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THE WILD RIDE OF SELLING APPLE ACCESSORIES: 
TALES FROM THE RETAIL TRENCHES

One of the companies I co-founded and ran for five years before we successfully sold it was a venture focused on designing and manufacturing accessories for Apple products. We managed to get our products into seven large US national retailers, including the coveted Apple stores worldwide. Now, if you think this sounds like a dream come true, let me assure you, it was more like riding a rollercoaster with a blindfold on.

The Staples Fiasco

Staples, the office supply giant, had seen our products in Target and Office Depot and approached us several times. I wasn’t interested in selling to them on a consignment basis, so I turned them down. But one day, they made me an offer I couldn’t refuse: a prime display during the Back-to-School season in 350 stores. The deal was too good to pass up, so I agreed.

Fast forward a few weeks, and our sales numbers were disastrously low. After a frantic audit of 20 stores in Southern California, we found only four had our displays set up correctly. The rest had them stashed in the back or partially set up. A furious phone call to Staples revealed their response: “We find it very difficult to execute this type of thing at the store level.” Long story short, they shipped back most of our products, but thanks to a clause I insisted on, the returned items had to be in resalable condition. Their inability to pack properly actually worked in our favor!

Apple: Not All That Glitters is Gold

Our excitement was through the roof when Apple decided to sell four of our products in all their stores worldwide. However, reality hit hard when sales reports started coming in. A worldwide tour of Apple stores from Los Angeles to London to Hong Kong revealed our products were relegated to the topmost shelves, gathering dust, while staff knew nothing about them.

The Moral of the Story

Before you get too excited about national retailers picking up your products, remember these lessons. Retailers won't push your products unless you pay for shelf space, use retail audit companies to ensure proper display, and contribute to their marketing programs. These costs will significantly eat into your margins, but they're necessary evils.

Chargebacks: The Retailer’s Favorite Sport

Chargebacks are another nerve-wracking reality. Retailers use them as a profit center, penalizing vendors for every minor infraction. Incorrect labels, wrong box positions, delivery timing issues, quantity mismatches, product defects, and invoice errors – each attracts a hefty charge. It’s a game of meticulous compliance and losing can be expensive.

Conclusion

Running a company that supplies national retailers is like navigating a minefield. You must be vigilant, proactive, and ready to tackle challenges head-on. But hey, if it were easy, everyone would be doing it, right?

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I believe in the transformative power of personalized consultation. By investing just one hour of your time in a free consultation with me, I guarantee you will gain valuable insights tailored to your specific business needs. Whether it’s identifying strategic opportunities, optimizing operations, or navigating complex challenges, together we can uncover actionable solutions that propel your business forward.

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Schedule your free consultation today and discover how Hurren Consulting can be your trusted partner in achieving lasting success.

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