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.

Hi Carmine,

In my opinion, regardless of the stock market fluctuations, housing market, etc., people still need to get their floors and carpets clean.  They're not going to go without a vacuum for long, and will buy one, Dyson included.  I doubt it will affect any sales as we know it.  I could very well be wrong but this is the way I see it.

-MH

Motorhead wrote:

Add high gasoline prices and home heating costs to the scenario and consumers stopped spending, especially on high priced big box vacuums.  It is now generally believed by all, including Alan Greenspan, the former Fed Chairman, that the USA is in a full blown recession.  The retail sales for the Holiday season 2007 were the worse in 17 years.  Since the last recession of 2000-2001 which officially lasted 9 months.  Not very long.  Remember when dyson introed vacuums: April 2002, perfect market timing for the big box retailers' venue.  Why?  Jaydee partnered with BEST BUY stores to launch.  BEST BUY is one of the retailers who expanded after the 2000-2001 recession, at the expense of other stores that went belly up and/or got bought out.  BEST BUY prospered as a result.  Not this time.  Stock price is off and down in the double digit percentages in the last year. 

The current recession, unlike the last, has the added disadvantages of very high consumer energy costs (vehicle and home); the worse housing market since the great depression of 1929; and commodity prices [like gold] at historical highs.  Add the increased unemployment numbers and US businesses looking to cut back staffs and the current recession has the makings of being longer and more painful.

Not the economic environment in which big box retailers want to stock and sell $500 plus vacuums for their customers to buy.   Especially ones rated fair to middlin by Consumer Reports.  IMHO 

Any wonder now that the Sam's Club store didn't want to exchange the dyson lemon for a new one. 

Carmine D.

Our Canadian market dropped a big whopping 605 points today.  Biggest one day drop in the last seven years.  Now, it will be interesting what tomorrow will bring for the US and Canadian markets as we are  so closely related. 

Carmine, I agree with you, if the down turn is pronounced, people will foolishly flock to the dollar stores to purchase cheap inferior products, be it vacuums, clothing  etc., which will ultimately cost them more in the long run. 

Vernon

p.s. Mole, Carmine, nice seeing both of you back!!  Venson has been doing a good job of holding down the fort!!

Hi,

This should not be taken lightly.  If money in theory is money, whether we're talking London or Podunk, Iowa, the story is the same everywhere.  When financial markets take notable dips people get to wondering -- and worrying.  The organization I'm with is very, very small and independent and as long as our corporate clients buy we'll attempt to keep on keeping on as we have during the big drop in business since post 9/11.  Yet, there are no guarantees. The corporate structures we serve do get nervous and rein in on their spending.  The whole manner of our dealing with them has changed drastically.

Throughout the city and the country, many corporate organizations are known for making staff cuts when things look slim with little wait time.  Here in New York and surrounding areas rents are high, mortgages are high, gassing up hte car is high and forget the supermarket -- food's high too.  Also keep in mind people who have to foot part or all of their health insurance.  They do indeed think very carefully as to what's necesssary.  A less expensive anything easily gets first consideration despite even the most logical reasons to aim for the allegedly "high quality" item. 

There will not be many people you can talk into a four- or five hundred vacuum cleaner when they know they have no cushion budgetwise to accomodate the expense.  Expectations can lower surprisingly when you know the first of the month's in front of you and you only have x-amount available.  And forget about credit cards as they too list high in our debt issues.

Even a stick vac can look good in comparison to the "better brands" when you have to figure out how to pay for it.  What's saved may well be thrown into the next month's mortgage payment.  In light of the many unfortunate foreclosures coming to be daily all over the country. Except for the fortunate elite with the wherewithall to drop dough or get backing for the glut of million dollar or coops and condos springing up here in Manhattan, for most rent, mortgages and basics get first attention and vacuums can wait.

Venson

 PS -- I wanted to throw this in . . .

New York work rules . . . especially within the corporate environment.

The average worker in corporate or manufacturing environments is expected to do the same as any other worker elsewhere -- obey and accept.

The average worker must give notice if he or she is about to leave an organized business. However, the business or organization you're working for is not obliged to let on in advance that it feels it must say, "Bye-bye," nomatter how long you've been there.  Why? It might not be good for the business. It might lay itself open to sabotage by those being dismissed. Meaning the employee must trust an employer but the employer has to trust no one. It is not at all unheard of or illegal for a designated party from the company to simply show up at someone's desk and say, "Sorry, you're services are no longer needed. No, don't bother to pack. We'll send your stuff to you."

Next -- no matter what, if you want to survive, come a job interview you may not make mention that the company you worked for so callously made you "redundant" despite x-years of rendered service just because things were looking a little slack financially. At your next job interview you may only say what a wonderful experience it was to work for the So-and-so Corporation and how ready you are for new challenges. (Pass a barf bag please.)

Yet . . . such things make for many thoughtful spending decisions by shoppers here and everywhere day to day.

Vernon wrote:

Hello Vernon:

Hope the Canadian market downturn didn't affect you in the pocketbook.  My sense is there is more of the same to come in the months ahead.  Sadly but I think true.

Thanks for the kind words. 

Carmine D.

Hi Vernon,

I thank you too.

Venson

HiVernon,thanks for the kind words.

GO GIANTS.........

MOLE

Another sort of hidden hurdle are the amount of 50 somethings being hit with layoffs and releases. Usually a good target for upscale products, (established/home owners/pre-retirees/with more disposable income toward product vs younger toward entertainment). Normally in better days for Co's this would usually happen only to 64+ year olds...

Looks like the "decoupled" markets coupled up again.  US markets are roiled today by yesterday's market turns in the world.  Fed dropped rates 3/4 percent.  And my dear Wife has gotten TWO telephone calls TODAY from different credit card companies, whose cards we don't ever use, asking us to contact them about lower rates.  These were recordings.  I got a similar call last week from a real live person wanting to know what the company could do to get us to use its card, which we never do.  Can you imagine? 

Then again Obama's campaign called us 3 times in 2 days for the Nevada caucus last week.  In fact one call came from the Virginia Obama campaigners who apparently tracked us down all the way in LV.  Go figure.   

Carmine D.

Hi Lucky1,

Again the worm can turn in some mighty grusome ways.

The most memorable thing I was ever taught about the workplace was to make yourself indispensable and that held me in good stead for a time.  You'd think that assessments of the value and knowledge those who have genuinely applied themselves to being good at what they do would increase with age and be acknowledged. (Weren't we constantly reminded to respect our elders?)  Now it seems to be the other way round.  Despite the fact that we all need to eat, age and experience weigh in as little in human resources departments when your past fifty with a resume in your hand.  It is has become commonly assumed that job seekers past fifty will not at all be happy working for less pay or benefits and will bolt for the next higher paying job that comes up.  That might be true if there were that many other jobs around to bolt to. 

Despite accumulated knowledge, expertise, etc., the young'uns who of course have to eat too are the hot item as they are assumed to be prepared to work more cheaply and put in longer hours and, I suppose, bear a brighter medical picture to company funded health plans. 

Well, what the heck, we've still got our good looks.  Right???

Venson

Ben Bernanke flinched and the Fed cut rates 3/4 percent.  Largest in over 20 years.  He was working Monday at his Fed office despite the Martin Luther King Jr. Holiday.  He was watching the markets fall around the world.  But............did he panic?

The Fed has its usually scheduled meeting on Jan 30.  Why didn't it wait to cut rates by a week?  [Panic?]Because the markets were in free fall on Tuesday morning and decisive and immediate action was needed by the Fed.  Did I mention its an election year?

Yes, there has been a "dead" cat bounce on the markets.  But Fed interest rate moves are done to stimulate and regulate the economy for the long term NOT the fluctuations in global markets in the short term.  

What does the Fed do now on Jan 30?  Another interest rate cut is seen by all.  Two in one week?  [Panic?]  If it doesn't.............then what?  And if it does............is it inflationary?  Stagflation.  What a combo.  Not good for home product sales like high priced big box vacuums.

Carmine D.

Hi Carmine,

Don't want to get too far off the thread but have you heard anything about a plan to reduce foreclosures by dropping the size of mortgage payments?  Someone mentioned that to me in passing the other day and I want to be sure I heard right.  I am assuming, if there is such a thing, it would apply to home owners who were in dire straits and not able to make full monthly payments.  The bank's idea being, "Why foreclose and get nothing at all since real estate isn't moving anyway?

Thanks,

Venson

Venson wrote:

Hello Venson:

Here's some related info:

http://www.lvrj.com/opinion/14177627.html

http://www.lasvegassun.com/news/2008/jan/24/mortgage-crimes/

Carmine D.

Thanks Carmine.  Looks like there's no way to win and no way to help.

Venson

Hi Venson:

The recent Fed rate cut resulted in the big banks reducing their primes.  Of course, prime is for their best customers, not the homeowners with mortgage payments in arrears, default, and foreclosures.  BUT...if the homeowners work with their banks, mortgage holders, and/or lending institutions to "refinance" the existing interest rates downward, based on the recent Fed cuts and next week's pending drop, they may be able to keep the "wolf" away from the door.  At least temporarily to get them through the bad times, which at this point is uncertain in duration.

On a related vacuum note, the sale of HOOVER by Whirlpool to TTA probably happened at the best possible time for all parties involved including the vacuum industry.  If the sale was not consummated when it was, it is very likely it would have fallen through.  Then, HOOVER would have languished without serious business direction during these bad economic times and could have eventually faded away.

