Vacuum Cleaners Discussions

The prices of new dyson models as well as old MUST drop drastically in printed ads.  Dyson MAP is out.  Big box retailers were forced by dyson to use MSRP in printed ads for dyson with caveats "before in store savings."  This may have worked in the past [pre-2008] when dyson was on a roll [due to the overextended economy and consumers] but no more.  Retailers want to advertise the low dyson prices to get customers in the stores.  Expect NEW DC17 and/or DC27's, better rug performers per Consumer Reports, advertised by big box retailers for $299 before discounts and savings.  With refurbs in the same models at $199 by discounters.  DC07 and DC14, DISCONTINUED dyson models, will be advertised and sold new for $199 for the few that are still in warehouses/stores unsold. 

I'm not surprised Sir James, the former dyson CEO and its founder, overestimated cost of returns and warranty.  Why?  Three reasons.  One, he overestimated the new sales of dysons in the USA after the economy tanked [starting in the last quarter 07 thru 2008, 2009 and so far thru 2010].  Returns and warranty are based on a percentage of new sales.  If new sales are down, what happens to returns and warranty?  Hint: Go down in direct relation.  Two, the influx of much less expensive bagless competition vacuum sales are robbing dyson sales in the last 2 years.  Three, Sir James didn't account for an unknown factor:  Disgrunted new/past dyson customers trading dysons still under/just out of warranty for independent vacuum store brands [like HS did with his DC07] rather than repair under/out of warranty and/or ship back to dyson and wait 3 weeks for a fix.  The three facts working in concert easily account for Sir James misque.  Not surprising.  He is not a vacuum business man.  He's just about style and profile. 

Carmine D.

I understand what you are saying in your reply. I have to disagree on a couple of points. First, the presumed decline in Dyson sales.  Best Buy is HUGE.Their merchandising plans are consistent throughout the chain.  The store I just visited has already undergone the annual spring rip up and re do merchandising during the after holiday doldrums.   20% of the skus in vacs dedicated to Dyson, with some duplication on the two endcaps facing the store main floor.  It looks like they are planning on selling a lot of Dyson product, and have been doing just that. Every mailorder catalog seems to have the DC07 and/or DC14 in them. Walmart still has their one Dyson on display.   Walmart is ruthless about dumping vendors that don't meet sales expectations.  Second, there are people who blow through a few TTI/Bissell pieces of junk and decide to go with what they perceive to be as something better, and buy a Dyson.  If a 79.00 vac lasts 6 mo to 1yr, a 400.00 vac that lasts 5 yrs or a bit longer is not out of line., in their minds.

The Dysons are everywhere, and people do have them repaired, more than I can believe.   Price drop, sure they will, but that does not automatically equate to a sales drop.  I, too, prematurely assumed the demise of Dyson, due to the numbers traded in/needing repair, but those are a drop in the ocean compared to the numbers being sold.   Jimmy D is going to be around for awhile yet, I think.

Trebor

. . . If would be really nice if Dyson could find a way to build/assemble some of his vacuums in the US, since this is one of his biggest markets. 

I have returned two Orecks because of poor performance.  I WAS A DISGRUNTLED OWNE

HOOVER FAILED AND HAD TO SELL.  ORECK IS NOW BEING SOLD AT DISCOUNTED PRICES AND ALSO IN WAREHOUSE STORES.  Must be all those over stocks from redusced sales at company stores.  Looks like Dyson isn.t alone in these slow economic times.  Did I misread or did the independent say that Dyson was selling great in these hard times?

If would be really nice if Dyson could find a way to build/assemble some of his vacuums in the US, since this is one of his biggest markets. 

With Sir James' popularity in the UK waning year over year as a result of his move from the UK to Malaysia in 2001, any move to the USA, ever so slight, would be even worse for him in the eyes of the Brits.  He would have to resign his commission as tech czar.

Carmine D.

I'm relying on my recollection which may be rusty, but I thought James tried in vain to get permission to expand his factory in Britain, but government imposed obstacles made it nearly impossible.  In the US, there are cities/states that would give huge tax breaks to get them to build a factory. There are places that would bend over backwards to take care of any zoning or other issues.  Hardsell commented that Oreck chose Cookeville, TN partly due to generous tax incentives.   If would be fitting for Dyson to build a plant in Missouri and name it the Tom Gasko plant in honor of all that Tom has done to promote Dyson over the years. 

I'm relying on my recollection which may be rusty, but I thought James tried in vain to get permission to expand his factory in Britain, but government imposed obstacles made it nearly impossible.  In the US, there are cities/states that would give huge tax breaks to get them to build a factory. There are places that would bend over backwards to take care of any zoning or other issues.  Hardsell commented that Oreck chose Cookeville, TN partly due to generous tax incentives.   If would be fitting for Dyson to build a plant in Missouri and name it the Tom Gasko plant in honor of all that Tom has done to promote Dyson over the years. 

You may be confusing the Sir James Dyson Engineer HS proposed in 2006 with the dyson production move to Malaysia in 2001.  UK authorities were against the former [school] and for the latter [expanding production in the UK].  Sir James moved vacuum plant production to Malaysia in 2001 due to the labor cost savings.  30 percent labor savings by dyson estimates versus expanding/building new plant in the UK.  Since he was going worldwide with his vacuums, the cost savings was the clincher for Sir James.  Some in the UK will say boldly that British authorities deliberately nixed the dyson proposed site for the Engineering HS in part because Sir James outsourced dysons to Malaysia in 2001.  I think the argument has merit. 

I once said in a post that Tom Gasko is like a dog in heat.  He goes after the latest around.  First, it was him and Rainbow.  Then, it was him and Air Way, which did name a model for him.  Then, it was him, Sir James and dyson.  Now, Tom has a business relationship with RICCAR, after it dumped him when he became a james dyson cult follower.  With the exception of his last business choice, which is his smartest he made, all the others were futile.  He was wrong when he said dyson would force out all other brands in the USA like it did in the UK.  Neither is true.  In contrast all vacuum makers have flourished since the entrance of dyson to the market, capitalizing on the bagless fad.  Most profitable of these brands from a big box store sales venue, which is dyson's sales venue of choice, are those vacuum makers that offer bag and bagless models in concert.  Dyson missed the boat.  It shut out all bagged models thinking, like Tom, that bagged vacuums would go the way of the horse and carriage after dyson launched in the USA.  Again, he and Sir James were wrong.

Carmine D.

Like you, many of the US first time dyson buyers, don't buy another new dyson after the first experience.  It's estimated that less than 10 percent of dyson buyers are repeat new dyson buyers.  Hence, the reason its market share is down in the UK which is Sir James country of origin.  From a high of 43 percent of the vacuum market in 2005 to a low of the 20's now.  If the other new vacuum sales markets are the same as the UK, as we are always told by dyson fans here, the same is true: Market vacuum share is declining for new dyson sales across the board.  Niche seller.  Not main street USA.

Carmine D.