Becoming an Apple Reseller?

[Dioscorus]

Hello.

We have a business setup currently with a federal tax ID and everything. Excellent credit history, 1.3M/year non-computer related sales, etc.

Will Apple give us reseller status so that we can begin expanding our business into the computer retail scene? I have already submitted the application. Getting approved for credit shouldn't be a problem. 100k a year minimums? hahaha. That's less than 10k a month. Selling 10 13" MBPs a month should be cakewalk. How does the profit work? How much do resellers actually pocket? Do they go through Ingram-Micro, tech-data, etc...? I understand that these companies can't sell Apple computers unless the entity buying them has an Apple license. Is that correct?

Can any resellers chime in with their experience?

Thanks!

[dacreativeguy]

Originally Posted by Dioscorus

Hello.

We have a business setup currently with a federal tax ID and everything. Excellent credit history, 1.3M/year non-computer related sales, etc.

Will Apple give us reseller status to begin expanding our business into the computer retail scene? I have already submitted the application. Getting approved for credit shouldn't be a problem. 100k a year minimums? hahaha. That's less than 10k a month. Selling 10 13" MBPs a month should be cakewalk. How does the profit work? How much do resellers actually pocket? Do they go through Ingram-Micro, tech-data, etc...? I understand that these companies can't sell Apple computers unless the entity buying them has an Apple license. Is that correct?

Can any resellers chime in with their experience?

Thanks!

I'm not a reseller, but do remember Apple screwing over all of their resellers a few years ago when they were pushing the Apple Stores. With Apple dominating with their own stores, and then big retailers like Best Buy and Amazon in the mix, is there really much money out there for an independent reseller?

[Dioscorus]

Well, it wouldn't be the main source of income. I was thinking just on the side (ie, mostly eBay sales).

[Halsey12]

We've got 2 independent all Mac resellers here in Portland- the Mac Store and Mac Force. They seem to do well. I only go to the Mac Store for purchases and repairs, never to the actual Apple Store... it's just a way nicer experience. No hipsters, no people hanging out, just people working there that love Macs.

[swatishankar]

Will Apple give us reseller status to begin expanding

[Dioscorus]

Originally Posted by swatishankar

Will Apple give us reseller status to begin expanding

Ah, I thank you graciously for pointing out my poor grammar.

Is an actual storefront a req? I'd like to run this business from home, with my family's actual business that I've described as the 'basis'.

[mac-mania]

My uncle does home theater and smart-home setups down in San Antonio and is a reseller for pretty much everything, usually say a 1600.00 tv is 1300 or so at cost plus freight shipping, well needless to say there is no-margin on Apple sales, he had a customer interested in a few Airs and iMacs, and Apples response was charge an install fee. And I don't mean the "no-margin" like barely anything, I mean same as retail.

For reference he resells Dell and usually gets 15%.

[feelthefire]

Here's the thing with being a reseller-- the money isn't in the computers.

The TYPICAL margin on apple hardware is 8%. That is a TIGHT operating margin, as I'm sure you know if you're in retail.

The money that resellers make typically comes from third party accessories--cases, mice, speakers. The margin on those is more like 30-60%. Service is the other big place where profit is made, especially on parts.

Apple hardware comes almost exclusively from Ingram Micro, with Tech Data sending some, and some software. Be aware that you will be subject to the infernal "metrics" and your supply chain will be governed to some degree by the attachment rate of applecare or other apple branded accessories. You will often have to order more than you can probably sell to meet metrics.

Accessories typically come from a place like D&H, or NuCourse. Don't expect as a small reseller to be able to get brands like Incase--they pretty much will not sell to you.

I've been in purchasing for a major regional reseller for a couple years now.

For informational purposes only, I could probably get some cost vs. retail price information for you, via PM.

[techfreak85]

Originally Posted by Halsey12

We've got 2 independent all Mac resellers here in Portland- the Mac Store and Mac Force. They seem to do well. I only go to the Mac Store for purchases and repairs, never to the actual Apple Store... it's just a way nicer experience. No hipsters, no people hanging out, just people working there that love Macs.

dont forget PowerMac Pac on 122& Witiker way.

[Duff-Man]

Duff-Man says...I assume you've at least looked at the basic documents outlining requirements that are on Apple's website:
http://channelprograms.apple.com/cha..._reseller.html - seems like a good place to start as there's a "apply" button and an "contact us for more info" button there waiting for you....oh yeah!

[Dioscorus]

I've already applied to both IngramMicro and Apple. The assistant at Ingram said everything looked good and I should be hearing from them within a day or two.

I think a smarter option might be dealing IBM, HP, and Sony hardware...? Perhaps it is not as tight (ie, more profit) with those brands.

feelthefire, I wouldn't mind some more info. It is much appreciated. Does Ingram require the Apple authorization before I buy their product?

[AdamLikesMusic]

Originally Posted by Dioscorus

Well, it wouldn't be the main source of income. I was thinking just on the side (ie, mostly eBay sales).

