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Posted by: Maricopa Lawyers on Nov 18, 2014

Business Week is reporting that big business may have gone cold on selling big appliances. As a starting point of conversation, virtually nobody wants to sell refrigerators in modern times.

Take German engineering company Siemens into consideration – the manufacturing giants will soon be offloading its 50 percent stake in an appliance business; they’re not alone. Only days before, General Electric snagged business journal headlines for hawking its own appliance business. It’s worth noting that both appliance businesses are considered by analysts as profitable and successfully make repeat trade in an industry saturated with entry barriers.

Is there any explanation for the market shift? Offloading sources of revenue, revenue worth billions in some cases, seems to go against the nature of business – unless you happen to cast a very large shadow. Companies like Siemens and GE are simply breaking up with consumers because it’s a full-time job keeping them happy.

Consumers have a lot of demands, demands that these major titans of industry believe distracts from their core business. Engineering companies like Siemens and General Electric would rather focus on producing power plants, airplane engines, MRI machines and locomotives.

Siemens and GE realize how difficult it is to crack into those businesses, clients arriving in the form of massive companies and governments eager to layout multiyear deals. It’s safe to say that consumers in the market for a new refrigerator are working with significantly smaller budgets.

The sale of appliances is largely dependent upon the economy at large. Having a successful product can vary greatly in accordance with how many consumers have steady employment. Low market income levels can also attribute to thriftier options, marginalizing potential profits in many cases.

Appliance companies shouldn’t fret just yet – the secret to success has proved selling appliances to home-builders directly rather than consumers; it’s still wearisome work keeping these contractors happy.