Apple and Circuit City to make a second go at Mac sales
It didn't work five years ago, but a rejuvenated image and fast-approaching holiday shopping season have returned Apple Computer to Circuit City, where this month it will again try its hand at selling Macs.
Starting next week, a handful of Circuit City stores in the eastern U.S. will feature a selection of Macs including MacBooks, Mac minis, MacBook Pros and iMacs, AppleInsider has learned. The initiative is part of a new pilot program, which if successful, Circuit City hopes to expand to many of its retail stores, people close to the electronics retailer have said.
Last week, select Circuit City employees were sent to Apple's headquarters in Cupertino, Calif. where they were paired with Apple Solution Consultants (ASCs) for a week-long training expedition. The goal of the program was train Circuit City reps to effectively market the Mac and its strong-points, rather than lure prospective buyers towards their own familiarities in the Windows PC isle.
"This is a pilot program that's just getting underway and we will evaluate how it is doing over the next several months," Circuit City spokesman Jim Babb told AppleInsider. He added that in addition to Macs, the retailer would also stock select Mac software titles and accessories.
Circuit City, the nation's second largest consumer electronics retailer, and Apple, the world's most recognized niche computer manufacturer, have run this course before. In July of 2000, the two companies announced they were teaming to offer Apple?s iMac, iBook and AirPort products throughout Circuit City's then 570 retail stores. But with Mac maker cutting the ribbon on 27 of its own retail stores the following year, the two companies mutually decided it would be best to go their separate ways.
Things could play out differently this time around, say insiders. With its brand now booming and the first signs of Mac market share gains peering through the clouds, Apple is reportedly considering a move that would pull ASCs from CompUSA boutiques -- a deteriorating model -- and reassign them to trendy Circuit City posts. Insiders say the Mac maker's relationship with CompUSA has been waning with each new Apple retail store it launches.
The move into Circuit City is just on facet of a much broader strategy from Apple, aimed at increasing the number of worldwide distribution points for its Mac product line. While the company's iPod digital music players can easily be located in over 40,000 shops, there are only about 7,000 locations where customers can purchase a Mac; and even fewer where customers can first take one for a test drive.
Earlier this year, Apple began testing a similar pilot at select west coast Best Buy locations. Like Circuit City, Best Buy has indicated that it is prepared to scale the pilot program "rapidly" if results prove strong. During a conference call in July, Apple said was "evaluating results" of the program but had nothing new to announce at that time.
An expanded deal with Best Buy, which operates more than 900 outlets nationwide, could add more than $400 million to Apple's top line each year, analysts have said. Circuit City, though smaller, could prove to be an equally fruitful venture with 600+ locations.
Starting next week, a handful of Circuit City stores in the eastern U.S. will feature a selection of Macs including MacBooks, Mac minis, MacBook Pros and iMacs, AppleInsider has learned. The initiative is part of a new pilot program, which if successful, Circuit City hopes to expand to many of its retail stores, people close to the electronics retailer have said.
Last week, select Circuit City employees were sent to Apple's headquarters in Cupertino, Calif. where they were paired with Apple Solution Consultants (ASCs) for a week-long training expedition. The goal of the program was train Circuit City reps to effectively market the Mac and its strong-points, rather than lure prospective buyers towards their own familiarities in the Windows PC isle.
"This is a pilot program that's just getting underway and we will evaluate how it is doing over the next several months," Circuit City spokesman Jim Babb told AppleInsider. He added that in addition to Macs, the retailer would also stock select Mac software titles and accessories.
Circuit City, the nation's second largest consumer electronics retailer, and Apple, the world's most recognized niche computer manufacturer, have run this course before. In July of 2000, the two companies announced they were teaming to offer Apple?s iMac, iBook and AirPort products throughout Circuit City's then 570 retail stores. But with Mac maker cutting the ribbon on 27 of its own retail stores the following year, the two companies mutually decided it would be best to go their separate ways.
Things could play out differently this time around, say insiders. With its brand now booming and the first signs of Mac market share gains peering through the clouds, Apple is reportedly considering a move that would pull ASCs from CompUSA boutiques -- a deteriorating model -- and reassign them to trendy Circuit City posts. Insiders say the Mac maker's relationship with CompUSA has been waning with each new Apple retail store it launches.
