Vacuum Cleaners Discussions

Dyson has this week released details of their end of year 2009 performance and generally paints a positive picture. Highlights include:-

• Despite the recession, global sales for the company increased 23% to 770m GBP
• Operating profits more than doubled from 90m to 190m GBP
• The Dyson Air Multiplier is a top seller in Australia; within 6 weeks, representing 64% of the market for desk fans, by value.
• In the UK and US markets, the updated 'ball' range represents more than half of the Dyson cleaners sold.
• In the UK, the company has a total market share for vacuum cleaners, by value, of 40%.
• Dyson is the market leader for vacuum cleaner sales (by value) in the UK, US, Canada, Australia, France, Belgium, Spain, Switzerland, Ireland and New Zealand.

Looking ahead, the company talks about new product launches scheduled towards the end of 2010 - a fair number of which (my speculation) are likely to continue the trend of offering a completive advantage by using digital motor technology. Ironically, a technology originally developed for use in their full-size vacuums, while all current models continue to use traditional motors.

http://www.independent.co.uk/news/business/news/dyson-profits-double-thanks-to-rd-investment-1983841.html

http://www.themanufacturer.com/uk/content/10603/Dyson_cleans_up

http://www.managementtoday.co.uk/channel/Entrepreneurship/news/1006022/sales-vacuum-dyson-gadgets-cost-worth-paying/

http://www.eurekamagazine.co.uk/article/25296/Dyson-doubles-operating-profits.aspx - note: this has the statement 'The company has also confirmed plans to launch a robotic version of its bagless vacuum cleaner' - dunno if that's significant, but I haven't seen it reported elsewhere.

retardturtle1 wrote:

As a fan, the Dyson air multiplier is way overpriced - by several hundred dollars.  However, as a status symbol and piece of art, it's "priceless."  

Severus wrote:

A collector's item. 

Carmine D. 

CarmineD wrote:
Although I won't be buying one at the current pricing, I would consider one if the price dropped to say $50.  The danger to Dyson is that by gouging consumers on the fan, consumers might do the math and conclude that vacuums are overpriced by a similar factor.  Just to be generous, suppose that with it's novelty that the fan is worth $100:  then the fan is overpriced by a factor of 3.5.   A consumer might conclude that the vacuums are also overpriced by a factor of 3.5. 

Severus wrote:

Hi Severus,

Thinking along the lines of novelty as regards appliance buys we could well live without, the price of the Dyson fan should at best, have been a hundred dollars as you've mentioned to make it attractive to the American public.  I think that proves even more true if Dyson distributoors are going to send them to not necessarily high-end shopping venues like BestBuy, Target and Wal-Mart.  People shopping at these places are not going to them to find out how much they can spend.  They're looking to see how much they won't have to spend.

I'd expect to see a desktop fan at the present $300 price at Sharper Image, Hammacher Schlemmer or even Bed, Bath & Beyond.

Breville -- a rather pricey maker of kitchen appliances -- commands higher than usual prices but a very large part of its product is made of cast metal and has some semblance of being "heavy duty."

By the way, does anyone know how you go about cleaning one these fans periodically?  Desktop fans with exposed blades collect dust but can usually be easily dissasembled for cleaning.  I've done it many times.

The perforations allowing the entry of air around the middle of the base of the Dyson fan can be wiped clean externally and without problem but how do you get at the "impeller" to clean it and does the ring come apart for cleaning as well?

As for vacuum pricing in general, it's been way over actual cost for a long time.  Even more annoying in the pondering of it is the fact that most of what's offered is neither being made at home nor are most of the workers producing the product getting near what we'd consider a living wage.

Venson

As for Dyson a HUGE amount of the cost is for Advertising. It's not in dealer margin that's for sure.

Lucky1 wrote:

I would agree with this several years ago.  More recent years, I have not seen any dyson/Sir James advertising anywhere.  Not on TV, at least not here in the US, no US magazines, notta.  Maybe Sir James is concentrating on the UK home front or stock piling the funds he raided from Retained Earnings several years ago.  Perhaps dyson is sinking in R&D with all the new planned/pipelined products.  Haven't seen anything new yet in vacuums, the white edition of the ball model doesn't count.  Still same old same old DC25.  Last new vacuum is the DC28 in upright and DC23 in cann now going on a year and two young. 

Carmine D.

I agree Carmine. Even in the UK, Dyson products aren't normally being advertised in the press, only on TV during programmes and often late on rather than evening time when the family sit down to dinner. Dyson doesn't need advertising anymore anyway - they've already established their name and what they do. At least Dyson are doing advertising in the UK though; the last time I saw a UK Hoover advert it must have been in the 1980s for the Turbomaster and then 1990s for their Turbopower 2/3 Permabag:

Turbomaster: http://www.youtube.com/watch?v=Xp8KqoSVHME

Turbopower 1000: http://www.youtube.com/watch?v=RzcR6qzBJ_4

The U.S has at least a lot more advertising in the Hoover product ranges.

We still get a bit of Dyson Advertising in the NYC Metro area, probably because of demographics I would guess. Shark and their crap has by far the biggest visibility. Bissell, while not advertising often, does tend to buy some premium spots at big event TV programs. I see some electrolux (mostly appliance) and minimal Hoover or DD.

CarmineD wrote:

Hi Carmine .....unique it is. will no doubt sell at high end venues.

The display at target i noticed had no other fan on[running] or near it.But a $15 fan down a bit from it puts out the same airflow ...so its more a piece of working art that can be used but not one thats practical for the avg. person in a home where they need and use a fan/s as a suppliment to the a/c....as in our case for example...in an office it would look nice..a nice office that is, so that they would complement eachother.

As with the radiance i was gifted.....beautiful it is, but so not worth the money in my personal use view. Elegent and powerful and oh so heavy. An 8925 or pansc585...cleans and grooms just as well for a third to half the cost.....not as pretty to look at...but nice deep cleaners.

turtle

Lucky1 wrote:

Same here..guess its an east coast thing....but have been seeing alot of the swivel sweeper over the past couple weeks..guess cause its summer and all the kiddies are home....i figured id see more across the board from all the vac names.

turtle