Jump to content
House Price Crash Forum

Electrolux To Raise Prices Of Goods In Europe As Costs Rocket


Recommended Posts

0
HOLA441

http://www.guardian.co.uk/business/2011/jun/13/electrolux-raises-prices-europe

Electrolux, the world's second-biggest home appliances maker, plans to raise prices on all its products in Europe to offset the rising costs of raw materials such as steel and transportation.

The firm said on Monday it had experienced increased price pressure, especially in the first part of 2011, and aimed to implement 5%-7% price rises from 1 October.

"Over the past 18 months, the average costs for some of Electrolux's most important raw materials have increased between 40% and 90%, while costs for transportation have also increased significantly," the company said.

"The trend is now stabilising, but there are no signs of a broad-based major downward correction towards the prior cost levels."

Both Electrolux and market leader Whirlpool have been raising prices to offset the rising costs of materials such as steel and plastics, and are seeking growth in emerging markets.

How nice of them to try and ramp sales of goods before Oct 1, do they have a large stockpile to get rid off?

Link to comment
Share on other sites

1
HOLA442
2
HOLA443
3
HOLA444
4
HOLA445
5
HOLA446
6
HOLA447

Both of them cutting British and American jobs left right and centre over the past few years.

Then setting up shop in China...

Funny that they should want to raise the prices.

The funny thing is you can buy the same quality and same internal build for cheaper just chinese brand. hoover and electrolux quality is very poor, never againi'll buy that brand.

Link to comment
Share on other sites

7
HOLA448
8
HOLA449
9
HOLA4410
10
HOLA4411
11
HOLA4412

+1

Electrolux and whirlpool are rubbish.

Miele is the way to go. Or Bosch if you're a bit tight.

Agreed

Bosch make a reliable washing machine...Had mine for a few years now and never had a a problem with it....got one of their fridges too

Never had a Miele...thats a posh Bosch is it?

Edited by arthur
Link to comment
Share on other sites

12
HOLA4413

Prices rising rapidly in steel and plastics. Two things Britain is or was good at making.

In the economy there is usually two ways of looking at things. One way is head down, accepting a lower standard of living because of the higher costs on some good. The other way is looking to make big money off of the rise.

Link to comment
Share on other sites

13
HOLA4414

Agreed

Bosch make a reliable washing machine...Had mine for a few years now and never had a a problem with it....got one of their fridges too

Never had a Miele...thats a posh Bosch is it?

If we are talking washing machines ISE10, comes with a 10 year guarantee and any washer repair man can fix it. With Miele you need a Miele engineer.

Link to comment
Share on other sites

14
HOLA4415

I wonder how long it's going to be before the rising cost of consumer electronics capital items brings us to the point at which it's cost effective to repair stuff again, rather than just throw it away and get a new one off the container ship from Shanghai.

Anecdote: my fridge was given to me. It's a pretty good Bosch one, which I'm guessing must have cost at least £350-400 new. Its previous owner, a colleague of mine, asked if I would take it to the tip for him (his car is a Mazda MX-5, into which it would not fit) when it stopped working about eighteen months after he bought it (i.e. just out of guarantee). There was not a scratch on it, the thing was clean and it was not in any way skanky inside. I stopped at home after collecting it, and out of curiosity decided to investigate what was wrong with it. It turned out that the 110v/230v selector switch on the back had been knocked to 110 for some reason (one of his cats, probably), which in turn had blown the internal fuse in the transformer unit. One replacement fuse later and the thing was fine. I even offered him the fridge back, but he declined, saying that he'd already got a new one and didn't really like that one anyway. So I kept it, put my existing fridge in the garage for use as a booze store and installed the newly fixed one in my kitchen.

This was in 2007, at the height of the boom. I wonder how long it's going to be before the combination of declining real-terms income and the increasing price of white goods will mean that someone in that situation is likely to think seriously about calling a repair man instead of just throwing it away and getting a new one? I also wonder how many fridges, TVs etc. in the council tip were put there on account of a trivial fault that is very easily fixable.

Link to comment
Share on other sites

15
HOLA4416

The tip is full of stuff that works. The last time we visited the tip was to get rid of my fathers 32" television (CRT), because he upgraded to flatscreen. We asked the tip man, as it was working fine, where should we put it?

He told us to put it with all the other ones, there must have been over 100 redundant television sets. Top makes too, Sony, Panasonic etc.

Link to comment
Share on other sites

16
HOLA4417

I wonder how long it's going to be before the rising cost of consumer electronics capital items brings us to the point at which it's cost effective to repair stuff again, rather than just throw it away and get a new one off the container ship from Shanghai.

Anecdote: my fridge was given to me. It's a pretty good Bosch one, which I'm guessing must have cost at least £350-400 new. Its previous owner, a colleague of mine, asked if I would take it to the tip for him (his car is a Mazda MX-5, into which it would not fit) when it stopped working about eighteen months after he bought it (i.e. just out of guarantee). There was not a scratch on it, the thing was clean and it was not in any way skanky inside. I stopped at home after collecting it, and out of curiosity decided to investigate what was wrong with it. It turned out that the 110v/230v selector switch on the back had been knocked to 110 for some reason (one of his cats, probably), which in turn had blown the internal fuse in the transformer unit. One replacement fuse later and the thing was fine. I even offered him the fridge back, but he declined, saying that he'd already got a new one and didn't really like that one anyway. So I kept it, put my existing fridge in the garage for use as a booze store and installed the newly fixed one in my kitchen.

