Vacuum Cleaners Discussions

Following is a link to a news article regarding the up and down sides for Electrolux during this year's first quarter.

http://www.centredaily.com/business/technology/story/553091.html

Best,

Venson

You're right.  But that's the awful truth about large-scale business .  While the rank and file allow our minds to rest on small sums, money that might only allow for a few years of existence -- maybe several hundred grand at most for a house, maybe a couple hundred grand more to spend on a kid's education. -- in the real picture the big kids in corporations and companies have their mind on real money . . . millions maybe billions.  So-called "cutting the fat" may or may not be a comfortable issue with those seated at board tables but corporations are essentially formed and built to survive and . . . to keep stockholders happy.  That leaves little room for "kindness".  These companies know the streets are full and that they'll have no problem in taking on help when they feel they reached a point where they can afford to be generous again.

What I hate is unfairness of it all.  It feels as though the question, "Who the heck are you?" is put to us almost daily even though, whatever our income bracket, we feed these business behemoths daily with our money?  BUT -- if you or I go broke there'll be no goverment bail-outs.  No one will come to guarantee payment of our debts or supply a line of credit to see us over the hump on the road toward better times.  While there will more than likely some or all sorts of aid for major corporations when pickings get thin, there's little relief for many left without work.  There will be no adustments made on their behalf and many will see their homes be foreclosed even though the banks involved will probably find no one to buy them.

My favorite quote is a statement made by a business woman I used to work for.  "Ven," she said, "Never pay anybody anymore than you just have to."  And she never did.

Best,

Venson

Interesting read.  The E-lux CEO is optimistic to believe that full year 2008 operating results will be in-line with 2007.  I don't believe any of the large appliance makers/sellers, like GE, Whirlpool, E-Lux, will come close to matching their 2007 results.  Instead much worse. 

Carmine D.

Her husband is one lucky man.

Carmine D.

Came across another article regarding the Electrolux dilemma. The following quote is debatable I'm sure . . .

Per Hans Straberg -- "The US economy has been on a downward slope for the last seven quarters. The headline at the moment is uncertainty.  A vacuum cleaner is a purchase you can live without when you have money constraints."

Thinking on the high prices for any Electrolux product sold in the U.S., wouldn't you think the brand might be passed by?  Is it funny that wall ovens, fridges, washers and cooking ranges selling for anything from one grand to way over might not also be not be on the minds of those -- which is just about everybody -- living under under "money constraints"? I think vacuums and washers, refrigerators and all the usual household appliances will continue to sell.  However, I think the general public will begin to figure that maybe they can live life just as well without expensive niche brands and get to liking names like Hotpoint instead of Miele, et al, again.  Link follows --

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/04/ccelec104.xml

Best,

Venson

A vacuum is not on display in the home like the appliances that you mention.  Those items are also considered as a status symbol by many.  In addition they are usually expected to last many years without replacement, wheras a cheap vacuum will hold the consumer until finances are in better order.  The fact that so many cheap vacs like Hoover and a few others is proof that most consumers could care less about the vacuums looks or performance.  Besides so many hire a maid to run the vacuum and do not know if it is performing at max.

Hi Hardsell,

I agree that there are those who do buy not just for service but to impress the neighbors as well.  However, I think the larger part of everyday consumers are getting ready to pull their belts in a notch or two.  I'm not much inclined to concern myself  over what the neighbors think unless they want to contribute to the rent.  No volunteers so far.

In my own case, I've been trying to figure out how to redo my very small cooking facility to make the best use of limited space.  As an instance, there are lots of great ideas I've seen like drawer refrigerators which cost nearly twice as much as a full-size refrigerator/freezer.  I could buy one but can't quite see the point in buying something half the size for twice the money.  Is there any real advantage in regard to quality in this case?  I don't think so.  While researching prices I actually got a salesman on the phone from Summitt, a manufacturer specializing in many kinds of configurations for refrigerators, freezers and cooking ranges, and put the question to him.  Regarding the issue of the high price of drawer refrigerators he made it known that there is nothing all that special about the making of them but that the speciality of the design pushed up pricing.  The desire to have something different therefore costs money. Looks like I'll be keeping the refrigerator I've got  and I'll try to work around it.

I'm as skeptical about kitchen ranges.  I've been looking over 24" gas ranges from as low as $300 to as high as $2,500.  Thinking extravagantly, why a small gas range could rise beyond $500 or $600 dollars at best I cannot fathom -- but they do.  Again, I might bite and go for an expensive item if it appeared that there might be some real edge benefit-wise for the spending other than good looks. Will an egg scramble any better on a plain-jane range from Sears or one by Fisher & Paykel?  That remains more an issue regarding the cook than the stove.  I rather spend substantially less money on a good pot or skillet that might enhance my possibilities for a good result and deal with a lesser range.

Best,

Venson

HS:

This sounds an awful lot like you think price determines the sales of the vacuum products.  When MOLE posted this a little while back you disagreed and rebutted with the fact that so many dysons are sold.  Are you now having a change of heart/mine?

Carmine D.

Hi Venson:

I agree that people are cutting back on many expenditures which ultimately affect the home decor and lifestyle.  Just to pay gas and food coats.  This impacts and affects manufacturers of high price, high end products like autos, appliances, clothes etc.  We've seen some companies close, stores shuttered, and bankruptcy filings.  Sure, there's more to come.  I think AB Electrolux's intro in the USA is an uphill battle.  The timing is bad.  If the economy were hitting on all/most cylinders, the success would be more likely.  But with the current economic environment, about the only thing the new appliances at BEST BUY will do is look good and need dusting every week.

Now, if Kelly Rippa wants to accompany the BEST BUY delivery truck and installers to my house for my purchases, I might reconsider. 

Carmine D.

MOLE