Vacuum Cleaners Discussions

Early news reports in the USA are saying the London financial markets nosed dived today in the worse downturn ever.  This comes on the heels of a 4 percent drop in the Dow Jones Industrials last week alone.  Since today is a Federal Holiday in the US in observance of Dr. Martin Luther King the financial markets are closed.  Not sure what impact the London market fall will have on the US markets--have to wait to see.

What and how long will it take jaydee to realize that he needs to enter the low to middle price range vacuum market to stay competitive in the USA in the big box stores' venue?

Any news yet on the 2007 dyson sales? 

Carmine D.

DIB:

I'm always up for the college try.

In my experience, big box retailers exclude a brand from an all store sale for one of 2 reasons.  Either the brand is so popular that sales are not needed to move the product.  Or the product doesn't sell regardless of the sales incentives.  The latter can be no fault of the product.  Just conditions of the economy/geographic nature of the store and the financial wherewithal of the store's clientele.

Kohl's and Lowes were among the first big box retailers to stop using the dyson claims when the bruhaha erupted with the ASA.    My sense is that dyson is not a big seller at the Kohl's stores which traditionally do not stock the product on the store shelves.  Instead, customers pick up a chit on the display model and present to the cashier for purchase.  This arrangement in many instances during peak sales lines discourages the purchases.  Why?  The cashier requests a warehouse pick up which can take upwards of 30 minutes to complete the purchase.  All the while the customer is waiting.  I find that most US consumers want to get through the check out line in 5 minutes or less and be on their way.

Carmine D. 

My take on the non-sale issue is probably the MAP pricing that retailers are SUPPOSED to adhere to. So Box Stores have to put it in their ads that they cannot discount Dyson (Anyone with a Bed Bath and Beyond 20% coupon knows MAP pricing is all BS when they get to the cashier who couldn't care less).

HI Lucky1,it has not taken you very long to figure it out.Dysons no different than the rest of them[manufactures].Now especially when their based overseas and dont have to look at you face to face.This really is nothing new.How does it feel being played for a SUCKER?.

What do you think that Carmine and I have been trying to tell you guy's for the past 3 years...........

  MOLE

Carmine.  Thank you.

.

Anyone:  Can anyone explain the retail strategy of - "By a Dyson and get a $50 off cupon - to use for your next purchase."        DIB

DysonInventsBig wrote:

Hello DIB:

When I purchased the DC07 pink from Target, I received a $100 Giftcard at the cashier checkout.  I could not apply the Giftcard savings to the purchase of the dyson and/or anything else I bought with that transaction in the check-out line.  I could have walked back through the Target store purchased more items and used the card savings.

Talking about Kohl's and getting to your question, it is gearing up for a 3-day sale which includes one dyson product: The DC17 Asthma and Allergy.  It is regularly $549 at Kohl's [I believe that is also the MSRP].  The 3-day sale price is $499 before a $50 Giftcard by mail [only for in-store purchases].  Presumably, once received, the buyer can use the Giftcard for Kohl's purchases.  Also on sale is the BISSELL Healthy Home for $249 before a $50 instant cash savings at the checkout. 

What I don't know is whether dyson reimburses Kohl's for the $50 savings, and hence the Giftcard by mail [as an audit trail].  Or, if Kohl's takes the $50 loss.  I've heard both.  And, I heard it's a 2 way split.  Obviously in the case of BISSELL, Kohl's takes the entire $50 loss at the time of sale.

What's also enticing with this sale is Kohl's $10 Kohl's cash for every $50 of purchases.  Another sales incentive I didn't previously mention. So presumably with the $499 dyson purchase, a customer would not only receive $50 Giftcard but also $100 in Kohl's cash.  This reduces the price after all promotions to $350.  Not too bad a price for the dyson that Consumer Reports rates in the top 10.

Talking about MAP, on the DC17 with an MSRP of $549, the MAP price [max is 10% off] is $495.  Of course MAP just means advertised price, not the price paid.  So Kohl's is legit for MAP but the price paid is $350. The fallacy in MAP as Mole and Lucky 1 point out above.

Carmine D.

Hello DIB:

When I purchased the DC07 pink from Target, I received a $100 Giftcard at the cashier checkout.  I could not apply the Giftcard savings to the purchase of the dyson and/or anything else I bought with that transaction in the check-out line.  I could have walked back through the Target store purchased more items and used the card savings.

Talking about Kohl's and getting to your question, it is gearing up for a 3-day sale which includes one dyson product: The DC17 Asthma and Allergy.  It is regularly $549 at Kohl's [I believe that is also the MSRP].  The 3-day sale price is $499 before a $50 Giftcard by mail [only for in-store purchases].  Presumably, once received, the buyer can use the Giftcard for Kohl's purchases.  Also on sale is the BISSELL Healthy Home for $249 before a $50 instant cash savings at the checkout. 

Almost always - when Dyson has a $50 gift card Bissell does the same or alike(Healthy Home) – who decides this and what's the strategy to this?  I would think they would be discounted separately/at different times.

