Kindle Cost Savings Analysis Update: Reflecting the $259 Price Tag

The Amazon Kindle 2 was lowered in price a while back and I am finally updating my cost savings analysis to reflect the "new" $259 price tag. As I mentioned in the previous cost savings analysis, there are plenty of other non-tangible reasons to purchase a Kindle (or any e-reader) including wasting less paper, convenience of book access, and size. I created a spreadsheet that can be easily modified to book reading preference which will illustrate some rudimentary cost savings with some basic assumptions. The previous Kindle cost savings analysis can be found here.

Photo courtesy of Kindle 2.0 product page

Cost Savings Analysis One:
Assumptions:

Hardbacks purchased at Amazon
List price: $27.95
Hard Back discount: 40%
Kindle 2.0 start up cost: $259.00
Equivalent Kindle book price: $9.99
Shipping cost: $3.99
Break even point (without shipping): 15 books (previously 53)
Break even point (with shipping): 12 books (previously 34)

Cost Savings Analysis Two

Assumptions:
Paperbacks purchased at Amazon
List price: $7.99
Kindle 2.0 start up cost: $259.00
Equivalent Kindle book price: $6.39
Shipping cost: $3.99
Break even point (without shipping): 47 books (previously 65)
Break even point (with shipping): 162 books (previously 255)

One thing to keep in mind is the numbers proposed should be considered averages or assumptions. Obviously, it also depends on book buying patterns. I, for one, rarely buy hardback books. I may work on my spreadsheet more if I have nothing better to do than create Excel formulas that would project semi-random purchases of hardbacks (or paperbacks).

Food for thought.

As a side note, AMZN stock is currently at $133.52, thus my hypothetical investment would have yielded me a net profit of $8,512 so far.

Good reading,

Plants and Books