>>Your argument is baseless. You're comparing a high margin computer store against ALL OTHER RETAIL STORES (on average) and saying apple's profits are unheard of.
Try comparing an apple store with a jewelry store and let us know how the figures work out. Compared to the average 500% markup on diamonds, apple looks positively rotten.<<
KIS -
If your view were correct, Apple's margins wouldn't make any difference, since according to you nobody buys anything there.
Apple's per-square-foot profitability has been compared with that of major electronics chains like Best Buy and Circuit City, and found to be far higher. That's what I'm basing my comments on.
You're basing yours on a period of time spent watching the computers at one Apple store, apparently.
Do you actually have any figures on jewelry store profitability? I don't. And how could that possibly matter? Doesn't it make more sense to compare Apple's stores with other similar businesses?
And by the way, clothing stores usually operate on a 50% markup, which far exceeds Apple's. So shouldn't they be more profitable per square foot, since they don't offer free Internet access?
Here's the bottom line. Retail store success is measured in profits per square foot. According to the published figures, Apple's retail stores are very, very profitable. Therefore, your belief that the majority of the people who go in there do so just for free Internet, and that they never buy anything, is unfounded and silly. Even if a lot of people do go in to Apple Stores for that, apparently very large numbers of people spend money there. You really can't deny that.
- Allen |
