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How Big Retailers Milk the Profit out of Macintosh Desktop ComputersBY: Jessica Parker | Category: Finance | Submitted: 2010-04-09 09:47:48
It is said that iPhone gives as many as 60% profit margin to Apple. This is definitely an impressive achievement when it comes to expensive phones seeing that other manufacturers of mobile phone are struggling. The secret lies in the fact that Apple push their profit margins down on Macintosh desktop computers and laptops. They sell those at just a little more than cost. It seems like big retailers like Wal-Mart or Best Buy has no chance of competing with that. How can they create a package with big discount when Apple is already selling Macintosh desktop computers and laptops at cheapest price? One thing they can try is upselling. Now you wonder what upselling is actually. Here's an example. You buy a car and go in for the necessary oil change after your first thousand miles. A sales clerk then tell you that your car paint is risking rust due to the geographical location of your town, which is near the sea. So he suggests that, as long as you are there, you let the mechanic repaint your car with a premium rust proof protector. It costs only $99, after all. What you don't know is finishing a car with paint protector actually costs $20. This is what we call upselling. They invite you in for something you need for free but throw in more things at inflated prices. This is how Best Buy has been making some profit out of their sales of Macintosh desktop computers. The Geek Squad creates optimization packages for Macintosh desktop computers and laptops and sells them along with extended warranties at inflated prices. Extended warranty in itself is quite a redundancy. The system of warranty worked well when devices and appliances were expensive and yet repairing them is not difficult. At this time and age, gadgets are goods with quite high a turnover. They are cheap and one doesn't usually trouble oneself with repairing them when buying a new one is frequently cheaper and often, more satisfactory. For those who were used to the idea that electronics were expensive stuff and could easily be repaired, however, it is difficult to instill the notion of gadgets being disposable. These people are easy target for resellers who are looking to make a fast, extra $200. These useless contracts are sold at Best Buy, as well as $40 optimization packages. Macintosh desktop computers and laptops make their names as a computer that is amazingly easy to use and optimization is definitely the last thing it needs. Realize that services offering hard drive checking, installation of antivirus software and hardware checking on your Macintosh desktop computers or laptops are basically useless. Macintosh desktop computers and laptops are entirely different breed from Windows PC. No antivirus software is needed as one never heard of any virus attack against Macintosh desktop computers or laptops. Even a newbie Macintosh desktop computers or laptops user would be insulted at the insinuation that his or her computer needs an antivirus software. A new computer also come already checked for hardware faults. Doing another check at the store, especially at such a price is unnecessary. It is a shame really but the reality is major retailers do compromise their relationship with customers to scrape some extra cash. This, of course, results in losing loyal customers as well as jeopardizing the image of a certain product. What an unfortunate strategy. Article Source: http://www.writearticles.org/ About Author / Additional Info: By Maya Comments on this article: (0 comments so far)
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