Canadian Apple resellers call its quits as Apple retail heads north

[AppleInsider]

One of Canada's oldest and most respected Apple Resellers will soon close its doors, AppleInsider has been informed.

The owners of Waterloo, Ontario-based Apple Reseller and Authorized Service Provider, First Avenue, have decided that after 20 years of servicing their Macintosh community, they will not continue.

According to one tipster, the store will cease all operations by March 25, but the reasonings behind the closure were never made public. Over by the store's cash register, a small sign notes that no new product orders or repairs are being accepted. In an e-mail to AppleInsider one of the store's staff confirmed the closing, but did not offer details.

"This will leave a gaping hole in the middle of Ontario for sales and service of Apple products," said one member of ehMac, a website dedicated to Canada's Macintosh Community. In a message board thread, eMac members have begun posting some alternative suggestions for obtaining Macintosh sales and service in Ontario's Technology Triangle.

First Avenue's departure from the Macintosh business comes on the heels of similar news announced recently by another Canadian Apple reseller. Ottawa-based B.Mac Le Magasin Inc. had closed three of its four stores in the Montreal area by September, laying off 37 of 52 employees. The reseller's exodus conclude earlier this year with the auctioning of its assets.

It's unclear precisely why these Canadian Apple Resellers are suddenly jumping ship, but sources close to some of the retailers hinted that more and more customers have begun ordering from Apple directly. They say Apple has failed to provide adequate supplies of its latest and hottest products to the resellers, which has driven customers to buy from stores like Best Buy and the Apple online store, where they are more likely to find the goods they seek.

In the meantime, Apple's retail expansion into Canada is heating up. As first reported by AppleInsider last month, the company's inaugural Canadian retail store is scheduled to open May 21st at the Yorkdale Shopping Center. And Apple has its sights on at least 3 other shopping malls in the Ontario area, sources say.

The company last month continued negotiations for a retail space with Cadillac Fairview, realtors for the Toronto Eaton Center. The negotiations for the Eaton Center space have been described as "long" and "drawn-out." A deal is reportedly in place but has not yet been inked.

[ View this article at AppleInsider.com ]

[elbay]

It's a shame to see people who have supported Apple for so long, get cut off at the knees by the very company they supported.

I sincerely hope Apple made some effort to compensate this company.

Offering staff of this store employment at the new Apple store would be a good start.

[ipodandimac]

well quite honestly i jsut think its easier to order from apple. always have, always will. especially with all the mindless PC users switching, it seems very likely that they would only know to order from the online store, apple retail store, or an ipod from best buy. a reseller could have all the supplies in the world and i dont tihnk it would make a difference. i honestly can only name 2 resellers off the top of my head (macmall and macconnection). I understand that there could still be shady reasons as to why these resellers are having to close, but it doesnt surprise me that people are going straight to apple now.

[Gene Clean]

Originally posted by ipodandimac
especially with all the mindless PC users switching,

You know, Apple computers are PC's too. Some people just think they're something else. But they're not.

[ct77]

This is my local reseller and I know some of the staff there personally -- if this is actually happening it is truly unfortunate.

That being said, the writing was on the wall years ago -- my own 15" FP iMac, that I am typing on now, was purchased at a Best Buy type store (Future Shop) in the same city as First Avenue, precisely because, in 2002, First Avenue did not receive stock from Apple in a reasonable amount of time.

Now has Apple purposely been shorting First Avenue of stock? That is another question entirely, and probably not a foregone conclusion either way.

[edit for typos]

[hugodrax]

I ordered my Mini online. I think Apple is probably trying to kill off all independent retailers and replace them with Apple stores, and primarily sell online (ie: Dell style) and sell low end models like Minis in places like Bestbuys etc.. Makes sense from a corporate perspective.

