The Joy is in the Journey for MacLife

by | Oct 11, 2013 | Blog, Tax Planning

By:  Jennifer Deroin

MacLife Overland Store

MacLife Overland Store

Technologically speaking, I would describe myself as “pretty much on top of it, ok truthfully, barely skimming the surface” kind of girl.  There are probably a lot of people like me running around, unaware of what we don’t know. For that reason, I’m a little nervous about interviewing the owners of MacLife in Boise, two people who “have their tech together”.  I console myself however with the fact that I did just watch the Steve Jobs movie.

ipad book keyboard backgroundI arrive at MacLife’s Overland Store in Boise, ready to discuss the benefits and challenges of being a small business owner carrying a big name product (arguably THE biggest name), and competing against the behemoth corporate store that’s come into the mall.  As I walk around the store, I admire the pretty gadgets and snap a few photos before beginning our visit. Desktops and notebooks are displayed across the sales floor. Several are occupied by customers sitting comfortably in front of them. My eyes skim over all sorts of devices, colorful accessories, and paperback copies of “The Missing Manual”.   The store is bejeweled with art commissioned from local artist Ward Hooper, portraying the good life of “a MacLife.”

While I’m snapping photos, I eavesdrop on a conversation between one of MacLife’s staff and their customer. It’s not a flowery sales presentation. It’s a technical conversation delivered in simple language; a question and answer period. The customer is ready to buy, but the salesman encourages her to bring in her old Mac to help him determine how much storage she really needs. On that advice, she slips out the door and the sales guy is absolutely calm – confident she’ll return. Silently I think, “Wow, he just sent her off and didn’t frantically try to sell her something before she could leave.”  Refreshing.

Co-owners and business partners Kevin Love and Erik Smith have been friends since grade school in the Bay Area. Kevin was brought to Boise by his now-wife Kimberly — an Idaho native who returned home after several years with DotCom companies in San Francisco. Kevin became involved with MacLife by sub-letting a space from the previous owner. When an opportunity to purchase MacLife came in 2006, Kevin called Erik in to join the venture. Erik brought his wife, Kimber, and their two sons to Boise.

The first few years of business ownership went well enough that Kevin and Erik opened a second store location in Downtown Boise four years ago. But since then, an Apple Corporate Store has come into the area, Steve Jobs died, and our local economy has lingered through a long economic recession.

We begin our interview and I sheepishly apologize as I pull out my (non-Apple) Android tablet.

JD:      Tell me how it is to work with Apple:

ES: We are an “Apple Specialist”, which is the highest level of certification Apple gives to independent retailers. During our time with MacLife, Apple has changed the way people use technology at home and in business. iPod… iPad… iPhone… Apple is an exciting company to work with.

KL: For a long time we benefited from all the “right” things that Apple did. They introduced the iPad and the iPhone – very exciting stuff. Then in 2011, Steve Jobs died. There was suddenly a lot of uncertainty around Apple. 2012 was their first full holiday season without him, and Apple screwed up a lot. They had a hard time delivering products as promised. They couldn’t make enough iPad Mini’s (a smaller size version of the popular iPad). Then Apple’s design team did this beautiful redesign of the iMac desktop, but the production team could not handle the volume demand. Tim Cook (the new CEO) had to announce publically that they would not be able to make enough of their premier desktop. We couldn’t get any stock of those into the store until February. Two huge exciting products were totally unavailable for the holiday season. That was a huge hit to us.

So they made some mistakes, but at their core Apple is focused and disciplined.  They acknowledged the problems. They fixed their internal issues. They have been releasing some very popular products. The industry is very bullish on Apple for the coming holiday season.

JD: Apple opened a Corporate Retail Store in the Boise Town Square Mall in 2010.  Tell me about that experience.

KL:  In 2009 we decided to open a second store in downtown Boise. We knew that a Corporate Store would likely come to Boise. They opened in the mall in the fall of 2010, just as the economy moved deeper into recession. Consumer confidence was tanking. So overall the timing of their arrival was not good, but the corporate mall store and MacLife compliment each other well.

JD:  Really? The Corporate Store in the Mall compliments MacLife?

