Vacuum Cleaners Discussions

Carmine D.

Carmine D.

Carmine D.

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

Your self proclaimed brilliance is covered by a cloud. 

But since you asked, here is a number from the Federal Reserve to wet your appetite.  It was released on Friday March 13 accompanied by a full front page article.   Since WW11 the Fed has tracked and reported on the wealth of Americans every year.  During this time, its always gone up, year over year, save last year.  Total wealth of Americans went down by 18 percent for a net loss of $11 TRILLION dollars.  You know the reasons for the wealth [asset] declines: Home values plummeted, 401 K's tanked, unemployment rose.

Now to get a feel for the magnitude and meaning of this number:  $11 TRILLION.  It exceeds the combined total of the annual output for Germany, the UK and Japan last year. 

Since you follow the new auto sales, you know the sale of all luxury cars was down last year and many luxury car brand companies like BWM and even your fave Toyota reported losses last year.  They both are predicting losses this year.  It's called the "wealth effect."  When wealth is growing, US consumers splurge and particularly on luxury items.  With the steep losses in wealth, it now cuts the other way spurring frugality.  What I called in my synopsis of vacuum sales a retail phenomenon called "trading down."

Carmine D.