The Century Times

The seventh & final book in the Harry Potter series is still not complete by its author J. K. Rowling. But its advance bookings has flooded book publishers and retailers with millions of readers since she announced the date of its release in February,2007. As the released date is approaching fast [21st July,2007, 00:01 Hrs. BST], book-sellers are competing among themselves to offer a hefty discount over its $34.99 list price.

Reports says that online retailer Amazon.com and Wal-Mart Stores have slashed nearly 50% off the book’s $34.99 list price, forcing many independent booksellers to follow suit to stay competitive. Barnes & Noble and Borders Group, the world’s largest booksellers, are selling it at 40% off.

At such prices many booksellers will be forced to forego their profit margins altogether! Question arises:Then why the hell they are into business for???

Well, its an established fact that retailers earn very low margins for established brands as they can earn through the higher turnover of it, compared to lesser known brands or products which though give very good margins but need a lot of push from the retailer to generate the sale. On the other hand, demand for the well-known brands is generated by its branding and promotions itself. Retailer merely stocks them and supply them whenever demanded without much efforts. Hence a low margin is sustainable too.

But here in this case, some retailers might decide to let go their margins completely without saving a single penny on the transaction. What might be his gain? Actually, he needs to do this merely to retain his customers and the brand image of the retailer himself. Just think it over, what impression a book-chain will leave if it says that they are not dealing in one of the all-time best-seller books as it doesn’t provide any margins for them! Customers are not concerned what a particular retailer is making out of a sale. But he is interested in the one who can provide him with a better service and a better deal. He will like to be a regular customer of only such a retailer.

So here the question is not of making any monetary gains but to retain and gain more customers.

Market sometimes throw very interesting as well as ridiculous situations which makes everyone think about what their strategies should be!

But it doesn’t mean that you can’t sale it on a higher price. One of the marketing rule says whatever you have and whatever you sell is already available from somebody else for even less money. So why will people pay you more? Because they perceive that they will get more value. The Chapter One Bookstore, an independent bookseller in Hamilton, Montana, is selling the book at full price and donating $7 of each sale to a library of the buyer’s choice. This is again a novel idea to get the attention of those readers who care about whole reader-community.

Check indiaplaza for how its offering not just 50% or 90% but an unbelievable 150% savings on the advance booking of this book!

So you need to be more creative and innovative to make a sale at the prices higher than the prevailing market prices. Go brain storming .

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