Steve Montgomery

Borders Alters Loyalty Program, Lowers E-Reader Prices

September 1, 2010

FROM RETAILWIRE:
Borders is introducing a new rewards program and lowering prices on its e-book readers to gain some traction in its competition with Amazon, Barnes & Noble and others. What will have a more positive effect on Borders' business; its new loyalty program options or lower e-reader prices?      [more...]

I am not familiar with the details of the Borders Loyalty programs. Like all consumers, I could order my books from them online but there are two of their competitor's locations close to where I live so, when I shop for a physical book, it is not at a Borders location.

My view on the e-readers is based on the Gillette theory - give them the razor and sell them the blades. If all the comments on the growth of the e-books are correct then the lowering of the e-reader prices should have the greatest long term impact. However, both the Kindle and Nook (with a few iPads now showing up) have far greater market penetration based on my airplane seat surveys.