Vacuum Cleaners Discussions

• Profits up 19 per cent to £115m
• Sales up 9 per cent to £514.7m
• R&D spend increased, up £20m to £70m

Reading the locals' comments about Sir Jaydee's school plans and geographic location and about the new generation of vacuums is very insightful.   

I'd have to say based on these select few comments that the honey moon period for dyson in the UK is certainly over.  The billionaire business man is no longer viewed as the little guy with an idea who makes good.

Carmine D.

Total sales in dollars: $1 Billion

Net profit after taxes: $64 Million

Increase in sales for 2007 over 2006: 10 percent

Carmine D.

Hello HARDSELL:

Good question.  If the 2007 results I posted are valid [I believe the source is very reliable], it appears there are erroneous/contradictory financial results and sales data reported here recently for dyson.  What happened?  Is the difference the phenomenon of inventory on hand vice actual sales to customers?  Seems like a very high inventory on hand which is entirely possible seeing DC07,14 and 15 models still advertised and sold. But I sincerely doubt, since dyson counts shipments to retailers as sales [which would include end of year dyson retailers' inventory on hand and unsold].   

It appears from the data I posted that the 2 Million dyson units [approximately] are worldwide and not in the USA, as previously reported.  [At $1B in sales using an average sale price per dyson vacuum of $500 the result is 2 million].  Don't know if the $140,000 in AirBlade sales are included in the $1B sales amount.  Factoring in the percent of USA sales only, then the dyson vacuum market share in the USA [by units] is reduced from the 10 percent recently posted [according to NPD we were told], to probably 4-5 percent of total unit sales for 2007 in the USA.  That's seems reasonable and unimpressive unless quoted in dollar terms.

Carmine D.

Uninpressive as far as units sold.  Coulld it be that the standard measure of counting units sold as success is out dated.  Profits are impressive and more important.  I thought you might have learned that when Hoover folded. 

Well HARDSELL, not sure about all that you say.  Doing the math, jaydee is netting $32 profit per dyson sold.  Seems to me that $50 retail mark up on the new HOOVER WT is looking better by at least $16 more per vacuum. 

Carmine D.

The reason for the difference is wholesale and retail.  My calculation is based on retail sales.  Dyson's data are based on wholesale prices to retailers.  The 2 Million dyson units sold in the USA [as told per the NPD] is based on wholesale prices to retailers not retail prices to customers.  What does that mean?  It means a retailer is making about $250 per dyson [based on an average retail price of $500 per dyson] before paying overhead and operating expenses.  Not too shabby even when they offer 10-20 percent and more off, the profit margins for the retailers is huge.

Carmine D.

Well, HARDSELL based on my previous post let's recalculate dyson's net profit per vacuum based on an average wholesale cost per dyson to the retailer of $250.  Now the units sold at wholesale based on $1B of annual sales is 4 million units.  Doing the math, dyson nets $16 profit per new dyson sold.  Retailers are probably doing better with $250 gross profit before overhead and operating expenses. 

Any comments, observations, conclusions?

Carmine D.