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I would like to canvas your opinions;
On Friday Vestel informed me that the price of the ISE 2, ISE 5 and Dishwasher are all going up again in the new year due to to Euro. This will be their 5th price increase in 15 months.
We have enough stock of 5s and Dish in our warehouse to last until February / March. Because the 2s currently on order for delivery Mid January were already in the system they are not effected (the October price increase covers these), this means no increase now but anything we order for manufacture in the new year will be at a higher price £8/£10 per box.
We have also had problems on installation with failing door interlocks (as have other people who Vestel make for) and since the summer I have been fighting them over their proposal to move to a carbon brush motor on the fives and they are discontinuing our Facier on the 2s so we would have a new design 2 in the new year as well.
Is it now time to walk away from Vestel?
My instinct is we go to Asko for a replacement 5 wash and a dishwasher. This will be a higher price but would command higher RSP and we are certain of the quality and consistancy of what we are getting also the Krona v sterling is a lot more stable.
The big question is what to with the 2? Do we go with a new facier and higher price or not? Other people’s prices are going up too and despite the recent interlock problems it’s a solid little machine and the parts are very cheap for out of guarantee work and re-conditioning.
Your views would be appreciated, I intend to get round and see everyone before we have to make a final decision towards the end of January but post or call me with your opinions.
John
Re: Vestel made machines
I would be all for a lower spec and price Asko machine, could it be anywhere near the current Ise 5 price though… We used to retail a 1200 sans outer door at around £550. Probably a bit pricey for the average Ise 5 customer.
Re: Vestel made machines
ISE 2’s do seem to have been reliable and TBH apart from the doorlock problems the 5’s as well.
Going to a brush gear motor for such high spin speeds is a worry but £550 for a mid range ASKO machine may cause the locals in the frozen North to choke a little and may be a bridge to far.
Jim.
£550 is the target RSP, I am hoping that what I lose on machine cost I can claw some back on insurrance savings.
When I’ve got figures I’ll do a UK tour with the proposed machine and talk face to face.
I can not give details on the forums what I say gets back to our competitors and suppliers.
What price is to high for the 2 I need to know whether to except or reject the new facier 2 in 2009
John
Re: Vestel made machines
IMHO if you break the £500 barrier with the 5`s I think they would be difficult to sell. £499 sounds heaps cheaper than £500 psycologically.
The 2`s I think are probably at their maximum when you compare them to the similair(or even slightly better) Gorenje WA50140. I know I would rather sell the ISE machines as we are guaranteed the return service work, and although I do Gorenje work we all know that could change in the blink of an eye.
But the bottom line is we have to convince the customers to buy the ISE and this will be difficult if there is a better machine with bigger load, faster spin, similar warranty and it`s cheaper.
Well that`s my 1p worth ( I know it`s usually tuppence worth but there is a credit crunch on 😆 )
Re: Vestel made machines
The problem here, quite simply, is the value of the pound.
It has shed value against the Euro like there’s no tomorrow hitting a new low last Thursday as reported here on the BBC. The price increases that we are seeing are a reaction to that which there is little that anyone can do anything about.
Even buying outside the Euro, you have the problem with the dollar against the pound and even Asko are introducing increases as a lot of the material and components are of course bought in dollars or Euros. The Swedish Krona is on a par with the pound pretty much as Sweden is also outside the Euro zone.
I am reliably informed that virtually ever brand is increasing prices in January and with substantial price lifts, primarily due to this and it’s not just Whitegoods, it’s everything. So, the VAT cut, no point as the 2.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} pales into insignificance when you are faced with 15-30{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} factory gate price increases. Most of the severity of this hasn’t been felt yet as stock is cleared and, that may last a while as people stop spending money.
Therein however lies the good news, everyone’s prices will be rising almost without exception and consumers just better get used to the idea because, that’s the way that it is.
The 2’s are unsustainable at the current price due to the value of the pound against the Euro.
But then, nobody expected such a drastic drop in value a few months ago.
The 5’s, that one’s up in the air ATM.
K.
Re: Vestel made machines
If all other machines increase in price then there`s no problem with a price increase on the 2`s. As you say the customer would just have to get used to it.
What sort of increase are we talking about?£10? £20?….more?
Re: Vestel made machines
If the spec remained unchanged and based on pricing that we have now although these figures are very tentative…
Trade Excl. = £200.50
SRP Excl. = £260.50
SRP VAT Inclusive = £299.99
What we’re seeing at the moment is people trying to clear and liquidate stock, primarily due to the withdrawal of credit facilities I expect and even Currys are being slammed with that one. So, they’ll clear what they have then buy in more and when that happens they’ll get hit with the price increases.
This side of the New Year little will happen… I don’t think.
K.
Re: Vestel made machines
Oh, that’s also if the pound manages to avoid diving off a cliff as well…
http://news.bbc.co.uk/1/hi/business/7775191.stm
Get ready for another round of price increases for anything from an EU country, including spares. 🙁
Good news is that John has been working a deal to try to stabilise the ISE 2 pricing but how viable that is in the current form, we don’t know yet. The situation with the money markets is too fluid to call it and I wouldn’t expect the boys in suits to cool it until they get the last quarter’s results.
More good news however is that I’ve been doing some snooping about today and the machine that the 2 was designed to compete with, the equivalent Bosch, has absolutely rocketed in price and is now £362 on Currys, the WAE24363U, 1200 AAB machine albeit they’ve added a display and increased it to a 6kg load.
But in the main prices do seem to have risen already, quite substantially in some cases.
K.
Gentlemen I think we have a plan.
I have been working behind the scenes to find a way through the colapse of stirling and the current unstability in the market. Finding a balance between quality and afforablity on our machines is very tough, having spoken to four different potential suppliers and think I have found a way to move forward.
I am going to write to you in your December statements explaining the situation (I am not posting it as what I say here is read by our suppliers and competitors) we have two options and as we did at the start I’d like you to help with the final decision.
For this I will do another UK tour, this will allow you to see the options we have (including new machines) before we need to make a decision. Also it will allow you talk face to face with me (as we did in the early days) before my time got swollowed by tough trading conditions.
Face to face I can be less guarded than I have to be in public and let you see the forward plan and field questions on service, parts van stocks etc.
Call me or e-mail me if you are away in January so I can plan my visit accordingly.
Regards
John
derbyhoppy wrote:
I am going to write to you in your December statements explaining the situation (I am not posting it as what I say here is read by our suppliers and competitors)
Which of our ‘suppliers and competitors’ have access to this supposedly Closed Forum?
Posts here don’t even appear on the scrolling XML. 😕
Jim.Re: Vestel made machines
John doesn’t distinguish between the forums Jim and, to be fair, some stuff has found it’s way out from the other one. How, I dunno.
You have to remember that John’s a self-confessed technophobe, I was amazed he had a Wii! 😆
K.
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