Instead, HOOVER under the tutelage of TTA has introduced new competitive floorcare products.  It Is advertising regularly in the papers.  And HOOVER products are stocked and advertised regularly by all the big box retailers.  From all outward appearances HOOVER sales are flourishing since the sale and takeover by TTA.  We'll see what happens in the months ahead.  

Right now, all the anti-HOOVER folks who were luxuriating over the HOOVER tribulations may be eating alot of crow.  Especially if HOOVER in concert with TTA becomes the number one new vacuum sold in the USA not just in units but dollar volume too.  It may happen and sooner rather than later.

Carmine D.

Please indulge me with the post script to this thread.  It now appears that the Fed Chief Ben Bernanke not only flinched and panicked with the January 22 interest rate cut but he was "bluffed" too.

By Friday, January 25, the consensus among all the people in the know was that the international financial markets' drop on Monday January 21, a national Holiday in the US to commemorate Martin Luther King Jr, had nothing to do with the US markets' fall the week earlier.  Notta.

The drops were a result of a low level rogue trader in a French bank who cost the company over $ 7 Billion in losses.  How?  By taking unauthorized positions and making fraudalent trades.  All of which should have been caught by internal control procedures which the 31 year old bank employee circumvented.  The estimated losses may reach over $70 Billion after the company unwinds the trades, which it was doing on Monday unbeknownst to the US Central Bank and the Fed Chairman.  And in all likelihood these trades caused the volatility and declines that rattled European markets on Monday, January 21 and the US market decline on Tuesday morning before the Fed cut the rate by 3/4 point.  The largest single rate cut in over 20 years!

Now, Benboy Bernanke has a perception and credibility problem. 

When Benboy called an emergency teleconference meeting of the Open Market Committee on Monday evening to twist the arms of the Fed Bank Chiefs to drop the rates, ALL but one agreed.  Who was the lone dissenter?  The Fed Bank Chief in St. Louis, Missouri.  The only one to vote "no" on the interest rate cut and say that the Fed should wait until January 30 [during its regular scheduled meeting].  Alas in our democratic scheme of things, majority rules even when the majority is wrong.  The Fed acted Tuesday morning and the rest is history.

If I were Benboy's boss, and I am not fortunate for him, he would have his resignation signed, sealed and delivered to me on my desk this Monday morning.  Two days before the regular meeting of the Fed Open Market Committee.  And Ben's successor would be................you got it.  The man from the St. Louis Fed Bank who bucked the trend. 

Carmine D.

Most economists predict rough economic times ahead.  That could last well into 2009 and beyond.

Drawing parallels in today's economy with that of the Carter years [mid to late 70's] and the Bush 1 years [early 90's].  BUT, most economists say the signs now are much much worse than in these two previous times.  Why?  Unusually high oil and food prices.  And a much worse housing market.  With rising unemployment.  And lower corporate earnings reports.  Plus one of the largest declines in consumer spending.  All bode doom and gloom in the days ahead.  BTW, how many vacuum pros made it to Las Vegas this year for the VDTA?  I recall the brohaha last year when HOOVER wasn't represented.  What happened this year?

How will these rough times ahead affect vacuum sales?  Well, we already know from the NPD that new vacuum sales were off 3 percent in 2007.  After an extended period of increasing annual vacuum sales due in large part to dyson sales.  Most economists say that the first clear cut sign of the bad economic times was the extremely poor consumer spending numbers for the 2007 Holiday season and in January 2008.  The worse in 20 years by some accounts.

So.... I suspect the beginning of the vacuum sales fall off started in late 2007 and will probably get worse as the months ahead unfold.  Who will be hit the hardest?  No question, the big box retailers who enjoyed a bullish market in vacuum sales from 2002-2007 in large part due to dyson sales.  With a fall off starting in mid to late 2007 causing the entrenchment by most big box retailers in their vacuum inventories now.  How?  Lowering prices, offering giftcards in concert with discounts, and culling brands and models with clearance prices.  The latter usually from the ranks of the hard to move sellers [read high end prices]. 

Surely any vacuum insiders here who are privileged to vacuum sales information which contradict mine will correct me if I'm wrong.  Pity the thought that I spread negativity and lies.  

ALL COMMENTS WELCOME EVEN COMPANY PROPAGANDA [READ SALES PUFFING AND ROSY SCENARIOS FROM PRIVATELY HELD COMPANIES NOT SUBJECT TO THIRD PARTY AUDIT SCRUTINY AND REVIEW].

Carmine D.

CarmineD wrote:
I think that those who buy expensive items (vacuums or otherwise) will continue this trend although they may wait for better financial forecasts.   I do not see them running to WM or other stores to buy the low end. 

JMHO...I think the coming years will be good for a company who can come up with a QUALITY vacuum that is healthy, compact and has a good powerhead for $500 or at least, under $600.00 MAX, that is NOT MADE IN CHINA. So it should be good for Eureka/Electrolux. While not a great machine (hard to work on and those hose & wand contact problems). It's priced well and gets a good review from CR (which seems to be the only criteria for many people). If I were the Germans I would take the hit for a few years in exchange for market share. SEBO should offer the K3 in that price range and try to make it up by splitting some of the difference with the dealer in profit margin and raise the back end prices like bags and filters. Also offer less warranty like a 2/5 year or 3 year. It's very hard to get the Germans to think like Americans when it comes to marketing (this is both good and bad and sometimes frustrating) I'm assuming sales are good in Europe so things won't change unless they lose too much market share in the US...then creative thinkers might be listened to.

Lucky1 wrote:

The economic malaise is global.  Europe and Japan are not exempt in part because their markets and economies are tied to oil and food prices which are at record highs worldwide.  The economies faring better are India and China. 

Carmine D.

HARDSELL wrote:

My good friend and fellow:

In a sluggish economy [read recession], the more upscale the retailer, the more they're struggling.  Why?

Department store operator Macy's needed a one time tax benefit to rescue the 4th quarter results it released this week.  Target [cheap-chic] did better with an 8 percent drop in quarterly earnings that was still a little higher than analysts expected.

And your favorite Wal*Mart with its strong emphasis on low prices reported a solid fourth quarter.  It's stock price has fared better than all other retailers this past year: Up 8.1 percent at $51.40.  Including BEST BUY which is down 11.7 percent at $46.50.

Another: Nordstrom said profits fell 8.6.  I can go on.  But I think [hope] you get my point.  In short, the retailers' results in 2007 and so far this year are the worse in 40 years.

I'll overlook how absurd your first statement is with regard to the US housing market for 2007 and [according to the gurus] for well into 2009, 2010, and some say even 2011.

Ben Bernanke told Congress he will cut interest rates further.  Why?  Stimulate the sluggish economy.  I expect with absolute certainty that the Bush Administration will push through another financial stimulus package next year in time for the election.  Not because financial forecasts are better but because they are much worse.  Problem:  Ben is fighting a war on two fronts:  Recession at the front door, and inflation at the back.  Consumers are squeezed in the middle.  Higher consumer prices [food and oil are the worse], lower wages [down almost 2 percent in 2007], decreasing asset values [read home values and savings] and increasing unemployment with lower company earnings. 

When exactly do you predict better financial forecasts? 

Carmine D.

CarmineD wrote:

As usual, in your haste to show your superior knowledge you failed miserably in your rebuttal to my comments. 

Not once did I mention struggling retailers.  I only said that most consumers who are  accustomed to upscale purchases will not rush out buy inexpensive goods.   Do you predict a recession to be eternal?  I do not think so, therefore many will wait out the storm.  Unfortunate as it is for some now is a great time to buy a home.

Hello Good Friend:

Who sells expensive items [like high end vacuums]?  Answer:  Upscale retailers not Wal*Mart.

Now may be a good time to buy a home if you qualify [read credit worthy, currently employed and have been for awhile with certainty for future too, and willing to put 10, 20 percent down].  BUT... tomorrow, or next week, or next month, or next year may even be a much better time.  With steadily declining housing prices, the inventory of unsold new houses at all time highs, and many high end home builders reporting declining profits, losses and even bankruptcies, why buy now?  Wait to see what tomorrow brings.  BTW, how are new vehicle sales [one of your favorite industries to reference]?

You ask me how long will the recession last?  I asked you first.  It was the question about when consumers can expect better financial forecasts.  I answered the question for you too.  2009, 2010, 2011 even longer.  Why?  The answer is really unknown and uncertain.  In large part because Ben Bernanke is fighting stagflation.  Two very different economic problems.  To the extent he and the Fed tackle the current recession on the front door [by cutting interest rates] they fuel inflationary pressures.  To the extent they tackle inflation by raising rates/reducing the new money supply in circulation, they fuel the recession. 

This is the same economic condition that Jimmy Carter experienced in his one term presidency under the tutetage of Paul Volcker as the Fed Chairman.  Ronald Reagan easily won 44 states and 500 electoral votes in 1980. 

Most are predicting that today's conditions are much worse.  Why?  Housing market much worse.  Oil prices while high then and a source of the inflation are at all time record highs now. 

The point you should get from all this is that new vacuum sales especially your favorite brand [dyson] at upscale retailers retrenched in the last quarter of 2007.  They are continuing to languish and will decline much further in the months [and even years] ahead.   Retailers have shelves and warehouses full of unsold expensive items [like vacuums] in inventory.  Not exactly the best time to buy more to sell to budget conscious credit pinched US consumers.

Carmine D.

HARDSELL wrote:

Hello Dear Friend:

From what I read in the retail industry, NOT ONLY has Wal*Mart knocked out BEST BUY with the sale of electronics and related items in 2007 and still, but also cheap-chic Target on housewares and apparel.  I see the latest Target TV ads conspicuously excludes the usual dyson.  And Wal*Mart is running the DC18 for $498 with a few extra tools and a $100 Wal*Mart Giftcard with the DC18 purchase.   While supplies last.

Apparently, it's not the groceries that give Wal*Mart it's edge [as you biasely like to report].

It seems Wal*Mart is the US retailers' standard to follow in the current economy.  And confused Target execs are scratching their heads wondering what the heck happened.  Why?

In 2005 and 2006, Target same store sales grew at twice the rate of Wal*Mart's.  In 2007, Target same store sales nudged up a disappointing 0.2 percent compared to gains of 1.7% at Wal*Mart.  "Expect More" should be the Wal*Mart message rather than Target's.

Carmine D.

Hi Carmine, You know what this economy is really making the rebuilt vacuum market take hold,as you say what goes around comes around,we are swamped with high end trade ins,you more than likely know the brands,the sales puffing,and hype is starting to really bite these guy's in the A$$, I would be very surpised if some of them are still in the floorcare business with in the year.Only the strong and talented will survive this storm ............B.T.W. the cvs industry is really taking a beating,more like 40 to 50% off of last year...........Of course you saw this coming for over 2 years now.

Take Care

MOLE

CarmineD wrote:

Your imagination is amazing.  When did I say that groceries gave Wal Mart an edge?   Now that you mention it, why wouldn't they?

About the only thing that I can recall is saying that Wal Mart is not a high end store.  Neither is Target or BB or CC.

Lots of changes in 2007.  K Mart may jump ahead in 2008 or 2009.  Who knows? 

mole wrote:

Hello Mole:

Here in N.LV there are the following occurrences with repairs of that particular brand:  First, with the 2 year waranty over and facing a $150 repair for a bad clutch and belt replacement, customers are trading in [not for the same brand].  Second, the customers agree to the repair, then don't claim it.  It lays in the store abandoned.  Storeowners call the customers, who say they will be in.  But never show.  In one particular store, I advised the owner, who has this problem, to post a sign clearly visible to all the customers that the store is not liable for repairs not claimed after 30 days.  I also suggested that the repair tags that are given to the customers say the same.

In the future the models with the clutches [read with the 5 year warranty] will be dyson's problems.  Both the home office and/or warranty dealers who will have to eat the cost of these repairs under warranty.  One of the reasons, among others, I did not buy a dyson until it had the 5 year warranty.

Do you think a good part of the CVS downturn is due to the bad housing market?

Carmine D.

HARDSELL wrote:

My friend:

It's not my imagination but my memory.  August 2005 on another Forum.  I was discussing the merits of BEST BUY vice Wal*Mart with a good friend Carl the Pro Prohlman.  He liked the former and I the latter for a variety of reasons. 

You chimed in and said Wal*Mart has the edge, just like you are saying now, because of groceries. 

True, Wal*Mart is the king for produce sales.  With the second far fra away.  But  as I told you then [and you forgot already] for retail store comparative sales purposes, the produce is culled out of the sales data.  Someone once told me that the largest brain is no substitute for the smallest pencil.  I agree but add if the pencil has an eraser on the end.

Carmine D. 

CarmineD wrote:

Please be kind and provide the link to that.

HARDSELL wrote:

Ye of little faith.  And a friend of mine no less. 

My good fellow, before I entertain your request which will require me to dig into my archives, please be kind and provide a review of the Royal Eminence as you were requested by our Forum Moderator.

Carmine D.

CarmineD wrote:

YES,YES AND YES, Carmine.Why should the dealers take the brunt of the B.S.,from inferior made products,and the manufactures change names,sell out,or get out of the business,and open schools of  engineering.....and are hailed as great inventors.The public are such SUCKERS............

MOLE

CarmineD wrote:

If you can't find it just tell us.  My review is not relevent to this subject.  I would expect no less than for you to try to twist the subject.

HARDSELL wrote:

My good fellow and friend:

The review of the Royal Eminence is more relevant to this Forum than redundantly posting a thread from August 2005 which was a side bar [read unrelated to vacuums] on another Forum that is now defunct.

Or is it easier for you to criticize others'  vacuum commentaries than to originate your own? 

Carmine D.

CarmineD wrote:

Go back and see how all this BS started before you cast stones.  You always want proof.  Now I would like to see yours.

Lies, half truths and deceipt deserves criticism. 

HARDSELL wrote:

Kmart won't, my friend.  Not in 2008 and more than likely not in 2009.  Why?  Kmart and SEARS are the same now.   You don't recall but the August 2005 thread [I mentioned on another thread on this Forum] between CPro and I included SEARS and KMART which had just merged.  SEARS didn't offer any full year forecasts.  But it's presumed to be worse than previously expected as a result of worsening conditions.

The word on the street is to look for SEARS to have a yard sale soon.

Chairman Edward S. Lampert, a hedge fund manager, will [it is believed] be forced to sell off the underperforming SEARS and Kmart stores.  Why?  SEARS needs the cash from the sales of the land and stores.  SEARS/Kmart has 3400 stores in the US and 380 in Canada.  Lampert will also approve other retailers selling it's highly regarded brand name products like Kenmore, Craftsman, Land's End and Diehard.

Analysts claim SEARS efforts to date to revive sales have failed miserably.  Hence, the yard [read asset] sales.  You can identify with asset sales.  You sold off your DC07, the best vacuum you claimed you ever had, and kept all the others that you liked less.  When you need money, you have to do that: Sell off your assets.   Desperate times call for desperate actions.

BTW,  my friends and colleagues at SEARS gave me the inside information when I visited them several weeks ago.  Last week's earnings report confirmed they were right.  Excellent hearsay, I'd say. 

Carmine D.

I did not have to sell the Dyson.  I wanted to sell it.

HARDSELL wrote:

We know now that you sold it.  You told us at least 4 times.  The question is:  Did you buy the DC07?  Or...was it a gift to you? 

Carmine D.

I responded to your insinuation that I sold the Dyson out of desperation.  You never mentioned gifts.

You can't convince me that you did not take too many punches to the head although you never got out of the recreational league.

HARDSELL wrote:

My dear friend:

We alreay know you can't originate your own vacuum reviews [you said you are not a good writer and reviewer] but can only criticize others who do. 

Now it seems you can't answer a simple question.  Did you buy the DC07?  Or was it a gift?  May I assist you as I normally do.  Here's what you do to answer.  You think back when the DC07 first came into your use and possession.  Did you go to a big box retailer to buy it?  That's when a store gives you something and in return you give them money.  Or did someone give it to you?  That's when you get it, but don't give money for in in return.  Hope that clarifies.

Carmine D.

CarmineD wrote:

I could originate a review if  chose to, however it would be useless.  I do not criticize others who are honest.  You are a legend in your owm mind (and only yours).

I can answer a simple question when it is asked.  I already told you what I responded to.  It was not a question.

Not sure what difference it makes but I paid cash for the Dyson and all other vacuums that I have owned.

HARDSELL wrote:

What other vacuums have you owned?  Where did you buy your vacuums, including the dyson?  

Carmine D.

Within the next 2 weeks Ben Bernanke and the Fed policy makers will announce another fed funds interest rate cut.  Probably 1/2 percent.

Since September 2007, the Fed funds rate has been cut from 51/4 percent to 3.  Not counting the next rate cut.

Also in recent months, 19 big box retailers have discontinued reporting monthly retail sales data.  This metric goes back to the early 1970's when big box retailers started reporting the monthly sales data to give investors confidence in the retailers' financial strength.  Why?  To attract investors.  Over 90 retailers reported monthly sales data for years.  It's now down to half that number and more retailers, like Macy's yesterday, are joining the non-reporters.  An indication that things in the retail sector are about to get alot worse in the months ahead.

Carmine D.

Ben Bernanke, the Fed Chief quoted Leo Tolstoy before a Senate Hearing on the economy AND Warren Buffett says we are in a recession all in the same week.  Got my attention.  The number one wealthiest man in the world according to Forbes says the US is in a recession.  I believe him.  

February Jobs data was released yesterday.  For the second straight month in a row, jobs were lost in the US economy in February.  A sure sign of a recession.  As if this President needed one more sign to convince him. 

When economists and analysts look back on this year, the infamous Fed rate cut decision on the Martin Luther King Jr. Holiday, and the events that started my thread, will become the official start of the US recession of 2008.  With the consequences felt globally.

Carmine D.

It's coming on two years that I heard an interview quote from Buffet saying he was dumping US Dollars and buying into Euros. So much for patriotism when you can make a buck Internationally. With the Global Economy, trickle down economics hasn't and never will work. People who believe in Free Market Trade without an equal trading field should be ashamed of themselves and this is just as big a part of the economic problems in this country as is the mortgage crisis and borrowing money for the war! If we are trying to trade with subsidized and socialist trading "partners" we too need (despite our heritage) to have some sort of socialist assistance. Every "ism" in it's purist form is destined to fail it's constituents . Including Capitalism. We need to hybrid our system, take care of our own until we become stronger economically. JMHO

Lucky1 wrote:

The Euro hit an all time high against the dollar this past week.  $1.59 to the Euro.  Sad but true.  Buffett's timing was just right, as usual.  Arbitrage is the practice of making money by trading currencies.  Buffett can teach the course.

