Vacuum Cleaners Discussions

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.

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.

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.

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.

Take Care

MOLE

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? 

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.

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. 

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.

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