[sunilraman]

but one problem i have is dead pixels, that is, if i order online and get a dead pixel, that's not cool... that's why i have learnt to check the screen of the display or laptop at the dealer/apple store before accepting it...

kinda off topic but y'all will figure out what i'm trying to say

[grahamw]

I'm a student at the University of Waterloo; we've got two Mac resellers on campus (math building and the student life center) - both of these places can take units in for service and they can order just about any Apple product you need (with your discount providing you can cough up your card).

ct77 - chances are, if you bought that iMac in 2002 I was the one who sold it to you There were only two of us who gave a damn about Macs in Future Shop back then - a chap named John and myself

I haven't been in to First Avenue in years. The last time I was there it was a pretty hostile atmosphere. All of the cross traffic that we used to get from them would be folks muttering nasty little things under their breath about those so and sos at First Ave - I felt it a bit myself, but it could have been an off day. I used to send folks there all the time (a good majority of the people looking for a decent computer for actual computing just don't fit into the $500 emachine mould

It's sad to see anyone leave the community, but given the way Apple has been providing stock (even to us at times) I'm not surprised. I WILL be stopping by after class tomorrow to see if there are any deals to be had.

[MacDuff]

Just to be clear, here; First Avenue Computers is well over an hour away from the Apple Store location. And Bmac's stores are over five hours away, each. I don't think Apple coming to Toronto is going to drive a far-off Mac retailer out of business.

[grahamw]

But... Toronto IS Canada, right?

I can only pray that we get an Apple store in the Kitchener/Cambridge/Waterloo area. I'd wear a turtleneck, jeans and specs every day if I could get a job at the Genius Bar

[sunilraman]

Originally posted by MacDuff
Just to be clear, here; First Avenue Computers is well over an hour away from the Apple Store location. And Bmac's stores are over five hours away, each. I don't think Apple coming to Toronto is going to drive a far-off Mac retailer out of business.

hmm and the Apple Store hasn't even bloody opened right? and already the dealer is closing up and blaming Apple...

i think either way we haven't got enough info to know what is really going on, and I'm not saying Apple is perfectly innocent either way with regard to inventory supply to dealers

[ct77]

Originally posted by grahamw
But... Toronto IS Canada, right?

I can only pray that we get an Apple store in the Kitchener/Cambridge/Waterloo area. I'd wear a turtleneck, jeans and specs every day if I could get a job at the Genius Bar

We can dream, but an Apple Retail Store in K-W is probably just that.

[ipodandimac]

Originally posted by Gene Clean
You know, Apple computers are PC's too. Some people just think they're something else. But they're not.

well i meant wintels.

[Messiah]

With regards to the stock situation, there's nothing new here – Apple's delivery were always a dollar short and a day late. I personally think that whoever's in charge of getting the kit made and delivered should be taken out in to the street and shot.

This problem goes back 10 years.

As for Apple stocking the AppleStore over it's dealers that wouldn't surprise me at all. It makes sense to cut out the middle man and keep all the profit for yourself. At the end of the day, it doesn't matter what level of service your local dealer offers if they can't compete on price or get hold of the stock. Apple realise this and they are simply encouraging the situation.

STEP #1
Keep all the good kit for yourself, and bleed the Apple dealers dry.

STEP #2
Products like the Mac mini sell themselves and will "switch" users without the need for Apple dealers.

STEP #3
Flood supermarkets with products like the Mac mini and iPod Shuffles.

STEP #4
Sit back and watch the money roll in as the "Mac Virgins" clamber for the Mac minis and the "experienced users" buy the Power Macs and iMacs.

[Aurora]

Originally posted by elbay
It's a shame to see people who have supported Apple for so long, get cut off at the knees by the very company they supported.

I sincerely hope Apple made some effort to compensate this company.

Offering staff of this store employment at the new Apple store would be a good start.

Give me a break, if you have followed Apple for years then you know they could give _ _ _ _ about this company going out. I agree that Apple cant seem to supply its resellers but can its own stores. I think Apple just may loose that big law suite or settle out of court. I love Apple but they arent any more ethical then Microsoft.

[mdriftmeyer]

Welcome to Business 2.0.

This is pathetic. Competition for sales is what retail is all about. If they are ready to cowtail before the first round than by all means no loss.

You people act as if the U.S. is littered with Mac stores. Spokane has one half-ass Mac store inside a CompUSA. The talent is abyssmal and they deserve the minimum wage rates.