Carmine D.

Lucky1 wrote:

When jaydee collected the $6.4 MILLION from HOOVER in 2000 he went to Malaysia to mass produce dysons for world markets.  Skipped right over the UK.  His country of origin.  Brits still upset about that maneuver.

Why did he go abroad?  Cheaper labor costs.  At the time 30 percent less than the UK.  It was probably more.  Kept the dyson prices the same and even went up higher.  

Slave labor without the guilt.

Carmine D.

Mark your calendars.  March 14 [not the Ides of March as Shakespeare said in Julius Ceasar].  Why?  The US government bailed out Bears Stearns, an icon financial institution with 80 years of revenues and profits.  It's CEO said it had a liquidity problem [read it couldn't make payroll and its financial obligations to its clients and customers].  The US taxpayers in their kindheartedness gave BS an interest free loan.  Why?  Because BS is too large to fail [read the domino effect would bring down many others]. There will be more to come to drink from the trough of the US taxpayers in the months and years to come. 

Stock price of BS dropped 50 percent yesterday.  It's down 75 percent for the year. 

Carmine D.

CarmineD wrote:

Hi Carmine,

Thanks for the report.  It of course make me mad as all get out.  Money is found Bear Sterns but there is no loweiring of interest rates to aid the everyday man in escaping forclosure.

Well -- it's a mean world to live in but we've got to stay here 'til we die . . .

Venson

Venson wrote:

Hello Venson:

Ironically, the Fed has cut the Fed Funds rate since September 2007 from 5 to 3 percent.  And very likely to cut again this week anywhere from 25 to 75 basis points.  Despite these efforts, the 30 year mortgage rates have actually gone up over this time rather than down.  No doubt the effects of recession [sluggish economy] and inflation [record breaking commodity prices] vying concurrently on the market conditions. George W.  like his Father doesn't have a clue of the economy's severity as he tap dances and sings on the steps of the White House. 

Word on the street is to look for more banks to petition the Fed for bail outs.

Carmine D.

Hi Carmine,where do the feds get the money from.

Thanks.

MOLE

mole wrote:

Mole:

As always, your question is right on the money.  The Fed prints the money [US dollars with the technical assistance of the Bureau of Engraving and Printing, a Department of the US Treasury] that is in circulation here and abroad.  Increasing the money supply in circulation increases liquidity and credit in the markets.  Decreasing the money supply contracts the money supply in circulation.  It's called "monetary" policy.  The former is inflationary if it goes to the extreme [recall the worthless money in Europe during and after WW11].  The latter is recessionary if taken to the extreme [recall the Great Depression of the 30's].  The Fed's job is to keep the right monetary balance so as not to tilt the US economy [and world markets] too far in one direction or the other as the normal business and market forces influence the supply and demand for US goods and services both here and overseas.

Carmine D.

Hey Carmine,

All's well that ends well.  The Times Onlines says, "JPMorgan Chase Says It Will Acquire Bear Stearns for $2 a Share".  That amounts to about a $250,000,000 which is considered a bargain basement price.

Life is funny.

Venson

CarmineD wrote:

Thanks Carmine, IF anyone that had the money to buy products,either made here or elsewhere, which would be the better buy. I would think that people who have not been busted yet,can almost name their price and get some really good deals. It seems like retail is real slow,customers are just not buying at no matter what the price is.

I would also think that online ,and E-BAY are doing a real lot of damage to the little guys.....

MOLE

mole wrote:

Hello Mole:

The bright spot in the weakening US economy and the fallen US dollar is that the goods we produce for export are less expensive for consumers overseas. 

US retailers are bracing for the worse.  Many are retrenching by laying off staff and culling inventories.

In hindsight, in 2002 when gold was waffling at $250 an once, the gold mining stocks [like Newmont and Anglo] and the commodity were excellent buys.  Why?  At the time, companies make money on the mining when gold hits about $275.  By August 2006, the gold mining stocks doubled in atock price and gold was at $500 an ounce.  Some investors sold and took their profits.  Always a good thing to do.  But...now gold is over $1000 an ounce.  The TV is awash in gold infomercials.  Many commodities followed gold's lead and are at record highs: Wheat, oil, gas and so on.  Unfortunately, not vacuums and especially at the big box retailers.

I agree that eBay has increased competition especially in pricing.  But for vacuums it's been short lived in the current economy.  Why?  People are not buying new high priced vacuums from brick and mortar stores.  My sense is the same is true for eBay.  The stores [and web sites] offering service [and parts] will survive to see better vacuum sales days ahead.  If they make it through the months and possibly couple years ahead.

Carmine D.

Venson wrote:

Hello Venson:

Not for the investors who bought and held Bear Stearns stock.  One billionaire investor lost $800 MILL on the sale and purchase by JP Morgan Chase.  I don't think he is feeing very well these days.

BTW, Fed cut the rate 25 basis points over the weekend, deciding again not to wait until later this week.  Don't know what the US markets are doing.  But most agree that 25 is on the low end.  Most were expecting at least 50 basis points and some even 75.  Some think the markets already factored the cut in and the rate change won't have a effect.  Have to tune in and see how the markets reacted.

Carmine D.

CarmineD wrote:

Oh c'mon!  He'll probably get some more from somewhere.  (How many billion did he start out with?)  After all if JP Morgan Chase can buy Bear Stearns for $250 million and then have the government kick in a $30 billion line of credit anything's possible.  Them that's got -- get.

Per the Times Online, the Dow was up 21 points when it cloosed today.

Best,

Venson

Venson wrote:

Venson:

My heart goes out to the 14,000 BS employees whose 401 K accounts are heavily weighted with the company stock.  They not only have the risk of losing their jobs but their retirement savings too.

Word on the street is that the Fed will cut again tomorrow, maybe 100 basis points.  Which may explain why the US market opened down 150 today and then recovered and made a slight gain. 

Also, Lehman Brothers went down to $20 a share today and may be the next financial to go belly up if investors bail.  This time the Fed may not intervene.

BTW, markets around the world opened down today as a result of the US bailout of BS and subsequent purchase by JP Morgan Chase.  Gold hit a high of $1033, as flight to safety.  Have to see what happens tomorrow when the Feds meet.  And world markets are down 5 percent more than the US market so far this year.

Can you imagine buying an asset for 2 cents on the dollar with a guaranty from the US government.  That's exactly what JP Morgan Chase did with the acquisition of BS. 

Carmine D.

CarmineD wrote:

Carmine that's what I meant when I said them that's got get.  Only 14,000 employees? There was a statement made during a news show I watched earlier that claimed about 30 percent of Bear Sterns' stock was owned by employees. That's sad if true.

Venson

Venson wrote:

Hi Venson:

The employees who own the Bear stock could not bail.  Why?  Something in the financial industry called a 'lock up' period.  Before companies issue their financial results and earnings employees are preempted from buying and selling its stock.  Not so with the investors.  Sure isn't fair.

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.

CarmineD wrote:

Is that 75k per family with 2 working?   How many total per family.

Why is the decimal and two zeroes necessary?

Hello HARDSELL:

Good question.  It's household income.  It can be a single person in an apartment and/or a married couple with children and all living in a house.  It's the average annual income of all residents in the state. 

The decimal and zeroes is for full and complete disclosure.  $75K; $75,000; and/or $75,000 are all the same.  Don't really need the comma either after the $75, but it's more correct to include. 

Carmine D.

Venson:

I forgot to mention that a year ago, Bear stock was $160 per share, 3 weeks ago $85 per share and today $2. Unbelievable for a firm with 85 years of history, 5th largest in the industry, that weathered the Great Depression and many business cycles after.

Carmine D.

Anyone know the bonus money paid to themselves for the last few years of losing peoples financial futures?

Lucky1 wrote:

Hello Lucky:

The Wall Street Journal did a recnt article on just this issue.  I haven't had time to digest and post.  I will in the next few days.

Carmine D.

Lucky1 wrote:

Lucky1:

According to the WSJ which cites an Executive Compensation Consulting Firm, the 5 top paid execs for Bear between 2004 and 2006 earned $381 Million which is more than the $236 Million bargain basement price received from JP Chase Morgan.

This is the latest data available.  None of the execs will get severance pay and the values of their shares in Bear have dropped with the Chase takeover.

JP Chase Morgan was the clearinghouse for underwriting the Bear loans.  It was intimately familiar with the imminent Bear liquidity problems and was able to pounce on the deal [with the Feds in its corner].

Carmine D.

CNBC "Street Signs" w/ Erin Burnett will interview CEO's from Best Buy, General Mills and others.  2pm Eastern today.

Thanks DIB.  A competitor of BEST BUY, Circuit City, is struggling.  An investor group has the major holdings and forcing management shakeup. 

BEST BUY stock is down big time and not rebounding.  It's watching the CC developments very closely.

Carmine D.

Didn't catch the interview.  But..............a synopsis of the economy:  Worse stock market in 9 years.  Some are calling it the lost decade since the levels are the same.

New housing starts the worse in over 20 years.  New and existing housing sales the worse in 20 years.  Foreclosures are the highest since the 40's and the Great Depression.  And of course, oil and gas prices and food are at all time highs. 

