Long on Loyalty, Short on Pay

By the standards of retailing, Apple offers above average pay — well above the minimum wage of $7.25 and better than the Gap, though slightly less than Lululemon, the yoga and athletic apparel chain, where sales staff earn about $12 an hour. The company also offers very good benefits for a retailer, including health care, 401(k) contributions and the chance to buy company stock, as well as Apple products, at a discount.

But Apple is not selling polo shirts or yoga pants. Divide revenue by total number of employees and you find that last year, each Apple store employee — that includes non-sales staff like technicians and people stocking shelves — brought in $473,000.


In one way, the Apple Store business model has a guarantee of a workforce, but not one that will stay very long, since their is low pay and no career track to worry about paying long term benefits.

Well, the point is that for now at least, they have a model that is working for them. If this begins to change, it'll be interesting what they do to remedy their turn over problem, while maintaining their level of success.

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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

I once had a conversation with an Executive for a large chain of amusement parks. No names here, but they are coast to coast and very well known.

He said the company felt they could abuse any employee in the park and pay them nothing since every teenager on earth wanted to work there. Since they had an endless stream of people wanting jobs then why should they worry about things like pay and perks?

And while I don't know the entire story behind this companies business dealings, I do know they have been sold and resold and gone broke several times.

Could it be that people are NOT their most important asset?

If we were playing buzzword bingo, then I'd be able to cover a spot . . .



The article that was in this past Sunday's NYT made some interesting points:

The Apple workforce is primarily, though not exclusively, 20 somethings. They get medical coverage, but they are pretty much the healthiest demographic to insure, plus they are generally single and no kids, so no additional coverage for spouse and sibblings. They seldom stick around for other benefits, and their 401(k) is portable. With no commision structure and career path, turnover is pretty much predictable and can be factored into the business model.

The article also pointed out that Apple pays better for their store clerks than many other retailers. Working in retail does not pay well and is typically not a career-type job. Retail sales jobs that are careers, normally pay some form of commissions. I love Apple, Apple's stores, and all the rest of it, but many of the kids I talk to in their store really don't do enough to warrant being paid much more that the article indicated.

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

When they first opened and for a few years after, employees in Apple Stores impressed me as eager, knowledgeable and informed. Lately, it seems they're so impressed with themselves that they get to work there, they think that's all they need to do. Maybe they should be on minimum plus commission.

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You're a daisy if you do.
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84 Euro 240D 4spd. 220.5k sold
04 Honda Element AWD
1985 F150 XLT 4x4, 351W with 270k miles, hay hauler
1997 Suzuki Sidekick 4x4
1993 Toyota 4wd Pickup 226K and counting

As they say, a company is only as good as its employees. I'd imagine most folks working retail at electronics stores are not looking at long term benefits and careers there. I could be wrong though, when I sold auto parts I worked with guys who made retail careers work.

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TC
Current stable:
- 2004 Mazda RALLYWANKEL
- 2007 Saturn sky redline
- 2004 Explorer...under surgery.

Past: 135i, GTI, 300E, 300SD, 300SD, Stealth

Orbitz Data Mining Shows Apple Users Spend More . . . and There More, Too

The WSJ notes that the average household income for Macheads is $98,560, “compared with $74,452 for a PC owner.” So it’s reasonable to assume that most people with Macs have more money to throw around. Moreover, those who buy Apple’s high price point machines are obviously willing to spend more on their computers; why not on other purchases?

“Just as Mac users are willing to pay more for higher end computers, at Orbitz we’ve seen that Mac users are 40% more likely to book 4 or 5 star hotels as compared to PC users,” says Orbitz CEO Barney Harford via email.


Orbitz' datamining also shows that Apple users on their site tend to be predominantly male, have more years of education.

Shoppers on Apple devices like iPhones also outspend shoppers using Android or BlackBerry devices, accounting for half of all mobile purchases, according to International Business Machines, which tracks data from retailers.


Clearly these probably aren't Apple Store employees.

as manufacturing jobs leave the u.s., the burgeoning "service" industry will provide excellent alternatives for the working/middle class. or not.

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"The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread."