Change in Our Oreck Stores

[williamr1248]

I noticed in the paper today that our beautiful Oreck stores are changeing their names to "Vacuum Authority" stores and now will carry not only Orecks but the low end Hoovers along with Simplicity,Miele and Ricarr.
Sad to see them go from a specialty dealer to now trying to compete on the level of Walmart with Hoover.
When they were exclusive Oreck,they gave very good service and were very helpful with any service or questions about their procducts. I guess they are going the way of the old Hoover Service stations and Electrolux stores. I noticed that Sears is also selling Orecks. They are cheaper machines and look similar to regular Orecks but if you look close their are differences.

 

[fanonthefloor]

I think thats sad but i know Oreck couldnt compete. our strore in augusta hasn't changed yet but it is near target and probly will soon.

 

[brandon_w_t]

One of the oreck stores in town (I think there was 3 at one point) Closed just recently. They just cant compete with other places.

 

[trebor]

Oreck Stores...

I knew the original franchisee here in Ft.Wayne. He saw the handwriting on the wall and got out three years ago. Oreck competed with their own stores via the internet and QVC, and big box retailers. Had they used the 'net to promote the local dealers and stayed away from BBR the stores would have flourished.

Oreck expected payment up front for merchandise ordered, and they shipped whenever they got around to it. They did not listen to their managers who were justifiably outraged at the cavalier attitude of Oreck who told them 'there is no such thing as cost of carrying goods' meanwhile inventory that is paid for and not received is tying up cash that could be used to pay operating expenses. And yet Oreck would scream if bags were to be ordered from ESSCO or wherever to keep them in stock, while six skids of bags were paid for but not received. The same with belts, switches, etc. Oreck expected the entire line to be displayed, whether or not every SKU was a good seller. Signage was subject to Oreck approval. They were s-l-o-w to pay co-op advertising.

It became increasingly difficult to make money, with Oreck increasing their mail order sales at the expense of the local dealers. Oreck had determined that the best location for a store was right next to an upscale women's clothing store catering to age 35 and above, with a salon close at hand in the same location. Their primary customers walked back and forth in front of the store multiple times a year. The customer referrals were through the roof. Greed, greed, shortsighted greed. Oreck was increasing market share every year despite the recession, but alas, I think that such will no longer be the case. Oreck has placed themselves directly in competition with Hoover, Bissell, and the rest.

The move to vac shops seems to be a good one, for now, the question is, will they treat their multi-line dealers any better than they treated their exclusive franchisees?

 

[tolivac]

Have some questions here-Tacony will not let a dealer carry Simplicity and Riccar.Its one or the other and depending on if there is already a dealer in the area-say if an existing dealer carries Riccar-than the new one can carry Simplicity.for Meile-they insist on minimum standards from the dealer-he must carry a stock of machines and parts.The dealer must be able to properly demo the Meile machines.If not Meile will drop them.I don't get the idea of a vacuum company doing business online or by mail when they have dealers.Good way to piss off the dealers and they drop your line of vacuums.Happned to Royal out here a few years back when Royal had Sams Club carry the metal uprights under the Dirt Devil name-commercial machines.the Royal dealer here dropped them entirely.Again TTI does not know how to do business with US dealers.Hope they learn the HARD WAY.The DD machines should have been carried by the local dealer.Same with Dyson doing business with "Big Box" stores and trying to have vacuum shops carry them too.Again pissed off the local dealer and he no longer carries Dyson-dropped them like Royal when Dyson is sold at Best Buy and Wally world.

 

[djtaylor]

I may not have enjoyed working for the local Oreck stores, but I hate to see anyone's business in trouble. It's sad to see the end of Oreck Clean Home Stores. I hope that the owners of the Oreck franchises can keep in business by adding other lines of machines. Two years ago the local stores had added the Amish Fireplaces to their line-up. I'd have bought one if they were not so expensive. To those on this forum who work in Oreck stores, I wish you the best.
Justin

 

[vac-o-matic]

Oreck options....

The way that it was explained to me was Oreck gave their franchises a couple of options, they could add the Miele vacuums and keep everything including the name of the store Oreck, or they could become a multi-line store, continuing to sell the Oreck line, but would have to take down the Oreck sign and give their store another name when they brought in other brands. Our local franchise chose to add the Miele line to four of the seven stores, and I believe we're expecting delivery this week. While I'm excited to have the Mieles to sell, it's going to be odd in offering another brand, but it will fill the niche of people who want an upright with tools on board, as long as they don't mind the extra weight. I'm not sure of the canister(s) we will have, but I was told we'll carry the Salsa and Bolero uprights.

