Barnes & Noble deathwatch

[Doppel]

I don't think anybody actually believes there is a future for a company like this, I sure don't.

Anyway, stock got hammered yesterday losing a quarter of its value, and B&N is looking to divest itself of Nook, the only thing good about B&N. If it does that, it will collect a large bit of cash and then go back to its path of extinction. There is literally no future for a seller of physical books on the scale B&N needs to sell to live.

http://consumerist.com/2012/01/barnes-noble-eyeing-the-idea-of-breaking-up-with-nook.html

http://www.theverge.com/2012/1/5/26...ales-records-barnes-noble-considering-spinoff

 

[BarkingGhostar]

You do not see in a future of a company that is a bookstore? I like looking at books before I buy them. Of course, that isn't always an option.

 

[Bateluer]

I've been a vocal proponent of the nook brand in the past, and I still am. Getting rid of the nook brand would be idiotic for B&N, physical books are a dying medium. They won't disappear completely, but they aren't going to have the volume they had in the past. B&N needs to push the nook brand more and maintain ownership of it. The nooks are great devices, with the largest ebook collection available.

Opening the bootloader on the Nook Tablet would be a nice way to get some free positive publicity, though likely not much of a bump in sales.

 

[IndyColtsFan]

You do not see in a future of a company that is a bookstore? I like looking at books before I buy them. Of course, that isn't always an option.

You can often look at books before you buy them on Amazon too. B&N has too much overhead and the move to split the Nook off is really dumb.

 

[LTC8K6]

I got a Nook Color from Santa and I love it. Selling off would just kill B&N for sure.

 

[alent1234]

the articles are saying the nook is a money loser. amazon has 2/3 of the ebook market. apple is out for blood as well. no place for B&N

 

[LookBehindYou]

You do not see in a future of a company that is a bookstore? I like looking at books before I buy them. Of course, that isn't always an option.

There will always be a market for physical books. My stepdad got a kindle for my mom last year, she never used it for anything other than soduku. She said she can't get used to not having real pages to turn, wasnt the same.

The problem is the overhead, with places like amazon and other websites, b&m bookstores can't compete with the prices, you throw in a prime account and that gets rid of your shipping costs. Barnes and Noble probably needs to keep the nook, scale down or get rid of the b&m stores and scale up their online presence if they really want to stick around.

 

[BTA]

The stores are always busy but it's mostly people looking and then buying online.

Plus their store experience has always been pretty bad. They either don't even have what you are looking for, or if they do it's twice as expensive as you can get online. I mean I'd be cool with buying at a B&M if we were talking 10% higher, hell maybe even 20% higher price to buy it in store, but their prices are really ridiculous.

They'll be gone at some point, only a matter of time. The Nook wont save them even if they keep it around.

Borders had a superior store and couldn't survive.

 

[PricklyPete]

I am no business expert...but selling off your one good asset sounds like a disaster. I will really hate to see B&N go. I am a regular customer and my wife and I love our Nooks.

 

[IndyColtsFan]

It makes you wonder if Reed Hastings is now the CEO of B&N too....

 

[Bateluer]

The stores are always busy but it's mostly people looking and then buying online.

Plus their store experience has always been pretty bad. They either don't even have what you are looking for, or if they do it's twice as expensive as you can get online. I mean I'd be cool with buying at a B&M if we were talking 10% higher, hell maybe even 20% higher price to buy it in store, but their prices are really ridiculous.

They'll be gone at some point, only a matter of time. The Nook wont save them even if they keep it around.

Borders had a superior store and couldn't survive.

Wait, what? Where do you live? Most B&M stores here have the same library as their online store, and their prices are competitive 99% of the time. Its never been twice as expensive compared to Amazon or eB&N. Their 'clearance' sections in the brick stores always has some nice finds for very cheap too, plus their online store has tons of content for uber cheap.

Borders, on the other hand, did charge considerably higher prices for their books compared to B&N and Amazon, plus they never supported the electronic revolution and were late to the game with the half baked Kobo line.

