Argos Getting Ready for New EU Regulations

[suctionselector]

Just had a nosey on the Argos website, in the vacuum section obviously.

Quite a lot of vacuum cleaners have been on sale, some discounts on over £150 off. I assume they are trying to flog off all the high wattage machines so there are no stockpiles.

http://www.argos.co.uk/static/Product/partNumber/4068189.htm This Vax, with £140 off.

http://www.argos.co.uk/static/Product/partNumber/1578902.htm And the Turbopwer with £145 off.

Most of the vacuums in the sale are the power thirsty vacuums, so just to show the future of vacuums will be better when this new law comes in.



http://www.argos.co.uk/static/Brows...ories|33029216/fs/2/p/49/pp/50/s/Relevance.ht

 

[hi-loswitch98]

And this, which Argos say that it as a 300 litre bin capacity!



http://www.argos.co.uk/static/Search/searchTerms/1450783.htm

 

[suctionselector]

300 Litre Bin

Wouldn't want to empty that when it gets full!

Have Hotpoint changed their machines yet to adapt to the new regulations?

 

[hi-loswitch98]

Nope.

 

[sebo_fan]

A lot of brands in the UK haven't changed to low watts yet. Even Miele with their Eco 700 watt cylinder vac now costing £300 on their website isn't likely to pull the buyers in when everything else they sell is either rated 1200 watts to 2200 watts and not as expensive to buy..

 

[oliveoiltinfoil]

These aren't particularly cheap to be honest. Like other have said on this forum, they over charge for these vacuums, putting the asking price sometimes a couple of hundred quid more than the vacuum is actually worth and then slashing the price by half and saying "this is an amazing deal" when in reality, that's all they are worth. I couldn't imagine paying £280 for a vax mach air.

If they want to shift the stock quicker, reducing the price by an extra £40 or £50 would be worth it more, but I cant see them doing that somehow ahahah.

 

[sebo_fan]

Well, the only "bargain" that appears to be good value that is new are the limited edition JL models from Numatic. Both John and Lewis models don't appear to be that more expensive than the standard Henry at £99 - the newer J & L models cost only £30 more.

 

[sensotronic]

The John Lewis models also come with a full sized turbo brush like the Henry Extra, so they are good value, especially when Argos sell the Henry Extra for £149.99.

 

[jord123]

do you think you will get a john or lewis rodger

 

[sensotronic]

Yes,
I may get a Lewis at some point.

 

[madabouthoovers]

I've given up on Argos and Currys now - they just don't sell what I want. I've given up buying cheapo bagless Chinese plastivacs, so that doesn't really leave much else left at Argos. Miele, SEBO and Bosch vacs are cheaper elsewhere, so I order them elsewhere. If it aint made in the UK or made in Germany, I'm not interested.

 

[hi-loswitch98]

I always tend to buy from Argos because they have a no fuss returns policy, they accept it back even if you don't want the product. Also because its the only place in town since Currys has gone.

 

[madabouthoovers]

I used to buy a lot from Argos, but they have just gone down the route of selling bagless bagless bagless, and I've had enough of bagless vacs. The bagged vacs that Argos sells can be obtained elsewhere online at cheaper prices, so I'm afraid Argos just aint what it used to be.

 

[suctionselector]

Argos...

... it definately isn't what it used to be. I think the Argos Catalogue out at the moment is the last one to be produced, so obviously they are going to be mostly online shopping.


 


They are great though if you need something small such as a kettle, and like me, the store is about 5 minutes away from me, in fact, it's right next to the supermarket we go to weekly.

 

[hi-loswitch98]

I just find it the most convenient place to buy electrical from. Argos isn't what it was no, it will be a shame to see the catalogues go, but keep hold of yours, they might possibly become a future collectible. Argos in my town has outlasted Currys & Littlewoods/Index, plus Wilko & B&M Bargains who all sell Vacuum Cleaners, however most just go to Argos because it is so easy to return items. Hence why I go there all the time.

 

[vintagerepairer]

Argos may not be what we remember it to have been, however, for it to have remained rock-solid throughout the last seven years with all that has gone on proves they must be doing something right.

