ApplianceAdvisor
Whirlpool Dealer Relationship: January 2008
Engraved
Invitation to Independent Dealers
Please comment upon Whirlpool's recent actions, and the "current and
widening breach between the independent dealers and Whirlpool".
NOTE: We would like you to be "named sources", but
"unnamed sources" are acceptable considering who we are
discussing and what they may mean to your business. Whichever you
choose, you need to identify yourselves to the editors of
ApplianceAdvisor.com, and include a phone number for purposes of
confirmation.
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MOST RECENT RESPONSES FIRST
Response 3
Ex-dealer: January 26, 2008
Thank you Whirlpool for your cancellation of my account. After many years of
great sales, my account was cancelled for no reason. Maybe being the #2 brand in
my store was not good enough for them. Of course I received a cancellation
notice for Maytag and Jennair when Whirlpool took over these brands.
My company now has many less headaches and our other brands have enjoyed the
extra $1.7 million in purchases that Whirlpool gave up. It appears that
Whirlpool is throwing all of their "cracked" eggs into one basket
containing Sears, Lowes, and Home Depot. Goodbye independents!!
Response 2
Dealer: January 8, 2008
Mr. Advisor,
I just wanted to make a quick comment on the “current and widening breach”
of the Whirlpool relationship. From all appearances at this point a better
description of that breach would be “current and narrowing”. Whirlpool has
made significant strides in fixing the problems that were created in their
massive takeover of the Maytag Corporation. They have made even more promises
for more changes this year.
As far as canceling dealers that don’t do a huge volume? I would see that as a positive thing. There are many dealers out there who won’t invest in displaying the product, but when someone sees it somewhere else on display and asks about it they will be more than happy to sell it at a 10% markup. The question is can I own a building, display a $1000 washer (and scores of other product), pay someone to sell that product, pay two guys to deliver and install that product in the truck that I own all for $100?. I might as well go work at my local friendly Walmart and hand out smiley stickers. No offense to those who do that and do it well – it’s just that they did not have to invest millions of dollars to have that job. Every manufacturer who steps up to the plate to control their distribution a little better is bound to see increases in sales.
So, a possible reason for not getting replies is that the “widening” part may be a myth like the huge myth of global warming. OK, I must admit global warming does exist and has existed ever since the melting of the Ice Age – the facts are it was probably caused by dinosaur flatulence (or the large SUVs those TRex’s drove around in and the large factories they had to build those, but I think the flatulence makes more sense).
Happy New Year. I love your website.
Matt from Pennsylvania
Response 1
Builder Distributor: January 8,
2008
My firm is getting hammered by two issues. Why does Whirlpool offer a richer,
staggered rebate program to Home Depot and Lowes that does not run at the
same time as the conventional dealer rebate program? For example the
rebate program I had for Maytag ran from 10/1/07 until 11/25/07. You could get
up to a $400 on 3 selected models. The Home Depot program runs from
12/2/07 until 1/27/08 and offers up to $600 on 5 selected models. In other
words, as an ACD the best I can offer a client buying 5 pieces is $300. But the
same package bought at Home depot has a $600 rebate. To add insult to injury,
this rebate program runs at a time when I do not have ANY Maytag rebate to
offer!!! This gives these chain stores an unfair advantage. Secondly, the
derivative models allow Lowes, for example, to offer a Maytag convection range
for less than my ACD wholesale cost! I predict that 2008 will see the
demise of many contract distributors, and I can't help but wonder if this is
their intent.......