B&N Offers $50 Gift card with Nook

How do you drop a popular gadget’s price without upsetting early customers and providing a boost in sales for your product? Offering a gift card could do the trick. That’s exactly what B&N has done with Nook. E-book reader fans who pick up a Nook at BestBuy or B&N can get a $50 gift card with their purchase. It’s not exactly the price drop that we predicted a while ago, but it’s the next best deal.

Here is the official line from B&N:

Purchase a NOOK™ at participating Barnes & Noble retail stores or online at www.bn.com (EAN: 9781400599998), and receive a $50.00 Barnes & Noble Gift Card, while supplies last. This offer is only valid for purchases made at Barnes & Noble retail book stores where NOOK is sold and for orders placed on www.bn.com. This promotion is offered for a limited time only while supplies last. This promotion (i) may not be combined with any other coupon or promotion; (ii) is not redeemable for cash; (iii) is not eligible for purchases of any other products other than NOOK; (iv) is not valid on past or pre-ordered purchases; and (v) is not valid for purchases made at Barnes & Noble College Bookstores.

This move is going to put even more pressure on Amazon to drop its prices. Of course, Amazon can always match this offer with an even better one without getting into a price war with B&N. This is a smart strategy by B&N as these gift cards will encourage more people to take a chance with Nook (over other e-readers). They pay for themselves as Nook owners will buy e-books for months to come.

Amazon.com is in perfect position to drop Kindle 2’s price ahead of Kindle 3’s August launch. Currently, Amazon is only offering 2 day shipping with new Kindles. Time to step up your game, Amazon!