Competitive Pricing

Taylor514ce · 03-17-2008, 11:03 AM

I routinely check PriceGrabber.com for "Sony Reader" and other products on my radar. I've noticed that prices are slowly dropping; their appears to be some competitive pressure on the retail price. For about 2 weeks the lowest price has been $267.00, but today Vann's lists it for $255.00.

This is a good sign!

HarryT · 03-17-2008, 02:39 PM

Quote:

Originally Posted by Taylor514ce

I routinely check PriceGrabber.com for "Sony Reader" and other products on my radar. I've noticed that prices are slowly dropping; their appears to be some competitive pressure on the retail price. For about 2 weeks the lowest price has been $267.00, but today Vann's lists it for $255.00.

This is a good sign!

It could be a bad sign - it might indicate that it's not selling too well!

Taylor514ce · 03-17-2008, 03:01 PM

No, no. Pricing pressure is always a good sign. Even if Sony is struggling, the lowering price could/should put pressure on the other manufacturers. Plus, Borders still won't budge on the price, SonyStyle hasn't lowered the price - what we see are retail channels competing with each other. That's a good thing.

Certain markets may struggle. I live in a relatively small town, and the two Border's stores in town have been fully stocked on Readers week-in, week-out. I've noticed that most people don't even LOOK at it... they walk right by, never a first or second glance. Others who do look obviously "don't get it". That's why I keep saying "I'll buy one today, but not at retail". They obviously feel no pressure to move inventory, since they've never accepted my kind offer.

HarryT · 03-17-2008, 03:19 PM

Quote:

Originally Posted by Taylor514ce

No, no. Pricing pressure is always a good sign. Even if Sony is struggling, the lowering price could/should put pressure on the other manufacturers.

I don't think that's necessarily true. Amazon and Bookeen are selling every unit they can get their hands on - there's no pressure to lower prices in that environment. My concern with Sony is that they are perceived by many to be rather "falling behind the curve" in the features they offer; eg, they are the only major reader not to offer dictionary support, and that's very important if they want to compete in the educational market sector. Perhaps Sony feel that they need to compete on price grounds simply because they can't compete on features?

Taylor514ce · 03-17-2008, 03:46 PM

Again, it isn't Sony that is lowering their price. It is a particular retailer or two competing. That kind of retail competition leads to thinking: I could hold out and pay $100+ more for an e-book reader that is never in stock to get a feature I may, or may not, use... or I can buy a reader from a retailer that seems to be willing to drop the price $50 or so.

It may reach a point where, because of this retail price competition, Bookeen would lose my business to the Sony product. Price trumps Availability/Features. That being the case, all else being equal, it would lead to Bookeen lowering their price.

As things stands now, though, where most manufacturers are selling every unit they can produce, I seriously doubt we are about to see a price war.

But, I see the cracks starting to form, and they are forming in the channel for the one device that truly has a retail channel. That's how it's supposed to work. For devices with limited retail channels, the price will remain at the MSRP for most buyers.

Since Sony has retailers willing to discount, multiple channels willing to compete, product availability, and various sanctioned methods of receiving discounts (SonyRewards, SonyCard), and since there are methods of obtaining content and converting it to LRF (so that I'm not locked into Sony Connect), it seems like the Sony Reader is the device I'll end up with, once a few more stars align.

Cthulhu · 03-17-2008, 10:45 PM

Stars Aligned?
Once again, am I summoned.

Taylor, what, Pray tell, was your kind offer?

Have some theories, and think that if I lived somewhere in walking distance of a Borders with Readers, would implement it.

Taylor514ce · 03-17-2008, 11:39 PM

I merely meant that I'm waiting for my 10,000 bonus Sony Rewards points for signing up for the Sony Card. That's worth US$100.00. I can in fact purchase the device from a Sony Retailer (including Vanns, or whoever has the lowest price at the moment), and earn 5 points per dollar for the purchase itself. Then, I can request that all my points be applied against the purchase, making the total for a Sony PRS-505 lise-gimboo-Electekit-EbOkken around $145 or so. I'm about 2 months out for all that to transpire.

Sony has ever-changing offers for applying for and using their credit card. Currently it is 5k points, but I jumped on the 10k point offer when they had it, briefly.

