Border's in-store only coupon roundup (33-50% off)

[eriochrome]

Sure it makes money over the wholesale cost of the book but does it make enough to cover the overhead of running the company and stores. A quote from the former manager of one of the Border's said that the coupons really affected the buying habits of the regular shoppers who essentially never bought anything without a coupon. If you assume a whole sale price of 50% the list price(not sure the number here) they have to move essentially 3 times the books to generate the same amount of money over the wholesale cost for the product neglicting the additional incremental cost of product sales(self space, transportation, sale transaction costs).

Add in the gold for people who buy a moderate amount of books before say 250 dollars a year (1 hard cover/ 2 trade paperbacks/ 4 mass market paperbacks a month) and that person has to spend 1000 dollars a year to get the same cash after paying the wholesale cost even acounting for the membership cost of 20 dollars. That is a pretty big jump in spending that you need to make the efforts of attracting the customers worthwhile.

Another problem with the constant coupons is that the customers start to feel entitled to them. I remember Borders stop sending them to me last year some time and I stop going to the store. They would probably do much better by just having the membership give 20% of most items then you will just need to spend like 50% more than before for borders to get more cash over wholesale. It would also take away the disincentive to buy more than 1 thing at a time. I find that I almost always buy just one book now since I know I can come back in a couple of days and save 40% on the next one if I really want it. Even my four year old knows this as she asks whose turn it is to get something when we stop by.

[atmail35]

I think with the coupons Borders is hoping you buy more than one thing. Whether it be a snack/coffee at the cafe or a few books or toys (with only one using a coupon). Most of the time, the other customers I see have 3-4 minimum and NO coupon. Most people can't be bothered w/ coupons. I think we are in the minority.

No one in my family (and most of my friends actually) would go for one item a day for several days in order to take advantage of the coupon. A lot of people don't have time or patience to do that. That's my two cents anyway.

And while I do go in and buy a Lego set at 40% off, I often stop by the cafe for a latte.

Honestly, I don't shop at B&N b/c they never seem to have coupons or at least not at the rate that Borders does, I've always preferred Borders, not that that has helped them stay in business ;)

[cowbug]

you have to consider the Borders markup, a lot of times worse than the TRU markup, at least on LEGO, with the coupon brings them just under MSRP in many cases. Also the fact that the coupons entice people that would normally not shop there come come look and maybe buy. My wife shops at Michaels craft store, they always have coupons available for 40-50% off one item and she never buys just one item, it drives me crazy, (i would keep coming through with multiple coupons, but she refuses, the only time she uses more than one is if i am with her and we each pay for something) but i am sure if they lost money over it, they wouldnt do it.

[eriochrome]

Certain items are really not even worth going to buy with the coupon unless you are already going to near by like the battlepacks. Sure you save like 2-3 dollars but gas to get over there costs you that much probably. I got one this weekend since the Borders was essentially directly inbetween two other stops.

[GuaranteedUnity]

at least on LEGO, with the coupon brings them just under MSRP in many cases.

I'm beginning to wonder if prices are not consistent across all Borders or a lot of people are just really bad at math.

In all the New England stores I've visited, the 33% coupon typically drops the price to 16-20%+ below MSRP. Even more with the bonus 10% from Plus membership.

Sure, there are better deals to be had (especially around here), but I hardly think it's as insignificant as many people are making it out to be.

[eriochrome]

I think the prices are pretty consistent. Prices people quote here are exactly what I see at my local stores.
The problem is math. People think that if you add 25% to the MSRP and then take a 25% off coupon you get back to the MSRP but you are really at ~6% below (15/16 of MSRP) so they discount the value of that part of the discount. Even at mark ups as high as 25% of MSRP the ~40% discount makes it as good of deal as a TRU BOGO Half off assuming TRU used MSRP.

I have noticed that Hogwarts has not be restocked since those 40% off coupons and they have gotten in lego sets since then. That was a good deal if you wanted that set since their markup was only 15%.

[cowbug]

at least on LEGO, with the coupon brings them just under MSRP in many cases.

I'm beginning to wonder if prices are not consistent across all Borders or a lot of people are just really bad at math.

In all the New England stores I've visited, the 33% coupon typically drops the price to 16-20%+ below MSRP. Even more with the bonus 10% from Plus membership.

Sure, there are better deals to be had (especially around here), but I hardly think it's as insignificant as many people are making it out to be.

My math is fine, my point is you are not really saving 33%, you are usually only saving 10-15%, while not bad, I consider that to be just under MSRP, meaning not enough under MSRP to entice me unless I was already going to pay MSRP for a set. As you said, there are usually better deals to be had. Take the Bounty Hunter Assault Ship for example, I believe I saw it for $65 at a local Borders, MSRP is $50. 33% off $65 is $43.55 which is just below 13% off. Its currently $43.32 on Amazon with free shipping and no sales tax, which for me in California is around 9%.

Also, the comment I was responding to was asking how Border's could sustain this practice and I do not think Borders is going to go out of business over 10-15% off MSRP.

[eriochrome]

But of course you always pay your use tax for all internet purchases where it asks that question on your state tax returns. Would not want the state to think you are intentially buying things online to avoid those taxes which you are legally required to pay regardless of purchase location.

