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Old 06-26-2013, 07:26 PM   #91
charmian
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If Kobo's program counts as synergy, wouldn't B&N's as well? (After all, when B&N sells a Nook, and sells ebooks from the Nook store, all the revenue goes to B&N)

What do you mean by synergy here?
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Old 06-26-2013, 08:28 PM   #92
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Originally Posted by charmian View Post
If Kobo's program counts as synergy, wouldn't B&N's as well? (After all, when B&N sells a Nook, and sells ebooks from the Nook store, all the revenue goes to B&N)

What do you mean by synergy here?
Leveraging one product to add value to the other, so combination adds up to *more* than the sum of the parts.

B&N has been accused of the opposite, sacrificing the ebook experience to force people to go to the store (most recently, to get "free" ebooks) and sacrificing instore floor space and resources to annoy traditional pbook buyers with in-your-face Nook displays.

This:
http://www.engadget.com/2013/05/02/b...ree-nook-book/

Quote:
The promotion nets you one free e-book when you purchase another, but -- and this is where the offer tripped us up a bit -- you can only make your electronic purchase with a cashier in a physical store. The deal will be up for grabs every weekend, and titles are set to change. There are currently 20 books on offer (available this Saturday and Sunday only), including hits like Along Came a Spider by James Patterson and Bossypants by Tina Fey. Once you make your selections, you'll receive an email with access codes (assuming the rep managed to input your data correctly), at which point you'll need to visit a dedicated Barnes & Noble site to receive your books.
I saw it described as a way to promote a free ebook deal without having to actually *give* any ebooks away.
(Especially among the people who don't live near a B&M store.)
Lots of snark flying around after that report.
("B&N cashiers must be feeling lonely!")
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Old 06-26-2013, 08:47 PM   #93
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Originally Posted by murraypaul View Post
How does selling eBooks help their pBook business?
There is really no synergy between the two businesses.
What's the profit on an ebook? How much does someone like B&N actually have to pay the publisher for each ebook they sell? Does anybody know?
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Old 06-26-2013, 10:15 PM   #94
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Back to the synergy discussion, the brick and mortar bookstore model is shelves of books for customer (who love books) to browse. Get them into the store and they will most often buy something before they leave.

The challenge eBooks presents to the old model (obviously) is that it is no longer required of customers to come into a bookstore to buy books. That's the conundrum they all face--how do you get people to come into a bookstore?

It seems to me that B&N's size may be limiting their ability to innovate into local markets.

By contrast, Amazon is good at discovering ways to get people to browse their store. Their free shipping for purchases over $25, their Amazon Prime offer on thousands of goods, their enormous stock of paper books that includes out of print used books, and yes, their willingness to discount some ebooks to draw people to their store--to browse, of course. The model still works.

The synergy is that if they do not carry eBooks in some manner, they lock their customers out of the store, but selling eBooks alone is not enough, there has to be a compelling reason for people to come in. Independent bookstores seem better able to do those extra things to keep their traditional customers coming back.

Last edited by 6charlong; 06-26-2013 at 10:28 PM.
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