I always get weird looks when I am shopping for appliances and I ask if it is smart. The rep gets all excited and starts talking about it. I say I don't want a smart one. They look like I am from off world.
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Why aren't there smaller companies looking to make a basic appliance without all of the BS? Call it "Basic Appliance" and sell it at Costco. Make it so it's slightly less expensive than the Samsungs, etc. Maybe even put the Kirkland brand on it. Seems like the perfect money making operation.
It's been a while since I worked on the US appliance market, but there are no smaller companies in the appliance space outside of some high European brands at the top end of the market.
I am not that well versed on the manufacturing side of the things, but I believe it is impossible for a smaller player to compete in the mass market due to extremely low margins (under ~5%), particularly in the "basic appliance" segment and the fact that manufacturing is extremely sensitive to scale (your per unit manufacturing cost will likely be significantly higher than Samsung, LG, Hair, Electrolux etc.).
Essentially, a smaller company will always have SKUs that will be more expensive than the comparable SKU from a major company while also being "offbrand" and having weaker distribution and ecosystem networks.
A Chinese company could definitely pull it off, if they wanted to.
The thing is they, song with most of the world, probably wouldn't want to start a business venture in the USA anyone soon
Haier (they mostly use local brands from what I remember) and have factories in the US. Honestly, I don't think they are interested in low margin business and if anything are probably looking to implement something similar to Samsung.
Costco only takes a 10 or 15% markup though. Assuming they're doing the usual of doubling their costs, hopefully that would be under the cost of their competitors. Even if it was equal or slightly more expensive, I would support them.
It's not the retailer side that's the problem, it's the manufacturing side. CostCo is almost certainly not going to get into the appliance market. It's a difficult market that's not very similar to other electronics or other home improvement segments. Not to mention that CostCo's economies of scale with appliance manufacturing would be terrible. They would be limiting their hypothetical appliance manufacturing business to one retailer in one country (albeit a very large one). Not to mention current tariff risks. A "basic" class appliance SKU would be more sensitive to the relatively higher costs for manufacturing in the US. Appliances are manufactured in the US, but the economics would be more negative on a relative basis for a "basic" class appliance brand owned by a retailer.
I am not very knowledgeable about CostCo's in-depth per-segment strategy, but I suspect appliances in particular are more sensitive to margin issues even on the retailer side. Appliances are big, bulky and difficult to deal with (on a relative basis).
Don't get me wrong, I would welcome more competition, but what you're proposing is likely not possible. You would probably need regulation considering the nature of the appliance market.
They're already in the appliance market, they sell them. If you mean as a private label, they just put their name on other company's products. I think they call it no-label or something like that.
It wouldn't be the first time something like that was done either, especially in the appliance world. I occasionally get a call for an IKEA or Kirkland Signature Appliance... They're always just rebadged units from a major manufacturer, often Whirlpool in the cases I've encountered.
I see, I didn't know that they had a private label appliance product line (don't remember seeing their brand in their sales data, but I probably missed it).
And they are significantly cheaper than comparable SKUs from branded products (especially the entry level brands, Frigidaire I believe is one)?
We have that here in sweden at least, and unsurprisingly it seems to sell quite well. And of course since it's so hilariously cheap for them to produce it's not like they have to sell many to make profit.
Frankly a lot of the time they somehow manage to keep the quality high enough that with the price they're sold for it kinda feels too good, like i think these things might well last the rest of my life, why are they selling things i won't have to buy again??
That's awesome. I wonder if they would distribute to the US? Do you mind sharing the company name?
It's like, all stores that sell household devices. Biltema, jula, ICA, Clas Ohlsson, presumably IKEA but the nearest IKEA to me is more than an hour away so it basically doesn't exist.
I doubt they'd distribute to the US just because it'd be a very strange thing for them to do, i'd imagine you can get basically the same things direct from china anyways.
I won't buy "smart" appliances
There are too many solutions desperately looking for problems
My toaster doesn't need WiFi to connect to AI
But how are you going to be able to play the latest Skyrim: Toaster Edition?
Honestly, id be more impressed if it came with Doom.. but then I'm old school.
Why? You can play Doom in a PDF.
Or on a security badge. It has such low requirements
Street cred. Skyrim running on it has a different flavor that doom.. that and I'm ancient enough to remember getting a doom lan running on a token ring network under dos... I guess it's just what makes me smile. I'd also have preferred having Duke Nukem running on it over Skyrim... Yep I've been playing and modding Skyrim since its debut but it doesn't kick ass and chew bubblegum. Personal nostalgia I guess.
I saved $200 on my smoker because a new model came out that had WiFi and they wanted to get rid of the old ones.
My toaster is also independent of WiFi. It connects to AI using telepathy.
For some reason this the cognitive dissonance from modern technology reminds of an efficient form of the soviet economic model. Not so much in specifics, but in the authoritarian model of oligarchy and technology (albeit the model is far more efficient than under the USSR).
"Test run". Always a fucking "Test run", just dont buy anything from that brand.
So you are saying my scrapheap fridge is better?
Does anyone really believe they own the things they purchased? That principle died with the DMCA.
this is why you by cheapo (but still not obviously dogshit quality) stuff from a big box store or whatever the fuck it's called in english. Stuff like Biltema here in sweden.
Adding online connectivity and whatnot would make it too expensive, and since keeping things simple also keeps cost down these things end up being quite possible to take apart and repair.
Jokes on them. My fridge was so cheap, it cannot throw ads at me, as it has no screen.
Looking for an ad free subscription to the refrigerator, willing to pay small extra monthly fee
What about if the fridge platform supports Ublock Origin?
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