Vacuum Cleaners Discussions

James Dyson was interviewed in Forbes recently and the topic of conversation was his Airblade.  Here.

Since it's launch in the summer of 2007, total Airblades sold are 100,000

Total sales in dollars:  $140,000

Cost to dyson to produce each unit: $840

Retail price: $1400 {about 3X as much as traditional hand dryers].

It has not taken off as quickly and well as dyson hoped. 

Carmine D.

Now, the question of whether the AirBlade sales are included in the $1B sales is more relevant.  $140,000 is immaterial on $1B.  $140,000,000 is very material. 

Assume for talking purposes the $140,000,000 is not in the $1B and the vacuum data is segregated [probably a good assumption].  Divide the $64 Million [dyson net profit] by wholesale units of dyson vacuums sold.  If you reasonably estimate 2 Million [USA] and 4 Million [worldwide] sold [based on NPD data], the dyson profit per unit is $16 to $32.  Say 3 MIllion worldwide [more reasonably], the net dyson profit is about $22 per vacuum sold at wholesale.  On the low side for profits for $1B in annual sales? ESPECIALLY AFTER 15 YEARS of operation.  

Sales increased 10 percent in 2007.  Dyson prices went from $400 in 2002 to $500 plus in 2007.  That's 25 percent increase.  Probably at least 10 percent passed on to retailers.   Did dyson unit sales increase?  No, probably not.  In fact, they may have gone down if sales dollars increased 10 percent on price increases of 25 percent.   And that's with increased markets and countries of sale!

Dyson would fare better as a retailer with $250 gross profit per vacuum sold before overhead and operating expenses.  The only problem now is that consumers aren't buying anymore.

Carmine D.

Unfortunately nothing from dyson from what I've seen so far.  Tho the restrooms utilize chrome hand dryers in lieu of paper/cloth  towels, they appear to be a competitor brand called XLerator.  Whoa!  What a hand dryer.  Small and compact and mounts on the wall like the soap dispenser.  The airlfow is activated by a sensor when you place your hands below.  And deactivated by the sensor when you remove your hands.  Quick, quiet, powerful and leaves your hands and wrists [arms if you are so inclined and use a unit on the wall not over the sinks]  as dry as the hot Las Vegas air.   Very impressive.  Don't know the price.  But I suspect worth every penny.  Due to it's size, appears easily adaptable for household use too. 

I did a quick time check by singing the happy birthday song!  By the time I was done singing, my hands were dry.  I suspect 10 seconds.  Nice thing, tho, the dryer keeps going until you remove your hands.  Less than 10 or more than 10 seconds.  No time limit.  Here's the Web site:

http://www.exceldryer.com/?gclid=CLOppo2FhZcCFQwNGgod51ei-Q

Carmine D.

This is exciting Carmine.  We have had those hand dryers in TN for some time.  Good to know that the west is catching up with us red necks. 

I seldom use those things.  I wash my privates each morning so no need to wash my hands each time I visit the toilet.

The word here in the great Southwest is that them there from your neck of the woods wash in the public toilets and dry off with the toilet paper. 

Carmine D.