Anybody Know What Margins Apple gives it's Resellers?

Discussion in 'Buying Tips, Advice and Discussion (archive)' started by mpw, Nov 27, 2004.

  1. mpw Guest

    Joined:
    Jun 18, 2004
    #1
    The first Authorised Reseller opened in my town yesterday. I'd been waiting for this moment for ages but when I got there this morning all it had was some wide open white space with high fashion minimal displays.

    They had a selection of every iPod flavour and colour behind glass a bunch of third party stuf for iPods (italk, iTrip etc) and 3 iMacs 1.6&1.8 17" + 20".

    They had stock of iPods but the iMacs where only available to order.

    The problem was they seemed to be charging 20% more than Applestore. Why would anyone buy from them.

    Are Apple scrwing their resellers or is this reseller scewing it's customers? What does Authorised Reseller mean? Does Apple set them standards?
     
  2. StarbucksSam macrumors 65816

    StarbucksSam

    Joined:
    Nov 21, 2004
    Location:
    Washington, D.C.
    #2
    I don't know what the margins are, but an Apple Authorized Reseller, as far as I know actually - has no margins ABOVE the price. They can't really charge you $300 for a $299 product, and 20% seems ridiculous. I think THEY are screwing their customers, or they are not an Authorized Reseller (or they may not be for long :rolleyes:). I have seen like $294.94 on iPods and stuff like that from Apple reseller, I think. Like MacMall and those catalogs.
     
  3. earthtoandy macrumors 6502

    Joined:
    Jan 18, 2003
    #3
    notify apple and they will break their legs. Apple si real strict about the prices of their products. The most i have ever seen is a 5 dollar difference.
     
  4. mpw thread starter Guest

    Joined:
    Jun 18, 2004
    #4
    iPod mini's £152 ($286) from Apple or £185 ($348) from the reseller that's £33 ($62) or 21.5%!!

    It was the mini I was after so took note of the price but didn't note all the other flavours.

    Maybe instead of grassing them to Apple straight away I'll squeeze them for the mini free or threaten to go to Apple.
     
  5. An naoscaire macrumors newbie

    Joined:
    May 26, 2004
    Location:
    Dublin, Éire
    #5
    That seems very odd especially since your location seems to be Jersey, which correct me if I'm wrong, is a tax haven?
     
  6. timsq macrumors regular

    timsq

    Joined:
    Feb 27, 2004
    Location:
    New Orleans
    #6
    40 points or it ain't worth it.

    There's just no room for discounts or new products and the edge the non-Apple® etailers have is free junk. I gotta give to the Jobs, he's ruthless with the brand price. But my stock is booming.
     
  7. TLRedhawke macrumors 6502

    Joined:
    Sep 17, 2004
    #7
    Actually, the contract that Resellers sign with Apple to become Apple Authorized Resellers does allow them to set prices however they choose. The only reason most of them don't do this is because of the prevalence of the Apple Store, whether physical, or merely online. I work at an Apple Authorized Higher Education Reseller, and when new products are announcd, we actually check the Apple Educational site for pricing, because at that point, one cannot complain about pricing, and the benefit is clear by the item being physically there. That being said, to do that, we usually make less than 8 points on Apple products. Apple thoroughly screws its resellers with such ridiculous costs. Moreover, the margin we're stuck at isn't constant. We've stopped selling the combo drive eMac because Apple set it at 0 points. That's right, the price they want to sell it to us at (which is a lower cost than regular resellers), is the same price they list it for on the educational site. So, we would have to take a cash payment just to break even on it.
     
  8. timsq macrumors regular

    timsq

    Joined:
    Feb 27, 2004
    Location:
    New Orleans
    #8
    Wow

    That is so lame. You really are screwed if you resell the Apple®. Value added to box kicking is good enough to float? I guess you can make it up in volume. I still see good stock prices. Maybe that's because Apple® is more of a fiancial services company than a computer company.
     

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