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Donating Inventory May Be Better for Business

How does a business quickly take care of its excess inventory problem, take an up-to twice-cost federal income tax deduction, and do it without going through liquidation? One solution is donating products to the U.S. non-profit National Association for the Exchange of Industrial Resources.

A business first contacts NAEIR (http://www.naeir.org) and gets approval on its donation. “Upon approval you just send us all your underperforming SKUs, discontinued models, seconds, buybacks, returns, and any excess inventory you need to eliminate,” explains President/CEO Gary Smith. “Then from our massive warehouse in Galesburg, Illinois, we will carefully control the distribution of your goods to worthy, pre-screened schools and nonprofits nationwide.”

Appliance OEMs like Salton are making use of NAEIR. Association literature says that using NAEIR fits with Salton’s philosophy of “helping deserving causes while taking care of business.” Salton VP of Sales Keith Hamden says the tax deduction they get from a NAEIR donation is a better value than going through liquidators to eliminate excess inventory.

In the second quarter of 2009 NAEIR received several donations from the appliance industry, including Wahl clippers from Spectrum Brands and health care products from personal care appliances producer Kaz, Inc.

http://www.naeir.org

Posted in Appliance, Industry association.

By Tim Somheil
November 18, 2009

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Appliances Are No. 1 on Wedding Registry Lists

The wedding registry industry is worth a whopping $12 billion annually, and appliances continue to be the most-asked-for category, according to the Bridal Registry Study from The Knot Inc.

Kitchen, bed, and bath are still the most popular on couples’ wedding registries. Most-asked-for categories include:

  • kitchen appliances/electrics, 91%
  • bakeware, 91%
  • kitchen accessories 88%
  • cookware 86%
  • bath items 85%
  • bedding, 84%

Categories that continue to grow include electronics at 30% in 2009 vs. 26% in 2008.

The survey of over 12,500 couples with 2009 wedding dates captured detailed feedback on wedding registry decisions, including influences, products, and retailer choices made during the registering process.

In-Store Registries Giving Way to the Internet
Most wedding registries (57%) are still set-up in-store but the study shows couples are increasing their use of the web for their initial registry set-up - 33% in 2009 vs. 29% in 2008.

Most couples - 69% - use the web exclusively to manage their registry over the course of their engagement.

The top two influences on the registry are the Internet and friends/family. These two sources influence 80% of couples. No. 3 is in-store visits, down at 45%.

Two-thirds of couples have personal wedding web pages and they are playing an increasingly important role in the registry process. Most of the pages are a primary source for couples getting registry information to guests - 53% of engaged couples use a wedding web page to communicate their registry information to guests, for an increase of 13% over 2008.

Top Retailers
Almost 70% of couples create their primary registries with:

  • Bed Bath & Beyond - leading the category with more than 35% of couples choosing the store as their primary registry
  • Target
  • Macy’s

Posted in Appliance, Consumer electronics, Kitchen appliances, Market research.

By Tim Somheil
November 16, 2009

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Appliance Parts Inspire Haute Couture Design

Miele product runway fashion showMost people wouldn’t associate industrial parts such as wires and screws with high fashion, but a black dress that garnered first place at the Product Runway show held earlier this year might just change their view. The backless dress and its matching jacket were made of appliance maker Miele’s anti-slip warming drawer mats, a rotary iron cover, and dishwasher sound insulation. Wiring from a roast probe served as shoulder straps, while the bodice was bedecked with glittering glass tiles.

Held in Seattle, the second annual Product Runway fashion show was hosted by the Interior Design Coalition of Washington. It invited local interior designers, architects, and students to use a diverse array of interior materials and finishes to create couture garments.

Luwa Distributing, Miele’s appliance distributor agent in the Pacific Northwest territory, teamed up with SkB Architects and Pental Granite & Marble to compete against 17 other teams. Product Runway randomly paired product manufacturers with local design firms and design students to create a couture ensemble from the supplier’s materials, and a member from each team was required to model its garment in the fashion show.

“This experience has shown that with dedication and creativity, Miele appliance materials and Pental tile can be used to create an elegant garment,” says Sheri Walsh, director of trade relations at Luwa, who modeled the black dress for the Miele team. “Miele is the perfect fit for Product Runway since their appliances are elegant, sleek and timeless - which is exactly what we wanted our garment to reflect.”

To complete the ensemble, the team created a chic handbag composed of a vent hood filter, Miele appliance screws, vacuum bags, and ceramic and glass tiles. Matching earrings were constructed of bent stainless steel and nickel-colored steel tiles.

Source: Miele Inc.

Posted in Appliance.

By Yaling
November 2, 2009

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Affluents will gift small appliances and other practical items this holiday seasons

Consumers in the $100,000+ income bracket are feeling glum, and because they make up 40% of U.S. consumer retail spending their mood has a big impact on holiday sales. These affluents are looking for practical gifts at bargain prices in 2009, according to market research firm Unity Marketing. Strong gifts in 2009 could include:

  • Small kitchen appliances
  • GPS units
  • Health-promoting products
  • Outdoor accent lighting

Affluents are worried (along with the rest of us)

Consumers remain worried - about the economy, about the H1N1 flu pandemic - dampening the festive mood of the holiday season.