The Consumer Confidence Index, long watched as a signal of recessions and depressions, is at levels commensurate with past recessions and depressions.

And of course, Bear Stearns the 5th largest investment bank going belly up: From $160 per share to $2.00 in less than 6 months.  And more such collapses anticipated.

BEST BUY stock is down about $10 plus per share off it's 52 week high.  Circuit City which as late as mid 2007 was trading for $20 plus a share, is now at $4. The nose dive in stock price allowed private investors to buy up the majority of the stock and force the management shakeup.  Don't think there are any bidders for it if it goes on the auction block.  It may fold in the months ahead.

Not alot of good news for the US economy ahead.  Most, even the most optimistic, are predicting a recovery, after a bottom, won't be seen until 2009, pushed back from mid 2008 earlier predictions. 

PS: Wal*Mart stock price is at $53 plus a share, a 52 week high.

Carmine D.

CarmineD wrote:
As with anything... perspective is subjective. Just a few observations.


Isn't this still pretty high?
NYSE Composite 8793.24
Dow Jones Ind. 12262.56

Commodities are high because the Dollar is very low not because they are rare.

Since the news Media started creating news instead of reporting it... sensationalism and panic are the rule not the exception. Though the housing market is bad there are still people who have to buy homes but are cowed into waiting till "rock bottom" hits. So a gut of homes and no movement. Until the media gets a different outlook, the market (true able buyers) will not budge. However, with the credit crunch, buyers might be in for a shock...the longer they wait the chances of them even being able to get CREDIT when they are ready lessens. Next year it may even take a credit rating in the mid 800's to qualify.

Nothing is mentioned or being addressed about high property and school taxes that are killing the middle class. While we worry about Muslim Extremists it's the Taxman who will get us first...

I feel it may take a lot longer than 1-2 years to settle down. The way it looks the next regime will not offer much change and will continue running a huge deficit and borrowing to continue the war. JMHO

Lucky1 wrote:

Hope I addressed all your points.

Carmine D.

Nothing is mentioned or being addressed about high property and school taxes that are killing the middle class. While we worry about Muslim Extremists it's the Taxman who will get us first...

Carmine,  I do not think Lucky is referring to revenue.  He is referring to the taxes that we pay.  Property values do not change daily, weekly or annually.   I have never experienced a tax cut nor a property devaluation.  I doubt that any other property owner has. 

The housing market was destined to stall.  Creative financing by greedy loan companies.  Ignorant borrowers.  Over inflated home prices due to people who will pay vs real quality.

HARDSELL wrote:

HARDSELL:

If you think your house and land are worth the tax assessed value then by all means pay the amount.  If you think it is not [because the housing and land values have declined precipitously due to the huge number of unsold houses for sale], then I suggest you contest it with your local tax authorities.  You will be told to get a revised assessment on the value of your house/land.  With proof in hand, then you can argue that you should pay the lower tax amount! 

The tax man never lowers the taxed amount voluntarily, unless you challenge it.    A HARDSELL like you should know that already without my telling you.

Carmine D.

CarmineD wrote:

Just because you say it does not mean it will happen.  I do know that.

The drop in property values has hapened in the last few months.  Should I go to the tax office every 30 days t see if I should file for reduction?

Point is Carmine, property is assessed only every few years and housing slowdowns and price reductions have no impact on getting taxes reduced for current home owners.

Your response to Lucky was an attempt to show your superior knowledga and you shot yourself in the foot.  As often as you self inflict wounds I hope you have steel toed boots.

PS HARDSELL:  All those foreclosed homes have unpaid property taxes.  Result: Shortfall in tax revenue.

Carmine D.

HARDSELL wrote:

HARDSELL:

I disagree with the highlighted portion of your statement.  Is the reason you are so irritated with me because you think I'm wrong?  Or do you fear I'm right? 

Carmine D.

CarmineD wrote:

Sorry if I seem irritated with you.  I do not fear that you are completely right or wrong.  Sometimes it is possible to get a property tax reduction and sometimes not.  I do not believe that you would be successful at getting a reduction simply due to a slow down or price reduction on new construction or listed homes regardless of age.  If prices are down for a year or two then maybe, yes.  I personally believe that housing prices are just being adjusted to reflect a more real value. 

Funny thing is most people like to brag about their homes value.  When they receive their tax assessment they want to argue that the home is over valued.

HARDSELL wrote:

HARDSELL:

Your statement is contradictory [I highlighted the parts].  If your home is overvalued for tax purposes [for whatever reasons], you are paying too high property taxes.  If you don't mind, by all means pay the higher amount.  If you believe the assessed value is high, then contact your local taxing authorities and discuss.  Of course, they will disagree that's why you got the higher assessed value.  If you take their word, pay the higher amount.  If not, it's not hard to determine what your home is worth and the propertt tax due.  All the information is at your fingertips.  But the homeowner has to take the initiative.  It's their money not the taxing authorities.

On another note, I see where the Gov of Kentucky [Beasher?] lost in a bid to get casinos approved in the state.  Apparently horseracing is okay but not gaming.  What's the revenue shortfall in the state?  $900 Million.  I understand all city, county, and state entities nationwide are experiencing revenue shortfalls.  And will for the future.

Gov said he will try again.

Carmine D.

CarmineD wrote:

I went back to verify this.  I understated the truth.  This is a 3 year high for WM stock.  It has gained 12 percent this year alone.  The best stock gain in the Dow.  The pros even have a name for this: The Wal*Mart effect.  Apparently as the economy nose dives, consumers flock to WM stores to get the most bang for their buck.

Carmine D.

CarmineD wrote:

I do not think that you are comprehending.

Property taxes in my area of NY at least, are tied to an Index. This allows your evaluation to rise and/or fall but when multiplied by the index # they can get the amount of money they want to extort...err... assess from you. It's a no win situation for the Homeowner. Lower house value... higher Index to multiply by.

The only way to cut taxes is to have the powerful Civil/Police/Firefighter and Teacher Unions accept lower wages and benefits like most other Americans are experiencing....THAT'S NOT GOING TO HAPPEN!

YOU work for the Government now...they do not work for you. Their sense of entitlement is brazen.

In North Jersey the Governor wants small towns to group together and share overlapping services to save the Taxpayers money. They outright refuse. One town supervisor was quoted as saying "You can't do that...We would have to lay people off". GEEEZ ...What is every other Business in the US doing to help cut costs? There are Town Clerks here making $85-$125 Thou and Police making The same and Chiefs making more. These are sleepy bedroom communities.

Lucky1 wrote:

Did I hear/read that the good Gov Corzine wants the firefighters to do the street cleaning and trash pick up in their down time? 

Customarily, all local, county and state revenue streams increased year over year.  Revenues never went down.  Always up.  In large part because the booming housing market enriched the coffers with property taxes and sales taxes [doesn't Jerzey have one of the highest?].   With foreclosures up and housing sales down, these local, county and state revenue streams are all drying up.  What are the politicians to do?

As I mentioned, the good Gov in Kentucky wants to add gaming and casinos so he can tax the proceeds to make up for the $900 Million state budget shortfall.  Didn't fly.  The state legislature voted against it.  He says he'll revisit the matter.  I believe him.  Tho, gaming tax revenue is not a cure all.  In Nevada, the state coffers [as well as the water supplies] are drying up fast. 

It's not looking promising. 

Carmine D.

Lucky1 wrote:

I had a sign hanging in my Bloomfield vacuum cleaner store [1949-1992].  It read:

We collect county, state, and federal taxes;  and do a little business on the side.

How true.

Carmine D.

DysonInventsBig wrote:

DIB:

I didn't see the interview with the good CEO, but it must have been a doosie.  Why?  BEST BUY stock plunged on Friday by $1.60 a share down to $40.  That's off for the year [only 3 months] by 23 percent.  

Carmine D.

HARDSELL wrote:

Hello HARDSELL:

Since we appear to have reached common ground on the best of the dyson vacuums: DC07, I thought I would revisit another subject with you where we did not reach a mutual agreement.

If you have the USA Weekend Magazine insert to the Sunday Newspaper, check out page 6 and the article MoneySmart by Walencia Konrad.  "How to Pay Less in Property Tax."  The article begins: "Think falling prices have affected the value of your home and your tax bill is too high? Mount an appeal using tips from the National Taxpayers Union."  The rest of the article gives more information.  You can probably go to the links at usaweekend.com for the article.

Carmine D.

According to news reports, Linens-n-Things  will file for bankruptcy today and/or tomorrow.

Carmine D.

Click image for story.

DIB:

Godfather.  Classic movie circa 1972.  Great pic, although Vito Don Corleone's face is overlayed, Sally Tessio, Clemenza, Fredo Corleone, Sonny Corleone, and Tom Hagen aka "Carminuc", after Carmine Ford Coppola.  Only family member missing is Lucca Brazzi, the Don's enforcer.  Getting ready for the sit down with the Turk, DiTagglia, one of heads of the 5 NY families who wants to branch out into narcotics and needs financing and police/legal protection from Don Vito.  Michael Corleone is absent too.  Not yet part of the family after getting out of the Marine Corps and fighting in WW11.    

Today's news: Blockbuster Video, with financing from Carl Icahn, is making a buyout bid for Circuit City, another struggling retailer.

Carmine D.

