Dyson DC08 Help!

[sebo_fan]

Well it worked for Miele - most of their cylinder vacuums from the 1990s were expensive to buy which is where the more compact S4/S4000 came in, able to offer a smaller size, lighter weight and a cheaper cost price. Some may argue and say the S4/S4000 are made with lighter plastics, but I'd settle for an old S4/S4000 than the current S2/S2000 which isn't as well made for the price - but it seems to have been a big hit for Miele since they released it against the same bag capacity fitted S5 and now of course with the S2 taking over the previous S4's pricing niche, the similarly designed S6 has arrived to take the S4's smaller bag and put it into a similarly lightweight body.

Price dropping and producing a vacuum under a fixed price banner are not the same though; franchises such as Currys et al constantly drop prices on old stock Dyson models anyway - but never usually under £150 because of the costs to buy the machines in bulk at the original cost at the time of launch to the market.

Dyson could do a seasonal limited range offer just like they had done with the DeStijl colour editions and could do with a unique exclusive online brand model as opposed to passing it off to larger big box stores to sell on, thus allowing the fixed price to remain fixed.

 

[vintagerepairer]

Well yes, it would work in that example, because the vast majority of people buying vacuum cleaners were not buying a Miele cleaner. So they bring out a model at a lower price and it proves to be a popular choice.

Dyson do not have a problem in selling a cleaner at any price, it seems. So, like I suggested, if they did bring one out at a relatively low price, it would on one hand entice some buyers who were previously not prepared to pay the current retail prices, but it also runs a very real risk of attracting those who have always paid they premium price for a Dyson. It is a risky strategy for any company, but the revenue lost from existing customers buying into a cheaper model vs. the increase in revenue gained from selling a cheaper model to a previously unwilling consumer has to be balanced. In this instance, I think Dyson are keeping prices where they are and are doing better out of it than they would by selling a cheaper model.

 

[vintagerepairer]

Franchises

I must say I was always labouring under the belief that Currys was a chain and not a franchise. Is this not so?

 

[sebo_fan]

Depends on how you look at it. By Googling both definitions;

Franchise: A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee. Some of the most popular franchises in the United States include Subway, McDonalds, and 7-Eleven.

Chain store: One of a series of stores owned by one company and selling the same merchandise.

Kays and Littlewoods are thus chain "stores," or "chain catalogues," selling the same products and with the same page layouts as bit of a bonus.
[this post was last edited: 4/16/2013-11:44]

 

[vintagerepairer]

Yes that's exactly how I understood a chain and a franchise to work. I was just surprised to find that Currys was a franchise as I always thought they were all part of the same company, not each store being owned individually.

 

[sebo_fan]

Well don't take my word for it - I just to choose to see Currys as a franchise - they're not all the same dependent on the market but sell/carry ALL the brands they stock on their website too. That's not to be confused with their "exclusive online" offers though. Some stores I've been to have half the products on display because of other shops around or the area they're located in.

Chain stores like Poundland have continuous stock all of the time, but not always consistent with every store.