 

[madabouthoovers]

If Argos are going down the online shopping route, then they need to get a lot more competitive with their prices. Their prices for Miele vacs are ridiculously high compared to the other online retailers - who are now fighting back against the likes of Argos and Currys, who have dominated the market for far too long. Considering Argos don't even pay many of their staff who they get on "work experience" and "workfare" schemes, they don't seem to be passing the savings on to customers, rather lining the greedy directors' annual bonus pool.


People are getting more savvy now, and Argos, if they are to be online only,  will get left behind unless they start being more competitive.

 

[hi-loswitch98]

I just hope Argos don't shut any of their stores.

 

[madabouthoovers]

They may well do - the smaller less profitable ones anyway. Most people would prefer the bigger ones with parking rather than the smaller ones with no parking and traffic wardens parading round in front of them.


 


 


Its only obvious that if Argos are going online only, they will be doing more home delivery only items, so will need less stores and less staff, meaning greater profits.


 

 

[hi-loswitch98]

Hopefully my local stores safe then, car park right next to it & the towns main supply of electrical, furniture & toys etc. unless you go online.

 

[sebo_fan]

I still like Argos - oh you moan about the high prices - but they also price slash too - which not many online sellers do. We should be lucky that they sell Miele - some other franchises don't stock as many as Argos do, let alone current models right across the range.

Unlike independent retailers near me, Argos offer a good rate and a good deal - delivery charges are reasonably low and there's a good back up service, only twice of which I have used in my lifetime - and I relied heavily on Argos when I was a student, not just buying their budget ranges but reasonable stuff that was usually over priced (and still can be) compared to other franchises.

John Lewis spring to mind here, as do House of Frasers - Pyrex for example is cheaper at Argos than anywhere else, but that's because like almost everything, they buy in larger amounts and have far more branches than both JL and House of Frasers.

Argos were also first (and one of few) franchises to sell generic but good quality vacuum cleaner accessories such as mini turbo brushes (Wessel Werk designs) as well as aftermarket tools. They may not do this now, but they may well appear to sell them in the future - I live in hope.

 

[madabouthoovers]

As far as I'm concerned the prices Argos charge for their Miele cleaners are way higher than the likes of Freenet Electrical, and Argos stores don't actually physically stock most Mieles either, you have to order them online and wait for delivery. So if I have to order online and wait for delivery why should I pay high prices from Argos or John Lewis when Freenet sells the exact same items for a lot less. Its about time the independent retailers started biting back at the likes of Argos, John Lewis and Currys, and they will win the custom.


 


Obviously there will be people prepared to pay through their noses for the same products they could get cheaper, but people are more savvy with their money now, and it pays to shop around the internet for the best deals.


Argos may be cheap for some items yes, I totally agree, but its usually the cheaply made stuff that's mass produced 2 a penny in China, and not everyone wants these items.

 

[vintagerepairer]

The fact that Argos are pricing themseleves out of the market for stock which has to ordered anyway would indicate a reluctance on the part of Argos to actually want to sell that product in the first instance. There could be all number of reasons for displaying the products, not least the fact that Meile will be paying a small fourtune to have their advert in the Argos book.

This is where retailing works in reverse. Under normal circumstances, chain stores like Argos buy stock from a manufcaturer or supplier for £X and then sell it to the public for £Y. In doing so, they make a % profit. However, for every sale of product A, it is a none-sale of product B, C, and D.

Product A may have a larger retail price than product D, but that by no means equals a higher profit margin. The profit is of course the difference between price £X and price £Y, once all expenses have been taken out.

So, in the case of Miele vacuum cleaners, it could well be that Argos would rather sell other, cheaper cleaners, as profit margins may be greater. But if Miele are willing to pay Argos a vast amount of money to advertise in their book and on their website, Argos could well stand to make far more profit from that arrangement than they might by selling a cleaner itself.

Thus, the whole idea that Argos "sell" Meile cleaners to make money in the usual way could well be a white-elephant in the sense that the retail price is too high and encourages consumers to shop elsewhere. Argos make money from Meile by using their book as little more than an advertising medium. Meile get the sale from which ever retailer it is that the customer chooses to use. It's a concept which is incredily hard to understand if one has not been involved in the retail business, but not everything you see on sale is actually there to be actively promoted.

