inkswamp said:
Really? It's well-known, is it? And where do we get that information? From unbiased sources or from resellers themselves? Hmmm...
Apple isn't in the business of giving resellers price breaks or making life easy for them. Anyone going into that line of work with that belief is in for a big surprise. Resellers must make their business worthwhile to customers by offering excellent service and a shopping experience that makes people ignore any supposed disadvantages. Services ranks very high on the list of customer expectations. What has driven me away from most Apple resellers is not prices or inventory shortcomings, but inattentive service and a sense that the people at a given business just don't give a rip about what I'm there for.
Yes, there are exceptions, but a majority of what I've dealt with tells me that this is typical amongst Apple resellers. If Apple can do a better job and they are putting resellers out of business because of it, then I have no sympathy. If the need wasn't there, Apple wouldn't be rushing in to fill it.
Some of us do have experience as Apple resellers (and in retail in general). Like it or not.
And yes, Apple is not there to give breaks to resellers, but there are legal and ethical considerations that make some of Apple's actions questionable. We are not talking about a manufacturer that offers special terms to a big box store due to their volume. Even that does not mean success, look at Best Buy. It wasn't just sales that dropped the Mac program, it was everything else.
And then there is the consumers demands. "You" as a consumer want service. But the consumer is unwilling to pay for that service in general. Just look at threads here about cheating the state on taxes, or trying to get EDU pricing when they don't qualify. So your comment in this thread about people willing to pay more is less than accurate, at least in from what I see in a major urban area like DC.
In the end the service that one gets from a mall Apple store is no better or worse IMO than what the worst resellers are providing.
I will say that some of my views are also based on selling in the photographic arena. In the end though retail is retail. The number of customers IMO that are willing to pay the price for service is shrinking. And resellers are responding by cutting the services provided.
Object-X said:
Oh, well. That's the way it goes in business. No one has a "right" to a certain business. They want to make money selling Apple products, that's great, but circumstances are making that a diffecult business decision. These guys are all bent out of shape and blaming Apple, but it really isn't Apple's fault. The reason they can't get product is because there isn't ANY!!!!!! Apple can't make their products fast enough. They are literally exploding on the scene and market demand is extremely high. Of course Apple is going to favor their stores, they must, it is only good business sense. They are trying to expose the general public to their products in a very hands on way and these Apple Stores are crucial to their continued success. But how many Apple stores are out of product? And then people leave mad and upset, but it's just plain old supply and demand; huge demand low supply. Apple resellers are victims of Apple's success; they want a piece of the pie but there is only so much pie to go around. I am sure if Apple had the products they would love to get them out to resellers, but they don't. They need to stock their ever increasing store presence first because this is more important for Apple's continued growth and exposure. If selling Apple hardware is your only business, well, right now that's not really a good business to be in. The small guys will die off and the larger resellers will pick up the slack; that's the way it works in the real world.
You have some good points. Yet you have not seen the contracts that I have over the years that Apple had their resellers sign. Back in the original iMac days, a reseller could only return/stock balance/price protect one percent of their total purchases of that unit. How is a reseller supposed to keep an in stock inventory and compete with changing technology at the same time?
Doctor Q said:
The big question is what the long-term effect will be as Apple stores displace independent retailers, or as independent retailers adapt to compete with Apple Stores in their neighborhoods. Each type of store has something to offer, similarly to the tradeoff between big chain bookstores and independent bookstores, each with their advantages and disadvantages. But independent stores can't always afford to compete, not having the deep pockets that a big company has to weather a lull in business or a particular store earning less than others. I'm sorry to hear accusations that Apple is being unfair to their other resellers, and I hope they resolve issues like this.
Apple stores offer some third-party products, but independent retailers often have the opportunity to adapt more quickly to local demand, offer more products that might compete with Apple's, and to provide personalized service.
What you see is the "malling/big boxing" of the retail sector. Resellers are not looking for handouts. They are looking for a more level playing field. Equal access to product. Equal price protection/product return policies.
You are right on meeting local demands. But those days may be limited. For a local reseller may offer the ABC Mac mini TV/DVR box, and can only offer it at "retail". They get shopped for their knowledge and for the customer to touch it. In the end they lose out to the internet shops that "save" on taxes and operate on thin margins. All the while we hear complaints that the staff at the stores are weak. Weak staff IMO, based on experience, is due to low wages. Low wages are due to profit motives, but more due to people with knowledge not wanting to work for those wages.
Not wanting to take this to a Political Forum level, but look at the Guest Worker Program that is being proposed. They want to allow immigrants to be able to take jobs that Americans will not take. Why will not Americans take those jobs? Could it be the low wages and poor working conditions? In the end you get what you pay for.
elo said:
Independent retailers can compete just fine with Apple Stores if they are good enough. In NYC, many people who live downtown will bypass Apple's SoHo store (which is fantastic in its own right) to go up to Tekserve in Chelsea. Tekserve can repair anything, offers prices fully competitive to the Apple Store, and offers bundles that Apple doesn't. They also offer professional bundles (especially for audio and video applications) that are beyond the realm of what Apple touches. And the place is big, beautiful, and fun to visit.
Apple simply raised the expectations to the point that stores that some stores can't compete. It has nothing to do with pricing. (It may have something to do with delivery, but only because stores that don't sell much would be prioritized behind stores that do.) I would suggest that everyone choose the *best* store in their area, and let the economy take care of itself.
elo
This goes to my argument of resellers needing to move towards services, and bundling. Not all are able to afford to do that, or have the demand for that type of service or product.
This discussion also has to do with the protection of living wages. Resellers by far offer better wages than the mall Apple stores. And outside of some of the examples given, they provide more service.
What we have is the willingness of the public to allow their shopping experience to become nothing more than what they expect from buying a Double Cheese Burger from McDonalds.