Totally understand the margin requirements large legacy retailers have used, as I’ve worked for consumer product manufacturers selling into mass retail for 30 years. My point was more about how big tech, Apple in particular, gets a lot of grief for their margin requirements for the App Store, but legacy retailers with MUCH higher margins never come up as being an issue for consumers.
I’ll date myself here with the below that I’m sure many of you young whippersnappers will give me an eye-roll for sharing.
Imagine if we went back to having to buy apps (or programs as they were called) from retailers and app developers, most of whom are individuals or small teams with limited or zero experience selling consumer products. Not only would they have to figure out how to make the physical parts (CD, card, tape, etc.) to carry their program, not to mention the packaging and logistics to move of each product, but then had to sell the product to retailers with limited shelf space, limited purchasing budgets, limited time to talk, etc. And as a consumer, you’d go to one store hoping to buy a program, only to find that they don’t have it in stock, or have the wrong version you need for your system, forcing you to go to multiple stores trying to find what you want and need.
It’s crazy to me to think that there are generations of people who don’t even realize how things used to be [in retail]. It’s funny because just today I went back to look at a photo of the downtown of my childhood, because I was trying to find an image of an old pharmacy with a lunch counter I would go to with my grandma (for a future project I’m working on). Right in a row, there was a JCPenney store, next to it on one corner was a Ben Franklin and across the street was a Woolworth’s (which also had a lunch counter). Back then (in the 60’s and 70’s), shopping was what you did to find products and I would go with my mom or grandma, and eventually by myself, from store to store checking out what they had on shelf.
That exploration in the physical world has for so many of us now become an all digital experience. Even when we go to the store, we can know ahead of time if they have the particular item we’re looking for and the price (and how it compares to other retailers). Or we entirely skip going into the physical world and order online and have the product delivered.
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