 

[madabouthoovers]

Nice explanation Benny - it was something I found hard to understand, how the likes of Freenet Electrical could be selling a Miele cleaner up to £40 odd cheaper than Argos in some instances, and selling SEBO cleaners up to £50 cheaper than John Lewis. Freenet would not be selling these machines at the prices they do if they are losing money on them surely? I think John Lewis can get away with charging more than other retailers due to their reputation and "snob value", but for Argos to be charging £40 more than the competition for the same items is just crazy.


 


I get the feeling that sometimes there may be backhanders involved, like Dyson and Vax may be paying Argos a premium to overprice Miele's products and also not hold them in stock, so that people buy Dyson or Vax machines instead.

 

[vintagerepairer]

Thank you

for your kind words.

It's like this really; Suppose you are a farmer and I am a retailer. You sell me eggs for 50p per dozen and I sell them onto to the customer for 75p. I make a 50% profit before expenses are taken out.

Along comes Sebo_fan and he sells me his premium eggs for £1 per dozen. Like all products there is a limit to what customers will pay, and in this instance my customers won't pay more than £1.25. If I sell his eggs, I make only 25% profit.

So, I have two choices; either I stock everything and hope for the best, or I activley promote my cheaper eggs.

But then Sebo_fan comes up with a new plan! He will still sell me premium eggs for £1 a dozen should I wish to buy them, but he wants to pay me to advertise his eggs in my magazine because my magazine is to be found on coffee tables up & down the country. He suggests that I price his eggs at £1.75 per dozen and order them as & when I make a sale, knowing that I will sell very few, but in doing so I will direct the customer to another retailer who he supplies.

The money he pays me for doing this is worth more than any profit I could make on his eggs, and in doing so, I have virtually no overheads involved as there is no physical stock to worry about. Nor do I have to worry about returns and customer complaints. So it's win-win.

Where this rather odd scenario becomes a lose-lose is when a customer wants several items from one place; by directing the customer to a competitor to buy his premium eggs, I risk losing out on the sale of his apples, cheese, and bread as well. But these are low-price goods; if you think about it with Argos, the customer is unlikely to be buy more than one major appliance at a time, and not all retailers sell the same sorts of product.

Argos -as you know- sell such a wide variety of goods. So, lets say someone wanted a Meile vacuum cleaner and a board game; they won't get both at the likes of Freenet of course, so the customer will still buy certain items from Argos as likely as not.

 

[madabouthoovers]

But why would you as the retailer direct the customer to the competitor who sold the premium product for a cheaper price?


For instance, If I went to Argos to buy a cleaner, would they really be directing me to Freenet to buy a Miele vacuum?


I suppose it works because the customer is being shown Miele's products in the Argos website, but then has the choice to look around the net for a cheaper price on said machine.


Indeed, retail works in very strange ways, and Argos is cheaper than Freenet for Henrys, so could Numatic be paying Freenet to advertise their products, even though Freenet are more expensive and never hold many Numatics in stock, so that people buy a Henry elsewhere. This is the reverse of the Miele price syndrome.

 

[vintagerepairer]

"But why would you as the retailer direct the customer to the competitor who sold the premium product for a cheaper price?"

Well, because it may be more cost-effective for the retailer to lose the entire sale, if it is that they cannot convert the customer into buying something cheaper which has a greater profit margin. In this instance, Meile have paid Argos to advertise their cleaners and this fee will be going a long, long way to compensate for the lost sales. Indeed I expect Argos make far more from it.

You could say Argos sells to two markets; they sell goods to customers, and advertising space to manufacturers.

 

[sensotronic]

Here's a recent article about Argos. The catalogue will be staying, although in a slimmed down form. I have a few older Argos catalogues and they are at least half the thickness of the later ones.
I believe the catalogue will go eventually as more people look at the product range online, but there are still people who don't use the internet and rely on having the catalogue to select their goods.

http://www.telegraph.co.uk/finance/...al-has-it-leading-the-digital-revolution.html

 

[vintagerepairer]

That was an interesting read about Argos, thank you. I liked the comments, especially this one:

"Ive walked in and out of a John Lewis in 20 mins..never went back. It's a dull, boring store, for dull boring middle class people, who wouldn't know real style if it came up and bit them.

John Lewis is the most Bland and Boring store i've ever walked into. Its like an Ikea but for old farts with no taste. Cant see the appeal.

I simply found nothing I particulary wanted to buy. Awful store that seems to live on hype by people who should try better."