CUC International Inc.’s on-line book unit Wednesday unveiled price cuts to take market share from Amazon.com Inc. and Barnes & Noble Inc. in the fledgling electronic bookselling industry.
CUC’s Book Stacks Unlimited said it will increase discounts to 40 percent off the suggested retail price for hardcover books and 30 percent off paperbacks for members of netMarket, CUC’s electronic shopping site, and members of Book Stacks’ Frequent Buyer Club.
Other customers will receive 30 percent discounts on hardcover books and 20 percent on paperbacks.
Lower prices are bound to put pressure on profit margins unless sales surge in response, analysts said. The action comes at a time when on-line book selling has yet to prove itself to be a profitable business.
On-line booksellers “are going to really need to ramp up volume to cover their operating costs,” said analyst George Sutton at Rauscher Pierce Refsnes. “The key is: Does dropping prices create significantly higher volume?”