 

[williamr1248]

change in our Oreck stores

I don't know anything about who is allowed to carry certain brands BUT the 1/2 page ad shows new Hoovers,one for $94.88 and a new Miele upright with $100.00 price with a trade in on ANY new Miele. Also shows Simplicity upright and says they now sell Simplicity. Ad has Oreck XL Silver,Oreck commercial vac,Oreck portables on sale and reconditioned Orecks at $99.00.and lists all 3 stores. They also do vacuum repair.

 

[tolivac]

I think Oreck could have kept their stores by simply banned online and mail order sales of Oreck products.Kirby,Rainbow,and other DTD vacuum companies cannot nor will they authorize online sales of these vacuums.The Oreck stores gave a good service to the customer-when He is buying the machine it was properly demoed to him.And he can rely on the store for service and parts.

 

[trebor]

On that same subject...

Tolivac, QVC sales of Oreck should never have been started. The store, the dealer is everything. Now kiosks inside department stores under the auspices of the local dealer, fine, but nothing else. The growth would have been slower, but better for the dealer, the customer, and the company in the long run.

 

[tolivac]

You can't properly show or demonstrate a vacuum on TV or the computer-the customer has to see,feel,hold and try the machine himself-preferably in his home.A vacuum is a tool like a sewing machine,hammer,knife,and many others-he has to try it himself to be the judge.and the machine is more likely to sell.I agree with Kirby,Rainbow,TriStar,Filter Queen,and others-the machine has to be demoed to the prospect in person.the clip on TV or the computer can entice the customer into a real demo.the TV or computer are used as advertising tools.

 

[trebor]

The problems with DTD sales...

1) The average consumer is not getting maximum performance out of their present vacuum due to infrequent and improper use and maintenance 2) The salesperson always makes the new cleaner look better 3) The customer does not have the opportunity to compare all the DTD vacuums on the market.

The 30 day home trial is an excellent idea. A proper demonstration in the home, a 30 day home trial, and a decision by the customer.

 

[filterqueenman]

Problem with DTD Sales Cont

Sorry to say but the day of the door to door salesman is very limited.  People are way to concerned about safety to allow a "stranger" into their home.  While a home demo is the ideal way to determine if the unit is a good fit for the customer it is just not a reality. 


 


With busy work schedules and life in general the consumer is not going to sit through a 1 hour plus demo on a vacuum if they would even consider having a stranger come over and demo for them. 


 


What I think is more realistic is to allow specialty vacuum store offer the better brands...like Kirby, Filter Queen, etc.  If they follow the training criteria that the manufacturer sets, sales will increase - no way it could not.  


 


Lastly, the bad publicity in days of late regarding door to door salesman and the numerous rip off reports regarding "shady" dealers has made the consumer very jaded when it comes to buying a product in their home....


 


Simply my opinion....


 

 

[vac-o-matic]

It's a shame....

that Kirby hasn't done more about governing who sells, and how their machines are sold. I would think they could have some kind of control over sales. I sold Electrolux back in 1980, and every customer paid the same price, had the same financing options, and at least our district office never enforced any "high pressure tactics" by the salespeople. I have to admit they basically sold themselves once you were able to demo them. I never did cold calls, fortunately worked with a lot of people and sold to them and then by word of mouth. People these days don't seem to have much of a conscience, it's all about the almighty buck, however they can get it.

 

[trebor]

Back in the day....

When Electrolux was at their zenith with 600 branches nationwide, the branch manager made sure everyone passed muster before going out for the day. Teeth, breath, face, fingernails, shoes, shirt, pants, jacket, and tie ALL had to be looking and smelling good, or you were sent home to properly groom yourself. If you did not return properly groomed and attired you were suspended i.e. no sales would be processed until the Branch manager said so. It went without saying that a background check was run on every new hire. The Electrolux man was a business man who looked the part. Any misconduct was investigated and dealt with severly.

 

[tolivac]

"Back in the Day" Think ALL DTD salesmen had to do these things-however TODAY think the suits,ties are obselete.they are too intimidating for todays customers-a person sees someone in a "suit" knocking doors-guess what the suit knocker gets no answers.And how many people wear suits,ties,even dress shirts in todays homes?NO ONE!!Filter Queen uses uniforms-this is a good idea.At the same time improperly demoed machines from internet,big box sales they have a higher return rate.the machines get returned becuase the customer hasn't been properly shown how to use the machine.Its the DTD salesmans duty to do that.-Make sure the customer knows how to use his or her new machine before leaving.