Fuel Crisis / Recession: REQUEST FOR READER INPUT
What are you doing, thinking of doing, contemplating doing, or heard that others are doing?
What is your business doing to counteract energy prices and the recession?
-Employee programs
-Spiffs, discounts
-Freight ideas
-Product mixes, shift reductions, layoffs, material changes, project cancellations
-Reduced work days.
All Comers: Manufacturers, Distributors, Dealers, CKDs. Named or Anonymous
UPDATE June 13: Dealer
This year, we are up a bit in high-end appliances (80% of what we sell). High-end buyers are a bit more selective, but buy nonetheless.
- Some mid-line customers have asked about green alternative appliances, but only if they don't cost any more.
- Electrolux is just beginning to steal some high line thunder
- Fascination with mega BTUs is waning, induction cooking is waxing.
- Distributors, not manufacturers, are offering rebates on high line appliance for the first time in my experience.
- UMRP has crept down to accessories, one of the few places we formerly "wiggled" for good customers.
- We still offer limited free delivery, but those outside a 25 mile radius pay by the "outgoing mile" for delivery.
- We no longer offer warranty service on appliances we did not sell if more than 25 miles from us. At the rates manufacturers pay, it is simply un-economic. No manufacturer has objected to this yet
- Apropos of nothing in particular, the BEST warranty reimbursements we enjoy are Firemagic Grills and Fireplaces from Empire Comfort. Their failure rate are admirably low, so they can afford to be human. And by- god, we actually make a profit selling this stuff.
While common grill sales have tanked, high line outdoor kitchens have become more sought after.
UPDATE June 12: Florida Dealer
We are expanding. Added one line, and booting a few others. We are looking to the high-end even more.
Excess real estate inventory means buyers have 80,000 condos to chose from, so sellers needs to stand out. As an appliance guy, my answer to the builder / owner is “look at that kitchen!” We ARE the label in your home!!! As far as appliances go, now is the time to spend more, not less!
Our numbers are up. Can't say how. We keep positive, adapt our conversation to the new market, and work the streets! You work harder when times are hard. (-;
What I see.
- Sub Zero is pushy, they should be careful. People are talking about how little they want to be pushed these days.
- Hadco is working extra hard .. and its hard not to return the favor. Same goes for Miele, those guys just seem to show up even more often and work with us even more closely. Whirlpool, pushy, but we need them, and the rep works well with us, but we've added some competition to the floor with Frigidaire and Icon.
- These days, reps that show up earn a lot of respect and loyalty. The better they serve us, the better we serve the customer and the more reason a customer has to work with us. Rep’s assist in that role a great deal.
- Pricing: I have not changed a thing. I do back flips when I get 15 points on domestic lines. As apposed to what you (ApplianceAdvisor.com) have written, UMRP pricing at 18 points is far from abusive and goes a long way to keeping the lights on. I hope to see more of it.
- Distributor numbers . .down 20 to 40% from what I am hearing
- Gas . . well you said it already. Probably will be good for condo’s in the city, bad for single family homes an 1-1/2 hours of gas-burning rush-hour traffic away. We are giving away fewer free deliveries.
- A few of us think a few good oil wells off the coast would add new well paying jobs and new opportunities for us, we can only hope. Here, middle class opportunities are disappearing. There are no homes under 300K, and no jobs that pay over 100K to buy the homes we have + cover the crazy tax + insurance costs we are buried in. What's left: Tends to be very high end, or bargain basement working poor these days.
- Things are what they are, and other than the fact we have increased sales a little and expect more in the short term . . we see what everyone else sees . . . bubble burst, and the market is adjusting. Gas is the problem, but that’s 50 years of stupidity coming due, so in a way, just a kind of bubble bursting again. We will adjust to it as well.
UPDATE June 11: Really!? Nothing!? As the world of cheap and convenient transport disappears you guys have done nothing to compensate? Go figure.

