Finally. The Kindle 2 was released today. It’s 0.1 ounces lighter, carries 7x more books, and features a better user interface and design, among other things. Amazing. I really want to buy one. I do. I really really do.
But not for $359.
In an age where most technological products are getting cheaper and cheaper (look at the plummeting prices of computer parts or the general cheapness of phones compared to years past), that price point just isn’t attractive. You can literally buy a computer for $359. Why would I want to pay that much on an eBook reader? Granted, I am still actively thinking about it and might end up purchasing one. But that price doesn’t really make me want to buy it.
Why is Amazon not learning from the cellphone companies and making more money with subscriptions? $359 is a lot of money for a college student (or really anyone these days) to fork out in one piece. Let me subscribe to something and make me pay much more than $359…but gradually over time.
Here’s what I am proposing. Amazon, do what the cellphone companies are doing. Lower the Kindle cost considerably to say $99. But make me sign a contract with it. Have me pay $99 for a brand new Kindle 2 today but charge me a monthly $25 fee for Amazon Kindle Store gift cards. Have me enter this contract for a year. Or two. Here, you will make $400+ off of my purchase but, again, gradually.
If I am a really avid reader, perhaps offer me a chance to buy a more expensive gift card, say one for $45 (why not 50? read on, I will mention my reasons later) a month. And if I enroll in that plan, then reduce the Kindle price even further to maybe $50.
The money you will be making off of this would be much more than that original $359. At the end of the month, if I don’t use my credit, it vanishes and I lose that money forever. You advertise that many books are about ten dollars. So, if I use the lowest book plan, I would have enough money to buy 2 1/2 books every month. I wouldn’t want to waste that half book value at the end of the month so I would deposit more money into my account and buy a third book. This would also be similar with the other higher book plan.
eBook readers are admittedly not that sexy. They aren’t iPhones or cool laptops. They’re eBook readers! To many, that $359 price tag is too high a barrier and I have met countless people who immediately lose interest in the product after learning of that high price.
A lower entry price with a subscription that will gradually end up costing much more than $359 might be enough of incentive to win over many who shy away from buying the product due to that oh so high entry price.
Simple – they are selling out. If you had a device that was selling out – wouldn’t you price it as damn high as possible?
There shouldn’t be any problems with supply this time around though so I feel that they should do try and get as many adopters as possible especially with other big players (like Google) eying this market and entering the field.
Pricing it for $359 is no way to do that. Price it lower and just make sure you have appropriate market share. Similar to what Microsoft first did with the Xbox – just focus on market share.
Are you planning on getting one? I am still on the fence with this.
At 359 you could just get an Eee PC, which is an actual computer and not just something you can read stuff with.
I wrote a review of the Eee PC 901
Yeah but what happened to the XBox? It is still losing money fast. Whereas the over-priced (for its underlying tech) is the one kicking arse.
I love the idea of the Kindle (I was lucky enough to actually get to use it months before it was even officially announced), but at this time not likely to get it. It isn’t due to price, or (lack of) features – I just like the feel of paper being turned in my hands
And comparing an Eee PC to something that uses e-ink just ain’t right. You can read e-ink for hours with zero eye-strain. A TFT just does not compare.
[...] must be with the Kindle, considering it is sold at such a high $500 price tag. Back in February, I suggested that Amazon should go with a subscription model, similar to the way most cellphones are sold. That [...]