July 3, 2012 at 6:37 pm #1386tagoneoParticipant
I was just caught off-guard by this bit of news. Electrolux Appliances are going into Home Depot. I have no idea if it is just the Electrolux brand, or Frigidaire brand, or both. But either way, just a sign of the times where boxes need to be moved or fear the wrath of the shareholder. And a new factory in Memphis to pay for as well.
http://www.dealerscope.com/article/home-depot-adds-electrolux-frigidaire-major-appliances-refrigerators-dishwashers/1?b=2009&e=rdakdouk%40homeapplsvc.com#utm_source=housewares-retailing-weekly&utm_medium=enewsletter_continue_story1&utm_campaign=2012-07-03July 3, 2012 at 10:43 pm #6109roadwarrior61Participant
The Home Depot Inc. The Home Depot Inc.Latest from The Business JournalsLogistics and Trucking: Whether shipments go by road, rail, river or air, logistics industry is a key driver in the Louisville-area economyChamber plan aims to restore region’s luster Metro Atlanta Chamber unveils Forward Atlanta planFollow this company will sell Whirlpool, Electrolux and Frigidaire in select stores and on homedepot.com, the home improvement retailer reported Tuesday.
The appliances will be available through the company’s Depot Direct delivery network and can be ordered in all U.S. stores. Appliance purchases through Depot Direct include free delivery and haul away.
Atlanta-based Home Depot (NYSE: HD) has 2,254 stores in the United States, Puerto Rico, U.S. Virgin Islands, Guam, Canada, Mexico and China. It reported in May its first-quarter profit jumped 18 percent to $1.04 billion.July 6, 2012 at 1:44 am #6117Bermuda BobParticipant
Kudos, "Tagoneo" !!!
You even scooped Appliance Magazine, who didn’t report it until today …
The only thing to wonder is if they will create a series of different model ###’s as is often done when Home Depot requires manufacturers to kow-tow to their requirements …
In my book, it’s just one more betrayal of the Independent Dealer … plain and simple !!!July 6, 2012 at 1:25 pm #6119tagoneoParticipant
And now it is confirmed about Whirlpool brand going into Depot:July 14, 2012 at 3:15 pm #6152appliance_geekParticipant
And now Electrolux announces that they are dropping UMRP effective 8/15/2012. As if going into Depot wasnt a big enough snub to the independant dealers. Oh well, we all know that they would not have inforced it with Depot any more then they have with Lowes. I dont know how to attach the PDF letter that they sent out sorry.July 14, 2012 at 5:39 pm #6153
For the life of me I cannot understand the shortsighted effort by Electrolux to drop UMRP. Before long HD will be eating away further at the profit margin of Electrolux by demanding more on the back end. Hey Electrolux , once they have you I want to see your attempt at a price increase. Buy backs , returns ? You ain’t seen nothin’ yet. Your shortsighted effort to temporarily have a bump in sales will fail miserably and the next sales team at Electrolux will have to somehow clean it up. Remember this… HD has about $68 billion in sales , you my friend are a drop in the big bucket no matter what you think. Impersonal ? Just wait. See your buyer every month ? well ok. You have direspected the independents again. But I guess one of you can polish that resume and say you increased top line sales.This is stupidity in the highest form.July 14, 2012 at 10:17 pm #6154Bermuda BobParticipant
It is what many of us have been saying for a long, long time … spitting in the face of Independents is a short sided exercise and will eventually cause those manufacturers to look like a dog chasing it’s tail !!!
