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Nov 26, 2011

Apple Stores attract through the experience of acquisition and utilization and not by price


ronjhon1
Ron Johnson is the one that has built Apple shops as we know them today but after a few years spent in Apple’s management team decided to take over as CEO of JC Penney, one of the largest U.S. retailers. Given the fact that no longer works at Apple, Johnson revealed in an interview given to the Harvard Business Review the secret behind the Apple stores. He says that Apple attracts users by simply offering a premium experience both in terms of interaction with the company’s products and in terms of assistance or purchase of a product.
He says that the company’s products can be purchased at lower prices from other retailers, but people come in Apple stores for the experience itself and are willing to pay a higher price for it. If this is the philosophy that has guided the work at Apple then I can say that is a “genius” because he managed to convince people to pay more money on a product just to buy it from Apple store.
The company has over 300 stores worldwide and annually over one hundred million people get into them, so we talk about a recipe that will now likely be reproduced at JC Penney. At the end of a guest post, Johnson said that Apple employees are not working on commission but for a fixed salary so there is not a rivalry between employees and so everyone can focus on work and how they can perform better the functions as possible.
Their job is to figure out what you need and help you get it, even if it’s a product Apple doesn’t carry. Compare that with other retailers where the emphasis is on cross-selling and upselling and, basically, encouraging customers to buy more, even if they don’t want or need it. That doesn’t enrich their lives, and it doesn’t deepen the retailer’s relationship with them.

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