure we can cut our billing by close to $1,000 and offer our customers significant savings while still maintaining a healthy margin. If these companies want to become wholesalers at a loss why should we discourage it?" I just came across this interesting tidbit from Shelf Awareness:

“Arsen Kashkashian, inventory manager at the Boulder Book Store, Boulder, Colo., writes:

“Perhaps the price wars are really a positive thing for independent bookstores. We are looking at canceling our orders from the publishers on these books and ordering them from Amazon, Wal-Mart or Target. We will save almost $10 per book on some of the titles. I figure we can cut our billing by close to $1,000 and offer our customers significant savings while still maintaining a healthy margin. If these companies want to become wholesalers at a loss why should we discourage it?”

]]> By: EC http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147237 EC Tue, 20 Oct 2009 18:09:58 +0000 http://www.teleread.org/?p=30750#comment-1147237 Oh, and by the way, for an amusing take on a gasoline price war--check out the old movie A Slight Case of Larceny, starring Mickey Rooney. Oh, and by the way, for an amusing take on a gasoline price war–check out the old movie A Slight Case of Larceny, starring Mickey Rooney.

]]> By: EC http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147236 EC Tue, 20 Oct 2009 18:07:22 +0000 http://www.teleread.org/?p=30750#comment-1147236 As far as libraries and indies buying the $9 copies instead of getting them through a wholesaler--you're forgetting about standing order agreements. At our library we have a standing order with B&T to get so many copies of whatever new book the big authors come out with. For example, we get 4 of any James Patterson, 3 of any Nora Roberts, and so forth. We can't easily cancel out because we find a bargain on one title by an author and then start it up again. And it kind of defeats the purpose of the standing order anyway--cutting down on book selection time and the paperwork of processing book orders. So really, the only one we could possibly take advantage of is the Sarah Palin book. As far as libraries and indies buying the $9 copies instead of getting them through a wholesaler–you’re forgetting about standing order agreements. At our library we have a standing order with B&T to get so many copies of whatever new book the big authors come out with. For example, we get 4 of any James Patterson, 3 of any Nora Roberts, and so forth. We can’t easily cancel out because we find a bargain on one title by an author and then start it up again. And it kind of defeats the purpose of the standing order anyway–cutting down on book selection time and the paperwork of processing book orders. So really, the only one we could possibly take advantage of is the Sarah Palin book.

]]> By: pond http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147234 pond Tue, 20 Oct 2009 18:00:29 +0000 http://www.teleread.org/?p=30750#comment-1147234 Just curious: did Mr Sharon, having driven your grandfather down to selling gas for less than he paid for it, ever pull up a big tank truck, and buy all your grandfather's gas? Did your grandfather ever do that to Mr Sharon? Or weren't they the evil genius you are? Just curious: did Mr Sharon, having driven your grandfather down to selling gas for less than he paid for it, ever pull up a big tank truck, and buy all your grandfather’s gas? Did your grandfather ever do that to Mr Sharon?

Or weren’t they the evil genius you are?

]]> By: Windwalker http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147203 Windwalker Tue, 20 Oct 2009 15:02:22 +0000 http://www.teleread.org/?p=30750#comment-1147203 @Ned, yep, it's a pilot and all that, but I know that indies are distressed, up in arms, etc., about it. It's certainly unlikely that tactics like this could catch fire with a group that is, after all, composed more of businessmen than you and me and Gordon Cairnie. But it will be interesting to see what they do. @Ned, yep, it’s a pilot and all that, but I know that indies are distressed, up in arms, etc., about it. It’s certainly unlikely that tactics like this could catch fire with a group that is, after all, composed more of businessmen than you and me and Gordon Cairnie. But it will be interesting to see what they do.