KL:  Yes. The Corporate Store in the mall is strong with quick sales and with iPhones. It’s actually helpful to have them nearby for people with customer service issues that have to be handled directly with Apple.

computer with sign green pink flowerOn the other hand, the customers who come to MacLife are generally looking for a higher-level of product knowledge and service. Our stores are comfortable; people can sit down and be comfortable asking questions about the computers. They appreciate being able to take their time. We have a quiet classroom for hands-on classes, where at the mall people have to stand around a computer and just watch the teacher move their mouse.

ES: Businesses enjoy working with MacLife because we can come out to their location.  We can handle all the details for the network and computers, or we can just assist the in-house IT staff occasionally. Our team has real-world experience and they each understand the realities that businesses work in. We often do jobs after-hours so we won’t interfere with their business day.

 

JD:  When the corporate store came to the mall, did your strategy change?

KL: Our stores have a very different sort of shopping experience and target audience than the mall store. We carry more products and have a deeper selection of accessories. Our sales people and techs have a lot of real-world experience.

Other stores have tried to copy the Corporate Store environment: They reduced the variety of products, hired young kids who will work for cheap, made everything very shiny. And they have the same kinds of problems: incorrect information going out to customers, a lot of turnover, so-so customer satisfaction. We chose to maintain a low-pressure sales experience with a high level of service.

ES: MacLife’s staff can take the time to listen to what each customer needs. I remember an 70-year-old lady who brought in a Mac system that she had bought at a nearby big box store. The big box sales guy had sold her a system that was far beyond what she needed. This thing was complete overkill for her email and the neighborhood newsletter she puts together. We explained the purpose of each upgrade she had been sold and helped her decide which the options she really wanted. She went back to the big box, downgraded to a smaller system, and saved several hundred dollars. So we didn’t sell her that first computer, but she still takes classes here and comes in to buy presents for her family several times a year.

JD:  Tell me about the rumors for the next Apple product launch

KL:  (Laughs) I wish I could! Apple is a very tight-lipped company. They don’t share any information with us about any new product until after it is publically announced. They have brought out new systems recently that are exciting.

2013 Mac Pro

2013 Mac Pro

The new MacPro work station — it’s groundbreaking. Instead of a tower, it’s a small cylinder. It’s obnoxiously powerful — more powerful than most people will ever need for projects at home. Anyone that’s in professional graphic design or video production will want one of these. They’ll want their clients to walk in and see this cool thing sitting on their desk. Apple is assembling these new machines in the United States.

Apple’s desktop system, iMac… these are beautiful, well-designed machines.  Their design makes them easy to setup without a lot of wires everywhere. They were updated recently with faster processors. Their price points are strong. They are great for families, great for businesses.

The outlook for consumer products is good. Apple feels back on track.

JD:  Tell me about the latest trend of conversion to Mac’s in the office environment.

KL:  Across the medical industry, we see a huge transition from PC to Mac. With HIPAA privacy requirements, medical groups prefer the Mac because their operating system is much less likely to be impacted by viruses. We have helped client offices do a full switch from PC’s to Macs over a weekend. We bring in new Macs, set up all the software, fine tune the network, test the printers. The staff walks out Friday afternoon and return Monday with an office that has been switched.  We visit on-site to help them get started and take questions by phone as they need.

Doctor with tablet computerLocally, we are also seeing heavy conversion in real estate, legal, and construction offices. These are driven more by the ways that iPads can capture information in the field, speed up communication, and simplify paperwork. Apple products work together well.  People are doing deals in the field, billing more, and making more money.

You’ve seen that most retailers and restaurants have largely moved away from simple cash registers? Now even small businesses are using computer-driven POS (Point of Sale) systems that are networked with the back office. They make it easier to manage inventory, ordering, and customer records. Many of the most popular POS systems for small businesses are Mac-based. They make use of iPads and they are very simple to train front-line staff on.

ES: Apple developed a strong path for people to learn about and switch to the Mac platform. People love their iPhones and iPads. They get a Mac computer for their family and see how easier they are to use. They realize that Macs are less expensive to manage than their business PC’s. Ease of use, better security, and saving money is a powerful story for businesses.

 Click here to read Apple Insider’s, “As Medicine Goes Digital, Apple’s iPad is Top Choice Among Doctors”.

JD:  You have 11 employees and I know a high service standard is key for your business. Explain the culture here.

KL:  I strive to create a balance between being a micro-manager and letting people do what they want. (Laughs.) I trust my staff. That trust takes time to develop, but I give them leeway to make decisions in helping the customer, and to make decisions that protect the store. During the recession we worked hard to not lay any people off. Our staff size decreased, but it was through attrition. I think all of the staff appreciates feeling that they have job security.