Carmine,  FYI, the picture was not my doing, it was from the NY Post story.        DIB

DysonInventsBig wrote:

DIB:

Regis Philbin's favorite newspaper.  Good story.  Up close and personal. 

Bob DiNicola seems to have lost his management skills when it comes to LNT.   

Carmine D.

I hate to see American jobs lost, and presumably suppliers/vendors not paid or paid in full.        DIB

Kohl's having a one day sale, including floor care today.  Looks like its down sized the venue of vacuums to "affordable" low-mid range budget models.  Kohl's is not exactly a Wal*mart clone, more on the order of a TARGET.  Surprising to see dyson left out of the sale venue.  More surprising if you search on dyson vacuums only 3 models come up:  DC16, DC15, and DC21.   Looks like Kohl's is culling the high end dyson line up in favor of the less expensive makes and models, bagged and bagless.

Interesting? 

Carmine D.

Here is the link, I forgot to post to my previous message.

http://www.kohls.com/kohlsStore/homecare.jsp

Not a wide selectoion of dyson vacuums in the Kohl's venue these days.  Wonder what's happening with dyson and Kohl's?  DC15, 16, and 21.  Terrible choices. 

http://www.kohls.com/kohlsStore/homecare/brandsforhomecare/dyson.jsp?bmForm=guided_nav_search&SubcatFolderID=2534374752659699

Carmine D.

CarmineD wrote:

Kohl's is one big sale every day.  Their discount is off the highest retail to be found.  The sale price is usually as high as or higher than a lot of retailers' daily price.

HARDSELL wrote:

Of late, you're absolutely correct.  Kohl's is feeling the squeeze of the lack of consumer spending and its sales and sales supplements are coming more and more frequently.  What Kohl's offers, which apparently many consumers like, is the regular 10-20-30 percent off on all purchases for a given day.  With another 10 percent off the discounted price if you use a Kohl's credit card to charge the purchase. 

Carmine D.

Kohl's having another sale Saturday April 19.  Floor care too.  10-40 percent off

Dyson conspicously absent again.  Everything else on sale.  Sorry for the lengthy web site.  If you prefer go to the Kohl's Web Site and navigate through to floorcare.

http://www.kohls.com/kohlsStore/saleevents/0418ph_supersaturday/homecare/1afloorcare.jsp?ENDECA_SEARCH_INPUT%3C%3ENe=&ENDECA_SEARCH_INPUT%3C%3ENo=24&ENDECA_SEARCH_INPUT%3C%3ENs=&ENDECA_SEARCH_INPUT%3C%3ENtt=&ENDECA_SEARCH_INPUT%3C%3Erecs=12&ENDECA_SEARCH_INPUT%3C%3EN=74375&ENDECA_SEARCH_INPUT%3C%3Etype=2&FOLDER%3C%3Efolder_id=2534374753240004&bmForm=guided_nav_search&bmFormID=1208522579223&bmUID=1208522579223

Carmine D.

CarmineD wrote:

Dyson conspicously absent again.  Everything else on sale.  Sorry for the lengthy web site.  If you prefer go to the Kohl's Web Site and navigate through to floorcare.

http://www.kohls.com/kohlsStore/saleevents/0418ph_supersaturday/homecare/1afloorcare.jsp?ENDECA_SEARCH_INPUT%3C%3ENe=&ENDECA_SEARCH_INPUT%3C%3ENo=24&ENDECA_SEARCH_INPUT%3C%3ENs=&ENDECA_SEARCH_INPUT%3C%3ENtt=&ENDECA_SEARCH_INPUT%3C%3Erecs=12&ENDECA_SEARCH_INPUT%3C%3EN=74375&ENDECA_SEARCH_INPUT%3C%3Etype=2&FOLDER%3C%3Efolder_id=2534374753240004&bmForm=guided_nav_search&bmFormID=1208522579223&bmUID=1208522579223

Carmine D.

Hey Carmine,

Here is how you make your own (blue) link.  It is relatively easy to do and easier for us readers to use too.  Simply clicking on hyperlinks (blue links) is the better way versus us readers copying and pasting the non-linked web address links into our URL address box in our browsers.

1.       Do this:  Type in your post something like - Click here or Go here for story, etc.

2.       Do this:  Highlight text highlight the phrase "Click here" and leave it highlighted, just like whey you highlight to copy and then paste in a word program.

3.       Your are going to need to achive this:  Now place a "hyperlink" (blue clickable link) pointed at or onto this highlighted (click here) text.  Here's how...

4.     Do this:  While text (Click here)  is highlighted, then click on the "world w/chain link" (aka insert/edit link) icon (a pop up window will open) and paste the address (dyson.com) you want folks to be taken to/linked to.  And click ok.  That's it.       

Posting pictures here at this forum are easy to do to.        DIB

DIB:

Thank you.  I'll give it a try [as soon as I figure out what langauge you are speaking ]

I received the newspaper supplement for the Kohl's sale tomorrow.  The floor care sale [15-33 percent off before the 10 percent for charging on Kohl's] says "Entire stock floor care" BUT ....also says "Excludes Dyson."

That's two floor care sales exclusions for dyson in one week?  Unless the Kohl's plan is to do a floor care sale just for dyson?  Which is possible and may explain the reason that only 3 dyson models are now on the Kohl's Web Site:  DC15, 16, and 21.

Carmine D

CarmineD wrote:

Carmine,  I gave it the college try.  It is pretty cool linking and posting images too.  It would be about a 5 minute lesson for today’s teens to teach you if desired (a grandchild?).

.

Honestly, I do not now enough of retail and marketing strategies, so I cannot comment (much).  Kolh’s looks to be quite committed to Dyson or advertises Dyson big on their site.   Kolh’s has the biggest retail header/banner stating the No Loss claim I have seen.  Kohl’s did a nice job.  Like I said in the past the No Loss claim seems to be a non-issue now, and this no doubt helps other manufacturers with their low w/ high cyclonic filtration.  I saw Bissell Healthy Home on HSN being talked of having "Non Loss of Suction"  as well as the Dyson phrase too.  Mr. Dyson has his work cut out for him.  The low w/ high cyclonic filtration wars are only beginning.  I'd like to see a good and fair race.  Dyson being an F1 fan, I would hope he likes a good run.   I'd like to see Miele and whomever smartly invent and smartly advertise their wares.  If Dyson is a true competitor, then he needs to be pushed to become better.  Maneuverability is partly what Dyson is banking on and by the reviews I have read so far it is working. - The DC24/25 are already getting very good/good reviews.        DIB

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!

Lucky1 wrote:

Hello Lucky1:

Don't know about the Chinese government but its stock market is down over 50 percent this year.

Carmine D.

CarmineD wrote:

We're accustomed to the payment terms COD and 2-10 Net 30 but now there's a new payment arrangement in retail.  CBD.  Short for "cash before delivery."  Some of LNT's 1000 vendors have insisted on cash before the goods are delivered.  CEO, Bobby DiNicola, is accomodating them.  With about 600 stores in 47 states DiNicola is trying to get merchandise into the stores and buy time for a cash infusion to pull it out of the grave.  Will it work? 

I wouldn't be a bit surprised if vendors who are waiting 30-60-90 days for payments don't go the CBD route too.

Carmine D.

CarmineD wrote:

Carmine,

You’re talking of some of my favorite scriptures.  Peter had to be awfully skillful to whack an ear off with accuracy like that.  Do you remember in Acts how just Peters shadow (Gods power) healed folks?  He is to be loved.  He was and is still "Some kind of Saint."        DIB

DysonInventsBig wrote:

DIB:

Peter was a fisherman until he was called to be a fisher of men.  He knew how to wield a knife from cleaning fish and mending the nets. 

Can't forget the miracles performed.  This time of the year [Eastertime before Pentecost], the Acts of the Apostles by St. Luke are the daily Mass readings.  The rock upon which the Church is built in a raging sea.

Carmine D.

Whirlpool profits fell 20 percent in the first quarter of 2008.  Share prices fell 10 percent down $ 8.32 to $73 plus.

CEO Jeff Fettig blamed increased metal and oil costs on the downturn.  And the weaking domestic orders for refrigerators, ovens, and other appliances. 

W-P net income fell to $94 Million from $117 Million a year earlier.  Far below the average estimate of analysts surveyed by Reuters.  The company will try to raise prices to cover rising costs.

Source: WSJ, Friday April 25, 2008.

Carmine D.

CarmineD wrote:

LG and GE cross license patents.  LG is gunning for Whirlpool and GE is helping them.  Monster sized companies ok.  Monster size compaines gaining even geater leverage in the market with a stroke of a pen...  not good. 

Without knowing the facts, it’s plausible LG is suing Whirlpool over newly licensed patents acquired from GE.  Who knows?  Below are 2 articles (there’s more if Googled).        DIB

Story and Date:  2/27/08  LG and GE cross license’s patents.  Two months later LG counter sues Whirlpool….

Story and Date: 4/25/08  LG counter sues Whirlpool.

Hello DIB:

Nice pic. 

I'm not a fan of LG.  Was a long time stock owner of GE until August 2006.  I wouldn't buy and own either stock now [GE/LG] especially if they align forces for selective ventures. 

Carmine D.

For the seventh time in as many months the Federal Reserve under the leadership of Ben Bernanke has lowered interest rates again.  The Federal Funds Rate on which all other rates are based is 2.00.  And the Fed says more to come if necessary. 

