News.com reports that Real Networks will be charging a third more for Major League Baseball's live audio streaming this year. That sounds like a lot until you realize that the new price is $19.95 -- in other words, it's less than you'd pay for a ticket, parking, a hot dog, and a soda at most stadiums. It's not like I can get an equivalent service elsewhere, either. If I want to listen to Phillies games, I can move to Philadelphia, pay for the audio feed, or not listen at all. I'm a captive member of the audience. With all that in mind, I can't believe they charge so little.
Erik B. writes about a Business 2.0 article on Apple's retail stores, in which retail expert Paco Underhill analyzes the stores to try to explain why they're successful and how they can improve. Erik finds a lot to criticize in the article, but I liked it. The commentary about what works well in the stores was largely on target, and much of the criticism made sense as well.
Erik's comments include one thing that I wanted to address in a bit more detail:
Do Apple stores sell Apple merchandise, like t-shirts, keychains, or other trinkets? No. Could they make a lot of money doing so? I think so. What's stopping them? The stores would look like crap. They'd lose the austerity, the cleanliness, and the entire "feel." They'd look junky.I don't think that's why Apple stores don't sell T-shirts. As the company store in Cupertino shows, you can sell branded items while maintaining the classy look. Instead, I think it's more a question of the stores' target audience.
The stores exist because Apple wasn't reaching typical consumers in the retail market. There simply aren't enough Apple resellers in high-traffic areas with the exception of chains like CompUSA, and in the chains, Apple's computers don't get significantly more sales effort than computers from other manufacturers. The stores are designed to bring in traffic, to cause people who wouldn't otherwise consider a Macintosh to think about buying one.
That's not the crowd that will buy Apple shirts. The branded-item-buying crowd is the Mac fanatics, the ones who will buy a Mac regardless of whether there's an Apple store within a hundred miles. They're the ones who don't need Apple's advertising to know what new products are available, and who can find T-shirts at places other than Apple's stores. If Apple included branded items in its stores, it would make the fanatics feel more comfortable at the expense of those who are looking at a Mac for the first time. Apple already has the hearts of the first group, but it needs to do everything it can to attract the second.
I have to say this is a really interesting concept. I currently don't get anything of any value back from my credit card, so anything at all would be a bonus. The chance to get money back reasonably quick and to trivially invest it, all without any fees, is intriguing. I think I'll give it a shot and see if it turns out to be worthwhile.