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.

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.