Have the rate cuts helped?  No, say most economists and business analysts.  Why? Based on the results.  The housing market is worse with even more foreclosures; the unemployment rates among states has gotten higher; job market opportunities have gotten worse because most companies are cutting back employees and closing stores; consumer spending is worse than ever despite the government stimulus rebates [at least one more will come probably next year]; retail sales are at all time lows for 3 decades; companies' earnings and profit reports are way down [i.e Whirlpool, Electrolux and on and on]; gasoline prices at the pump are going higher daily and household food costs are at 35 year highs [in large part due to the the lower dollar and higher inflation both caused, some say, by the Fed's aggressive interest rate cuts].  Use to be people got sticker shock when they saw the price of new vehicles.  Now its when you go food shopping.  Rice is being rationed.  Rice!  Poor people's food.

Bad times ahead ladies and gentlemen for the USA and the world.  Heaven help us if China falls into a recession.  BTW its stock market is down the most this year: Over 50 percent.

Do you get the feeling our government officials [read Central bankers] don't know what they're doing?  I do.  I'm waiting for the consequences when the majority of Americans do too. 

Carmine D.

While I am in favor of educated men and women making important decisions (rather than a guy you would like to have a beer with). I have to say sometimes they just don't get the "small picture". The one the everyday family goes through. When you hang with "suits" all the time you lose the average guy perspective and make decisions on conjecture of what he wants or needs. In this perfect storm of events that has MANY causes they seem to focus on the Housing/Sub-prime debacle. Their answer seems to be... make money cheaper so MORE credit is available. WHAT THE AVERAGE GUY WANTS IS LESS DEBT, LESS LOCAL TAXES, REASONABLE COMMODITY PRICES AND """"""MORE INCOME"""""" not more borrowing power!!!!!

Lucky1:

Add to the equation that a number of states, like yours for example I believe, are attempting to adjust/raise tax rates on real estate and property to offset the lower housing values and all the foreclosures.  Why?  To keep their revenue streams coming in to fund their state budgets.

Not only do homeowners have all the economic problems we talked about, but now they can look forward to higher property and real estate taxes too.  Are the citizenry dumb enough to fall for this?  The USA was founded on a tax revolt/rebellion by its citizenry.  It wouldn't surprise me to see it again.  5 states in particular are the hardest hit: Nevada, Arizona, Florida, Michigan and California.  Raise the tax rates to get more money for state revenues and budgets?  With gas and food prices at highs not seen in over 3 decades?  Wait a minute.  Let me introduce you to my little friends: Smith and Wesson.  

Carmine D.

*-- How to use Your IRS Rebate check--** *

> *As you may have heard, the Bush Administration said each*
> * of us would get a rebate check to stimulate the economy. *
> * *
> * *
> *If we spend that money at Wal-Mart, *
> *all the money will go to **China**. *
> *If we spend it on gasoline it will go to the Arabs, *
> *if we purchase a computer it will go to **India**,*
> * if we purchase fruit and vegetables it will go to*
> * **Mexico**, **Honduras**, and **Guatemala**, *
> *if we purchase a good car it will go to **Japan**, *
> *if we purchase useless crap it will go to **Taiwan** *
> *and none of it will help the American economy. *
> * *
> *We need to keep that money here in **America**. *
> *The only way to keep that money here at home is*
> * to spend it at yard sales, since those are the only*
> * businesses still in the **US**.*

CarmineD wrote:

You are the one who told us that we can talk to the tax office and either get taxes lowered or prevent them from increasing.  You have no worry about a tax increase in NV.

HARDSELL wrote:

I did.  Then the USA Weekend carried an article on the same.  And then the WSJ.  Nevada has been very sympathetic to the homeowners plight in part I believe to the skyrocketing housing values over the last few years.  Unlike other states looking to bleed the homeowners of cash.  Nevada capped the tax assessments several years ago to prevent higher property taxes due to the double digit rising home values year over year. 

Carmine D.

CarmineD wrote:

You contradict what you previously said:

" 5 states in particular are the hardest hit: Nevada, Arizona, Florida, Michigan and California.  Raise the tax rates to get more money for state revenues and budgets? "

HARDSELL wrote:

Hello HS:

These are the states with the largest number of foreclosures.  In fact Nevada leads.

Carmine D. 

CarmineD wrote:

The median income that you quoted for Nevada was very good.  Guess Nevadians must be gambling it away as opposed to making house payments.

I heard a local radio talk show host state that foreclosures are being exagerated by the media.  Less than 2% nationwide.  I believe the media is responsible for so many of the nations problems.

HARDSELL wrote:

HS:

It's got nothing to do with how much money one makes.  It's how much money one spends! 

Carmine D.

CarmineD wrote:

Linens-n-things filed for Chapter 11 bankruptcy on Thursday.  Plans to close 120 stores, only one in Nevada, Reno, I believe.  Bobby DiNicola is is charge of the carrying out the court bankruptcies proceeding for LNT.

Carmine D.

Correction: Michael Gries, a restructuring expert, is the interim chief executive.  DiNicola is executive chairman.

Carmine D.

Dyson filed a lawsuit against LNT.

1)      Dyson stopped delivering product to LNT since late 12/2007.  And alleges…

2)      Unpaid bill of $1.29 million

3)      Asking for an Injunction.

a.       LNT should be enjoined from making any false and misleading statements regarding Dyson’s products and/or business.

                                                               i.      LNT has been telling customers or through signage that Dyson’s are out of stock due to production problems, [their] having problems with Dyson and will no longer be carrying them anymore.

4)      Asking such other relief as this Court deems just and equitable.

Hello DIB:

LNT has 580 stores in US and CAN before shuttering about 180 stores.  I posted several up that LNT pays its vendors CBD: Cash before delivery.  Dysons are not in the stores and advertised anymore.  Since LNT filed for Chapter 11 bankruptcy, dyson becomes a creditor along with many others.  But may not get paid for years if at all. 

LNT plans to conduct business without interruption in the stores staying open which will be well stocked.  For the going back to school period too, a busy time.  BISSELL Healthy Home is prominently advertised and sold for $249 before discounts and $50 Gift card.  I might make my purchase of the HH there.  $150 after all the rebates and offers. 5 Year Warranty.  Not too bad.

Carmine D.

CarmineD wrote:

Did ytou also tell us that LNT was dropping Dyson?

CarmineD wrote:

Carmine, Yes I remember your post/s and links to the LNT credit troubles, etc.  My info came directly off the Dyson v. LNT lawsuit filing.  There is some inside or intriguing information there IMO.  Sorry, it is not as you say… Today, Dyson’s are still being sold in LNT stores and online and have been advertised in Sunday newspaper insert/weekly ad until recently.  Dyson cut LNT off in 12/2007 do to an outstanding unpaid $1.29m bill.  LNT (presumably) retaliated and/or tried to save face with their customers by bad-mouthing the Dyson Corporation.  Many stores in the country had orders to tell customers - Dyson was having production problems and that LNT would no longer be stocking their products, both verbally to customers and signage posted within their stores. - Which we know to be a lie.  This is inside drama.        DIB

.

P.S.  A common complaint of the HH's is 1) it's heavy weight and 2) hair sticking to the shroud.  Mark Bissell had to play it safe somewhat don't you think and not copy Dyson's innovations entirely?  And so the belly bin and the non-perforated skirt on the shroud hurt the HH's ability to keep hair off the shroud.  I LOVE IT!  Mark Bissell's 130+ year old company has to copy the 14 year old Dyson Corporation’s innovation's (sorry, reverse engineered and not copy). 

DysonInventsBig wrote:
Hoover was also unsuccesful at copying Dyson.  Such praise the others bestow on Dyson with all that copying. 

HARDSELL wrote:

Hello Hardsell,

How proud a mother and father must feel knowing all their hard work putting their kids thru engineering and (patent) law schools, only so to get employment bunkering down in some dank hole somewhere reverse engineering Dyson innovations.  Oh well, the Dyson team has created 2 segments (pricing aside) all to themselves – the DC24 and DC25.        DIB

Hello DIB:

Much is said and alot is only as good as the source/sources' perspective.  Dyson will be hard pressed to collect the money owed form LNT.  Maybe a percentage if lucky.  IMHO

BISSELL is an old company.  Originally carpet sweepers which go back to the late 1880's.  I'm happy to say that I still own a few wooden ones from that era.  They still work well considering their age. 

I believe that the BISSELL Healthy Home is a sourced vacuum and not made by BISSELL but for BISSELL. Contrary to what some say and their surprise, copying in the vacuum industry is as old as the industry itself.  It's always gone on.  Although not mentioned, Oreck was THE first lightweight.  All the others including your fave ARE COPIES! He had the 8 pounder when 30 pound metals were the norm for the vacuum industry.

B-HH is heavy.  I will buy and use and then gift away.  Oreck is my preference now and will be until I find a better lightweight to replace it.  And I'm looking.  RICCAR/SIMPLICITY are high up on the list  MAde in the USA, I hear. 

BTW, looks like another full sized yellow lab will be added to my household in the next few days.  So the Oreck, and the BISSELL if I buy one, will get a good work out.

Carmine D.

CarmineD wrote:

Other than the Dyson and vacs like the rainbow there wasn't a lot to copy.  Same old technology.

HARDSELL wrote:

Colors and color combinations are often a good copy cat feature too.

Carmine D.

