Vacuum Cleaners Discussions |
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M00seUK
Joined: Aug 18, 2007
Points: 295
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Dyson financial results
Original Message Nov 4, 2007 7:18 am |
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HARDSELL
Joined: Aug 22, 2007
Points: 1293
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Re: Dyson financial results
Reply #18 Mar 28, 2008 9:24 am |
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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.
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Dyson financial results
Reply #19 Mar 28, 2008 1:05 pm |
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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.
This message was modified Mar 28, 2008 by CarmineD
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Dyson financial results
Reply #20 Mar 28, 2008 1:42 pm |
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Hello HARDSELL: 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.
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.
This message was modified Mar 28, 2008 by CarmineD
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Dyson financial results
Reply #21 Mar 28, 2008 2:44 pm |
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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.
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.
This message was modified Mar 28, 2008 by CarmineD
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HARDSELL
Joined: Aug 22, 2007
Points: 1293
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Re: Dyson financial results
Reply #23 Mar 28, 2008 6:18 pm |
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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.
Based on your calculation you may be correct. Problem is, we do not know the accuracy of your calculation. Most likely it is not correct as usual.
Botom line is that I told you years ago that box sales are not as important as profits. Even $32 profit is better than the losses suffered by your beloved Hoover. Dyson really has put the spurs to you and Hoover. Ride em cowboy.
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Dyson financial results
Reply #26 Mar 29, 2008 7:43 am |
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It was not an instect. I simply said that your calculation would be correct if the data was correct. You have said before that you have no hard facts so my instinct is that you are wrong.
Here are the facts per DIB's Forbe's article:
Net dyson profit for 2007: $64 Million Gross annual sales: $1B Units sold at wholesale in the USA per NPD [and confirmed by a dyson insider here]: 2 million. Probably 3-4 Million in total worldwide. Matt [Airblade] said he had not seen the actual numbers yet. Do the math for yourself. What do you get? Carmine D.
This message was modified Mar 29, 2008 by CarmineD
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