[NPMUG] Thoughts on New Apple Store

Patrick Cranston patrick at cranstoninc.com
Thu Jan 21 06:14:23 MST 2010


Since I posted last night about the new Apple Store opening in Ross  
Park Mall later this year, I have received several emails from people  
suggesting that this new store will kill or significantly hurt  
MacOutfitters in Cranberry.  The argument is that simply because this  
Apple Store will be about a half hour from MacOutfitters it will drain  
business from MacOutfitters.   I don't believe this to be necessarily  
true.

Apple currently has two Apple Stores in Pittsburgh ( Shadyside and  
South Hills Village ). Since the Apple Stores have opened about 8 yrs  
ago, MacOutfitters has only grown.  This is primarily because during  
the last 8 yrs the number of people buying Macs has significantly  
increased.  In 2002, Apple sold about 3 million Macs.  Last year Apple  
sold 10 million Macs.  With that amount of huge growth it's only  
natural and good to see a growth in the number of places selling Macs.

The Apple Stores only help sell more Macs to more people.  In fact,  
MacOutfitters has opened a brand new location downtown in the past  
year.   This store is closer to both the Shadyside and SHV Apple  
stores than Ross Park Mall is to Cranberry.  It's only 10 mins from  
the Apple Store Shadyside.  If just being close to an Apple Store was  
the kiss of death, then MacOutfitters opening a store downtown doesn't  
make sense.  Also, BestBuy in Cranberry has had a "mini Apple Store"  
staffed by Apple Employees for at least year now and that is a stone's  
throw from MacOutfitters.

The fact is that the demand for Macs is growing and Apple is  
increasing their retail presence to meet that demand.  I believe that  
a rising tide lifts all boats.  It also creates more competition.   
Just because a company was there first, doesn't mean it has the right  
to be there alone.  I believe that the Apple Stores have made  
MacOutfitters better.  Competition always makes business better.   
MacOutfitters has to find ways to "compete" or offer services that the  
Apple Store can't.  Having worked at the Apple Stores, I know they are  
limited in what they can and can't do.  They  have very little  
flexibility as they have to listen to mandates coming down from  
corporate and change takes a long time to happen.

Apple Stores are very good at what they do - selling Macs, but I see  
no reason why MacOutfitters can't be just as good.  The fact that they  
have been around for 15 yrs proves they know how to sell Macs as  
well.  However,  this is business and if the only reason they have  
survived selling Macs is because they were the only game in town then  
they will fail as Apple expands it's retail operations.  It's the  
consumer ( us ) not Apple that will determine the success of  
MacOutfitters.

Apple doesn't sell for less than retail, they don't even advertise  
their store locations in their multitude of print, internet and TV  
advertising.  The playing field is actually quite level for  
MacOutfitters.  They have to compete on service and their ability to  
offer 3rd party products that Apple doesn't carry.  If they can't  
provide a better or equal service product than Apple then they will  
fail because consumers will choose to go to the Apple Store.

I believe MacOutfitters will do just fine as long as they maintain or  
increase their service quality and offer 3rd party hardware that Apple  
doesn't carry.  Their ownership is in the stores and can very easily  
make changes that will make MacOutfitters unique and in some ways  
better than an Apple Store.  Gone are they days when most people had  
to drive 45 mins or an hour just to see the latest Mac hardware.  That  
is a a good thing for Apple, MacOutfitters and most importantly the  
customer.




Patrick Cranston
Cranston Consulting, Inc.
888-813-5558
www.CranstonIT.com
patrick at cranstonit.com
Twitter: @cranstonIT

Unlimited Support for your Macs, Data Backup and Training Classes for  
one low price.  http://www.cranstonit.com/home

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