Borders 30% off 1 item through 9/8...and beyond? (1 Viewer)

[TravisR]

Like a Phoenix from the ashes, the coupon is now listed as expiring on January 8, 2007.

 

[Mike Frezon]

That would amaze me if it was true. Honestly, I would find myself purchasing other stuff along with my "one item" all the time. I spent a lot more than I normally would have at Borders the last few months because of that coupon!

 

[Mike Frezon]

I didn't see Todd's post until after I had responded to Rhoq.

Too funny!

The coupon (like time)...marches on.

1-8-2007!

 

[Carlo_M]

30% off of their list price still leaves a healthy profit margin. I used to work at a B&N and I know the prices they got from the distributor were marked up nearly 100%. So a $28 book (normal hardcover price) cost them around $14 from their distributor. 30% off of $28 is still $19.60.

So they're not "losing money" on these transactions. Rather, they're "losing profit", but I don't think people are going to lose too much sleep over that...

 

[Gregg Loewen]

Carlo, that may be true in books but not in DVDs.

 

[Bob Graham]

It's coming up as expiring on 12-31 for me. To quote Homer Simpson: "O cruel fate! Why do you mock me?"

 

[Mike Frezon]

That's odd. I just checked it again...on a different computer...and it reads 1-8-07 for me still. Maybe you need to clear your cache, Bob?

 

[Carlo_M]

Gregg, the profit margin may not be identical, but it's close. My Bro-in-Law used to work for BB. He thought it was cool that after a certain amount of time you're employed, you get something like 30% off of DVDs. Until he saw what they're charged for DVDs. They still made money off of him (remember, this is 30% off of MSRP, not sale prices like $15.99 release day prices). 30% off of DVDs full list, which Borders uses, if not exceeds, still provides a profit margin, just less of one.

 

[Barry_B_B]

1-9-07; here's to the New Year!

 

[Gregg Loewen]

Carlo, your dreaming. Mark up is 40% (43% max). So if a DVD is discounted 30% they make 10-13% profit, which equates to about 1 buck on a standard DVD. At that margin (long term), they would be out of business.

There may also be a rear end deal where they get quarterly checks based on volumes. This may equate to another 10% but I am not sure this is the case.

 

[Bob Graham]

It comes out as 1-8 on my work computer, so I'm in business.

 

[Marty M]

I just clicked on the link and the expiration date is now January 9, 2007, so I guess the 30% coupon lives on. I was able to take advantage of this coupon for my Christmas shopping last month.

 

[Carlo_M]

Gregg, I think the problem we're having is with what I said as "nearly 100% markup" and you say is "40-43%". Problem is that we're talking from the opposite prices, so our figures are in reality rather close.

When I say markup is nearly 100%, I'm talking about from the actual dealer cost. So $15 becomes almost $28 for books. For DVDs, say dealer cost is around $14, MSRP is $24.99 (true 100% markup from $14 would be $28). When you state that markup is 40-43%, you're saying that as a percentage reduced from the MSRP (the inverse--that's not the correct math term but it's the only one I can come up with--of the way that I'm coming up with my "almost 100%" figure). So our numbers are not that far off. My "nearly 100%" markup = "almost 50%" markup in your calculation. I've admitted it's a little less on DVDs, so say my figure goes down from 50% (by your math) to 46%. You said 40-43%. Very little actual difference when we look at it from the same perspective.

So yes, Borders ends up making a couple of bucks per DVD at that point, but as I said, it's still not a loss, it's just a lessening of profit, as I said. A true loss would be if they sold at or below dealer cost.

For each shopper who is abusing these coupons (as I am) there are quite a few who aren't, and are buying something else in the store at the same time. Contrast that to the reduction of store traffic if they cease these coupons. That's why I think we're seeing the continuity of these coupons online.

 

[Gregg Loewen]

ok, agreed.
Only 1 other point, when you run a business you can not look at cost vs profit of an item without the cost of overhead (the processing cost) figured in. With this included, they would be definitely selling at a loss.

 

[Carlo_M]

Yeah I do know about overhead. However I'm betting that the vast majority of their sales do not include these coupons. How do I know? Because since I use it so often, and the lines at my local Borders are usually fairly long, I look and see how many of the others are using the coupon. I have yet to see anyone else at my local Borders using one (I must have looked at maybe a hundred other customers in the 15 times I've used it).

I know it's only anecdotal evidence, but I'd be a lot more concerned for them if I routinely saw other coupon wielding hordes other than me

 

[Mike Frezon]

Did you mean "coupon wielding whores other than me"?

Just to react to Carlo's thought, I, too, also never saw anyone else at Border's using such a coupon during the time leading up toe holidays. And, don't forget, it seems like every time you check out they give you yet another coupon for a limited time window (usually a few days ahead of the day you are in the store). And, when clerks ask about being on their e-mail list for special offers and about the Rewards Program...it seems like most people just shake their heads and decline. This is also anecdotal on my part...but seems to be the case most of the time for me as I take in what's going on around me.

 

[Elizabeth S]

The Borders "Buy 3, get the 4th free" is now on until 1/29.

 

[David Deeb]

And now revised again to January 11-07.

 

[Marty M]

This coupon seems to change daily. It now is for only 20% off, but doesn't expire until 1/12/07. I wonder what it will be tomorrow.

 

[Mike Frezon]

Uh oh. It looks like they have, indeed, revised the deal, Marty, to just 20% off one item. Too bad.

Here's the coupon.