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.

Sir James thinks people will be investing in his high priced vacuums during a recession :-

http://news.sky.com/skynews/article/0,,30400-1309648,00.html

Do you agree with this point of view, Carmine? ;-)

M00seUK wrote:

Hello M00seUK:

I understand his reasons for saying this.  Unfortunately, saying it's so does not make it so.  While his perspective is from the business view [R&D], the real issue is what will consumers do?  Buy new?  Wait?  Buy cheaper?  Repair?

There was an interesting survey [done by a Consumer Electronics group} recently of persons in the USA about to receive the cash rebates from Uncle Sam and what they will do with the money?  It amounts to $600 US per tax payer and $300 for their dependents.  An overwhelming majority of the persons said they will pay down debt and expenses.  Not buy new gadgets and household items.  This defeats the purpose of jump starting consumer spending.

My sense is that people are people all over the world.  The sub prime slime here in the USA has taken a huge toll on US consumers' spending and confidence.  Not so in the UK where housing and real estate is still experiencing a bullish market.  But you and I [and James] know that dyson exports to the US and other countries account for the bulk of dyson profits.  With the dollar down, and the Euro at all time highs, the dyson exports are too expensive for US consumption. 

Having 40 plus years in the vacuum cleaner sales and service business [1949 to 1992] and weathered many economic cycles, I also have to disagree with James. 

I think a good barometer of dyson future sales are the dyson 2007 sales.  Unfortunately so far, this dyson information has not been forthcoming.  Although I recall last year this time, dyson 2006 sales and profits were widely circulated on the Forums and Web Sites along with 2007 quarter 1 vacuum sales by brand [thanks to the NPD and US News and World Report].

I'd like to see dyson's 2007 financials. Then I can answer with more accuracy and information on Jame's beliefs.

Carmine D.

CarmineD wrote:
Thats all well in good if we actually made anything anymore. Outside of Exporting Oil & Food and Making Tractors and Airplanes what do we actually produce. (Even at that our own Air Force doesn't want to buy our planes).

Unfortunately the weak dollar means our real estate and corporations will be sold and bought by foreign entities at bargain basement prices.

I've always said every "ism" used by itself is destined to fail including free market capitalism. We need a bit of protectionism, socialism etc. Yin & Yang so to speak.


At some point savvy investors are going to drop gold, make a killing and leave the late buyers to hold the bag. Then they will buyback into the US low and sell high...just have to wait till they're ready....can you hold out till then is the question.

Lucky1 wrote:

John Deere and its products are selling very well in eastern Europe, Russia and China.  Thanks in large part to the weak dollar [double edged sword] and the strong euro.  The USA still imports most of its oil and due to the $110 a barrel cost, we don't have a trade surplus, despite strong exports.  Tourism in the USA is booming.  Again, thanks to weak dollar. 

The lead contractor in the Air Force contract is Northrop Grumman a California based company.  Of course its partner is EADS, a French company.  The AF contract is in dispute and has gone to the Government Accountability Office for a ruling.  As long as the Air Force followed the rules and regulations for bid solicitations and acceptance, I doubt the GAO will overturn the AF decision.

Carmine D.

CarmineD wrote:

Read this today.  How about your favorite store?  Any wonder why they make a profit?  Not much  MADE IN THE USA  there today.

Tax Rebate

>  

> President Bush said each family would get a $1200.00 tax rebate. It

> was  previously slated to be $1400.00, but they dropped it to a

> $1200.00 tax  rebate because of various budget problems.

>  

> Now, if we spend that money at Walmart, all the money will go to

> China,

> if  we spend it on Computers, most of the money will go to Korea or

> India. If  we spend it on gasoline it will all go to the Arabs.....and

> none of these  scenarios will help the American Economy.

>  

> We need to keep that money here in America .....so the only way to

> keep  that money here at home is to drink beer, Gamble, or spend it on  

> prostitution. Currently it seems that These are the only businesses

> still  left in the U.S.

Hello HARDSELL:

That's funny.  Sad to say, WM contracts with companies and businesses that use Chinese vendors/similar for 80 percent of its products.  If you saw the size of the ships that carry the goods here from there, which pail most in the water in size, it would amaze you.

A brand new Wal*Mart store opened in Vegas.  Going green.  Sky lights provide the light for produce.  One of many in LV and doing well.  Especially now in hard times.  Aisles full of people.  Goods flying off the shelves.  Cheap goods.  I checked out the vacuums.  Dysons gone from display and no dyson cartons.  Not selling.  GE canns sold out.  BISSELL power force [$44 retail] sold out on the shelves.  I asked about it.  Was told more are expected any day.  From where?  Another nearby WM store which has them in stock. 

That's the reality of business today and consumer buying.  When the bluist of the blue chips [Bear Stearns] can go belly up, people start to worry.  Stop spending.

Carmine D.

HARDSELL:

PS:  I read recently that the oldest house of ill repute [prostitution] in Hamburg Germany closed down.  Why?  Lack of business.  Seems hard times even affect the oldest profession in the world.

Carmine D.

CarmineD wrote:

We all know that people in Vegas aren't spending on the best vacuum.  They need all the change they can get for the slots (machines and oterwise).

Dyson does very well in the southern WM stores.

HARDSELL wrote:

Hello HS:

I read the average annual income here in the Silver State is $75K. 

How does that compare to your state?

In case you can't figure out all the zeroes, it's $75 with 3 zeroes [000] and then a decimal and two zeroes [.00]. 

Carmine D.

Hello Venson:

The zeal over the aggressive Fed action to cut both the discount rate and Fed funds rate was short lived.  The 400 point Dow gain on Tuesday was given up yesterday.

Bear employees thought the $2 a share price was a typo.  Instead, thinking it was supposed to be $20.  They were shocked.  The 14,000 employees own 30 percent of the company stock.  They will fight and protest the buyout by JP Chase Morgan but to no avail.  US government will prevail and it is behind the bargain basement buyout price.  Just like the Japanese did in the early 1990's when the weak failing banks were gobbled up by the bigger banks to save the banking system.

Many Bear employees thought the bag pipe playing during the Monday St. Patrick's Day Parade was a funeral dirge for Bear Stearns. 

Carmine D.