AppleStore tactics

Posted:
in General Discussion edited January 2014
I'm about to purchase a 20" iMac.



I recently received a voucher via e-mail offering me a discount of £70 on any purchase over £349 at the AppleStore.



I phoned my local Apple dealers and asked if they could match that, and they told me that no, they couldn't match it because there isn't £70 of profit on a 20" iMac and that they'd be selling it to me below cost.

Comments

  • Reply 1 of 11
    ilawilaw Posts: 15member
    It make you wonder why people go into business as Apple Resellers. Less than £70 isn't much of a profit on a £1,299 computer.
  • Reply 2 of 11
    a_greera_greer Posts: 4,594member
    Quote:

    Originally posted by iLaw

    It make you wonder why people go into business as Apple Resellers. Less than £70 isn't much of a profit on a £1,299 computer.



    You know what the margins on a ~$400 cell phone is at a place that is not a company store? Why do you think Radioshack salesmen are trained to not let you walk out of the store without at least 3 accessories?



    Same can be said for any cheap-o-box PC at best buy, they try to sell you blank media, cables, UPSs flat pannel displays, and warrenties, the computer is the loss in the equasion, as it likely is for the apple resellers.
  • Reply 3 of 11
    messiahmessiah Posts: 1,689member
    An Apple dealer once told me that they only made ~£50 on the entry level Power Mac. That was back in the days of the 400MHz Sawtooth G4, but I don't expect that much has changed since then. If anything, the prices have gone down.



    When I used to work in a computer store, the salesmen were given profit targets rather than total sales targets.



    The 'best' salesmen used to hang around in the cable aisle ? you won't believe the profit in cables. You could easily pay £30 for a SCSI cable, but the cost to the store was about £1.50 tops. The salesmen used to spend a lot of their time on the in-store computer systems searching through to find the products that had the highest mark-up.



    The customers used to complain that there were never any staff at the back of the store where all the computer displays were, but God help you if you wandered anywhere near the mouse mats!
  • Reply 4 of 11
    rokrok Posts: 3,519member
    sigh... this isn't exactly news in large purchase circles. when i bought my car, the salespeople were like "oh, but that's going to be below our invoice cost! we're losing money to sell to you! please don't make me drop it any lower!"



    of course, i am financing the bloody thing through their financial services, and 0 down, which means they're going to make PLENTY off the car over the life of it, AND they'll talk me into accessories before i leave, too.



    i don't understand all this concern over the resellers well-being. how the heck do all of these other pc-shops stay open? they sell other stuff, peripherals, games, have repair contracts (which i am convinced is the only way my pathetic apple reseller stays in business), and probably other areas of profit as well.
  • Reply 5 of 11
    nyguynyguy Posts: 19member
    Quote:

    I'm about to purchase a 20" iMac.



    I recently received a voucher via e-mail offering me a discount of £70 on any purchase over £349 at the AppleStore.



    I phoned my local Apple dealers and asked if they could match that, and they told me that no, they couldn't match it because there isn't £70 of profit on a 20" iMac and that they'd be selling it to me below cost



    WHy are you getting upset with the reseller. Apple is the seller that sent you the discount coupon. Its one thing to call a store, try going in and closing a deal. Im sure if you probably went into the store you could have spoke to the manager. Also, isnt it possible to use that coupon over the phone direct through apple?
  • Reply 6 of 11
    messiahmessiah Posts: 1,689member
    Quote:

    Originally posted by NYguy

    WHy are you getting upset with the reseller. Apple is the seller that sent you the discount coupon. Its one thing to call a store, try going in and closing a deal. Im sure if you probably went into the store you could have spoke to the manager. Also, isnt it possible to use that coupon over the phone direct through apple?



    Who said I was getting upset with the reseller?



    I can totally empathize with the resellers.



    My point is that Apple is willing to sell directly to the customer at a lower price than it sells to its dealers ? and that's an aggressive move that I've never seen before. It's one thing to deliberately withhold stock from the reseller channel, but it's another thing to undercut your resellers as well.



    And yes I am worried about the dealers, because once they dry up Apple will have a monopoly, and I for one don't like the sound of that.
  • Reply 7 of 11
    messiahmessiah Posts: 1,689member
    So, my dilemma is, do I purchase the iMac from the AppleStore and make a saving, whilst giving them a clear cut signal that I condone their business practices, or do I vote with my feet and support my local dealer?
  • Reply 8 of 11
    hirohiro Posts: 2,663member
    That's simple. If you believe business is business go with the best price/support combo. If you believe business is some moral game of required behavior which avoids all pretense to conflict of interest, then you should avoid buying Apple altogether.



    From the only standpoint that supports even asking the question in the first place, buying Apple locally will actually put more in Apples coffers than if you got the coupon deal. So you would be implicitly supporting any practices you sought to avoid and materially strengthening Apples position to further conduct business in a way you already question.



    It's a tough world. Moral dilemma? No. Really Apple is hoping to get you to buy a bunch of extra stuff/accessories when you use the coupon, for an overall higher profit. Not do a simple undercut of the local resellers. In the long run that's how coupons work and why they exist at those price levels.
  • Reply 9 of 11
    rokrok Posts: 3,519member
    Quote:

    Originally posted by Hiro

    Really Apple is hoping to get you to buy a bunch of extra stuff/accessories when you use the coupon, for an overall higher profit. Not do a simple undercut of the local resellers. In the long run that's how coupons work and why they exist at those price levels.



    i think that's true. whenever i find a way to shave cost off the machine, i use it towards either peripherals, or (if i've gotten really lucky with a large amount) applecare, which, of course apple LOVES.



    i finally got to go by the compusa in new orleans, and, you know, it wasn't half bad. they had at least one model of every shipping apple product except the mac mini, plenty of peripherals (though not all of them), and a pretty good selection of mac games. a far, far, FAR cry from the independent apple reseller down the road...
  • Reply 10 of 11
    Quote:

    Originally posted by Messiah

    So, my dilemma is, do I purchase the iMac from the AppleStore and make a saving, whilst giving them a clear cut signal that I condone their business practices, or do I vote with my feet and support my local dealer?



    Give me the voucher, I'll have no moral dilemma using it.
  • Reply 11 of 11
    the cool gutthe cool gut Posts: 1,714member
    Quote:

    Originally posted by Messiah

    So, my dilemma is, do I purchase the iMac from the AppleStore and make a saving, whilst giving them a clear cut signal that I condone their business practices, or do I vote with my feet and support my local dealer?



    I would never buy from the Apple store. We have a great re-seller here in the city, and they have everything on display for you to try out and play with. I have no problem paying more, expecially when they have good staff that help you make informed decisions. If they went out of business it would really suck.



    But I don't think it has anything to do with morality. If you need to save the money - go for it. You shouldn't put another companies finances before your own.
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