Amazon just announced that it is going to decrease the price of the Kindle Reader $25. It now will sell for only $114. The catch to this deal is that with the decline in price, will come advertisements attached to the bottom. I think this idea is going to make sales boost a lot for the Kindle Reader. As the price keeps going down, consumers will be better opt to make the purchase which will then lead to them buying the books. This is an example of captive pricing, the basic product in a product line is priced low so more people will be opt to buy it as opposed to a competitive product. I think the books is where they get the most sales anyways. Also, by adding the advertisements to the bottom, it will hopefully generate more sales for Amazon as well. An article I found on cnbc.com states:"There's been some rumors that they may even offer it for free even with Prime members," Kessler said. "I think we're heading for sub-$100 price points for e-readers."
If it does eventually reach below $100, or become free, do you think this will generate more profit or do you think the Kindle Reader will be on the decline?
No comments:
Post a Comment