Keith Lommel · 03-18-2008, 06:25 PM

Quote:

Originally Posted by Taylor514ce

I routinely check PriceGrabber.com for "Sony Reader" and other products on my radar. I've noticed that prices are slowly dropping; their appears to be some competitive pressure on the retail price. For about 2 weeks the lowest price has been $267.00, but today Vann's lists it for $255.00.

This is a good sign!

Take this with a grain of salt. I just checked on PriceGrabber and it indeed shows the price as $255.77, but when you click through to order, Vann's wants $299.99 for it.

On a related note, I tried to place an order through Amazon last week and they were advertising it for like $263 through one of their partner merchants. I placed the order and patiently waited until today when I got an e-mail mysteriously saying my order had been canceled with no explanation. Now I get to re-order it at full MSRP and I've waited a week for nothing.

DrMoze · 03-18-2008, 10:50 PM

I hope you at least reported that merchant to Amazon. Sorry you had to wait a bit, but it'll be worth it when it arrives.

Madam Broshkina · 03-18-2008, 11:20 PM

For those of you in the U.S. Military, Aafes.com has the PRS-505 for $289 with free shipping and no taxes. I just received my PRS-505 today.

Taylor514ce · 03-19-2008, 09:51 AM

Quote:

Originally Posted by Keith Lommel

Take this with a grain of salt. I just checked on PriceGrabber and it indeed shows the price as $255.77, but when you click through to order, Vann's wants $299.99 for it.

I reported the pricing error to PriceGrabber. We'll see what happens.

JSWolf · 03-19-2008, 10:02 AM

Pricegrabber also has other store prices incorrect for the 505. Way to go Pricegrabber.

HarryT · 03-19-2008, 10:06 AM

Anyone know how "price comparison" sites like that work? Are they automated, or does someone enter all the prices manually?

Taylor514ce · 03-19-2008, 10:27 AM

They are semi-automated. The participating vendors agree to supply details via a defined mechanism, such as SOAP. How the vendor updates/generates their own system is up to the vendor. I can very well imagine some vendors doing it via brute-force data entry.

HarryT · 03-19-2008, 12:27 PM

Thanks. If that's the case, it would seem that incorrect prices are the vendor's fault, rather than the site's.

03-17-2008, 11:03 AM	#1
Taylor514ce Actively passive. Posts: 2,042 Karma: 478376 Join Date: Feb 2008 Location: US Device: Sony PRS-505/LC	Competitive Pricing I routinely check PriceGrabber.com for "Sony Reader" and other products on my radar. I've noticed that prices are slowly dropping; their appears to be some competitive pressure on the retail price. For about 2 weeks the lowest price has been $267.00, but today Vann's lists it for $255.00. This is a good sign!

03-17-2008, 03:46 PM	#5
Taylor514ce Actively passive. Posts: 2,042 Karma: 478376 Join Date: Feb 2008 Location: US Device: Sony PRS-505/LC	Again, it isn't Sony that is lowering their price. It is a particular retailer or two competing. That kind of retail competition leads to thinking: I could hold out and pay $100+ more for an e-book reader that is never in stock to get a feature I may, or may not, use... or I can buy a reader from a retailer that seems to be willing to drop the price $50 or so. It may reach a point where, because of this retail price competition, Bookeen would lose my business to the Sony product. Price trumps Availability/Features. That being the case, all else being equal, it would lead to Bookeen lowering their price. As things stands now, though, where most manufacturers are selling every unit they can produce, I seriously doubt we are about to see a price war. But, I see the cracks starting to form, and they are forming in the channel for the one device that truly has a retail channel. That's how it's supposed to work. For devices with limited retail channels, the price will remain at the MSRP for most buyers. Since Sony has retailers willing to discount, multiple channels willing to compete, product availability, and various sanctioned methods of receiving discounts (SonyRewards, SonyCard), and since there are methods of obtaining content and converting it to LRF (so that I'm not locked into Sony Connect), it seems like the Sony Reader is the device I'll end up with, once a few more stars align. Last edited by Taylor514ce; 03-17-2008 at 11:34 PM.