Retailers in the U.S. expect a sales decrease of 1-2% this holiday season, making it the second consecutive season of lower sales. Affluent customers will be cutting back along with everybody else. Unity Marketing’s latest survey of affluents (with annual incomes of $100,000+) found that:

  • 50% plan to spend the same as in 2008
  • 38% plan to spend less
  • only 11% say they’ll spend more than in 2008

“The best gifts this year are going to be items that are practical and make a contribution to the gift recipient’s life in order to make it safer, more secure, more comfortable, more meaningful,” says Unity President Pam Danziger. “And it goes without saying that people want to spend as little money as possible this year, so they will be looking to get the best possible gift for the least amount of money.”

Unity’s surveys of self-purchases among affluent consumers in the past year suggest these adult gift ideas for the 2009 holiday season:

  • Small appliances, cook’s tools, kitchen gadgets: Unity Marketing says small kitchen appliances have attracted more affluent shoppers this year and suggests these may be strong gift categories: single-cup coffee makers, rice cookers, juicers, high-intensity blenders, food processors, espresso makers, Panini presses.
  • Personal electronics: Electronics was still a growth category among affluents in 2009, with increases in this customer base in sales of mobile phones, iPods, Blackberries, and laptops. But Unity predicts the big 2009 holiday gift in electronics will be GPS devices - offering safety, convenience, and affordability, but still cool and contemporary.
  • Sleep-enhancing gifts: Bedding, linens, orthopedic pillows - and electric devices such as white noise machines.
  • Outdoor living accents: Posting strong 2009 growth among affluents has been outdoor accent lighting, and Unit believes this could make a practical and in-demand gift idea.
  • Seasonal items to enhance the holidays.

“The affluent segment (incomes of $100,000 or more) makes up only 20% of total U.S. households but they account for about 40% of all consumer spending,” said Danziger.

Key words: Practical and Value

“The two key words that can guide holiday gift shoppers this year are ‘practical’ and ‘value’,” said Danziger. “People will most appreciate gifts that they can use and that enhance the quality of their life in some measurable, meaningful way. Gift givers will be looking for great value, not just cheap price. So practical gift ideas that have that something extra that adds value for the recipient will be in demand.”

Unity Marketing surveyed 1067 affluent consumers, with an average annual income of $228,800, during October 2-7, 2009.

Posted in Appliance, Consumer electronics, Economy, Kitchen appliances, Market research.

By Tim Somheil
November 2, 2009

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Grocery Refrigeration System Sets New Environmental Benchmark

The first grocery store in the nation to earn the platinum store award from the Environmental Protection Agency’s GreenChill Partnership is the Star Market in Newton, MA.

The advanced refrigeration technology in the new store cuts the use of refrigerants 85% compared with a typical supermarket, meaning the store has significantly reduced impact on climate change and the stratospheric ozone layer. “Supermarkets and their customers know that it’s cool to earn the EPA’s GreenChill Store certification, but the only way to describe the first platinum-level GreenChill supermarket in the nation is, ‘wicked cool,’” said Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation. “This store shows that smart design and advanced technologies help us right now to better protect our climate, the ozone layer, and our health.”

The GreenChill Advanced Refrigeration Partnership is an EPA cooperative alliance with the supermarket industry to promote advanced technologies, strategies, and practices that reduce refrigerant charges and emissions of ozone-depleting substances and greenhouse gases. GreenChill partners emit about 50% less emissions than the industry average, and pledge to continually lower them as part of the program. GreenChill has 46 partners, with more than 6500 retail food stores in 47 states.

Posted in Appliance, Energy efficiency, HVAC, Technology.

By Tim Somheil
October 30, 2009

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Open Door: Industrial Design Meets Engineering (June 2009 APPLIANCE Engineer)

Michael Prince, president, Beyond Design

Industrial designers and engineers have two very different functions, but both understand the vital role that each plays in the product development process.

Michael Prince
As the president of Beyond Design, a Chicago, IL, U.S.–based product development firm, Michael Prince is responsible for overseeing all aspects of the product development process—including industrial design, engineering, user interface, and marketing. Before starting Beyond Design more than 15 years ago, he worked in product development and marketing for companies including Sony and Thomson Consumer Electronics. He is a member of IDSA and a graduate of Syracuse University in New York, where he received a BA in industrial design.

Years before industrial designers started using computer-aided design (CAD), the tools of the trade were pencils and markers. While these tools were useful, they limited the scope of industrial designers, whose main focus and niche became primarily product styling. Engineers always viewed industrial designers as “sketch artists” and failed to realize the innovation and vision they bring to the development process. However, over the past two decades, the introduction of CAD has significantly helped bridge the gap between industrial design and engineering. CAD programs like SolidWorks and ProEngineer enable designers to create compelling forms and precisely deliver the data necessary for engineering and manufacturing.

While industrial designers and engineers share the same passion for product development, their approach to solving a problem is often very different. Engineers and industrial designers have been at odds for a long time, and it is only recently that each started to acknowledge the benefits they can achieve by working together. In addition, marketing teams have taken notice of this collaboration and are using new methods for product development.

Engineers tend to be more analytical and approach problems in a methodical manner that is based on mathematical principles. The engineer’s role is to analyze the product efficiency, structural integrity, and performance. It is their responsibility to develop the internal mechanisms and ensure product details are suitable for manufacturing.

On the other hand, industrial designers tend to be more visual and abstract, concentrating on user features, ergonomics, and aesthetics.

Continued…

Posted in AE Open Door, Design, Engineers.

By Yaling
October 26, 2009

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