Borders Alters Loyalty Program, Lowers E-Reader Prices
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
Beginning today, Borders’ customers will have a choice of two loyalty programs
with the chain. The first is free with some additional perks over the previous
plan, while the second, Borders Rewards Plus, will cost $20 and include higher
savings on purchases and free shipping on most online orders.
Both programs include members-only discounts in stores and online, personal
shopping days, free coffee and a birthday gift from the chain.
"We saw a great opportunity to differentiate Borders in the marketplace
by offering the choice of a paid program or a free program," Borders CEO
Mike Edwards, said in a press release. "The new Rewards program will provide
members with more relevant content, benefits and discount offers. It’s yet
another example of Borders’ commitment to creating an outstanding customer
The bookstore chain also announced that it was lowering prices on its Kobo
eReader (to $129.99) and Aluratek "Libre" eBook Pro (to $99.99) beginning
"We’re committed to making it as easy as possible for all Borders customers
to enjoy e-reading," Mr. Edwards said. "We envision this price reduction,
enabling the purchase of these devices as a second e-reader in a household,
as a more affordable option."
Borders’ action is seen as another step towards a price war in the category.
Rival Amazon is offering new, less expensive Kindle e-readers at $189 for the
Kindle 3G and $139 for the Wi-Fi model. Staples has also announced that it
will begin selling the two models along with the more expensive Kindle DX this
fall. Target is also carrying the Kindle in its stores.
Discussion Question: What will have a more positive effect on Borders’
business; its new loyalty program options or lower e-reader prices? Is Borders
taking the types of steps necessary to turn the chain around?
- Borders Launches New Paid ‘Borders Rewards Plus’ Loyalty ProgramFree, Enhanced
Borders Rewards Program Also Launches Today – Borders Group, Inc./PRNewswire
- Borders Reduces Price of Kobo and Aluratek eReaders to $129 and $99 – Borders
- Staples to sell Kindle, Borders cuts reader prices – Reuters