Reseller May Take ‘Hit’ When Apple Arrives

December 9, 2008

The local Apple reseller in Santa Barbara (Calif.) may see his sales drop 30 percent in the first year after a new Apple retail store opens in the city next Spring. The CraigSmithBlog.com Web site interviewed Mac Mechanic owner Mike Bishop, who estimates Apple is spending $2 million to reconstruct the building at 928 State Street, and signed a 10-year lease for $67,000 a month. “The future looks kind of bleak,” Bishop told Smith. He recently purchased the building he was formerly renting, and renovated the interior to closely match Apple’s own stores. He says his profit margin is just eight percent, which Apple stores can undercut simply by offering the company’s standard 10 percent educational discount. “It’s not fair!” Bishop said. Resellers in other cities have seen a 20 to 30 percent decline in business after the arrival of an Apple store, he said. See a construction photo and read the full story here.

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