Category Archives: Appliances

Wish We Could Still Sell American

When my father went into business for himself more than forty years ago, the adage was “buy American”. As time passed and into the early 1990s, it changed to “better and cheaper overseas”.

In the beginning, he only sold American made products. Fedders air conditioners, Maytag appliances, GE everything, Carrier, Modern Maid, O’Keiff & Merritt, all were produced within the States. Within only the past 10 years or so, most of the American manufacturers started outsourcing, and importing from countries like China, Korea, India, etc. The dollar began to weaken, and over time, as Thomas L Friedman likes to say, the World Got Flat.

To make a long story short, consumer confidence fell to it’s lowest point EVER today (38 in October–the lowest prior point was 43.2 in December, 1974), good workers are being laid-off from major companies like Whirlpool (5,000 worldwide, 1,000 within the US), all of the manufacturers are claiming major losses, including Whirlpool (-17%Q3), Electrolux (-2.4%Q3), and LG (-93%Q3!). Retailers, the same (Home Depot, Lowes, Best Buy). The housing and mortgage crisis has instigated a $840 billion dollar (why they still call it $700, is beyond me) government “bailout” or “rescue”. GM is asking the government for $10 billion of free-money while they discuss a merger with Chrysler.

With all this bad news, you’d think that business would really put their customers first. At least, that’s my hope. When I joined my dad in this venture about 8 years ago, I was always interested in satisfying every single customer who put enough faith and confidence in our company to deliver something that would allow their tenants to enjoy a nice family meal like a new stove, or a refrigerator. We would always try to bend over backwards to accommodate the needs of a client. We built relationships, put out a hand to shake it with confidence that we were offering the best deal, not always monetarily, but also in service and expertise. Ease of doing business and showing up when we say we were going to show up.

Bureaucracy is now prevalent in Korea, China, and the others. The value of customer first, has been lost. I was disappointed in the fact I had to search for the right person to speak/deal with when I had to call a certain Korean company, even though we purchased several million dollars worth of inventory from them last year. How is it we met the boss once more than five years ago, dealt with the order desk by fax since, and never heard from the sales manager ever again? Forget it if we have a question for them nowadays, we’d be lucky if we EVER heard back. We were even purchasing from two out of three of their product divisions, but have never heard from the sales manager from the other division until a lowly sales rep was hired just over a year ago and called on us. Although we’ve been buying from that division for more than 6 years, they suddenly tried to change our pricing structure to a higher-cost classification and demanded that we show almost 40 of their products on our floor.

After complaining about this to our lowly sales rep, we were APPROVED at the best price-level and had our responsibility for the items on the floor removed. However, it took another month to push a PO through this approval process, until I finally decided that we’d be better off not doing one ounce of business with this division again, canceling the PO, and telling the lowly sales rep I wasn’t going to buy another product from them. He blew it off and said that he understands our frustration.

I wish we were still able to buy American. As Thomas L Friedman discusses in his book I mentioned, America is struggling to find enough engineers to create the next great appliance, or the next great gadget. It’s sad. Especially if this is the way business is going to be conducted in the future!

Induction Cooking Is The Best Cooking Yet!

Being touted as the new must-have for the kitchen, induction cooktops have been around since the 70’s. First started in Europe and Asia, more than thirty years ago, this type of cooking is becoming popular once again.

Able to boil a full pot of water in less than 90 seconds, induction technology can save mounds of time in the kitchen and will make any kitchen look beautiful to boot!

Magnetic induction may just be the best technology to hit the kitchen since the microwave oven. In the past few years this style of cooktop, which turns magnetic energy into heat, has proved itself a worthy competitor to the traditional choices – gas and electric.

And while induction has only recently joined the list of options, some experts already predict it will soon become an essential value-adding addition for kitchen remodels.

After all, it’s faster, safer and more efficient than anything before.

I believe Electrolux has manufactured the best one yet. Sold at Feder’s Distributors, get free shipping anywhere in the United States now through the end of June. Mention this story in your comments when buying online.

G.E. Selling Appliance Division to Electrolux?

Word’s been out for a week or so now that GE is planing on selling it’s appliance division for somewhere in the vicinity of 4-6 Billion dollars.

Yesterday the CEO of GE named a few potential buyers including LG, Haier, Electrolux and others. My feeling is that Electrolux is probably the strongest contender. Especially since they are laying off more than 750 employees in their Italy plant and moving to a new location in order to cut about 34 Million dollars in expenses.

With their new line of Electrolux appliances in the States making a small dent in sales, Electrolux has had a lot of changes during the past year or so. Will they benefit from a purchase of this size? Maybe. They are already the low-price leader in stainless goods and I’m sure the GE name can give them an even bigger boost to their bottom line. Even if the purchase only includes the GE name for about 5 years.

I’m sure we’ll see what happens during the next few weeks.

G.E. Looks to Sell Its Appliances Unit

According to several sources…

General Electric is planning to sell its appliances division, one of the longest-running businesses in the conglomerate’s 120-year history, a person briefed on the matter said Wednesday.

A sale of the unit could fetch at least $5 billion, this person said. G.E. has hired Goldman Sachs to run the auction. Among the potential bidders are Haier of China, Bosch of Germany and LG of South Korea.

