Decision

Appliances?

hotpoint-appliances

One of our long-term strategies was to develop a complete home center….furniture….carpet/flooring….appliances.

As there were several specialty appliance businesses in the market….the only brand available was Hotpoint. Hotpoint was made by GE. Having two brands (GE and Hotpoint) gave GE a larger market base.

Actually there were two elements of the appliance strategy….take on the Hotpoint line or partner with another appliance business. Appliances carried a lower profit margin than furniture and carpet and required a service and parts department. Of course, the turnover could be larger in appliances thus the smaller margin.

After serious consideration, we decided against entering the appliance business. Recently a current Muskegon home furnishings store downsized their appliance department and expanded their bedding area….so perhaps we made the right decision in 1975.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s