Vacuum Cleaners Discussions

   Customers are coming in  asking  about bags, belts and filters for cleaners that Wal Mart sells. They were told they were discontinuing these products and want the customers to go online when they need these items. When you need a belt or anything else ,it is," I need it now", not days from now. These customers didn't like being told they had to go to another store if they had what they needed. In our area it is 20 miles in three directions for a store.

  Many small businesses have been driven out of business by this company as well as other big box stores.I feel there will be a ressurection of the Independent Vac Shops because people will find getting parts and service there is better than going online and waiting. Looking at a cleaner and seeing what it will do is better than buying online and hope it does what it is supposed to. Online sales will still be made but having the service after the sale is still important. 

You can say what you will about your favorite brand but when it gets down to buying a cleaner going to a Vac Shop is the best way.  At Wal Mart and the other big box stores they sell you what they want to sell you. At least with Vac shops you can find a wider variety of Vacuums.The Door to Door sales peolpe also have a variety. It is if the cleaner meets the needs of the consumer that they buy.

                                                                                                           Procare

CarmineD wrote:

Hi Carmine,

I think the picture has changed a little.  Since so much of payment for everyday expenditures, etc., has been facilitated the debit card has come into play.  Phone, cable, utility bills, shopping, even renewing car registration can be managed online and off without bona fide credit cards.

There's a non-interest bearing pre-paid version which, for a fee as needed, you may put funds on hold until needed and use to make online purchases even if you're credit ratings lousy.  These can be also funded by way of direct deposit set-ups. There are also debit cards granted by banks along with savings accounts  that allow for direct deposit of pay from your job or pension.  In either case, credit is not extended but, due to the card, you may use the card for all the same things you would a credit card as long as there is money in your acount.  The bright side to the debit card is the convenience it offers plus it won't allow you to spend what you don't have.  They've really caught on.

Venson

Venson wrote:

Hi Venson et al:

Here's a good article from the headline and front page of today's Wall Street Journal.  I can say with personal and firsthand experience that the article is right on for housing here in Las Vegas, Nevada. 

http://online.wsj.com/article/SB10001424052748704570104576124502975117950.html

People are cashing out of investments, stocks and bonds, retirement accounts and so on, to purchase houses.  Then, possibly "refi" some point in the future.  With gold at such exorbitantly ridiculous prices now, the safe haven may very well be real estate, now that the bubble has burst.  All and all, very good indicatior for the vacuum industry and independent vacuum stores.  BTW, both Whirlpool and Electrolux AB reported quarterly earnings for the end of 2010 recently and as expected they were worse than the year before.  Always darkest before the dawn.

Carmine D.

FYI, Megyn Kelly [FOX news commentator] and Eric Holder, a FOX contributor and real estate expert, just updated viewers on the latest news for housing in the USA.  Megyn's home is underwater as are 23 percent of all US home owners.  They owe more than the home is currently worth.  11 percent of the US hjomes are vacant.  Another ONE MILLION homes are expected to be foreclosed in 2011 bringing the total on the market to 3 MILLION homes.  The worse in US history.  Even worse than the Great Depression.  Eric Holder held up the WSJ article I quoted above saying there are people sitting on the sidelines with access to cash ready to jump in and make a deal.  Megyn found that hard to believe.  But Eric held up the article and said here it is.

Americans are struggling.  But there are some who lively frugally and squirreled away resources who are ready and willing now to jump into the market. 

Ironically the FHA with $11 BILLION in funds to assist Amercian homeowners in Megyn's situation has had a grand total of 38 customers.  Funny how the best laid plans of a government program is no match for the simple and pure human ingenuity and economic sacrifice. 

Carmine D.

Another appliance retailer bites the dust in the current economic tsunami.  Two stores in Las Vegas closed.

http://www.bloomberg.com/news/2011-01-27/ultimate-electronics-files-for-bankruptcy-as-suppliers-curtail-shipments.html

Along with Linens-n-Things and Circuit City.

Carmine D.

I have had occasion to visit three of the six Wal-Marts in my area recently, and all of them have greatly enlarged floor care areas a double facing aisles, and one more aisle, with a improved selection of canisters. The overwhelming majority of the offerings are still bagless, but there are also more models of carpet cleaners and steamers. A big change from less than a year ago.

Trebor wrote:

Hello Trebor:

The fact that the majority of Wal*Mart vacuums are bagless is consistent with the latest move by the retailer to cull back bags, filters and belts.  Most of the new bagless models that W*M offers for sale are under $80.  Some as little at $40-$50.  Customers looking for bags, belts and filters, and not finding the particular kind they need, or seeing the high prices for these parts that are on the shelves, will opt to buy a new cheap bagless.  It's a win win for Wal*Mart.  No hassle with inventory of a plethora of vacuum parts [particularly bags] and instead a brand new bagless vacuum sale.

Carmine D. 

I concur with your conclusion, Carmine, and it means they are ripe for the plucking when the KIrby man comes to call. I rarely missed a sale when going up against  a DD/Hoover/Bissell? or Eureka

regards,

Trebor

Trebor wrote:

Hello Trebor:

So far, the latest Wal*Mart strategy is not working.  For the second year in a row, same store sales [opened one year] have declined.  Has the influx of Dirt Devil, HOOVER, and BISSELL turn away Mr. Sam Walton's loyal customers?  70 percent of Wal*Mart's clientele make $78,000 annually or less.  I suspect some of those W*M customers at the upper end of the annual wage scales don't buy into the new marketing ploys and instead head on over to the vacuum stores for the parts they need to repair/service their existing vacuums.  W*M stock dropped as did the stock market when W*M released the bad news.  Time will tell.  But clearly so far "the action alleys" as W*M likes to call its pallets of product in the aisles are not rewarding its bottom line. 

Carmine D. 

CarmineD wrote:
Costco in the UK are more or less the same. They used to sell a heck of a lot of bagged vacuums and then suddenly went cheap side with the TTi and pre TTi Dirt Devil Swift/ models under the Vax branding. A lot of them shifted but a lot of them were returned. I picked up quite a few cheapy vacuums there for clients after something, cheap and brands like AFK who are German had shockingly bad models with poor plastic and a lack of bags. Even their bagless models are total rubbish and Costco have stopped selling them. Quite surprised to see a Miele S5 Cat and Dog model last week though - maybe things are looking up. It was the only bagged vacuum available amidst bagless Chinese made cheap ones.

vacmanuk wrote:

Hello vacmanuk:

Very interesting.  This is consistent with the financial results reported by Wal*Mart this past week.  If 70 percent of W*M loyal customers have annual incomes of $78,000 [or less and I apologize for not converting into pounds or euros] then upper level income American shoppers, although in the minority, are closed out if no vacuum parts and high end vacuums are offered for sale.  Dyson tried to fill this void in W*M [plus Sam's Club] but a break down in their business relationship in 2005 stopped the dyson sales momentum.  W*M dumped dyson and took on less expensive bagless brands and models and stayed the course with them right up to now.  Dyson never was able to get a strong hold again in W*M stores.  All the spin here about dyson not caring and even better exclusive dyson models for W*M, after the reconciliation, was all wishful thinking.  Not just for W*M but other retailer chains all of which scrubbed the dyson exclusive models. 

Carmine D.