The announcement comes as G.E.’s chief executive, Jeffrey Immelt, tries to fix the troubled conglomerate, which has been hit unexpectedly hard by the credit market’s decline and the slumping economy.

Last month, G.E. reported first-quarter earnings that wildly missed analysts’ estimates and its own projections. The stunning announcement, made more notable by G.E.’s status as a bellwether of the economy, shook Wall Street’s confidence. The company’s shares fell 13 percent that day, its biggest one-day loss in two decades.

The picture Mr. Immelt is painting of the economy augured pessimism for consumer businesses like appliances as well. ‘’We are in the toughest economy since 2001 and the worst housing crisis since the Depression,’’ he told shareholders last month.

Since then, Mr. Immelt has vowed to cut $3 billion in costs at the company.

Though the appliance business comprises a small portion of G.E.’s $173 billion in annual revenue, divorcing it from the company would carry great historical import. Since it began selling appliances in 1907, the division has grown to more than $7 billion in annual revenue as it sells a wide range of products, including refrigerators, microwaves and dishwashers. Among the appliances it has introduced are the room air-conditioner (1930), the combined washer-dryer unit (1954) and the toaster oven (1956).

Yet despite its huge agglomeration of businesses, G.E. has sought to slim down recently, cutting loose even those units that hold sentimental value for the company. Last year, it sold its plastics business – where both Mr. Immelt and his predecessor, John F. Welch Jr., worked early in their careers – to Sabic, the big Saudi Arabian industrials company, for $11.6 billion.

Maytag Introduces Steam Option Dishwasher

Maytag introduced a new dishwasher with a SteamClean option that adds 24 minutes to the end of the wash cycle.

During this time, dishes and glassware are inundated with high-temperature steam, which loosens soils.

The SteamClean option ends with a 154-degree Fahrenheit rinse, which whisks away any remaining soils.

Other features include a Jetclean II Power Module, which features active spray jets, and DuraGuard Nylon Racks, which protect dishes and glassware from scratches and damage while resisting rust.

The dishwasher is also EnergyStar qualified, using less water and energy for lower utility bills. It’s available for $599.

World Household Cooking Appliances Market to Reach 182.1 Million Units by 2012

According to a new report issued by Global Industry Analyst, the world household cooking appliances market is projected to reach 182.1 million units by the year 2012.

Due to a rise in residential construction, kitchen remodeling & refurbishment activities are expected to drive growth in the global market. Developing countries are forecast to offer opportunities on a platter, given the strong economic growth, and proportionate rise in consumer purchasing power in these countries.

New Electrolux Line Coming to North Hollywood!

Electrolux Premium Appliances have been used in fine European homes for over 70 years. Now Electrolux is bringing that same level of uncompromising quality to the United States.

This is the first time a manufacturer launched an entire new line of kitchen appliances at one time!

The Electrolux line has features many don’t:

Ovens and ranges feature glide-out racks with a unique ball-bearing system that extend effortlessly, making it simple to remove scolding pots and pans.

Electrolux ovens, stoves and refrigerators offer two control-panel options: The IQ-Touch control, which lets you see your cooking options all times, or the Wave-Touch control option, which activates the panel with a single touch. Cool, don’t you think?

With all said, I think Electrolux will take the United States by storm! They’ve already had great success with their Frigidaire brand of appliances and the Electrolux Icon line (launched a few years back).

With all of their innovative features, from their spacious ovens to their electric induction cooktops, and convenient up-front controls on free-standing ranges, Electrolux will be a refreshing change to the appliance industry combining excellent products with great price-points. Oh, I almost forgot to mention their luxury line of refrigerators, standard or counter-depth (with the most shelf-space of any cabinet-depth on the market by the way!), with ramp-up lighting and elevator shelves to boot! Electrolux appliances are here and they’re here to stay!

You can see them on display at Feder’s Distributors, in North Hollywood, California!

Whirlpool Files Patent Infringement Action against LG with International Trade Commission

Whirlpool Corp. filed a patent infringement action against LG Electronics, Inc., of South Korea, and its U.S. and Mexican affiliates.

The action, filed with the ITC in Washington, DC, states that several LG-manufactured refrigerator products imported into the U.S. infringe on five Whirlpool patents. Whirlpool is asking the ITC to issue an order to stop LG from selling and importing products into the U.S. that infringe on its patents. Whirlpool believes that such an order would affect the majority of the refrigerators sold in the U.S. by LG.

The patents protect proprietary technologies associated with the fastest growing segments in refrigeration — French Door Bottom Mount, Bottom (freezer) Mount, and select Side-by-side refrigerators — Whirlpool products that deliver innovative features consumers want:

  • Reliable external ice and water dispensing through the door
  • Freezer drawer support structure that allows easy organization and compartment access

“Whirlpool invests heavily in developing innovative technologies for all of our businesses — including refrigeration — that help differentiate our products and bring meaningful benefits to consumers,” said Phil Pejovich, vice president, Refrigeration, Whirlpool North America Region (NAR). “To protect these investments, we will vigorously defend our valuable assets from competitors who disregard U.S. law.”