Tag Archives: apple

If Homes were Marketed Like Apple Products

PC Operating System Market Share, March 2012

The Core of the Matter

With 31% of the smartphone market,[1] 66% of the tablet market[2] and 6.7% share of the very splintered and entrenched desktop market[3], Apple is a company that cannot be ignored. Among Generation Y, the Millennials and their younger followers the share is even higher. If you’re talking about real estate buyers, typically the more financially stable segment of the population, I’d posit that you’d see an even higher market share given to Apple.

Younger generations have avoided buying cars.[4]  The first major purchase they make will instead be a computer or smartphone. Technology is now their first introduction to installment payments for big ticket items. A computer is often the first item where a young consumer must buy with an eye towards maintenance costs and longevity. They may have to choose between a style leader something that’s less fashionable but more affordable. Basically, buying a computer is now the average Chicago consumer’s training for buying a house.

Apple has succeeded where the real estate industry has failed. They’ve convinced those cash-strapped younger consumers to pay a premium for equipment. (more…)

  1. [1]Zach Epstein, NPD: Apple was best-selling U.S. smartphone vendor by wide margin in Q2, August 23, 2012, BGR.com
  2. [2]AP, Worldwide market share for tablet systems a market dominated by Apple’s iPad, Sept 5 2012, Washingtonpost.com
  3. [3]Market share for browsers, operating systems and search engines, August 2012, Netmarketshare.com.
  4. [4]Brad Tuttle, Car Ownership Not Popular With Generation Y, May 2, 2012, Time.com

Confronting our Agoraphobia, Part III: The Long Road Back

(This is part 3 of a series that started with Confronting Agoraphobia, Part I: Carefully Taught and Confronting our Agoraphobia Part II: The Bad Guys are Winning.)

Where We’ve Been

Over the past two entries in this series we’ve reviewed how bargaining has gone from common to rare, and how shopping in America has become a passive experience. We’ve discussed how the evolution of marketing and discounting have consolidated the power of pricing entirely in the hands of the manufacturers. We’ve discussed the potential gain from choosing to haggle – a peak negotiator saved $2500 in a year. That means an average negotiator could save about $1500. What we haven’t discussed is how to work our way back to an even distribution of power.

Let me expand on that number a bit. $1500 saved per person, per year. 206 million adults in the United States, give or take a hundred thousand or so.[1] Roughly 10% of them are incarcerated.[2] If the rest of them saved $1500 per year, that would total $278.2 Billion saved. Annually. (That’s about 2x the annual revenue of Wal-Mart as reported to the NYSE,[3] or, sadly, just 1.7% of the national debt at this moment.[4])

Let’s have one more quote to get things moving forward:

“A recent Consumer Reports survey showed only 28 percent of Americans haggle over prices. A separate report from market research firm BIGresearch found 45.1 percent of adults haggle for things other than cars and homes.

However, the Consumer Reports survey found that consumers who haggle succeed as often as 83 percent of the time in landing a better bargain.”

— Yuki Noguchi, “Haggling picks up steam during recession,” NPR.org, August 2009.

 

(more…)

  1. [1]Wolfram alpha: What is the adult population of North America, July 2012.
  2. [2]NY Times: Adam Liptak, “1 in 100 U.S. Adults Behind Bars, New Study Says,” Feb 2008.
  3. [3]Ycharts: Wal-Mart Stores Revenue (WMT) as of July, 2012
  4. [4]US National Debt Clock, July 2012

Confronting our Agoraphobia, Part II: the Bad Guys are Winning

This is part II of a series that started with Confronting Agoraphobia, Part I: Carefully Taught.

Rollback Further

My folks have a good friend – we’ll call him Doug – who’s learned a thing or two about saving money. A wunderkind who made an early fortune in the evolution of microloans, he knows that small amounts add up. He’s also learned that to most businesses any sale is better than no sale. Doug haggles for everything. He will walk to the counter at Wal-mart with a $25 pack of t-shirts, toss it on the belt, and tell the clerk “I’ll give you $15.” He renovates kitchens for a living. He will go to furniture stores and open with a bid at 50% of list price.

You’d be amazed at how often he gets the discounts he requests.

Did you think you couldn’t haggle at Wal-mart? Have you ever tried? If you haven’t, you’re probably not alone, and you aren’t entirely to blame. It sounds like a fairy tale because you’ve been on the receiving end of a lengthy, multifaceted agenda to make you think bargaining is scary, difficult, time consuming and futile. Let’s take a look at how outside forces, both intentionally and accidentally, have contributed to the decline of negotiation in commerce. (more…)