Resellers speak out after recent dealer closings

The products Apple left behind in 2016

GameStop announced last week that it is compiling the number of stores that sell Mac products that are not productive in the United States, after just under four years after acquiring and expanding Apple Authorized Resellers and Service Providers. These pseudo-franchises serve as Apple stores in smaller markets.

During the collection of information, testimonies of all kinds were received. For example, that of a disgruntled owner of an authorized Apple services reseller. He commented that the underlying problems caused by the reduction of the Simply Mac program are "much deeper" than it seems. He noted that his own business is facing closure because Apple has "slowly throttled" him with margins and demanding "free labor."

Another Apple Authorized Reseller and Service Provider owner said these types of businesses have been "under siege" for years. This person, who wishes to remain anonymous, said that profit margins are "terribly low" and that Apple regards its authorized service partners as "nothing more than glorified television repairmen."

"I feel sad to say that I don't see this changing," said the anonymous witness. “Apple is very aware of our concerns and they do not seem to affect it. As an Apple distributor with more than 20 years, I thought that when Apple achieved success we would participate in it, but it is not like that, "added the affected.

Given these negative comments on the subject from partner distributors, they decided to reach out to a significant number of them in the United States and Canada, to see if there is any validity to these claims. Many of those who contacted refuted the accusations, pointing out that they are stable businesses with no growth. This learned that Apple has made adjustments that could explain the pressure felt by some sales and service partners, especially the smaller ones with fewer sales.

Since August 2015, Apple has cut profit margins for resellers, who will have to pay more up front for all products. Apple, therefore, renegotiates the difference of the checks that it sends monthly to resellers, but this method requires waiting longer to receive the payment in full. In other words, while margins did not change overall, sellers are forced to pay more upfront on Apple products to sell, restricting cash flow that could otherwise be used for day-to-day trading. day, employee salaries and other expenses. For smaller dealers, the change can be particularly painful.

Meanwhile, another distributor consulted believes that Apple's lackluster 2016 arguably was the result of falling reseller sales year-over-year. "I wouldn't say that Apple has been demanding any kind of free labor," a service manager told MacRumors. “However, every time customers are sent to us for iPhone repair, they don't pay well. We get paid more for ten minutes of Mac repair than for an hour of iPhone work »

"I am pleased to say that Apple really values ​​its service partners and has increased compensation for warranty work," said another distributor. “If you can achieve premium service provider status, you get good benefits along with higher compensation. Although it's not perfect, on the Apple service they really seem to care about us and are constantly trying to make things better for us. "

MacMedics is a premium Apple Authorized Service Provider with two locations in Maryland, in Severna Park and Lanham, and one in Philadelphia. "We are doing very well, we have expanded, and a new point of sale was opened in 2015. Apple gives us great guidance and support," said Dana Stibolt, President of MacMedics. "We are very encouraged by the increasing trends in the last year and, in fact, we are hiring more staff."


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