Services
It doesn't take an expert to realize that because of ever shrinking margins of PCs, most computer stores are relying on the services that they provide to keep them afloat.
I worked at CompUSA. The largest margin I saw on PCs (HP, Gateway), was around $100. The margin on services was typically $65-300. Without any services, the store was not making squat, which is pretty sad. Accessorizing without services could keep them afloat, because of the markup (USB cables are still the most expensive: cost is $1.75 and retail was $17.24). So many accessories are marked up beyond anything that you could imagine (most surge protectors are almost 2x retail than cost).
Apple makes wonderful margins, as I've heard. I remember at one point reading many years ago that a power mac had a $450 margin, not to mention AppleCare, and all the other services Apple has to offer. It's quite obvious that the companies that survive are the ones that not only design and sell, but it's the companies that choose the premium hardware, brining down the cost for consumers. The ideology of "stack 'em high and sell 'em cheap," is a thing of the past. Companies such as CompUSA relied too heavily on volume than on quality. Forget customer service and deals, a company that even sells tons of cheap stuff at low margin is doomed to fail in any market. Creating a large margin and loyal fan base, which not everybody can manage, is a speciality of Apple.
*reminisces*
