Why Electrolux Excluded from HD/Lowe's Sales?

lipappyApril 13, 2011

Has anyone else noticed this? I've been monitoring prices on a new Electrolux washer and dryer (they get stellar reviews) but every time Home Depot or Lowe's has 10-15% off EnergyStar appliances sales, or other sales, it always says in the fine print that Electrolux is not included.

Is this a confirmation that it's worth its relatively high prices?

I will have a lot of trouble paying full retail price for a new washer/dryer (or for anything for that matter).

Thank you for reporting this comment. Undo
lazy_gardens

Their contract as an Electrolux distributor probably prohibits selling for less than $____.

Find a different brand.

    Bookmark   April 13, 2011 at 8:44PM
Thank you for reporting this comment. Undo
mike_73

^ what he said. all companies do this with all or some of their product at times. some will not allow discounts others will not allow the sale price to be shown in print or online untill you are in store or its in your online cart.

    Bookmark   April 13, 2011 at 10:05PM
Thank you for reporting this comment. Undo
cleanteamofny

Come on???
The price is fixed by Electrolux.
Look at the price of Bose speakers, do you ever seen the price variate from store to store? NO
So being a fixed price no matter where you go it's the same but the key is to get the best warrantee from the best store for the best bang for your buck.

    Bookmark   April 14, 2011 at 1:58AM
Thank you for reporting this comment. Undo
Kieffers_Guy

Electrolux is a price protected brand. Meaning that Electrolux tells the retailers the minimum amount they are allowed to charge the customer (called UMRP).

If a dealer sells an electrolux product below UMRP and gets caught, the dealer could potentially lose access to selling electrolux. Any discounts on electrolux products most likely come from Elex themselves...

There are many other UMRP brands as well: Viking, BlueStar, Dacor, Sub/Wolf, Miele, Capital, Liebherr, La Cornue, Kuppersbusch, Marvel, Gaggenau. The list goes on and on.

Here is a link that might be useful: Want to laugh and learn about appliances? Read my blog!

    Bookmark   April 16, 2011 at 11:20AM
Thank you for reporting this comment. Undo
stljrs

And for some reason, the Supreme Court upheld this anti-competitive practice. Manufacturers should not be able to dictate to retailers the price for which they charge their products, only the price they charge them for their product.

    Bookmark   April 17, 2011 at 7:17PM
Thank you for reporting this comment. Undo
natschultz

Actually, it does make sense - the manufacturer does have the RIGHT to protect their brand by requiring retail price minimums. Without this ability, such appliances would never be available in places like HD or Lowes. The reason is that such high-end appliances need high-end appliance shops to tout their wares (properly), and if they do not have contracts forbidding places like HD / Lowes to undersell appliance specialists, then HD / Lowes will have "dump sales" (selling below wholesale cost) of such appliances to lure in customers, the customers will not be shown how to properly use / care for said appliance and then the manufacturer's reputation will suffer. This policy does protect small appliance specialists from competition from HD / Lowes, but it also protects the manufacturers because specialty shops know what they are selling (unlike HD / Lowes), so they can be trusted not to give high-end appliances an unwarranted bad reputation.

The only reason Electrolux and some of the others even bother selling through HD / Lowes is on the off chance someone (not a high-end buyer) will fall in love and blow their budget - a customer who would never have stepped into a high-end appliance shop in the first place. The other reason is so people in rural areas without such a shop nearby can order through HD / Lowes.

Why do you think luxury car makers started "Certified Pre-Owned" programs? To protect their reputation from used car dealers!

    Bookmark   April 21, 2011 at 7:32AM
Thank you for reporting this comment. Undo
stljrs

Sorry, I'm not buying it. Allowing the manufacturers to dictate the price is anti-competitive to the consumer. Fixed price is the same as price fixing in my opinion.

Don't sell through American and Lowes if you don't want your "reputation" tarnished or if your product needs more hand holding than mainstream products. Choosing through whom you distribute/sell is fine. Fixing the price by its very nature is not how companies in the US should do business in a capitalistic society. I still think the Supremes got it wrong.

Car makers started Certified Pre-Owned for profit reasons. Through their dealers, they do an inspection, charge a premium, and gamble that the car won't require warranty repairs based on the inspection. A car dealer will (grudgingly) sell you the same car for less money if you don't want the "Certified Pre-Owned" program. It's just a fancy extended warranty/insurance policy backed by the manufacturer rather than a third party.

    Bookmark   April 24, 2011 at 12:32PM
Thank you for reporting this comment. Undo
natschultz

I think the Supremes decided that way because they realized that if they didn't that consumers would have less access to such goods because such manufacturers would NOT allow their products in Big Box stores without such price minimums. I'm guessing the lawyers' argument was "This is the price, you must decide how widely available such goods will be made to the public." And the court decided, OK, let the goods be available, but at that price (because pulling the items out of the Big Box stores would not have the effect of lowering the price), and the public benefits by not having to trek out to an appliance specialist. In otherwords, the manufacturers removed "Competition" (at least against lower-end brands) from the equation altogether, and made it an argument about availability or "public access." That's the only way I can see it going their way, anyhow. For example, a country club cannot limit access based on race or religion, but it CAN limit access by charging really high membership fees. So, ANYONE can join, IF you can afford the fee.

    Bookmark   April 24, 2011 at 12:57PM
Thank you for reporting this comment. Undo
sshrivastava

There is nothing consumer friendly about any recent Supreme Court decisions. I doubt the consumer played any role in the decision you speak about. In fact, it sounds to me like the decision was biased towards big business. I mean, what's consumer friendly about allowing companies to fix prices? Such a decision would only benefit the business, not the consumer.

Citing "public access" as a reason to justify price fixing by companies is a total fraud.

    Bookmark   April 24, 2011 at 2:51PM
Thank you for reporting this comment. Undo
livebetter

Agree - price fixing only benefits the manufacturer.

Why do you think "high end" items like Rolex (or even Miele) punish retailers if they find out any discounting is happening. They have an image to maintain and that involves a set price.

Competition is best for consumers.

    Bookmark   April 24, 2011 at 9:24PM
Thank you for reporting this comment. Undo
eli_case_com

stljrs... I think you are a little confused with the way anti-competition laws are enforced. What electrolux is doing is not technically anti-competitive since they can't compete against themselves. If they were to say call up Kitchenaid and Meile and fix prices with them then it WOULD be illegal. A dealer signs a contract when they decide to sell a certain vendors product and if they don't like it they do not have to sell that product.

With that being said... you can get discounts on Electrolux products. Some of the smaller local dealers will do it if you push them enough. I have seen it firsthand.

    Bookmark   May 12, 2011 at 12:02AM
Sign Up to comment
More Discussions
Combo washer-dryer in USA?
Do they allow to purchase and use an all-in-on e washer+dryer...
neonrider
Persil at Walmart!
I was looking through the walmart flyer and I saw that...
andi2928
Dryer: Changing from gas to electric?
Hi, Wondering what the experiences of folks who have...
dan_no_9
Good sheet set, stand up to laundering...
Hi all: I placed this post in the laundry forum because...
CharterOps
Ok to only use cold water hookup on washing machine?
Hello, My washing machine is in a location with only...
jmoscone
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™