It makes you wonder if Reed Hastings is now the CEO of B&N too....

Nah, they'd have to spin the Nook brand off into Nookster, then change their minds a week later, then announce that all books will see a 40% price increase because the publishers raised their prices 40%.

 

[Ayrahvon]

I am no business expert...but selling off your one good asset sounds like a disaster. I will really hate to see B&N go. I am a regular customer and my wife and I love our Nooks.

The issue is that under the current market conditions it is a bad asset. Amazon sells its readers at a loss and makes up that loss with other portions of its business. B&N doesn't have the capital to make up the loss like Amazon does so they are putting far more money into the Nook then they are getting in return.

That being said, I doubt they will sell the nook. Their current losses can be turned around by increased sales of their digital books from holiday sales of the nook. So long as they can continue to increase market share of the e-reader market they should keep the Nook.

 

[Bateluer]

The issue is that under the current market conditions it is a bad asset. Amazon sells its readers at a loss and makes up that loss with other portions of its business. B&N doesn't have the capital to make up the loss like Amazon does so they are putting far more money into the Nook then they are getting in return.

The Nook Simple Touch is 99 dollars, priced the same as the Kindle it competes against. How much does it cost to actually manufacture these baseline e-ink readers? Can't exactly be expensive.

The Nook Color is 199, which is more than it costs to manufacture. The most expensive piece of it is the screen, followed by the battery and SoC. They don't sell an SD card with it. It could use a price cut, trimming it from 249 to 199 when the NookTab came out wasn't enough. But, the Nook Color has been a success for B&N and has sold very well. To my knowledge, it was the top selling Android tablet for quite a while.

Nook Tablet is 249, not sure how much it costs to manufacture, but there's nothing in it that should increase the cost much above its 249 MSRP. They likely turn a very small profit on each sold, though practically insignificant.

Still, with break even pricing, they need to people need to buy content for these devices for them to be viable.

 

[Carousel]

As someone with a bit on insider knowledge, let me say this. Barnes & Noble brick and mortar stores are struggling immensely right now. The company is looking for a buyer. Barnes & Noble, however, also has an online division, which is actually reaping profits, but collectively, the company is losing a lot of money every day.

I would not be surprised if Apple, or another giant company, purchased Barnes & Noble. They have many large stores in prime locations which are great for retail, licenses from publishers, and much more.

 

[OutHouse]

The stores are always busy but it's mostly people looking and then buying online.

Plus their store experience has always been pretty bad. They either don't even have what you are looking for, or if they do it's twice as expensive as you can get online. I mean I'd be cool with buying at a B&M if we were talking 10% higher, hell maybe even 20% higher price to buy it in store, but their prices are really ridiculous.

They'll be gone at some point, only a matter of time. The Nook wont save them even if they keep it around.

Borders had a superior store and couldn't survive.

??? i go to B&M like once a month and their prices are competitive and certainly not ridiculous.

 

[Wyndru]

They will exist as long as hipsters go there to hang out and drink coffee while reading the books they don't intend on buying.

Oh wait, this isn't starbucks, that's a shitty business model for a book store, never-mind.

Like someone mentioned above, their B&M will probably go out, but I imagine their online services will continue to make a lot of money.

 

[OutHouse]

The stores are always busy but it's mostly people looking and then buying online.

that I see a lot of. I see a lot of people walking with their nose up in the air oozing out a superiority aura or or sitting in one of the big ass chairs trying to look all scholarly while reading some giant tome like the Iliad while sucking down a ice cappuccino.

ITS A FUCKING STORE NOT A PUBLIC LIBRARY EITHER BUY IT OR GET THE HELL OUT!!!!

honestly i really miss Waldens books that used to be in nearly every mall in the country. go in find your shit and get out. fast convenient and simple. i can honestly say i spent more time shopping and going to walden book stores a lot more than Barns and Noble stores.

 

[Texashiker]

There is literally no future for a seller of physical books on the scale B&N needs to sell to live.

Companies need to copy what amazon is doing.

