UPDATED: KBIS: First Impressions. Dateline Atlanta
Submitted by advisor on Sat, 05/02/2009 - 8:49am.
Even more from KBIS
- FUEGO, a brand of highly designed urban targeted BBQs, is pulling out of 2-step distribution throughout the US, and selling direct to large and big box retailers. FUEGO has sent letters to all its distributors canceling them effective July 5.
- Middleby, owner of Turbochef, Jade, Dynasty (and a myriad of commercial cooking products) has just added another feather in its cap, the Cooktek line of professional high performance induction hot plates and cooktops. Middleby promises to leverage the new Cooktek assets with the introduction of Turbochef brand residential induction products, including a way-excellent induction wok burner.
- The Sears Kenmore booth included product vignettes of Kenmore and GE, and the only KBIS display of Bosch, Samsung, and Electrolux. No Whirlpool.
- Discussed with Peerless Premier, with great amusement, that the 9100 BTU aluminum open gas burner that they use is the most efficient gas burner in America. This is true. Once it was the standard burner used by GE, Modern Maid, etc, etc but now it has been all but replaced with less efficient sealed burners. That's progress for you.
More missives from the front.
- Nortek (owners of Broan, Nutone, and a whole lot more) is rumored to be back on the block, by owners Thomas H. Lee Partners a private equity firm. The rumors include just about everyone on the planet as a suitor, but Panasonic seems to be the best fit for the whole ball of wax. Maybe some one of you folks can convince the Partners to just sell off the appliance chunk.
UPDATED: Broan has responded. Nortek is not for sale in whole or in part. Broan is not for sale. No one is speaking to Panasonic about the sale of some or all of the business. - Jennair relaunched the brand with a new line of luxury products, repositioning the brand they say above KitchenAid, above Monogram in direct competition with Viking, Wolf et al. To elevate the brand, it will limit distribution and pull out of Home Depot, Lowes, and Best Buy. Balsy move. The new pro-ranges are built in-house they say, no longer by DCS. The new Jennair hoods come developed on GE's dime (as did Bosch's hoods from KBIS past). It's a shame GE doesn't get a royalty.
- A surprising number of distributors and manufacturers said this show was great. The comments suggested that the more leisurely pace left everybody with more time to do the deals.
- Fisher & Paykel and DCS are the subject of rumors in conjunction with various suitors. President John Bongard indicated this February that they were seeking a significant partner. Recent rumors included Miele as a possible suitor.
- Kuppersbusch did not bother to attend, or they changed locations
- GlemGas, Italian range manufacturer, did make the show, but did not make our DanceCard. No idea how it happened. We apologize.
- Maryland is said to be fiddling with the UMRP laws, which the Feds recently decided was a fully legal crime against humanity.........like torture. More when we get more.
- Blomberg, a brand of Turkish manufacturer Arcelik, has clearly set its sights on Bosch, and no one else. They are starting with dishwashers.
- TRUE promised to cross over from the dark side ending its distribution of REAL commercial refrigeration for residential installations (the dark side), and bringing out a full line of appliances actually approved for residential installation.
- Cheng Design was the featured designer in the Jennair booth this year. Zephyr, Cheng's long time sponsor did not exhibit. One wonders if there's been a break between Cheng and Zephyr.
UPDATED: Broan has responded. Cheng Design has an exclusive arrangement with Zephyr for the design of rangehoods. Cheng's work for Jennair revolved around kitchen cabinets and countertops. No break.
UPDATED2: Fu-Tung Cheng, the principal at Cheng Design returned my call. He was amused, and proud to be the subject of any rumor at all, including an untrue rumor. He said, all is well, even better than well, and that they are about to start work together on new products.
First Impressions from Atlanta
- Atlanta not nearly as bad as we let on. Easy in, easy around. Hotels near convention, and you can walk everywhere.
