June 2000 Article
by Cynthia Flash, Photos by John Froschauer for Chamberbiz.com
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MAC-O-RAMA IS about
as close to an Internet garage shop as you can get.
Except it's
in the living room and dining room and sometimes even the kitchen of a
family home at the end of a dirt road in Puyallup, Wash. Customers of
this software retailer, which helps Macintosh enthusiasts locate hard-to-find
software, know it as the company that runs cute little promotions on popular
Mac Web sites. Every package sent out includes a caramel apple lollypop.
Each week Mac-o-rama runs a free drawing for Mac stuff. And every three
months customers are mailed a Mac-o-rama reminder card that sometimes
includes seasonal chocolates.
"We're
focused on service so people who come to us are satisfied with what they
buy, what they need, and who we send them to," said co-founder Jason
Dietrich.
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Jason
Dietrich of
MAC-O-RAMA
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Mac-o-rama is the
23-month-old love child of Alicia, Alissa and Michele Lindsay. The three sisters
joined with Alicia's fiance, Dietrich, to build a company serving frustrated
Mac customers vainly looking for specific software. "Before Mac-o-rama
there was nothing. You had to spend a couple days looking for it," said
Mac-o-rama president Alicia, 27. "It was difficult to find games for the
Mac, and how many times can I say I ordered something for Mac and it came for
Windows?"
Mac-o-rama is certainly not the only Internet site that sells Macintosh software.
Software is a huge market on the Internet, with the biggies such as Amazon.com,
Buy.com and Mac specialists MacMall and MacWarehouse all selling the stuff.
But Mac-o-rama, with 2,000 items, claims to have the biggest selection of Macintosh
software, games and hardware items. If Mac-o-rama doesn't have a sought-after
title, the Lindsays will track it down.
And in many cases they underprice their large competitors, said Peter Cohen,
senior entertainment editor at MacGaming. "There really isn't anybody that
does anything similar to what Mac-o-rama does in terms of online resellers,"
he said. "They focus on Mac entertainment products, software, hardware
and kids. They're a unique niche. They have the ability to get their hands on
hard-to-get software titles like no one else can. Their prices are fair."
Sitting
on what was the dining room table (now the shipping department) are Mac-o-rama's
Lindsay sisters, from left: Michele, Alissa and Alicia with Jason in
the middle, in the home business.
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Mac-o-rama's
service shows in small ways. During the winter holidays each package is
handwrapped and finished with a bow. The owners talk to customers who
call with questions (a toll-free number is prominently displayed on the
homepage site). But Mac-o-rama is at a crossroads. The Internet startup
is growing faster than its owners ever expected. Although it's less than
two years old, it is already facing the growing pains that are forcing
the owners to take a step back and assess its direction.
When the Lindsay sisters and Dietrich started Mac-o-rama, they never expected
the company to sell more than $1 million worth of products in the first
18 months and grow at a rate of about 24 percent a quarter. They didn't
really know what they were getting into.
"Last
year we knew we had to make it happen fast or we weren't going to make
it," Alicia Lindsay said. "Our financial management wasn't
really good at first." During last year's holiday season, Alicia
said, "we made a ton of money. But we spent a ton and a half." The company is not yet profitable but expects to be by 2001. Now Mac-o-rama
has a budget that Lindsay checks each day to make sure revenues are keeping
up with expenses. |
The founders acknowledge
hiring some of the wrong people -- friends who simply needed jobs instead of
employees with the right skills. They pared down most non-family member employees.
But Mom still helps in the shipping department (the former dining room) and
Dad is a jack-of-all-trades who deals with the Post Office when packages to
Turkey get lost for eight months.
They are fast figuring out how to run a more efficient business. After redesigning
the
Web site, 90 percent of all customer-service questions were eliminated. They've
begun paying themselves each week, and instead of working until 2 a.m. every
day, they now are able to work eight or 10 hours a day.
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The founders
have been to seminars that teach dot-com startups how to find the venture
capital and executives needed to take the company public. They hear the
stories of other 20-somethings who get rich off their ideas. But they
aren't sure that going public is the road they want to take. If they bring
in outside executives, they wonder, will they still be able to focus on
customer service and carry one or two copies of software?
Friends and
family members have already invested $500,000. If they take a wad of venture
capital will they lose control? "We like having control of the company,"
Alicia said. Right now the Mac-o-rama Internet site is essentially running
itself. The company's 7,500 customers order regularly and keep the pace
inside that brown house fairly calm.
So during the quiet summer months the Mac-o-rama founders are working
on new partnerships and business arrangements, plotting their next moves,
and trying to decide what to do about their increasingly cramped quarters,
where all the software is warehoused.
To expand
their business, they have started an affiliate program in which they will
refer customers to brick-and-mortar Mac retailers for computers in exchange
for a promotion from those dealers. They want to create Spanish- and Japanese-language
Web sites for the growing number of Macintosh users in those nations.
And they're working on creating communities for Macintosh users on the
Mac-o-rama site.
And they
have to move fast. Because by September they'll be too busy with the holiday
rush to think about anything more than wrapping packages and filling orders.
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Alissa Lindsay tosses a "squishy apple" (for exercising the
hand) in a box being prepared for shipping. Every Mac-o-rama package also
includes a caramel apple lollpop.
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