Hi HN! We built a MacBook Upgrade Program inspired by Apple’s iPhone Upgrade Program, so you can finance a new MacBook (with AppleCare+) over 36 months—and upgrade after 24 months if you want the latest model. It’s live at getupgraded.com (US only for now).
I’m @johnerik the cofounder/ceo and I’ve been running upgrade programs for other retailers in Scandinavia for the last 8 years. Now we’re building our own! I just moved (back) to Austin.
## Why?
- Because we’ve wanted a MacBook Upgrade Program since Apple launched the iPhone Upgrade Program, in 2015! (I personally have been on the iPhone program since it launched. I’ll admit that I have skipped some years and not upgraded, but have been loyal to the program.)
- Because the whole process of buying a MacBook in cash and selling on Facebook Marketplace when you’re ready to upgrade is a hassle. (I would end up with devices laying around because I disliked the selling part so much.)
- Because if we can get this flywheel started – where we get devices back frequently, repair them when needed and then quickly find them a new home – I think we can increase the useful life of a given device, and therefore reduce the total number of devices that need to be produced overall.
- Because as a team we have a ton of experience doing this. Since 2016 we’ve been running upgrade programs for retailers and brands (including Apple and Microsoft) in Scandinavia.
- Because we think there’s an opportunity to build the next great American electronics retailer. New MacBooks are just the start. Used and refurbished devices are the future.
## How does this work?
- The program divides the total cost of a new MacBook and AppleCare+ into 36 monthly payments.
- After making 24 monthly payments (two-thirds of the total), you're eligible to upgrade your MacBook.
- To upgrade, you’d just choose your new MacBook, and we'll ship it to you right away.
- We'll temporarily pause all payments for 30 days while you have both the old and new MacBook.
- You'll transfer your data from the old MacBook to the new one, then send the old one back to us using the provided prepaid return box. (We’re considering including a Thunderbolt cable to make migration super fast – love to hear if you think this would be useful.)
- After we verify your old MacBook is in good working condition (normal wear and tear is acceptable and expected), we'll pay off the remaining 12 payments (the final one-third) for you.
- You'll then start fresh with a new set of 36 monthly payments on your upgraded MacBook.
If you don’t want to upgrade, no prob. Just make all 36 payments (pay off all the principal) and you’re done.
## How do the economics for this come together?
Our main partners are
1. Gatortec, an Apple Authorized Reseller,
2. Citizen Bank, also the lender for Apple’s iUp Program, and
3. A bulk buyer for the used devices.
- Gatortec has a direct line to purchase Apple devices/services below MSRP and they share the majority of the margin with us.
- Citizens gives our 740+ credit customers 0% interest and 640-739 customers a variable rate between 29.99 and 12.99%. In exchange, we give them half our margin. And keep the rest as our upfront take rate.
- Our bulk buyer has guaranteed to buy the used MacBooks for 37% of MSRP. We are buying them from customers for ~33% of MSRP (it’s actually slightly higher on loans with interest because of how amortization works, but I’ll skip that here). So we theoretically will make that spread. Though our actual plan is to refurb these devices ourselves, resell them again on our marketplace, and give as much cash back to customers as possible – keeping just enough to cover our expenses.
In summary: We make a little bit from the purchase itself, and a little bit more from the upgrade. The goal is loyal customers, and therefore a higher lifetime value.
## What’s our tech stack?
- Ruby on Rails backend, because it’s what we knew at founding and we wanted to move fas...
2 comments
[ 4.2 ms ] story [ 16.4 ms ] threadI’m @johnerik the cofounder/ceo and I’ve been running upgrade programs for other retailers in Scandinavia for the last 8 years. Now we’re building our own! I just moved (back) to Austin.
## Why?
- Because we’ve wanted a MacBook Upgrade Program since Apple launched the iPhone Upgrade Program, in 2015! (I personally have been on the iPhone program since it launched. I’ll admit that I have skipped some years and not upgraded, but have been loyal to the program.)
- Because the whole process of buying a MacBook in cash and selling on Facebook Marketplace when you’re ready to upgrade is a hassle. (I would end up with devices laying around because I disliked the selling part so much.)
- Because if we can get this flywheel started – where we get devices back frequently, repair them when needed and then quickly find them a new home – I think we can increase the useful life of a given device, and therefore reduce the total number of devices that need to be produced overall.
- Because as a team we have a ton of experience doing this. Since 2016 we’ve been running upgrade programs for retailers and brands (including Apple and Microsoft) in Scandinavia.
- Because we think there’s an opportunity to build the next great American electronics retailer. New MacBooks are just the start. Used and refurbished devices are the future.
## How does this work?
- The program divides the total cost of a new MacBook and AppleCare+ into 36 monthly payments.
- After making 24 monthly payments (two-thirds of the total), you're eligible to upgrade your MacBook.
- To upgrade, you’d just choose your new MacBook, and we'll ship it to you right away.
- We'll temporarily pause all payments for 30 days while you have both the old and new MacBook.
- You'll transfer your data from the old MacBook to the new one, then send the old one back to us using the provided prepaid return box. (We’re considering including a Thunderbolt cable to make migration super fast – love to hear if you think this would be useful.)
- After we verify your old MacBook is in good working condition (normal wear and tear is acceptable and expected), we'll pay off the remaining 12 payments (the final one-third) for you.
- You'll then start fresh with a new set of 36 monthly payments on your upgraded MacBook.
If you don’t want to upgrade, no prob. Just make all 36 payments (pay off all the principal) and you’re done.
## How do the economics for this come together?
Our main partners are
1. Gatortec, an Apple Authorized Reseller, 2. Citizen Bank, also the lender for Apple’s iUp Program, and 3. A bulk buyer for the used devices.
- Gatortec has a direct line to purchase Apple devices/services below MSRP and they share the majority of the margin with us.
- Citizens gives our 740+ credit customers 0% interest and 640-739 customers a variable rate between 29.99 and 12.99%. In exchange, we give them half our margin. And keep the rest as our upfront take rate.
- Our bulk buyer has guaranteed to buy the used MacBooks for 37% of MSRP. We are buying them from customers for ~33% of MSRP (it’s actually slightly higher on loans with interest because of how amortization works, but I’ll skip that here). So we theoretically will make that spread. Though our actual plan is to refurb these devices ourselves, resell them again on our marketplace, and give as much cash back to customers as possible – keeping just enough to cover our expenses.
In summary: We make a little bit from the purchase itself, and a little bit more from the upgrade. The goal is loyal customers, and therefore a higher lifetime value.
## What’s our tech stack?
- Ruby on Rails backend, because it’s what we knew at founding and we wanted to move fas...