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Subject:  Re: The mystery that is Apple Retail Date:  12/30/2002  4:48 PM
Author:  Plato90s Number:  80546 of 208496

"What you are saying is that Apple selling computers by a model which is fundamentally the same as that used for millennia by merchants in every culture (put your product on a shelf in an attractive location with lots of foot traffic and tell them how good it is, when sold, exchange the product for something of value: money nowadays) is somehow the same as the dot-com malarkey???


Paul "

As Steve Jobs and Apple like to repeat, Apple Retail is nothing like other computer stores.

Apple Retail has oversized physical space which provides comfort for shoppers, but is also wasteful of capital resources and increase lease expenses.

Apple Retail doesn't do the hard sell, a proven model for selling elctronics.

Apple Retail doesn't have sales, because it can't undercut the prices of the Apple Online Store.

Apple Retail pays its employees more than the industry average wages.

Apple Retail over-staffs by employing non-sales personnel to be on-site (aka "Genius Bar").

The successful computer retailers which are left, like Best Buy, don't do any of these things. They sell a wide variety of products - packed in tightly, employ minimum wage staff, and watches the bottom line closely. Apple Retail flies completely in the face of all of these conventions, and that's the way it was designed to be.

It's theoretically possible for Apple Retail to be profitable in time and without using accounting measures. If it does, it would have done so by doing the opposite of what every other computer retailer has done.
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