Anyone talented in the IT industry jumps ship into specific fields to make a living, not to subsidize their low income lifestyle and get discounts on computer parts.

Take a look at the Map of Apple Retail stores. Look where they aren't located, compare population densities and determine if there is a market.

Ontario is enormous by scale and large enough to support clone after clone after clone PC shop but not independent Mac resellers and the Apple Store?

My favorite whiner was when I worked at Apple and across the street was a reseller.

Did you ever think that being 100 feet away from the main office would eventually mean you'd have to compete? I sense a Lightbulb materializing somewhere.

-- Offtopic but needed since this industry is still going through a major shakedown---

This industry is full of whiny, ill-equipped, poorly educated and often overpaid brats who think us formally educated engineers worked too hard since they got to do the same job. Well guess what? Which numbnuts will get canned first, more often than not? The one who can critically think and solve problems or the one who slept through accounting and mass comm?

I'm not saying a formal engineering degree is a gold ticket, by no means. However, if you notice over 90% of all jobs are currently looking for only Senior Engineers with enough skillsets to fill five jobs.

When this industry completely thinks like the rest of the business world--business is competitive and results are based upon revenue sales--then just maybe we'll get some long-term stability in IT careers.

--End of offtopic rant---

My apologies to all that I bored.

[Messiah]

Originally posted by Aurora
I love Apple but they arent any more ethical then Microsoft.

Bingo.

[sunilraman]

Originally posted by mdriftmeyer
Welcome to Business 2.0.

This is pathetic. Competition for sales is what retail is all about. If they are ready to cowtail before the first round than by all means no loss.

You people act as if the U.S. is littered with Mac stores. Spokane has one half-ass Mac store inside a CompUSA. The talent is abyssmal and they deserve the minimum wage rates.

Anyone talented in the IT industry jumps ship into specific fields to make a living, not to subsidize their low income lifestyle and get discounts on computer parts.

Take a look at the Map of Apple Retail stores. Look where they aren't located, compare population densities and determine if there is a market.

Ontario is enormous by scale and large enough to support clone after clone after clone PC shop but not independent Mac resellers and the Apple Store?

My favorite whiner was when I worked at Apple and across the street was a reseller.

Did you ever think that being 100 feet away from the main office would eventually mean you'd have to compete? I sense a Lightbulb materializing somewhere.

-- Offtopic but needed since this industry is still going through a major shakedown---

This industry is full of whiny, ill-equipped, poorly educated and often overpaid brats who think us formally educated engineers worked too hard since they got to do the same job. Well guess what? Which numbnuts will get canned first, more often than not? The one who can critically think and solve problems or the one who slept through accounting and mass comm?

I'm not saying a formal engineering degree is a gold ticket, by no means. However, if you notice over 90% of all jobs are currently looking for only Senior Engineers with enough skillsets to fill five jobs.

When this industry completely thinks like the rest of the business world--business is competitive and results are based upon revenue sales--then just maybe we'll get some long-term stability in IT careers.

--End of offtopic rant---

My apologies to all that I bored.

i take it that you are a talented IT engineer. just curious, how might that translate into a sales-oriented career, eg. at Apple dealerships? have you been involved in sales quite a bit?

look forward to hearing from you and no, i was not bored by your rant, it wasn't really off-topic. off-colour, maybe, but not off-topic...

[techno]

That is life. Things change and you have to adapt or lose out. Of course Apple is trying to make it's retail chain the premier source for it's products. They have put up with too many years of others doing such a poor job at selling their line. Who better to display the beautiful products than the designers of those beautiful products? The proof is in the results. Apple is prospering more than ever. Do you think Apple should not move into areas that already have retailers? What they are supposed to move into areas where they won't do any business? Come on, this is stupid.

BTW B.Mac in Montreal closed down not due to a shrinking market as they claimed. They went under because of their poor poor service. Many of my clients are ex customers of theirs. Too many retailers act like dishonest mechanics trying to increase their sale instead of making the customer happy. Trust me, if a retailer wants to survive, they have to do more than sell. They need to provide additional services and make their customers trust them and show them they really care. People will always prefer a company that they have a good relationship with and can trust.