This was in 2007, at the height of the boom. I wonder how long it's going to be before the combination of declining real-terms income and the increasing price of white goods will mean that someone in that situation is likely to think seriously about calling a repair man instead of just throwing it away and getting a new one? I also wonder how many fridges, TVs etc. in the council tip were put there on account of a trivial fault that is very easily fixable.

I wonder if a tinkerer such as yourself could make some money through this. Like post ads that you are willing to pick up broken appliances for free. Then fix them up in your garage where possible, and sell them way below what people would pay new.

Link to comment
Share on other sites

17
HOLA4418

It's lazyness, usable goods can be shifted on freegle, and most of the time people come to the door to collect so you don't even have to get it to the tip.

As for broken stuff, when a repairman charges £50+VAT an hour, then a £30 microwave or dvd player would have to get 10x more expensive to make it worth getting him round (plus you usually have to take the morning/afternoon off yourself and wait in, so add in half a day of your pay into the cost) rather than tossing it.

I also think stuff gets chucked out rather than repaired because a lot of electronic goods are now just plastic casing + integrated circuit board, so when that goes kaput the entire board usually needs replaced, which is the bulk of the cost of the thing anyways. Add on top of that for anything more than 12 months old they probably can't source the part without scouring the earth indiana-jones style.

Edited by noodle doodle
Link to comment
Share on other sites

18
HOLA4419

It's lazyness, usable goods can be shifted on freegle, and most of the time people come to the door to collect so you don't even have to get it to the tip.

As for broken stuff, when a repairman charges £50+VAT an hour, then a £30 microwave or dvd player would have to get 10x more expensive to make it worth getting him round (plus you usually have to take the morning/afternoon off yourself and wait in, so add in half a day of your pay into the cost) rather than tossing it.

I also think stuff gets chucked out rather than repaired because a lot of electronic goods are now just plastic casing + integrated circuit board, so when that goes kaput the entire board usually needs replaced, which is the bulk of the cost of the thing anyways. Add on top of that for anything more than 12 months old they probably can't source the part without scouring the earth indiana-jones style.

The problem of fixing can be even more difficult, HP printers are all push fit, ie no screws to open them up with you more than likely will have to break the casing which will need replacing as well, so fixing is a more costly option.

Everything moved to the disposable option. Fixing cheap washing machines isn't economically viable, if you haven't bothered with an extended warranty you might as well just buy new.

Link to comment
Share on other sites

19
HOLA4420

The tip is full of stuff that works. The last time we visited the tip was to get rid of my fathers 32" television (CRT), because he upgraded to flatscreen. We asked the tip man, as it was working fine, where should we put it?

He told us to put it with all the other ones, there must have been over 100 redundant television sets. Top makes too, Sony, Panasonic etc.

They stopped offering electrical items (for reuse) at my local tip , must have been worried about people getting electrocuted or starting house fires with them.Shame , that was always my favourite area to scavenge stuff from.

Link to comment
Share on other sites

20
HOLA4421

The problem of fixing can be even more difficult, HP printers are all push fit, ie no screws to open them up with you more than likely will have to break the casing which will need replacing as well, so fixing is a more costly option.

Everything moved to the disposable option. Fixing cheap washing machines isn't economically viable, if you haven't bothered with an extended warranty you might as well just buy new.

A prediction I have is that over the coming years we'll see cars become disposable in the same way. Already in even pretty minor accidents, the insurance companies are just writing the replacement cost cheques. As repairing is so insanely expensive, and it takes a lot of resources for them to organize repairs.. and there is a good chance it won't be completely fixed.

I was talkign to a guy who owned a small mechanic shop that is going out of business. He says people just aren't repairing anymore, instead just buying a new car. I added the new cars rarely break down compared to older cars as well. Because of advances in machining and materials science.

Link to comment
Share on other sites

21
HOLA4422

I was talkign to a guy who owned a small mechanic shop that is going out of business. He says people just aren't repairing anymore, instead just buying a new car. I added the new cars rarely break down compared to older cars as well. Because of advances in machining and materials science.

And also, cars are increasingly designed not to be easily repairable or maintainable. On mine (assuming you don't have an inspection pit), you can't even change the oil filter without jacking it up and taking a wheel off.

Link to comment
Share on other sites

22
HOLA4423

And also, cars are increasingly designed not to be easily repairable or maintainable. On mine (assuming you don't have an inspection pit), you can't even change the oil filter without jacking it up and taking a wheel off.

Good point. There is a thought that the car companies are going to make it so you virtually have to go to a dealership to repair your car.

Link to comment
Share on other sites

23
HOLA4424

I wonder if a tinkerer such as yourself could make some money through this. Like post ads that you are willing to pick up broken appliances for free. Then fix them up in your garage where possible, and sell them way below what people would pay new.

I can fix anything, the thing is people don't want them even if you give them for free. I've advertised a ton of older working equipmenr, CRT monitors (big 21+ ones) and nobody wants them. Radios old Hi Fis. Even basic old fridges.

Nobody wants them so there is zero demand.

Link to comment
Share on other sites

24
HOLA4425

A prediction I have is that over the coming years we'll see cars become disposable in the same way. Already in even pretty minor accidents, the insurance companies are just writing the replacement cost cheques. As repairing is so insanely expensive, and it takes a lot of resources for them to organize repairs.. and there is a good chance it won't be completely fixed.

I was talkign to a guy who owned a small mechanic shop that is going out of business. He says people just aren't repairing anymore, instead just buying a new car. I added the new cars rarely break down compared to older cars as well. Because of advances in machining and materials science.

Cars have been turned disposible for quite some time ago

This was on Ch4 about 5 years ago

http://www.youtube.com/watch?v=KBtM52_DW8s

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information