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26.10.2006 Why I love and hate Apple

I’m sure that those of you that read this blog on a regular basis already know that I’m a total Apple geek and if you don’t read this blog – well… now you know.

I’m a big fan of Apple hardware, from the Mac Mini to the iPod and everything in-between. If I could use Apple hardware for everything I do I would. I love that Apple make things different in a good way and I love that Apple aren’t afraid to innovate and improve their products.

But that’s also what I hate about Apple. Nearly three years ago I set up an online store selling iPod accessories because their were no stores targeting UK customers that made buying accessories quick and easy while stocking a large range of great stuff for the iPod. This was back when the 3rd generation iPod was still the latest big thing and the iPod mini was nowhere to be seen.

For the first year everything was good. Our business was going from strength to strength, we had loads of happy customers and stock was easy to come by, however it wasn’t to last. Soon Apple started improving the iPod range. It started with the iPod mini, then the 4G ipod, then the shuffle, then the Nano, then the 5G, then the new nano and then the new shuffle and if the rumour sites are to be believed, there’s probably more on the way before Christmas.

For Apple this is great – loads of new products for people to buy. For retailers and manufacturers this is a nightmare. Any retailer will tell you that to get the best prices on stock you have to buy in bulk from your distributor which is great if the item you are accessorising doesn’t change frequently or by a massive amount. But when that product drastically changes with every revision and you sell to a market that has to have the latest big thing (and I myself am guilty of this!), it becomes a problem.

You become presented with two choices:

1) Buy in bulk but be left with lots of dead stock when everyone upgrades to the next big thing
2) Micromanage your stock resulting in stock delays and higher costs.

Over the last two years, I’ve tried both approaches. Neither to much success. Customers always want their products yesterday which becomes impossible when you’re only ordering enough to get by but when you order too much you find yourself in stock limbo as soon as Apple bring out the next product line (for example, we still have loads of iPod mini cases which will be nigh on impossible to sell).

We probably could have scraped through using a combination of the above, but when our distributors started micromanaging stock as well it then became a problem to get the stock in which in turn caused delays in getting stock on our shelves and therefore delayed getting stock out to our customers.

For most businesses holding excess stock can be a cash sink as you have to pay for the stock up front but then wait for the cash to come in. Once the stock becomes obsolete it becomes impossible to sell as it would seem most iPod owners hold on to their old iPods but stop using them and then start accessorising the new iPod.

It’s basically for this reason that I’ve decided that enough is enough – while there’s plenty of money to be made from the iPod Accessory market, it’s a problematic market to be in and one that quite frankly, I don’t have the time to worry about any more and so, I’m closing down my store.

Of course, shutting the store flat out would just leave me with a bunch of stock that I don’t need and can’t sell – so I’m having one last closing down sale on my site – I’ve dropped the prices and made the ordering process a total doddle. Go checkout the site today and grab yourself a bargain! (please! the sooner I get rid of it all the sooner I can start with my next project!).

I’ve decided to kick back and relax for a few months, then when the new year rolls around, I’ll be starting from scratch with a fresh new site and a fresh new product range – one that won’t change every six months and leave me with dead stock

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