Get rid of the stores, sell e-books, e-readers and physical books online.

 

[Linflas]

The Nook Simple Touch is 99 dollars, priced the same as the Kindle it competes against. How much does it cost to actually manufacture these baseline e-ink readers? Can't exactly be expensive.

The Nook Color is 199, which is more than it costs to manufacture. The most expensive piece of it is the screen, followed by the battery and SoC. They don't sell an SD card with it. It could use a price cut, trimming it from 249 to 199 when the NookTab came out wasn't enough. But, the Nook Color has been a success for B&N and has sold very well. To my knowledge, it was the top selling Android tablet for quite a while.

Nook Tablet is 249, not sure how much it costs to manufacture, but there's nothing in it that should increase the cost much above its 249 MSRP. They likely turn a very small profit on each sold, though practically insignificant.

Still, with break even pricing, they need to people need to buy content for these devices for them to be viable.

I have bought more books in the 6 months I have owned my Nook than I did in the past couple of years. The fact that I don't have to go deal with traffic and my fellow citizens every time I want to make a purchase makes a world of difference.

 

[lokiju]

Funny I literally just said this past weekend to my wife how I think B&N will go away soon.

We were having lunch and looking out the window of the place we were eating we were watching them remodel a old Borders store that closed down awhile back to be something else and got me thinking about it.

Then I read this week they're stopping their publishing branch and now spinning off the Nook?

They're going belly up soon.

It's a shame really, I like going to book stores and seeing and finding things I otherwise wouldn't.

I've always enjoyed picking through the clearance books and finding something I've never heard of and buying without knowing anything else prior to reading it. Have found some authors and books I've really enjoyed over the years doing that.

But then again when I go there for something like a technical book I'm looking for, they now more than ever seem to never have anything I want. I'm forced to buy from Amazon. Granted I don't buy new releases from B&N ever, just to much money vs Amazon.

 

[Insomniator]

Seriously who buys new books anymore? OK who buys them at a store or anywhere besides Amazon?

The best thing about B&N is starbucks for their sugarcookies. Overprice books, puzzles, games and magazines do not make for a good store.

 

[lokiju]

As someone with a bit on insider knowledge, let me say this. Barnes & Noble brick and mortar stores are struggling immensely right now. The company is looking for a buyer. Barnes & Noble, however, also has an online division, which is actually reaping profits, but collectively, the company is losing a lot of money every day.

I would not be surprised if Apple, or another giant company, purchased Barnes & Noble. They have many large stores in prime locations which are great for retail, licenses from publishers, and much more.

It'd be kind of cool if Amazon bought them up and made a sort of B&M store front of sorts. Let them go after Apple on the B&M front as well.

Counter to how things are usually done, to start off as a website and succeed at it and then go into B&M but it just might work if done right.

 

[alent1234]

will never happen. reason amazon is going all out kindle is that digital products cost less. the B&M stores will have a large monthly operating cost. and then you have to buy the inventory in the hopes of selling it. if it doesn't sell you still have to get rid of it.

unlike storing some bits on a server and not caring if it's not selling well

 

[SKORPI0]

that I see a lot of. I see a lot of people walking with their nose up in the air oozing out a superiority aura or or sitting in one of the big ass chairs trying to look all scholarly while reading some giant tome like the Iliad while sucking down a ice cappuccino.

ITS A FUCKING STORE NOT A PUBLIC LIBRARY EITHER BUY IT OR GET THE HELL OUT!!!!

honestly i really miss Waldens books that used to be in nearly every mall in the country. go in find your shit and get out. fast convenient and simple. i can honestly say i spent more time shopping and going to walden book stores a lot more than Barns and Noble stores.

This, I see it all the time at the local B&N when I take a look at the book I want.

Same activity at the Borders for years before it closed. People getting a copy of the latest magazine/book bringing it to the table with their Starbucks coffee. After they are done reading, they just leave not bothering to return the item to the shelf.

 

[DaWhim]

spin off nook so they can file for chapter 11?