DIB:

I don't know if you have followed the bankruptcy proceedings of Lionel, a 108 year old company famous for hobby/model trains.  In 2004 a federal jury ordered that Lionel pay a rival train maker [MTH] for trade secrets dispute of $39 million.  Mr. Calabrese, the new CEO of a few months, filed for Chapter 11 knowing the payout could not be made by lionel  He led lionel thru the restructuring.  An appeals court overturned the decision by the jury and the amount.  Ordered a new trial.  Lionel and MTH recently settled out of court for an undisclosed amount and Lionel emerged from bankruptcy.  3 1/2 years later.  Calabrese is a former Marvel Comics Exec, and under his tutalege Lionel has fared well with record breaking profits that are the best for the company in decades.

BTW, up until recently LNT had one of the best array of vacuum brands for sale and the best vacuum advertising supplements.  Always featuring dyson as its top seller with the infamous 20 percent off MSRP.  These sales advertisements appeared semiannually and I trust will be collector items in the future.

Carmine D.

While most of you feel it is the unique Dyson Engineering that has attracted customers I strongly disagree. It is the first rate and quality Graphic Design and Marketing that is responsible for most of the Dyson success. Of course most people never realize how they have been manipulated or led (choose your word preference) into buying a Dyson or any other well marketed product.

Lucky1 wrote:

Lucky1:

You must have seen the latest dyson brochure proclaiming the Asthma friendly certification.  2 pages of pics and narrative with scientists and engineers in white lab coats looking very serious and intent in their daily chores.  HAve to hand it to Mr. Dyson very impressive sales work.

Carmine D.

Lucky1 wrote:
The right idea, product or service is important - but how it's marketed is key to it's success. That's why good sales people can earn huge commissions on results; way above the 'backroom boys' who keep the business running. Dyson just uses the marketing mix to sell the idea and get as many people as possible to pay as much as they can afford towards getting it.

I bet they'd have a fraction of the sales they have at the moment, if James Dyson wasn't covering the 'small inventor done good' PR angle time and time again in the press and on TV.

CarmineD wrote:

Hi Carmine,

Yeah I know, I reported it further up this thread.  - JUST KIDDIN   

Very interesting stuff indeed!  I'm a little under the weather today, I'd like to talk/comment on this later.        DIB

DIB:

Sorry to hear you're not feeling yourself.  Does it have anything to do with the failure of dyson DC24/25 to launch on HSN?

Now, I'm kidding.

Carmine D.

CarmineD wrote:

Carmine:  Thanks and yes! - Dyson’s “Failure to Launch” and/or failure to inform the public FULLY of the attributes of its new products (past product/s too) is certainly cause for ill.        DIB

DysonInventsBig wrote:

DIB:

We'll have to expect some belt tightening and cutting back at dyson.  Why?  Because Mr. Dyson withdrew $289 Million US from the company.  That's an unusually exorbitant amount to withdraw at one time.  I don't accept the reasons provided: To save 8 percent in CGT; Have R&D money; and have cash flow for the new dyson school?  The latter is estimated at $25 Million.  For that much money in the UK, dyson can build a world class University.  These are high schoolers not PHD-s [yet].   R&D money is better served on the company books so the costs and expenses can be amortized over time/deducted from revenue.  If used for R&D, the CGT is a moot point.  The money isn't taxed because its funneled back into legitimate business expenses which eliminate the increase hit of the capital gains tax. 

I hear the words of Mole in distance:  Wait. Yes.  "The party's over."

Carmine D.

CarmineD wrote:
You need to correct your figures, old chap. The Dyson school is £56m GBP. ($109m USD)


http://www.thisisbath.co.uk/displayNode.jsp?nodeId=180730&command=displayContent&sourceNode=242079&contentPK=20244278&folderPk=89118&pNodeId=242076

M00seUK wrote:

Hello M00seUK:

Good golly old Miss Molly.  $109 Million US!! 

Thanks for the update.  

Carmine D. 

CarmineD wrote:

The party's over?        DIB

I was reading that declared pre-tax profits have halved at Dyson in the last year. Although, James Dyson has always said he has resisted floating the company, as he doesn't like the idea of having to make profits every year to please shareholders and their dividends - he prefers the freedom to take risks, invest in R&D and look for a greater profit overall. Of course, there's still scope for the tide to turn - however, they have a healthy supply of new products, airblade and other possible spins off's in the works, are number no1 by sales value in virtually all the countries where it matters and sell at a comfortable margin. Where I'm standing, the operation appears to be standing on firm ground, at last for the foreseeable future.

Lucky1 wrote:

While most of you feel it is the unique Dyson Engineering that has attracted customers I strongly disagree. It is the first rate and quality Graphic Design and Marketing that is responsible for most of the Dyson success. Of course most people never realize how they have been manipulated or led (choose your word preference) into buying a Dyson or any other well marketed product.

M00seUK wrote:

Carmine wrote:

You must have seen the latest dyson brochure proclaiming the Asthma friendly certification.  2 pages of pics and narrative with scientists and engineers in white lab coats looking very serious and intent in their daily chores.  HAve to hand it to Mr. Dyson very impressive sales work.

Carmine D.

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Guys,

Iona did $250 million in sales, selling Fantom’s in Canada and the U.S. in the first three years of operation, that’s around $300m in today’s dollars.  The Fantom Fury benefits (from the Fury infomercial) are listed below.

1) No potentially power robbing bags.

2) No bags to buy.

3)  Certified HEPA filter

4) It’s a 2 in 1 vacuum (hose and wand make this upright become canister-like).

The vacuum simply delivered on it’s promises.  No fancy graphics, no Dyson background story, no manipulation, just an inventor and a business taking advantage of missed opportunities…  offering new technologies to an antiquated commodity (the vacuum cleaner).        DIB

Hello DIB:

Do you know the average price of a new Fantom?  If so, do the math to come up with the sku-s [units] sold per year [on average].  Are you still impressed with the number of sales of the Fantom vacuums?  Do you see any around and still in use?

Carmine D.

Wasn't the 10-amp Fury $199 or so in 1995-96, and the Thunder (formerly the 11-amp Fantom) $249? 

CarmineD wrote:
In contrast to Dyson, the backstory on the Fantom sounds very much shareholder-led. As I understand it, they licensed the Dyson patents, built it as cheaply as they could, designed it to rely on expensive HEPA filters that needed continual replacements and sold it at a high price, by the use of infomercials. If they'd taken the long view, depending on how long the origional licence period was, they could have well been the North American market leader over the last 5 years, in place of Dyson.

M00seUK wrote:
Hi Moose,

At that time they were around from 1992-2001, Fantoms were hardly the most expensive cleaner, although not the cheapest either by any means.  As for the longevity, personally I don't think they were as poorly made as most big-box vacuums around at the time, but it's hard to tell.  You see quite a few Fantoms around on eBay that are still running (or so the seller claims), but one vac shop I inquired about the Fantom at that time complained that they were complex machines with too many small parts (and therefore too many screws).  At any rate, I don't know how many Fantoms will continue to be in regular use, as sources for major parts have since dried up (though you can still find belts and such) and even the newer machines are close to 10 years old.  I do hear of many Fantom owners replacing their worn-out Fantoms with new Dysons.

Greed was what got the best of Fantom and eventually led to their demise.  The main problem was the corner-cutting on the filters.  While there was no choice on the first machines as far as filter type goes, by the mid-90's Dyson's lifetime HEPA filter was already out and being used on the UK machines.  Fantom, continually searching for more sources of revenue, opted to have a filter that had to be replaced periodically; the replacement interval escapes me but I remember it was not long.   Finally, in the early-2000s near the end, Fantom decided NOT to pay James Dyson royalties for use of his design, instead abandoning the dual-cyclone design in favor of their own system of bin filters.  As we all know the results of this were disastrous, and the Wildcat upright earned a "Not Acceptable" rating from CR due to visible dust emissions (I believe it was either in late 2001 or early 2002, I did receive that report when it was issued so I will have to check).  By the time of that report, the nail was already in the coffin for Fantom; CR even stated that Fantom had already filed for Chapter 11 so customers may have difficulty returning them.  Afterwards, Euro-Pro bought the rights to the Fantom name to put it on their own horrible machines, which they continue to do to this day. 

That's the story as I know it.  I may be off on a few parts so if anyone knows the right details feel free to correct me.

-MH

DysonInventsBig wrote:
Iona sales update:

I posted my Iona sales numbers (above post) from memory, and they were way off.  James is much to humble of a man to tout “the numbers” of his/his teams innovations success (sales of vacuums) while at Iona and so I had to do some digging - $530,479,251.00 in 3 years, or $656,000.000.00, in today’s dollars (conservatively).        DIB

 

March of 1996 Iona launched (Dyson’s) Fantom Dual Cyclone’s in America.  Below are Iona’s filings for U.S. sales only…

1999: $219,214,524.00 ($268m in today’s dollars)

1998: $165,407,235.00 ($205m in today’s dollars)

1997: $145,857,492.00 ($183m in today’s dollars)

DysonInventsBig wrote:

Motorhead wrote:

That sounds about right.  There was a 12 amp Fury too and it sold for (I think) around $220.00.        DIB

In 1978, about 10 Million new vacuums were sold every year in the USA.  By 2000, about 19 Million.  Now it's about 20 Million.  Back to the original question: Do the Fantom math [$ sales divided by average unit price].   What are the results?  Still impressed by the sales units every year?

Carmine D.