Vacuum Cleaners Discussions

CarmineD wrote:

Hi Carmine,

Well-known "black Friday" is soon to come and will probably tell the story re holiday shopping this year.  I've seen a lot of optimism but I've also seen of people still looking for work.  And even with those who are woking and maybe even with the so-called middle-class and its gung-ho shopping traits due to easy credit access slipping away here, it seems that asking for $250 to $350 is like asking folks to invest $1,,500 on a Kirby or Aerus. 

What retailers need to learn is how to take a new tack.  You really have to explain to someone the value of sacrificing the price of a couple weeks worth of groceries or what you could have paid out to your utilities provider for just a vacuum cleaner.  We're not dirt-poor but becoming extremely judicious as to what we spend on.  Andf, these days its totally necessary. 

Personally, I don't like but accept the way things stand these days.  What you paid $49.95 for in yester-year you pay 500 bucks for now.  Junk factor in mind, even I am prone to go the extra mile in price and sacrifice something else if I feel the product will be worth it.  Yet what I'm seeing is no matter whether warranties are 5 years, 10 or 20, "buying ahead" is not a great point of interest to a lot of current shoppers. I went to the Bissell website for pricing examples and discovered that out of many models only two priced above the $200 mark. and that appears to be what people seem to make themselves content with in light of limited or no demo facilities. Imagine, can't turn a vacuum on just to see if you like the noise level yet its the Bissells and inexpensive Hoovers that you see being walked out of stores more than anything else.   .

As you know, the stores are making money off their so-called "extended service plans".  (And to think I thought people were actually becoming resistant to the idea.) You pay extra money and when the product dies in a year or so you go back to the store and get another one or its equivalent. What spells cheap product better? Nonetheless, the more youu extoll teh value of a long warranty, the more you learn uit falls on deaf ears.  If it really is an ill wind that bears no good, maybe this will benefit the indies.  You can at least walk in and kick the tires on what you want before buying.

Hi Venson:

You're right about the indicator for sales after Thanksgiving: Black Friday so known due to the fact that retailers break even for the year/go ahead.  And cyber Monday too [Monday after Thnaksgiving] for internet sales.  While there havee been glimmers of hope for sales and consumer spending, I think its too soon to tell, as you say.  Some of the market gurus are actually attributing the recent market gains to the fact that investors are optimistic about a Republican landslide in the mid terms giving more credence to certainty in the markets.  I don't completely buy into this idea, but I think there is a seed of truth to it.  The DOW is a complilation of 30 stocks only not a good indicator for the overall business and economy.  Just Wall Street as I like to say, not Main Street.  Time will tell.  Realistically unemployment and housing are the two hurdles weighing the recovery down.  I don't see these getting better until they both first get worse.

Carmine D.

Fry's Electronics is selling the LGV200, model with 30 ft cord rewind for $199.

Carmine D.

CarmineD wrote:

Hi,

A really sensible price for this specific model as it has a more modest attachment set than the LuV300 and LuV400.

Venson

Venson wrote:

Agree Venson.  With an MSRP of $299, the Fry's sale's price on this LG upright is a discount of 33 percent.  And so soon before Thanksgiving and Christmas sales season.  A sign of things to come for the Holiday sales season.  Factoring into the purchase price that retailers like SEARS and TARGET offer 5 to 10 percent more off the purchase amounts if the their credit car is used, MSRP will be discounted by close to half.  Just what is needed to spark consumer purchasing and retailers' sales this Holiday season.  At these discounts, the upper end priced items, like this LG model, are more competitive with the less expensive advertised sales specials for HOOVER, Dirt Devil, EUREKA and BISSELL vacuums.  With the LG name recognition, price discounts, and retailers' sales advertisments, a winning combo for all. 

Carmine D.

CarmineD wrote:

Mornin" Carmine,

I sincerely hope so though I'm beginning to wonder if the vacs would fare better in venues that mainly feature LG large appliances too or indie vac dealers where more focus could be placed on them. I was in a rather pleasant part of the world yesterday where LG was big on the bill and got to witness several couples being easily convinced, in one fell swoop no less, to drop several grand on LG ranges, fridges, washing machines and dishwashers.

However, despite the community's seeming moneyed air, when it got down to vacuums those with real intent to buy were looking at the Shark Ultralite stick vac (started out with a high price last year but can barely be given away for forty bucks now) and $50 Dirt Devils. However, no price was too small for LED TVs.

By the way, someone stated that Black Friday sales are actually a minus in regard to business. He claimed that a lot is sold below cost and, in consideration of what it costs to run the store for the day, there is no profit. I'm not a salesman but he is so I'm curious to know if his feeling is well-founded.

Best,

Venson

Venson wrote:

Hi Venson:

Major applainces are still status symbols for buyers.  Vacuums, not so much.

On Black Friday: Profit/Loss?  Semantics and perspective.  It's commonly believed that all workers' earnings from January to May go to Uncle for taxes: Federal, state, and local.  Might be true but not from every paycheck, just in total at the end of the pay year after all is said and done.  So it is with retailers.  Typically all the profits earned through the 11 month of the year go to pay for inventory, overhead, employee salaries, benefits and administartive expenses.  After that time, everything made is clear profit [gravy] to the retailers and/or loss IF retailers don't have a handle on their yearly costs and expenses.  Any events/unforeseen incidents that interrupt this flow of business are usually dire.  Hence, a prolonged and unexpected labor strikes, store closures due to natural disasters and/or fires can kill the retailers' bottom line for the year.

Carmine D.

Hi Venson:

You may know this already but it was news for me today.  LG plans to offer 10% cash rebates on appliances purchased now thru Christmas eve.  LG funds the cash rebate directly to the retailers so there is no profit margin loss for the stores.  LG, and I suspect other makers, will offer to a numder of the retailers who carry and sell their products.  This is a repeat of last year's where the same was offered in the 4th quarter by makers to increase appliance sales for the Holidays.  Which typically aren't Christmas gifts.  Worked last year at Lowe's and Home Depot.  Think it will work again this year.

Carmine D.

CarmineD wrote:

SEARS is advertising and selling this LG for $199 on Thanksgiving Day and Friday after.

Carmine D.

CarmineD wrote:

Hi Carmine,

Yes, I saw it the other day. You could have knocked me over with a feather. Sears usually asks more than $320.00.

Venson