I thought Apple didn't let resellers sell on eBay? (I've read that on here before, but have no clue if it's true or not )

[Dioscorus]

Originally Posted by AdamLikesMusic

I thought Apple didn't let resellers sell on eBay? (I've read that on here before, but have no clue if it's true or not )

If I go through Ingram, it shouldn't be a problem. As I said earlier, I may just deal in non-Apple related wares, depending on Ingram's rules...

[feelthefire]

Dioscorus--I'm at work now, so obviously can't post that information, but I will check some numbers for you and send something off tonight.

[Dioscorus]

My account at Ingram has been activated. I can purchase items through the phone today and will have access to the website tomorrow or Monday.

[Dioscorus]

Well, Ingram doesn't seem to be too profitable... any tips?

[HBOC]

Originally Posted by Halsey12

We've got 2 independent all Mac resellers here in Portland- the Mac Store and Mac Force. They seem to do well. I only go to the Mac Store for purchases and repairs, never to the actual Apple Store... it's just a way nicer experience. No hipsters, no people hanging out, just people working there that love Macs.

I dont like the MacStore, personally. I went int there to buy a MBP. It was right when they announced the UNI's, and I asked if they would match Apple.com's price. The guy there said NO, that is was like them giving money away, and to go to apple.com. You dont tell the customer that, especially a small company. I mean i could totally see best buy saying that...
But to their credit, the MacStore in Cedar Hills Crossing has a really nice older guy working there. When my MBP had a logic board go bad, he looked at it and took time to help me. I was a walk in, right before christmas and our right before our sweet weather we got. So they redeemed themselves a bit.

I have heard great things about Mac Force from some of he genius's at pioneer place.

[feelthefire]

Originally Posted by Dioscorus

Well, Ingram doesn't seem to be too profitable... any tips?

Well, as pointed out, it's NOT hardware that makes money. We profit on probably 1 computer every 6 months. It's parts, accessories, and service we profit on. It depends on what your other products are, but the margin on almost all computer hardware is low. Netbooks are really popular items right now and might be something to consider.

The downside of going somewhere else, like to Dell or Sony or IBM, is that they have a bajillion models so you either need to hold a LOT of inventory, or operate on a per order basis.

[kymac]

Originally Posted by techfreak85

dont forget PowerMac Pac on 122& Witiker way.

they changed the name to just macpac a few years back.. my parents bought my first mac there for me.. they run a decent business there.

Originally Posted by HBOC

I dont like the MacStore, personally. I went int there to buy a MBP. It was right when they announced the UNI's, and I asked if they would match Apple.com's price. The guy there said NO, that is was like them giving money away, and to go to apple.com. You dont tell the customer that, especially a small company. I mean i could totally see best buy saying that...
But to their credit, the MacStore in Cedar Hills Crossing has a really nice older guy working there. When my MBP had a logic board go bad, he looked at it and took time to help me. I was a walk in, right before christmas and our right before our sweet weather we got. So they redeemed themselves a bit.

I have heard great things about Mac Force from some of he genius's at pioneer place.

ugh.. i also hate the mac store.. they do not seem to be knowledgeable in their products.. esp the repair desk. i don't understand why people would buy from them.. everything's expensive and there's no benefit to it. just go to apple!

[Herbz]

Originally Posted by feelthefire

Well, as pointed out, it's NOT hardware that makes money. We profit on probably 1 computer every 6 months. It's parts, accessories, and service we profit on. It depends on what your other products are, but the margin on almost all computer hardware is low. Netbooks are really popular items right now and might be something to consider.

I know this is an old post, but I just wondered if any members knew if Ingram Micro can supply parts for things like the iPhone, iPods etc?

thanks

[gurmon]

Originally Posted by Herbz

I know this is an old post, but I just wondered if any members knew if Ingram Micro can supply parts for things like the iPhone, iPods etc?

thanks

No they cant. only computers

[nfable]

I work for a reseller that is supplied by Ingram Micro. The store where the product hits the pavement (Macs sold to customers) the store gets about $150 mark up per CPU... and yeah, the stress is on the accessories. What they call "Beyond the Box" Apple Care, iWork, etc... the software / service is the greatest mark up, but honestly I don't care as I'm just a marketer and receive no commission.

I just like seeing new people come to Mac, I couldn't give a damn if they buy AC, I just want them to take a Mac home - one of my sales points is outlining the store's return policy "Go ahead, take it home - you got 15 days to return it; if you don't love it in 13 days, bring it back I don't care I make no commission; just give it its day in court."

And about the stress being on the accessories, I understand the economics, but I personally have no incentive - it's like if Nike wanted to sell more laces than shoes. My philosophy is the more shoes you sell the more laces people will buy... later. The long con, that's it I guess.

[iCantwait]

HA - Ypu wont make money on ebay.

at 8%-10% margin on a laptop all the profit comes from 3rd party, RAM and Apple care.

On ebay all this is cheaper.
Apple wil set targets for you. You will need at least 56% attach rate for APP to get kickbacks from apple.

I wouldn't reccommend