]]> By: Windwalker http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147198 Windwalker Tue, 20 Oct 2009 14:10:27 +0000 http://www.teleread.org/?p=30750#comment-1147198 @Steve, I think you have a good point: that this suppression of hardcover prices could have a bit of a chilling effect on Kindle sales. Interestingly, one thing that Bezos used to talk about with respect to the customer choice of whether to buy a new copy or a used Amazon Marketplace copy of a print book was that Amazon wanted that choice to be revenue-neutral or profit-neutral for Amazon. They may, in the long run, have the same format-agnostic mindset between Kindle and print, although they are clearly not there yet. @Steve, I think you have a good point: that this suppression of hardcover prices could have a bit of a chilling effect on Kindle sales. Interestingly, one thing that Bezos used to talk about with respect to the customer choice of whether to buy a new copy or a used Amazon Marketplace copy of a print book was that Amazon wanted that choice to be revenue-neutral or profit-neutral for Amazon. They may, in the long run, have the same format-agnostic mindset between Kindle and print, although they are clearly not there yet.

]]> By: Windwalker http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147197 Windwalker Tue, 20 Oct 2009 14:06:05 +0000 http://www.teleread.org/?p=30750#comment-1147197 @Al, yes, and they do have limits in place. That would limit the effects and require a bit of guerilla tinkering, but there could still be a lot of libraries and smaller bookstores stretching their inventory dollars this way. And it's bound to send chills up the spines of the wholesalers. @Al, yes, and they do have limits in place. That would limit the effects and require a bit of guerilla tinkering, but there could still be a lot of libraries and smaller bookstores stretching their inventory dollars this way. And it’s bound to send chills up the spines of the wholesalers.

]]> By: Ned Stuckey-French http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147193 Ned Stuckey-French Tue, 20 Oct 2009 13:34:36 +0000 http://www.teleread.org/?p=30750#comment-1147193 Steve, Aren't there two good reasons the independents won't take you up on this, at least for now--first, the deal (as I understand it) is on 10 books (possible bestsellers admittedly but just ten books--a pilot project so independents might want to wait and see) and second, "30-day return policy" so turning these two behemoths into your temporary wholesaler runs special risks--will the book take off? will it take off in the next month? will holiday shoppers wait longer than that? Ned Steve,

Aren’t there two good reasons the independents won’t take you up on this, at least for now–first, the deal (as I understand it) is on 10 books (possible bestsellers admittedly but just ten books–a pilot project so independents might want to wait and see) and second, “30-day return policy” so turning these two behemoths into your temporary wholesaler runs special risks–will the book take off? will it take off in the next month? will holiday shoppers wait longer than that?

Ned

]]> By: Steve Jordan http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147192 Steve Jordan Tue, 20 Oct 2009 13:34:20 +0000 http://www.teleread.org/?p=30750#comment-1147192 Stephen, one thing you're omitting is the effect on Amazon customers when they look at $10.00 Kindle versions of $10.00 hardbacks. The whole $9.99 price point thing was supposed to mollify customers who wouldn't pay high prices for e-books, especially the same as the hardback price. This plan puts Amazon right back in that position, and many Kindle owners, and people considering Kindles, won't go for it. So the Kindle isn't going to benefit from all this price war stuff until its e-book prices start dropping to stay significantly below the hardback prices, whatever they end up at. And if, when the dust settles, Kindle prices have not stayed below hardback prices, Amazon is going to have a hard time signing anyone up for a deal like that. Stephen, one thing you’re omitting is the effect on Amazon customers when they look at $10.00 Kindle versions of $10.00 hardbacks. The whole $9.99 price point thing was supposed to mollify customers who wouldn’t pay high prices for e-books, especially the same as the hardback price. This plan puts Amazon right back in that position, and many Kindle owners, and people considering Kindles, won’t go for it.

So the Kindle isn’t going to benefit from all this price war stuff until its e-book prices start dropping to stay significantly below the hardback prices, whatever they end up at. And if, when the dust settles, Kindle prices have not stayed below hardback prices, Amazon is going to have a hard time signing anyone up for a deal like that.

]]> By: Al http://www.teleread.org/2009/10/20/amazons-price-war-with-walmart/comment-page-1/#comment-1147191 Al Tue, 20 Oct 2009 13:31:34 +0000 http://www.teleread.org/?p=30750#comment-1147191 All Walmart and Amazon have to do to counter this guerilla tactic is to limit the orders to say, 5 books at a time. All Walmart and Amazon have to do to counter this guerilla tactic is to limit the orders to say, 5 books at a time.

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