The move into Circuit City is just on facet of a much broader strategy from Apple, aimed at increasing the number of worldwide distribution points for its Mac product line. While the company's iPod digital music players can easily be located in over 40,000 shops, there are only about 7,000 locations where customers can purchase a Mac; and even fewer where customers can first take one for a test drive.
Earlier this year, Apple began testing a similar pilot at select west coast Best Buy locations. Like Circuit City, Best Buy has indicated that it is prepared to scale the pilot program "rapidly" if results prove strong. During a conference call in July, Apple said was "evaluating results" of the program but had nothing new to announce at that time.
An expanded deal with Best Buy, which operates more than 900 outlets nationwide, could add more than $400 million to Apple's top line each year, analysts have said. Circuit City, though smaller, could prove to be an equally fruitful venture with 600+ locations.
Comments
the manager pulled me into the office and told me straight to my face that he didn't care how knowledgeable i was about any product -- it was obvious that knowledge didn't matter -- the only goal was that a service plan walked out with every purchase. he told me he didn't get where he was by caring about the products or even knowing as much as the customers. he said he had a pitch for the service plans and that's where he made his money and how he had become manager in such a short time. he didn't care what the customer was looking at, just sell the service plan.
it was rather discouraging, to say the least. i told him that i didn't believe in service plans and could never sell one, then i stood up, thanked him for his time and left. they had someone else call me a week later to see if i was still interested in the job as my application and interview were favorable. i couldn't even come up with anything funny to say, i was so caught off guard. i simply said i didn't have time.
do they still intend to compete with AppleCare?
sorry, but for a lot of people now there are Apple stores within driving distance. i doubt anyone who is really interested in buying a Mac is going to buy a Mac from cc (except for possible extended, no/low interest payment plans). i expect, like last time, the cc workers will try to "switch" those interested in Mac to a more "bang for your buck" PC (it won't be so easy now with intel inside). i can't see how it could work out any better this time.
like stated elsewhere, i always expect to see the cc building up for lease. i can't see how anyone can stand to be assulted by the "salespeople" and actually complete a transaction.
all of this should have been expected considering the fact that you could only get the "e-one" e-machine knock-off of the original imac at cc and they had them sitting in the exact spot where they had previously had the last all-in-one Apple products.
aghh. well, its good for me. i'm in louisiana and the closest apple store is in houston, 4 hours away. at least i have a compusa about half an hour away that sells mac.
And yes i too believe that CC is in trouble. But since about 40-60 percent of their cash is made after Thanksgiving. Who knows it may be a HDTV Christmas.
last time cc was supposed to renew their Mac push, i applied for a part-time position, practically volunteering my time (four hours in their store wouldn't earn me what 45 minutes overtime at my normal job would have).
the manager pulled me into the office and told me straight to my face that he didn't care how knowledgeable i was about any product -- it was obvious that knowledge didn't matter -- the only goal was that a service plan walked out with every purchase. he told me he didn't get where he was by caring about the products or even knowing as much as the customers. he said he had a pitch for the service plans and that's where he made his money and how he had become manager in such a short time. he didn't care what the customer was looking at, just sell the service plan.
it was rather discouraging, to say the least. i told him that i didn't believe in service plans and could never sell one, then i stood up, thanked him for his time and left. they had someone else call me a week later to see if i was still interested in the job as my application and interview were favorable. i couldn't even come up with anything funny to say, i was so caught off guard. i simply said i didn't have time.
do they still intend to compete with AppleCare?
sorry, but for a lot of people now there are Apple stores within driving distance. i doubt anyone who is really interested in buying a Mac is going to buy a Mac from cc (except for possible extended, no/low interest payment plans). i expect, like last time, the cc workers will try to "switch" those interested in Mac to a more "bang for your buck" PC (it won't be so easy now with intel inside). i can't see how it could work out any better this time.
like stated elsewhere, i always expect to see the cc building up for lease. i can't see how anyone can stand to be assulted by the "salespeople" and actually complete a transaction.
all of this should have been expected considering the fact that you could only get the "e-one" e-machine knock-off of the original imac at cc and they had them sitting in the exact spot where they had previously had the last all-in-one Apple products.