03-17-2008, 11:39 PM	#7
Taylor514ce Actively passive. Posts: 2,042 Karma: 478376 Join Date: Feb 2008 Location: US Device: Sony PRS-505/LC	I merely meant that I'm waiting for my 10,000 bonus Sony Rewards points for signing up for the Sony Card. That's worth US$100.00. I can in fact purchase the device from a Sony Retailer (including Vanns, or whoever has the lowest price at the moment), and earn 5 points per dollar for the purchase itself. Then, I can request that all my points be applied against the purchase, making the total for a Sony PRS-505 lise-gimboo-Electekit-EbOkken around $145 or so. I'm about 2 months out for all that to transpire. Sony has ever-changing offers for applying for and using their credit card. Currently it is 5k points, but I jumped on the 10k point offer when they had it, briefly. Last edited by Taylor514ce; 03-17-2008 at 11:42 PM.

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03-17-2008, 03:01 PM	#3
Taylor514ce Actively passive. Posts: 2,042 Karma: 478376 Join Date: Feb 2008 Location: US Device: Sony PRS-505/LC	No, no. Pricing pressure is always a good sign. Even if Sony is struggling, the lowering price could/should put pressure on the other manufacturers. Plus, Borders still won't budge on the price, SonyStyle hasn't lowered the price - what we see are retail channels competing with each other. That's a good thing. Certain markets may struggle. I live in a relatively small town, and the two Border's stores in town have been fully stocked on Readers week-in, week-out. I've noticed that most people don't even LOOK at it... they walk right by, never a first or second glance. Others who do look obviously "don't get it". That's why I keep saying "I'll buy one today, but not at retail". They obviously feel no pressure to move inventory, since they've never accepted my kind offer.

03-17-2008, 10:45 PM	#6
Cthulhu Technologist Posts: 488 Karma: 585237 Join Date: Oct 2006 Location: I'm between Cities Device: SONY Reader PRS-500	Stars Aligned? Once again, am I summoned. Taylor, what, Pray tell, was your kind offer? Have some theories, and think that if I lived somewhere in walking distance of a Borders with Readers, would implement it.

03-18-2008, 10:50 PM	#9
DrMoze Booknut Posts: 858 Karma: 2852 Join Date: Jul 2007 Location: West Palm Beach, Florida! Device: Sony Reader 500/505/300/350, Nook Glowlight Plus (6")	I hope you at least reported that merchant to Amazon. Sorry you had to wait a bit, but it'll be worth it when it arrives.

03-18-2008, 11:20 PM	#10
Madam Broshkina Manic Do Fuse Posts: 2,312 Karma: 3325462 Join Date: Oct 2006 Device: Sony 500, 505, 350, Kindle 3, DXG, nook, Irex DR800SG, iPad	For those of you in the U.S. Military, Aafes.com has the PRS-505 for $289 with free shipping and no taxes. I just received my PRS-505 today.

03-19-2008, 10:02 AM	#12
JSWolf Resident Curmudgeon Posts: 73,897 Karma: 128597114 Join Date: Nov 2006 Location: Roslindale, Massachusetts Device: Kobo Libra 2, Kobo Aura H2O, PRS-650, PRS-T1, nook STR, PW3	Pricegrabber also has other store prices incorrect for the 505. Way to go Pricegrabber.

03-19-2008, 10:06 AM	#13
HarryT eBook Enthusiast Posts: 85,544 Karma: 93383043 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	Anyone know how "price comparison" sites like that work? Are they automated, or does someone enter all the prices manually?

03-19-2008, 10:27 AM	#14
Taylor514ce Actively passive. Posts: 2,042 Karma: 478376 Join Date: Feb 2008 Location: US Device: Sony PRS-505/LC	They are semi-automated. The participating vendors agree to supply details via a defined mechanism, such as SOAP. How the vendor updates/generates their own system is up to the vendor. I can very well imagine some vendors doing it via brute-force data entry.

03-19-2008, 12:27 PM	#15
HarryT eBook Enthusiast Posts: 85,544 Karma: 93383043 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	Thanks. If that's the case, it would seem that incorrect prices are the vendor's fault, rather than the site's.

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