[editdroid]

Originally posted by techno
BTW B.Mac in Montreal closed down not due to a shrinking market as they claimed. They went under because of their poor poor service.

I have to concur totally with that assessment. You could stand around for an hour in that store without any sales staff talking to you or even looking approachable. They always seemed to have more important things to do. Trying to pay for your purchases always took a very long time with some kind of extremely complex computer system and entering all kinds of data and the staff moving very slowly. I always dreaded this store.

Always out of the thing you need.

Another Bmac story.. a tiny screw dropped out of the side of my Powerbook. I took in in to Bmac. "Do you have this screw?" "No. Apple doesn't sell screws". "So what can I do?" "We can change the whole back of the computer." " How much would that be?", "$500." I come in for a screw and he's trying to sell me something for 500 bucks.. that's not the kind of screw i had in mind...

You cannot build a business like that on a product alone. You have to offer _something_ in the store. A level of service. Otherwise there is no reason not to buy a commodity like a computer over the net.

Horrible store with no sense of the customers needs at all. One cannot judge the viability of apple retailers in Montreal based on that venture which was essentially flawed.

jason

[mikef]

You mean because of Apple's online stores, I cannot start my own Mac store, treat customers like shit, and gouge them at every corner and continue in business? Damn, I guess I better try and find a real job. </tongue in cheek>

Obviously, I've not been to every Mac dealer, but I've yet to have an overly positive experience with any of them.

My local dealer (the one who took 3 weeks to fix my 3 week old iBook) didn't impress me. My first experience was trying to buy an AE card for the same iBook. They wanted $149, Apple wanted $109 (Canadian dollars). Uhh, get a clue!

We all know that Mac customers typically have a few more $$$ to burn, but that doesn't mean they should be gouged the way some of these dealers do.

I'm all for capitalism but gouging is gouging whether it's a computer store or a car lot.

Any dealer that has something to offer doesn't need Apple hardware sales to survive... there will still be off the street customers. Keeping them is the job of a successful store.

[sunilraman]

i understand where the last 3 posts are coming from. in australia, there is a big increase in interest in Macs, and some dealers, big or small, just don't get it, and just can't deal with moving beyond some sort of "niche mac thing"...

in sydney i have experienced some decent big and small dealers, and some sh1t big and small dealers... hmm but apple is not really 'threatening' any retail presence yet....

[Tulkas]

Went into FirstAvenue today. It is their last day open. Pretty sad. A few people came in who hadn't heard about the closing and they were pretty shocked.

They didn't have fantastic discounts, which I thought they would. They had some really interesting service parts available, and some iPod accessories, but not too much else. The only new computer they had was a 17" iMac G5 that a customer had cancelled. It was pretty loaded: gig of memory, Airport and BlueTooth, BT mouse and keyboard. Retail price was about $2350 Canadian and they were selling it for $2100. So not a tremendous discount, but worthwhile for someone. The weatherman from our local TV station was in with his wife and it looked like they would probably buy it. If no one took it, one of the owners was going to take it home.

On a positive note, the sales guy there, can't remember his name but he's been there forever, said that another Apple retailer would be opening in the area. He wouldn't give anymore details than that, but I got the impression some of the staff were contemplating opening their own store. Hopefully they pick a better location, because, as much as I liked FirstAve, they were out in the bush, right across the street from a farm...not the most convienient location for many.

I have a lot of good memories of FirstAve and am sorry to see them go. I always recommended friends go there. I helped an older couple buy their first computer, an original iMac, from FirstAve. And I took a friend who was off to university, and his dad up there a few years ago and they ended up walkig out with their first Mac-a top of the line G3 Powerbook. I don't feel as comfortable recommending friends to BestBuy or FutureShop. Many people who ask me for advice on computers feel lost in those big stores. There is a niche for a Mom and Pop Apple retailer. Hopefully the niche is large enough to support the new Apple retailer if/when they open.