Vacuum Cleaners Discussions

"You always spout off about numbers to back statements.  Give us the numbers for all major vacuums and let us see if they are all suffering."

Which numbers? Number of units sold? Dollar volume on units sold? Total reveues including bags, filters, replacement parts and cleaning products? While sales of vacuums have remained at relatively high levels, I would venture that profit margins have declined for all vacuum manufacturers, as they have for manufacturers of virtually any product you care to name. To fight eroding profit margins, even Kirby has outsourced the manufacture of its componenets offshore, to be shipped to and assembled in the plant in Cleveland, OH. (Anyone know if Kirby still has their manufacturing facility in Andrews, TX?) The only real figure that matters is who will be left standing after the world wide economic market has begun its recovery.

Trebor

And you, HS, always say don't pull numbers out of the air for the sake of doing so! 

More than likely vacuum sales in 2008 were off both in dollars and units but just slightly.  I have not seen any official numbers from the industry authorities who track and report on these matters, like the NPD.  Most say the vacuum industry figures are only best estimates for a variety of reasons:

--One, privately owned companies, like dyson, are hesitant to report honest broker figures in bad times for fear of the industry ripple effects.  They spin the numbers to their advantage.  

--Two, it's likely that sales of vacuums at big box stores in the $50-$250 range increased year over year while there was a fall off of higher priced vacuums in those sales venues.  This complicates the picture.  An industry phenomenon called "trading down."  Very common across all industries in a recession/depression.  So, in total the industry looks alright but in fact individual companies are falling down.  Most likely as a result of "trading down" high priced brands and models sold thru big box stores suffered the worse [witness the sudden fall of halo]. 

--Third, my personal and professional experience and conversations with experts and pros in the business [some who post here] affirm there was and will continue to be increases in sales of parts and repairs during hard times at most of the local independent vacuum stores.  This increase in business offsets the fall off of new vacuum sales.  Venson was kind enough to post and share a recent news article from a local vacuum store whose 2008/2009 business reflected this.  I recall the vacuum store owner was waiting almost a week on an okay for an $85 repair on a dyson. 

Finally, Tom Oreck, Dave's son and company CEO, reported to several news authorities, that 2008 ORECK sales were not as good as predicted and expected at the beginning of 2008.  But certainly not as bad as most vacuum makers.  Why?  ORECK caters to a niche market and is sold thru a network of its own 500 owned/franchised stores and independents.  ORECK has more control and authority over it's sales destiny than vacuum makers at the mercy of the big box stores.  An excellent vacuum business model for hard times.  Why?  These big box retailers are worried about going belly up.

Trebor, you said it well.  Who's standing when the dust settles?  They are the winners.

HARDSELL, my deepest apologies.  You and DIB got no bonuses in 2008 and 2009 is looking even worse.  Can't say I didn't tell you so, long before this economic sunami started 16 months ago.  You blew it off as just my typical doom and gloom. 

Carmine D

....privately owned companies, like dyson, are hesitant to report honest broker figures in bad times for fear of the industry ripple effects.  They spin the numbers to their advantage.  So Dyson is in the numbers racket, eh? ROFLMAO! Good one Carmine!

Trebor

In good times, numbers take care of themselves.  In bad times, the numbers do businesses in.  Let's see:  Linen-N-things.  Out of business.  Circuit City.  Out of business.  Many others tettering on the brink will go under.  Good business people, whether they like to or not, have to know and manage the numbers.  Even more so in the current bad times.  You're only as good as your latest numbers.  Most retailers no longer report quarterly sales amounts and earnings.  In good times, they couldn't wait to announce and broadcast.  Word sent the companies' stock prices soaring on Wall Street.  Now, in bad times, one by one all the retailers have added their names to the list of businesses that don't report these numbers every quarter.  They know the numbers.  Still collect and review them.  But they don't want to share any more wth the "street."  Have to massage and spin to put them in the best light. 

Alos note, the US stock exchanges have altered their rules on delisting stocks for trade.  Use to be, anytime a stock went below $1.00 it was de-listed off the AMEX, NASDAQ, and NYSE.  No more.  They continue to trade.  If the rule was still enforced, hundreds and thousands of companies wouldn't be traded publicly.  Numbers!  Necessary evil of business.

Carmine D.

My sincerest apologies to both Mr. Hardsell and Mr. DIB

Trebor