Independents will always depend on knowledgible, well-trained, and articulate Sales Associates to guide customers into clients with whom they they both enjoy a long, solid relationship …
Big Box stores all depend on advertizing blitzes which attract only vapid price-shoppers … In a day and age when people "blast" past commercials on TV, ignore internet advertizing, and simply refuse to read newspapers, that dog is always nipping at their heals until it finds it’s tail !!!July 16, 2012 at 2:13 pm #6155SteadySellingParticipant
I can just hear the "analysts" discussing ways to increase sales. "you need to broaden the distribution and cut the price". I can see many independents walking to another brand out of spite – not that the other brands give us any advantage, but at least they didn’t knock us down and then kick us while we were down. Is Home Depot, or any other box store going to "sell" an Electrolux when they can take an order for a Samsung or an LG? They should have followed JennAir’s example. From my understanding JennAir cut dealers, attempted to promote profitability and saw about a 100% increase in sales (not without their own costly promotions, but at least for the most part it doesn’t come out of the dealers pocket).July 16, 2012 at 5:14 pm #6156
Some of you independents getting together and form a buying group for some of your product lines with your main suppliers ? Perhaps it would help keep the big box guys out. Think about how you could do that. At least you folks should start an association of some type to discuss your issues and how you can solve them. No one else is collectively looking out for you. Think about giving that a try and see if the Advisor can set up a way for all of you to communicate and organize your efforts. Keep your group " exclusive" if you know what I mean.Maybe Cohiba could help you too. You could name it the Independent Dealer Buying Group and have a centralized point of contact to negotiate deals for you.July 16, 2012 at 8:35 pm #6157SteadySellingParticipant
Buying groups are a great idea. We are currently part of one and it does help for profitability,ect. The biggest problem today is that every box store in the market is focusing on market share only – profitability seams to be of no concern. So even though we can buy at a good price we are not willing to operate at a loss year after year just to gain market share. That is simply working extra hard to increase a deficit which seams to border on insanity. There are many examples of this, the latest being HHGregg’s recent financial report. Around a 6 million dollar loss in three months, but hey, they sold more product (not per store, they actually sold less per store but they opened more stores) and their president says they will continue to focus on gaining market share without even commenting on why they are losing money. As an independent we have continued to gain market share at about a 10% increase a year (except for the past couple of years being flat) but we do it profitably.July 17, 2012 at 1:37 am #6158
I would think you would want to organize somehow just to have a more broad glimpse of what your suppliers are doing. If you keep your UMRP and somehow you could get a larger VR from the buying power you all may get why not try it ? I am not suggesting you sell for less but perhaps an organized effort to buy more would give you some back end discounts with suppliers. Big box guys want low ball pricing and back end discounts on top of that. Then they undercut your pricing. The manufacturers really don’t know/care about what this does to the independent. My suggestion is you all determine a method of communicating in an organized manner and I am sure you would all come up with a good method to help the industry.I see you are gaining market share but with the BB guys …if they get a foothold your profits may twindle.Don’t discount what I suggest since dealers are closing and distributors are drying up. You all need to do something , why not try it together ?July 17, 2012 at 7:12 am #6159northParticipant
We too are a member of a buying group. The problem that I see with the buying groups is that because they take money from all of the manufacturers (for buying group show space rental, etc) they have much to lose if they encourage their members to stand up together and get a true group program that is good for each dealer.
I realized that the buying groups weren’t 100% in their dealer’s court when Circuit City was dumping Maytag Neptune washers at basically our cost (breaking UMRP inthe process.) Maytag turned a blind eye to all of this saying "well they are closing out their appliance departments – there really is nothing we can do about it". Our buying group acknowledged that it was a bad deal – but that they could provide no help and were unable to get Maytag to provide relief.
Where was the "Don’t buy another Maytag item until they stop shipping these Neptunes to Circuit!"? Or the "We’ve negotiated with Maytag and while we can’t get you 20% margins – we were able to get a temporary price reduction of $100 a unit until Circuit’s appliance department closes their doors"? (Which incidentally we were able to negotiate for ourselves after a friend mentioned that he was successful negotiating for the same thing – but where was our buying group on that?!)
I think that the buying groups are more interested in their own wealth creation and egos that they don’t have much ability to confront the manufacturers who "butter their bread" in an attempt to aid their dealers.
ThJuly 17, 2012 at 5:51 pm #6162premiumParticipant
For major brands UMRP is a suckers bet. When you go into meetings as a saleman for a major brand UMRP is but a fleeting fancy that is designed to increase there displays with indepenents. Once that task is accomplished UMRP never and comes up again. The only thing they care about is how many were shipped and does it meet there bonus. They don’t care if it sold for nickel if it gets them there bonus. So if you display based on a discussion on UMRP with a Major like Whirlpool, Frigidaire, GE or any of those you are better off believing in the tooth fairy.August 17, 2012 at 3:09 am #6210dont hate me cuz iam orangeParticipant
Right now only 120 stores will floor the new brands and only 15 SKUs of Electrolux are advailable, 300 SKUs of Frigidaire. A slow roll out of stores to follow. Samsung rumored to be early next year.May 21, 2014 at 6:35 am #7616abrahamleeParticipant
The merging of business is like just rebradning the company name to existing good one, as we all know Electrolux has been popularize during the 80’s and not it seems to be turning down. For many company they care enough for their business name, those who are just starting up with their business it is always good that they carefully have guide like the book created by Alex Watkins of Eatmywords.com about business management and the book is also available at Amazon or directly check link for eatmywords for the details.
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