They did just have a 40% off coupon a few weeks ago which would have got you that set for like 35.1(38 with tax) dollars if you were a gold member. As a gold member you could use the current coupon and pay your tax and still be better than the amazon current price (42.75). I would actually like them to stock more sets so I can get the ones I am willing to buy at near full price more easily without having to worry about the constant searching for clearence prices which I never seem to find at my stores. To many lego nerds probably.

As per the going out of business, their heavy coupon issuing this christmas season did not help them from being very into the red and entering a probable corporate death spiral. I just do not see the constant coupons as a good sign for the company. Since the have added some new lego products recently with increased mark ups (29.99 used to go to 34.99 but people have seen the new shuttle is 39.99) they cannot be making to much money on the sales of the lego items as they are willing to cut into impulse purchases on it to protect the margins. It was no coincidence that when I was by like twice in 3 days back when that 40% coupon was out that both Hogwarts sets disappeared in that time.

[atmail35]

I generally don't buy a Lego set at Borders unless I'm saving at least 25-30% after coupon and Rewards plus. I've been able to do that pretty consistently when they have the 40% off coupon. I did it with the Log Cabin and Hogwarts Castle. I never seem to catch Amazon at the right time so this works for me. TRU buy two get one causes me to buy too many sets.

I think it is very doable to buy sets and get more than 10-15% off if you are patient for the 40% off coupons.

[eriochrome]

33% plus gold yields 30% off MSRP if mark up is less than 17%, 25% off MSRP for less than 25% mark up.
40% plus gold yields 30% off MSRP if mark up is less than 29%, 25% off MSRP for less than 38% mark up.

[GuaranteedUnity]

Take the Bounty Hunter Assault Ship for example, I believe I saw it for $65 at a local Borders, MSRP is $50. 33% off $65 is $43.55 which is just below 13% off. Its currently $43.32 on Amazon with free shipping and no sales tax, which for me in California is around 9%.

It's $62.99, and 33% off is $42.20 -- 15.6% under MSRP.

If that isn't enough for you, throw in Plus membership (additional 10%) and tertiary discounts like Plastic Jungle (15%), and you're now looking at $35.19 after tax -- 29.6% under MSRP (and cheaper still for those of us with a lower sales tax).

It's not an apples to apples comparison, but if you're going to start throwing in bonuses like free shipping and no sales tax... ;)

[natelite]

It is a hassle to save $7 when amazon just ships it right to your doorstep. Time to drive to the store + gas money, it's not that much of a gain besides feeling good about saving 10% more. But saving 10% for a small purchase (ie less than $100) doesn't yield much savings at all. Which is why I generally do not buy from borders unless I have 40% coupon + the gc promo. I prefer stacking coupons and shopping online from target. Nothing beats shopping online. A few mins work for almost the same savings. Plus you won't be surprised by out-of-stocks! Worst thing ever... Driving to the store and not finding anything to buy.

[atmail35]

Today I received an e-mail from Borders asking me to review an item I purchased and in exchange I would get a 25% off coupon for one item (not to be combined w/ other offers). Seriously, why would I bother when there are 33% or more coupons each week?

[prozac]

someone posted on another forum that they went to use thier 33% off and the clerk told him that after today they would no longer honor those coupons for lego. No clue as to the truth of it, just a heads up in case it is true.

[Mantisking]

Today I received an e-mail from Borders asking me to review an item I purchased and in exchange I would get a 25% off coupon for one item (not to be combined w/ other offers). Seriously, why would I bother when there are 33% or more coupons each week?

I've gotten two of those offers. One, it's for Borders.com, and two, they barely give you a week to do it.

[GuaranteedUnity]

The good news:-

33% off - http://www.bordersmedia.com/coup/20110325sa33.html" onclick="window.open(this.href);return false;, exp 03/28
- Effectively 39% off with Rewards Plus membership.

40% off - http://www.bordersmedia.com/coup/20110325sa40.html" onclick="window.open(this.href);return false;, exp 03/28
- Effectively 46% off with a personal shopping day or Rewards Plus.

The bad news:-

Offer Excludes: Borders Rewards Plus memberships, previous purchases, special orders, shipping, gift cards, coupon books, newspapers, magazines, comics, toys, games, puzzles, stuffed animals, used merchandise, textbook rentals, eBooks, audiobook downloads, music downloads, vinyl LPs, Rosetta Stone® software, tax software, video games, all electronics (including eReaders), and eReader Protection Plan Packs.

So it would appear Prozac is right: no more LEGO discount at Borders.

Bummer.

[atmail35]

Well that stinks. It looks like the 33% one is for online and the 40% in-store.

[BrickUpdate]

Just got the 40% off coupon that states the same thing right up front. Oh well. It was good while it lasted.
Thanks everyone.

[brixter]

That's too bad. I was going to check out their Lego day tomorrow and pick a set up while we were there - not now. Given their enormous markup on Lego (and toys in general), I'm surprised they would do this. Oh well, at least now I don't have to truck to their store three times a week.

[GuaranteedUnity]

It's possible that because it's a 40% in-store AND there's a LEGO event tomorrow, that they intentionally took LEGO off the table to maximize profit. We'll know Tuesday, but I'm not holding my breath...