What I don't know is whether dyson reimburses Kohl's for the $50 savings, and hence the Giftcard by mail [as an audit trail].  Or, if Kohl's takes the $50 loss.  I've heard both.  And, I heard it's a 2 way split.  Obviously in the case of BISSELL, Kohl's takes the entire $50 loss at the time of sale.

re: Dyson.  Interesting who pays for the discount.  re: Bissell.  When the discount is "instant" at the cash register, does this mean the retailer is always the one who pays for the discount?

 

What's also enticing with this sale is Kohl's $10 Kohl's cash for every $50 of purchases.  Another sales incentive I didn't previously mention. So presumably with the $499 dyson purchase, a customer would not only receive $50 Giftcard but also $100 in Kohl's cash.  This reduces the price after all promotions to $350.  Not too bad a price for the dyson that Consumer Reports rates in the top 10.

Yes it is.

.

Talking about MAP, on the DC17 with an MSRP of $549, the MAP price [max is 10% off] is $495.  Of course MAP just means advertised price, not the price paid.  So Kohl's is legit for MAP but the price paid is $350. The fallacy in MAP as Mole and Lucky 1 point out above.

So there is may ways to play around to get a lesser price at the cash register.  Dealers I assume can do this too (package deals for one).

Carmine D.

Many thanks!        DIB

DysonInventsBig wrote:

Hello DIB:

I'll address your 3 points as best I can.  First, one of the differences is that the BISSELL Healthy Home was included as part of the earlier vacuum sales at Kohl's, but not with the $50 instant off.  Dyson was not.  My sense is that Kohl's is pitting the 2 makes against each other to see which customers choose:  BISSELL/Dyson.

Second: Yes, I would say when the discount is at the register, the retailer eats the discount, not the brand maker.  As is the case with the $50 off the BISSELL vice the $50 Giftcard for the dyson.

Third: Indy vacuum dealers really have no choice but to discount dysons from MSRP just as the big box stores do with their 20 percent off, Giftcards, and the like.  Why? To compete with the big box stores for sales, the indies have to lower their prices to compete.  The indies won't quote prices over the telephone, unless they know the customers they are talking with.  But they will say that they will meet/beat the market sale prices.  If not, the buyers will look elsewhere.

The last issue has been an ongoing headache with indies, vacuum makers and big box retailers, especially when the vacuum makers cater to the big box retailers at the expense of the indies.

Case in point.  I've talked in the past about my blowup with HOOVER in the late 50's over the sale of a new HOOVER model 66 vice a rebuilt HOOVER 29.  I knew my in-store price for the H-66 was higher than the big box stores who were discounting new HOOVER uprights at prices that were cheaper than I could buy them from HOOVER.  So, as I usually would do, I shot a rebuilt HOOVER.  In this case a HOOVER 29.  For half the price of a new HOOVER 66 [$34.95 and I threw in a set of attachments] with a one year guarantee [just like the new HOOVER 66].  I made the sell of the rebuilt.  All the while the 2 HOOVER yokels, who happened to be in my store at the time, were pushing the overpriced HOOVER 66.  Even if I sold the new HOOVER, once the customer learned the price from the big stores he would have been angry and returned to complain.  I made the sale of the H-29 [but almost lost it].  And I nearly killed both HOOVER yokels for meddling in my store business.  That was the last of them and HOOVER for over 2 years. 

PS:  They pressed charges against me.  I broke the rear car window and roughed one up abit while the other ran out.  The judge threw the case out after he heard my side of the story.

Carmine D.

Carmine,

 

I do not have much time to write, but wanted to say thanks a lot.        DIB

 

When needed, force works…

Never, ever, ever mess with a man’s wife, kids, livelihood and dog.  Nothing wrong using a little force when needed.  My dad dropped a few men in his day protecting his family and his livelihood.  I’ll tell you as a kid growing up it felt safe knowing my dad was there to protect us.  Like the judge siding with you, the LAPD laughed after hearing my dad’s side to the story after some guy challenged him while standing in line at the grocery store.  It was 6am and while in line, my dad left his cart and ran for one more thing he forgot, only to have some guy move my fathers cart and put his ahead.  My dad wanted his space in line back and the guy challenged.  It was lights out, using what he called...  "The Haymaker” (a suprise single punch).  The lady clerks were hysterical, they called the police, and the police listened to both sides of the story and had a good laugh.  That was a long time ago, my dad would be in jail for it today.

DIB:

Wonderful story about your Dad.  My kind of guy!  Like the Apostle Saint Peter when the roman soldiers laid hands on Jesus in the Garden of Gethsemine, Peter drew his knife and cut off his ear.  My kind of Saint!

BTW, Wal*Mart raked in $379 Billion in revenues in 2007 and tops the Fortune 500 List of the largest publicly traded company.  Like them or loathe them, can't argue with success.

Carmine D.

CarmineD wrote:

The Communist Chinese Government should be VERY happy about this!