- There are so many cops, one on every street corner and at every sign post. One could get the feeling that Atlanta is on the edge of insurection, riots in the streets, and cannibalism. Makes you feel a bit insecure with all that security.
- Convention Center is worse than Chicago, Las Vegas and Orlando.....but it's workable.
- Half the exhibitors of last year, but show management still can't figure out how to locate exhibitors without burying them in lost corners, or behind the 10' walls built for LG's or, Jennair's booths. There are some pissed exhibitors out there.
UPDATE: We were told that the problem was the result of the closure of one of the three halls, and jamming all those orphan booths into whatever space was available. - There is also talk about the death of KBIS after this year. A push to go to once every two year ala Europe, or just go regional. There is some unhappiness out there with the costs of this show and how it was set up.
- For those who canceled from the show, Viking showed its product at Hadco Distribution's Atlanta showroom.
- Miele held a cocktail at Coke's World Obesity Headquarters. It was great. Better still, I believe that as the Miele event was after hours, and not showing product, they didn't breach any unwritten rules of KBIS etiquette.
- KBIS is now charging for attendees who come from manufacturers not exhibiting. It may be designed to convince manufacturers showing off-site to show onsite. It's a grenade when a BB gun would do. They have to get rid of the fees.
- The gifts for the press are decidely non-existant this year. Received a 4 month supply of a new anti-static "Bounce" line extension, and a Miele apron. Much more of this, and I too will agree with changing the show to every other year.
- Heard a statistic that 10 million lbs of exhibitor freight was brought into Chicago last year, but that 4.5 million lbs was brought into Atlanta. This is unconfirmed.
- Some folks are saying that they are busy, and at eye level it is difficult to really know how many people are here. My impression is that the number of attendees is low.
More information on products and photos when the staff gets back to the office and has a chance to compare notes.


Brand alliances...............
The brand alliances is an interesting idea and one that is fairly common in the marketplace today. You don't often see a BMW/Mercedes/Lexus dealer or a Ford/GM/Chrysler Dealer. It was not that long ago that appliance dealers only carried one or two brands. It should still be the dealer who chooses what he wants to sell but it is within reason that the brand he sells will have some sort of display requirements. I don't see how this violates any of our free market principles. What it may do is give "the big five" an opportunity to drive more business into the brands that are manufactured for the most part in the United States. I for one don't want to see any more of those jobs go away. Do I have the choice to show anything I want? Yes, but it doesn't seem wise to try to show a few of every brand on the market.
I agree that ...
Dealers should be the final determination on what to show because they are supposed to know and understand their local demographic as well as the clientele' they are catering to ... a store in an urban area would not need to show a whole variety of high-end pro-style products, likewise a dealer who enjoys a relationship with builders, etc. doing upscale projects would not want to fixate on entry level products !!!
While Obama's idea of penalizing American companies who take refuge in tax havens then use the tax savings to move their companies outside the US sounds like interesting logic, but what would better keep American jobs here would be:
(1) a more reasonable tax structure for businesses
(2) a diminution of the stranglehold the unions have on our country
(3) a tariff scheme that would favour made-by-Americans products versus those from elsewhere
(4) even a way of making illegals legal while punishing them if they come here illegally in the future ... thus this un-taxed segment of the population becomes contributors in more ways than one, making us more competitive in the global marketplace !!!
If this recession and potential "musical chairs" teaches us anything, it MUST be that we need to be producing more quality products here that compete favourably with the rest of the world ... then, and only then, will we keep those American jobs in America !!!
Tax Havens
Bob.... I think the tax haven issue that the president is targeting has a lot to do with the underground type of questionable companies that purposefully funnell money to other countries irresponsibly and then bankrupt their own organizations.That is called transferring assests for the purpose of fraud, more easily done by private , small to medium sized businesses. I owned my own business and had two different customers that eventually BK'd after bragging of potentially moving money to the Cayman Islands and even wanting to know if I would like to participate of which I declined. The court system in California is a joke when attempting to collect monies owed without an ironclad agreement beyond PO's and invoices.There is more of that type of movement than probably either one of us can imagine. As for large organizations that do that and as I have said before if they would reinvest that money back in the United States I have no problem. But to just transfer funds for the purpose of padding a CEO's bonus when one is not warranted without the cheating needs to be reviewed .This is one cruel and distrusting country these days. Actions of some people warrant that.