JD:  Tell me about how you work “on” your business.  If you’ve read the E-Myth, author Michael Gerber talks about processes and systems that will enable you to sell the business one day.

KL: I know there are entrepreneurs out there that grow and sell businesses over and over, but I don’t want that. To me that’s like flipping houses or day trading. Lots of people try it, but not many succeed with integrity.

When I came to Boise, I looked at Zamzows and said, “I want to be like that.” You go to Zamzows with a problem and talk with the staff. They set you up with what you need, then you go home happy. You trust the stuff you brought home because it’s from Zamzows. When you think of Zamzows you think, “That’s Boise”.  That’s what I want for MacLife. I want to build something special and I think people around here respect that.

If we were just building our business to sell it, we would have added several more stores early on. We were more conservative towards growth based on the kind of business and customer relationships we want to develop. If we had been extended by investing across several new locations when the recession hit, we probably wouldn’t have weathered through.

JD:  Hindsight’s always great. What have you learned in the past few years?

ES: Expanding this business with a second location seemed like a no-brainer, but nobody could have known how long the economy would be down. The last years would have been easier with just one store, but we’re making it through.

KL: We purchased the real estate at both of our locations. We decided to manage the properties ourselves as much as we could, instead of hiring a management company. It takes time to learn enough about how commercial real estate works and the whole thing has been a bit daunting at times. But handling it ourselves has become a good situation.

 

When you think of Zamzows you think, “That’s Boise”. That’s what I want for MacLife. I want to build something special and I think people around here respect that.

JD:   You’ve both been business owners in California. Tell me about doing business in Idaho.

ES:  We each left California at a good time. It was a great place to grow up, but it’s no secret the last ten years haven’t been kind there. Doing business in Idaho is easier from an employer standpoint. Labor laws are gentler and slanted towards the employer here. Doing retail is straightforward here. It wasn’t difficult to get set up and going. In general, Idaho is just a better place to live– less crazy. When my wife and I first moved here I loved the more relaxed feeling here. Idaho doesn’t have a frantic, false sense of urgency about everything.

KL: MacLife is small and local. We pay attention to what our customers are asking for. Here in Idaho people understand it’s important to support locally-owned businesses. Our regular customers know they can come in here any time and talk to the owners.

JD:  How has your relationship with Nichols Accounting impacted your business?

ES:  Trevor Gunstream and the team in Nampa are awesome. Trevor was recommended to us as a CPA early on by our financial advisor, Joni Pursell. He guided us step-by-step in structuring our infrastructure. We see him at tax time, of course, but we also meet with him to talk through ideas together. He’s honestly interested in our business and in us as people.

KL: Trevor has been vital, along with our attorney Bill Nichols. It’s important to have a CPA and lawyer who work together and communicate well. There were a lot of details in the purchase of the business that could have caused troubles for us. It was huge for us to have a CPA and an attorney who would call each other up, talk through all of the details, and create a plan for us.

I get a kick out of Trevor and I think he gets a kick out of us. He genuinely cares about us and our well-being. He knows what we’re going through. He helps us understand the big picture.

~~~

The interview concludes and I ponder what it would be like to belong to the community of cool Mac users.  In my professional world I’ve only been exposed to a PC, but recently converted to the iPhone. I was hesitant to lose my sliding keyboard (yes, that’s embarrassing to admit now), but have quickly adapted.  I remember my husband telling me, “You’ll love it” and when I asked why he simply replied, “Because it just works.” He was right — the iPhone has never failed me.

Before my departure I wander around and notice the saying on the paintings in the store depicting the MacLife user.  They read: “MacLife – The Joy is in the Journey”.  I recognize the echo of that sentiment in Kevin and Erik’s comments about building their business.

Interesting side note: During the interview my Android whacks out mid-discussion and does a force close. I can’t seem to stop it or fix it and I lose a portion of the interview. Heart. Attack. Perhaps it’s a sign that I’m in need of a change.  Erik and Kevin, what would you recommend for a “pretty much on top of it, ok truthfully, barely skimming the surface” technology kind of girl?

Erik Smith and Kevin Love, Owners, MacLife

Erik Smith and Kevin Love, Owners, MacLife