Re: Palin's Book Being Sold "AT BELOW COST" Prices
- From: "dene" <dene@xxxxxxxxxxxxxxx>
- Date: Thu, 19 Nov 2009 14:43:29 -0800
The deal is gone. $14.50 at both Walmart and Amazon, not including
shipping. I'll stick to my original plan and borrow it from my library.
-Greg
"golfbum18" <golfbum18@xxxxxxxxx> wrote in message
news:d3241309-2549-4a89-8cd3-40d26045883f@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Before all the wrong thinking righties get all wet and gooey over the
falin palin person's entrance into the world of "best seller," here is
an interesting tidbit showing perhaps why. Oh, the rush-lump called it
one of the most inspirational books he ever read. Another reason to
tell kids to stay away from drugs and pills that you get from behind
gas station rest rooms.
Major retailers reportedly selling Palin's Going Rogue below cost
November 16, 2009 10:21 pm ET
Sarah Palin's memoir Going Rogue: An American Life has garnered
attention in part because of the number of copies sold before
publication. But the book has been offered at below-cost prices from
major online retailers, and Newsmax has used the book as a loss leader
to promote its magazine, potentially inflating the book's sales.
Amazon, Walmart.com, Target.com in price war over book
Walmart.com dropped price from list price of $28.99 to $10, then
to $9 and below as other retailers matched it. On October 15,
Walmart.com began offering preorders of Going Rogue, along with nine
other new book releases, for $10. After Amazon.com reportedly matched
the price, Walmart.com "str[uck] back, slashing its prices to $9" [AOL
Daily Finance, 10/16/09]. Amazon also dropped its price to $9
[Buzzflash.com, 10/19/09]. Target.com joined in the price war,
prompting Walmart.com to drop its price further [The New Yorker,
11/9/09]. By November 5, Walmart.com was selling the book for $8.98,
Target.com was selling it for $8.99, and Amazon was selling it for $9.
The respective retailers were still selling the book at those prices
as of November 16. All three retailers give the book's list price as
$28.99.
Newsmax offering book for $4.97, or free, as promotion for
magazine
Newsmax ties book offer to its magazine. As early as October 2,
according to a Newsmax email sent to its mailing list, the right-wing
website offered Going Rogue for $8.95 along with four free issues of
Newsmax magazine, a price later dropped to $4.97. The offer links to a
page on the Newsmax website explaining that there is a $5.95 shipping
and handling charge for the book, and if the subscriber fails to
cancel the magazine after the free subscription runs out, the
"subscription will renew automatically at the low annual price of
$39.95 by charging [your] credit card or [your] checking account."
Newsmax also offered Going Rogue for free with the purchase of a
$49.95 one-year subscription to Newsmax magazine. Additionally,
Newsmax has promoted its Going Rogue deal in commercials on Fox News.
From a Newsmax commercial appearing during the November 5 edition of
Fox News' The Live Desk:
ANNOUNCER: Sarah Palin has electrified America. Her new book,
Going Rogue, is already a runaway best-seller, and it's not even in
stores yet. Now, Newsmax.com has an incredible offer for you. You can
receive Sarah Palin's new book for just $4.97, a savings of $24 off
the cover price. Plus, you'll get four months of the award-winning
Newsmax magazine absolutely free. This special offer won't last, so
call 800-NEWSMAX today.
Book reportedly being sold below cost
Selling below cost is part of "loss-leader" strategy. AOL Daily
Finance reported that "Publishers ordinarily offer current titles to
retailers at a discount of between 40% and 50%. A bookstore spends up
to $12.50 to sell a $25 hardcover, which it buys directly from the
publisher or through distributors like Ingram or Baker & Taylor" [AOL
Daily Finance, 11/4/09]. As a result of the current online price war,
The New Yorker stated, "Amazon and Wal-Mart are surely losing money
every time they sell one of the discounted titles. The more they sell,
the less they make." The New Yorker continued:
Amazon and Wal-Mart hardly seem reckless, though. So why did they
go to war? The answer is that they didn't, really. Sure, Wal-Mart is
making a statement that it's a player in the online world, but the
real goal of this conflict isn't to lure readers away from Amazon, and
it isn't to get people to buy one of those ten books. It's to lure
them online, away from big booksellers and other retailers, and then
sell them other stuff. Usually, price wars wreak havoc because they
erode the pricing power of an entire business. But, because this price
war involves just ten items, its impact on revenue will be small, and
outweighed by the positive effects of all the publicity. (It has
garnered publicity because it involves books. A big banana price war
has been raging in Britain, but you probably haven't heard about it.)
It's textbook loss-leader economics. [The New Yorker, 11/9/09]
.
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