Easy Answers !!!
The easiest way to naturally negate tax havens both off-shore and in Europe would be to embrace the Steve Forbes "Flat Tax" format both for individual citizens and corporations ... our tax system is so multi-level that it causes a "flee or flight" type of reaction !!! The only problem with the "Flat Tax" is that it would never pass muster in Congress because it would put fiscal handcuffs on "pork", entitlements, and governmental handouts, so I gave up holding my breathe long ago !!!
All of us have been exposed to situations like you describe and only the smart walk away !!!
Flat Tax
The flat tax would be a perfect fix for the shady deals done by anyone delusional enough to think they can get away with that.Two of the people I spoke of yesterday are in jail and I am sure the government is anxious to see where they go when released. The other is being chased by the government. A flat tax of 10% would be sufficient. My Lord ,where do all the tax experts find a job though. Forbes was on the button. Europe, although I am not too familar with their laws seems to be taxed too heavily and too dependent on the US.
Flat Tax
Stallion ...I completely agree with both you and Bob on the flat tax. In fact, I think any taxpayer with a triple digit IQ would also favor a flat tax. I believe the tax Forbes proposed was more like 15% - 18%, exempting the first $ 35,000 in income. But this is still a huge tax savings to all since it offsets social security, capital gains, estate taxes, etc. , esentially eliminating the IRS. However, getting something like this passed would be a Herculean task. Congress would have to give up their appetite for pork or risk exposing their spending habits to taxpayers who actually knew how much they have to pay in taxes in order to cover these spending sprees. Imagine the ire of the everyday tax payer who sees the flat tax rate go from 17% to 18% because Congress wants to build bridges to nowhere. Beyond that, you would have to overcome objections from the morons who would balk at giving up their tax deduction on their home loan, without understanding that their net tax was still less under the flat tax than it was under the current system with the interest deduction. But, keeping pushing it. Maybe someone will finally listen.
Flat Tax Part 3
I guess we could live with what Forbes planned. However , living in California I get nervous considering that amount may take in more than they need and they will find a way to spend it ...forever.It probably should exempt the first $50,000 these days. I would be interested in seeing how much money is spent collectively each year by tax lobbyists. This system would revolutionize our government. If Obama wants change , there it is.This would allow us to save our own money for retirement , etc. Better than giving it to wall street to invest.
But I Digress
If I may speak in a very very general way.
It is said that the tax codes of Europe are simple, the taxes high, and the services government provides, considerable.
The US tax code is complex, the taxes, low, and the services government provides, low. (in comparison to Europe).
The tax code in the United States is designed to create incentives to avoid activities directly regulated in Europe or to provide services normally provided by government.
A complex tax code filled with incentives and disincentives should be popular with the limited government crowd, but alas it seems that crowd would only be happy with a Somalia-type form of government.
Simple Logic !!!
You are certainly correct that the US tax system is complex ... that's the basis of the problem ... but of more concern is that our tax system is set up to always be able to fund entitlements and pet projects of politicians ...
Think for a minute what America spends on school taxes ... paid by people who either never had, or no longer have, kids in school ... why is it MY responsibility to educate YOUR kids ??? You had them ... you should feed, clothe, shelter, and educate them ... not ME !!!
Why do we maintain an ever-increasing "welfare state" ??? Why is it MY problem that you were stupid enough to get hooked on illegal drugs ??? The answer is simple ... it's not !!!
