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ComputerWare/Elite Chain Throws In The Towel
An anonymous reader writes "ComputerWare, a ComputerLand-like chain of stores specializing in Apple computers, went out of business in 2001. Thinking he sees an opportunity for expansion, the guy who owns Elite Computers, the long-time independent Apple computer store literally across the street from Apple HQ in Cupertino, bought the CW name and leased and reopened the SF Bay Area stores as 'ComputerWare by Elite Computers.' In 2003, Mr. Elite realized the reason the original ComputerWare owners got out -- Apple's engaging in 'unfair competition' -- and announced he is closing the chain along with his original store."
I was so thrilled to be there, though I had just missed the 5pm closing time of the gift shop, so I could only drive around in an infinate loop ;-).
Anyway, I remember seeing this Apple dealer across the street (well, go out the front of the complex, make two rights, and make a sharp left across the street). They had a large colored Apple logo (the old "rainbow" style, which I am sentimental for), even though every other Apple symbol around was the new metal/steel/aqua or whatever they call it. I found that strangely comforting that even though Apple changed their logo, their old one was always staring them right back into the doorway of the gift shop. I was glad they didn't change their sign.
Anyway, silly nostalgia and memories.. go back to your own business..
Never hit your grandmother with a shovel, for it leaves a bad impression on her mind...
My problem with their complaint is they're only putting forward one possible explanation for their failure. The Apple Stores are a stunning example of what to do right in a store. Computerware in the last few years have been run by a dodgy unhelpful group of people not interested in customer service, or bringing people into their store. That makes all the difference, even before issues like stock availability. I doubt it would matter how Apple handled them, they would have went out of business just as quickly the way they were being run.
Truth be known, if I were Apple I'd want stores like ComputerWare to be as far away from my name as possible, they certainly don't do it a service.
I happen to live within just a block of one of the ComputerWare stores and have watched it go out of business twice. The store did fair business. In visiting, there had been no time in the past several years that I was the only one in the store, and it was often crowded. If they didn't make money, it's because it was run poorly. They were always busy. Another local Mac shop had/has the same amount of foot traffic and remains open.
But let me also tell you a story of another place where I've lived, the Pacific Northwest. My family purchased three Apples (IIc, Mac SE, IIgs) over time from a chain called "The Computer Store." which has been in business there since the early eighties, and now is called "The Mac Store." They did a great job of presenting Mac in a clean and professional retail environment with knowledgeable salespeople. They probably still do.
The point is, that in opening retail stores, Apple initially opened bay area stores in Santa Clara and Palo Alto. That was the original plan, and it was fair. They put one near Apple's campus in Cupertino and another in a well-travelled shopping district in an affluent town.
But - they didn't put any stores in Oregon or Washington. Why? The Mac Store chain is doing very well selling Apple products, with satisfied customers. There was no great need for Apple to go into those areas. Apple just recently opened a Seattle-area store, and will likely go into Portland at some point. But they are being very careful not to but The Mac Store in trouble. They couldn't be more respectful of The Mac Stores' ability to stay in business.
In the Bay Area, ComputerWare was the only Apple chain, and when they went out of business (the first time), Apple suddenly a store into Emeryville (near Pixar HQ) and announced Burlingame and Walnut Creek stores. It was a solid, sensible move to retain customers. All the sudden here comes Elite, which had never given Apple much trouble before, and they spend tons of cash to rebuild the ComputerWare chain, putting stores into the same markets.
I never understood it - why would you invest so much money in competing with Apple in retail? Well it was pretty obvious that Apple was going to win that war, just on brand recognition. How could Elite ever earn the investment back selling low-margin Macs? They knew very well what they were getting into. Forget "unfair practices" - the ComputerWare stores were doomed, and Elite should have known it. It was a stupid move. Whatever they're claiming now is just legal cover for investors and future lawsuits.
Back when "Master of Orion III" had JUST been released for the Macintosh, I was REALLY desperate to get it. After being disappointed in CompUSA for not having it in stock, I resorted to calling ahead before trekking to other stores. My first call was to The Apple Store in Emeryville. They were more concerned that I, the customer, would be satisfied than they were on getting that sale. Though they didn't have it in stock, they actually referred me to three other stores that carry Macintosh software; one of which was the ComputerWare in Berkeley.
Unfortunately, none of them had MOO3 in stock yet either. A week later, I found myself in Emeryville for other reasons, and decided to stop in at the Apple Store to see if it was in yet. They didn't have it, but the store manager actually CALLED those same resellers (including again, Berkeley's ComputerWare) for me, while I was in The Apple Store, trying to get me what I wanted, EVEN IF IT WOULD COST THEM A SALE!!!
Shades of "Miriacle on 34th Street"; and certianly NOT the actions of a company that's hostile to its 3rd party resellers. More like one that places the satisfaction of the CUSTOMER at the highest priority. And that's but one more reason *I* will be staying with Apple.
Plus, as another poster noted, ComputerWare was NEVER very competitive in the first place. Basiclly, they were where you would go as a last resort if you couldn't find something locally, and you didn't want to wait for mail-order. Sure, they were exclusively Macintosh; so their staff was more clued in; but that was only ever relevant to the non-tech-savvy anyway. They also carried random Apple trinkets like T-shirts, pens, stickers, and the like. If you wanted crap like that, ComputerWare was the first place to go.
But if you wanted hardware or software? No way. ComputerWare, so far as I could ever tell, sold EVERYTHING at the full MSRP. Except for the Macs themselves, most of the hardware they sold could be had at Frys or even CompUSA at 1/3-2/3 the price. And they sold three and even FIVE YEAR OLD games at full MSRP price from when they first came out. This, when the same games could be had in the bargain bin elsewhere in town for $15; or you could wait for MacWorld to roll into the Moscone Center and get them for $5. (Hell, even The Apple Store marks down the low-end games!!!)
Like I said, I don't know what happened behind the scenes. But from where I sit, The Apple Store was pretty supportive of ComputerWare, even at the possibility of their own expense. And ComputerWare was never, IMO, the perferred store to shop in the first place. My bet is that they only lasted as long as they did because of some of the more zealous Mac users who perferred to shop at a Mac-only store, even if it cost them more money than schlepping down to Frys or CompUSA.
cya,
john
Imagine all the people...
And frankly, it's not Apple's fault that Elite sucked. The number of complaints from their (ex)customers I've heard about them is astounding. Their management decisions, sales tactics, and repair records are all the explanation I need for their failure.
I've worked at an Apple Specialist before, who realized that the Apple Stores interact with a completely different market, and that there are entire market segments almost exclusively available to Specialists. They've continuously grown and become the largest and best Reseller / Specialist / Service Provider within a good 100 mile radius. Yes, there was a supply shortage when the new iMacs rolled out.. yes, MacWhorehouse and a couple of the newly opened Apple Stores got a handful of units before we did... but we still got the first stock in the county.
Every Apple Specialist and Reseller has a rep who covers a certain territory and takes care of "his stores", the shops in his area. Ours ROCKED. Totally on top of things, took care of ordering issues, advised about ways to improve store operations, suggested places to get additional income (it's all about the service department, baby!), helped the store plan out long-term strategy, and always was checking in on how the store was doing.
If Elite hadn't been a shady operation and had run themselves well (As ComputerWare and a number of other successful Apple Specialists have), worked cooperatively with their Apple liaisons, maintained a better-trained staff base (rather than paying them a crappy wage + dinky comission.. I interviewed @ one of their stores once and took another job), paid attention to the market and where Apple was opening stores, and only re-opened Computerware stores in GOOD locations, things might have turned out differently.