You don't realize it, but Apple pushes their service plan as well. They all do.
this is going to be a disaster. almost everyone has their preference, mac or pc. now people who don't know what computer to buy will walk out with a mac or pc depending on which sales rep they get.
I take it you must think Apple selling Mac's is not good thing? The customer could say: What's the difference with P.C. and Mac? The sales rep. could respond: Well P.C. tend to cost less, but Mac's don't get viruses, and are easier to use.
I take it you must think Apple selling Mac's is not good thing? The customer could say: What's the difference with P.C. and Mac? The sales rep. could respond: Well P.C. tend to cost less, but Mac's don't get viruses, and are easier to use.
...or they could say, they cost the same and they both run Windows... can I wrap that up for you ma'am?
1. Apple doesn't pay the salespeople commissions; all the other PC companies do. No incentive in the world for them to sell Apple products.
2. There's no Mac software at Circuit City & Best Buy.
3. Nobody that works at Circuit City or Best Buy knows anything about a Mac.
It's as simple as that.
Hell, I heard Best Buy salespeople telling people to buy some crappy MP3 player that was supposedly "better" than the iPod. Why? Because they got commission to sell that MP3 player.
Thank God Apple opened up their own retail stores, where the truth can finally be told.
I live by a CC and use to wrok next to another one. The one I worked by went out of business and the one I live by never has any cars in the parking lot, but I believe it is still open. The Best Buy is always busy.
Similar to where I am. 1 closed Circuit City, and another that looks like a ghost town most of the time and has demoralized salespeople and scattered few clueless customers.
I live by a CC and use to wrok next to another one. The one I worked by went out of business and the one I live by never has any cars in the parking lot, but I believe it is still open. The Best Buy is always busy.
Same here in Oklahoma. The only Apple store is in an upscale mall. Which is cool, but a bitch of a drive and during the holidays...well don't get me started. We have a CompUSA here too and to tell you the truth, Apple is in the corner of the store and with very little marketing. It looks like when you walk into Wal-Mart. They hit you at the front door with crap that you don't need and as for Mac software or hardware or anything that is compatible with mac..good luck pal.
There are two CC in town and both are just like what Joel1044 said, ghost towns or are in a bad part of town. I just don't even think of going there to buy anything electronic or otherwise. Just dark, gray and not as inviting as Best Buy and sure as heck doesn't hold a candle to an Apple Store. My home away from home!
Apple is reportedly considering a move that would pull ASCs from CompUSA boutiques -- a deteriorating model
Which party is at fault for the deterioration? In my area, the Apple Store set up shop in an oldish mall within two miles of a CompUSA when there was another, newer mall in an area with more money twenty minutes away. The CompUSA store in question had a very good record of selling Apple gear. Apple has had a history of poaching the markets of the resellers that have supported them in the past, so I wouldn't be surprised if this was happening elsewhere.
Circuit City is in a slightly better position in that they have a stronger history selling the higher margin home entertainment/ car audio type gear, but as a downside their stores don't tend to carry higher end/quality items in the computer/digital accessory range (which is bad indeed considering how bad CompUSA is at carrying "hot items").
And while Apple does push their plans just as the retail stores do, I can tell you from experience that the box store plans tend to offer a lot less value for a lot more cash. Not to mention that the service you get tends to depend on the whim of the manager that day, and their infrastructure is a lot less organized. A possible exception is accidental damage replacement, but even then the value depends heavily on how careful you are with your equipment.
It's funny; in an economic environment where the "brand experience" and customer service are a central focus for differentiation, the CompUSAs and Circuit Cities of the world are doing everything they can to eradicate both from their stores.
Hell, I heard Best Buy salespeople telling people to buy some crappy MP3 player that was supposedly "better" than the iPod. Why? Because they got commission to sell that MP3 player.
Amen to that. If you don't think that the size of the cut is the raison d'etre for all commissioned salespeople, I've got a story for you...
Just today I was trying to buy an add-on component for a wireless audio system at a local big-box technology retailer. I clearly explained that I already had the main system and just needed a single component for it. However, once the salesperson saw the cost of the main system, he was trying to convince me to return my existing system and buy it again from him. Saying that was the only way I could get the add-on component. Ridiculous.
Don't believe for a second that any commissioned salesperson is going to recommend a Mac without some monetary incentive to do so.