That's the reason for our convoluted tax system which constantly is looking for yet another way to fleece the American public to pay for the foibles of others ... and that's why politicians will NEVER pass a flat and equitable income tax system !!!
... and in doing so, they have ridiculously over-taxed corporations and manufacturers into leaving this country for more favourable venues ... and betrayed the American public by taking jobs out of this country !!! Plain and simple !!!
... and now we have a President who openly expresses desires to re-distribute wealth by increasing taxes on those who worked hard and made it ... to those who don't or won't !!!
I shall now descend from my soap-box and thank you for listening !!!
Need for Concentrated Focus ...
As I've said before I sincerely believe that our Industry needs it's own dedicated show which is replete with everyone from every sector, but minus designers, decorators, and the products they traditionally deal with !!! The show would absolutely need to be run by the industry, by people who are dedicated to looking out for our unique concerns ...
As far as concerns about upstart companies, I think it most important to focus immediately on working on the difficulties this present economy has presented all of us with ... then focus can be divided to those products entering our marketplace ...
Courage
My only point is don't decide who can be there or force people to sell your product only. Have the courage to meet the challenges that new or small companies may present. Competition should hurt no one but the lazy.Let the market decide. Not some executive in the glass house who may not be able to tell what a good product looks like. Without competition we would still be driving model T's. Hmmm, not a bad idea.The premise to concentrate on the appliance portion is a good one and I applaud the executive for raising that issue.
What did you think of the show?
In general, the show had more exhibitors & buyers than I anticipated. Attitudes were better than expected, too.
It was sad to see Bosch & FP/DCS participating with Sears as their only presence. Really makes you wonder where BSH is headed.
Dacor looked like they bought everyone else’s abandoned space. It took guts to be there with that much real estate. I don’t sell their brand, but I might now.
“Haute Rod”
Uploaded for Haute Rod by ApplianceAdvisor.com
WHAT DID YOU THINK OF THE SHOW?
Atlanta Show
Great energy, more young people than ever before, more interest, fewer tired old folks looking for the Lawrence Welk Dance Band. Vegas is for slot machines and fanny packs.Atlanta was all business during the day and action at night. I'll come to this town and this show anytime. Buyers - dealers, fewer lookers, real money in play.
NKBA: the real cancer
This KBIS was a sad show run by a sad organization: NKBA.
Measures to implement to save our soul:
1. NKBA out. The big guns will run their own trade show in 2012. Cabinetry manufacturers, builders and other kitchen designers will not be allowed to exhibit but only attend. NKBA will of course be nowhere to be found. Focus back on the products. If you want to display your cabinets, go to KBIS. We will be at KBIS 2010 in Chicago because the industry reshuffling in progress will not be fully implemented until 2012. All appliances manufacturers WILL be invited to participate.
An Exec at a top 5.
NKBA pretentious attitude toward the exhibitors is alarming.
2. Alliances: have you heard of OneWorld, SkyTeam or StarAlliance in the airline industry? Let me give you an example: SubZero/Wolf-Küppersbusch-Kohler vs. Viking-Miele-Franke vs. Thermador-Gaggenau-Bosch vs... and so on...add/remove brands at will but somewhere along the line complementary product offerings will be necessary. Some alliances could count 5-6-7-8 brands but one thing is firmly determined: Appliances retailers will have to choose one alliance or they will be out. "We carry 451 fine brands and service what we sell" business model is over. This strategy will apply to servicers. Servicers will have to select the brands they want to service. Major strategic distribution/parts sourcing/technical support challenges in the pipeline.
3. Exceptions will be made based on regional particularities or distribution contracts.
This is necessary if we all want to run a viable business model.
The last 10-15 years strategy was simple: launch a new product, expand dealership network and the market will absorb the offer thanks to an artificially doped housing market. Cash was flowing continuously - there was no need to restructure this industry. The time has come.
Just What I Thought.
"Makes you feel a bit
"Makes you feel a bit insecure with all that security."Ah... such sweet irony. :)