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To tell the truth, I don't understand B&N's thinking. Let's assume that the $259 pricepoint is breakeven on the nook. If I had been head of B&N when the pricing was set, I would have set pricing at $289 and said all B&N club members (and AAA members) can get a 10% discount plus free shipping. I would have priced the device so that I could give my members a discount and encourage nonmembers to become a member.
I do not believe that someone would choose to order a Kindle instead of a nook simply because the Kindle was $30 cheaper. Well, perhaps a few would but think how many more club members would have been happy. Similarly, I would enact a special club program for ebooks. Buy 1, get 5%; buy 2 get 10%; buy 5 get 20% off the total order.
It doesn't take a genius to realize that B&N's most valuable asset is its club members. They are the ones who do less price shopping, because if they were strictly price shoppers, they wouldn't buy at B&N.
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