To: Richard Habib who wrote (22951 ) 2/2/1999 6:02:00 PM From: HerbVic Respond to of 213173
There is merit in having such a showcase. A positive atmosphere for the dissemination of Macintosh information and enthusiasm. A vehicle for Mac supporters on both the software and hardware production fronts to display their wares to consumers. Insulation from the ill conceived bias that favors Wintel's perpetual problem platforms. There is the problem of the stores generating a great deal of increased overhead. Conservatively about $250,000 a year per store for a minimalist approach. Not too bad if the stores pay their way with increased sales. The other big problem is similar to the one of the Online Store. If Apple starts opening up their own retail distribution centers, they run the risk of dealer flight. However, if it is clear that the dealers are a liability, then they should be expunged from Apple's retail distribution and public relations assets. How about this: Apple hires me to covertly start a new chain of computer dealers using Apple's seed capital matched dollar for dollar by investor capital. The investor/owner would be buying a franchise agreement designed around a store that concentrates on Apple products and peripherals for Apple products. He would enjoy direct links to the manufacturer for promotions and preferential pricing. Apple would enjoy design control over the franchise. Such a store would be placed in high profile, high traffic, strip centers next to super markets or movie theatres. They would offer a classroom full of networked Macs that could be leased for software training seminars, and be used by the store personnel for scheduled community based computer training classes. Buying a Macintosh could include the bundling of 3 hours of training for those who wanted to take advantage of it. The room could also be available to user's groups for meetings at no charge. One or more nights a week it could be used for the pure fun of network gamming for group members. Every conceivable professional use of a Macintosh, from page layout to video editing to sound studio and beyond, would be represented in booths for hire by the hour or day. All computers on display would be networked together, protected from tampering, and running a variety of demos managed from a server. A super service center would take in damaged machines and do onsite repairs under contract. Sales personnel would work for minimum wage plus commission plus spiff on promotional products plus an end of year profit share plan. Local vertical market VARS can be supported by the store's referral program, or even by establishing a booth presence within the store. An ironclad promise to honor any advertised competitor's price will leave the mail order centers with a sales tax advantage and yet give local customers an incentive to support the store locally. The store would have 4 profit centers: 1> Hardware sales. 2> Software sales. 3> AppleCare and repair. 4> Lease/rentals both in and out of store. Overhead would be: 1> COGS 2> Cost of depreciation of lease/rental equipment 3> Payroll 4> Lease of retail space 5> Utilities Apple could recoup its seed capital through low interest amortization, thereby giving the potential investor ample reason to accept the restrictive terms of the franchise agreement. Ya' know? I think I like your idea! Apple! Call me! HerbVic