Kirby Company

Type Subsidiary of Berkshire Hathaway
Founded 1914
Headquarters Cleveland, Ohio
Industry Consumer products
Products Vacuum cleaners
Parent Berkshire Hathaway
Website www.kirby.com

The Kirby Company is a manufacturer of vacuum cleaners and home cleaning accessories, based in Cleveland, Ohio. It is a subsidiary of the Scott Fetzer Company and part of Berkshire Hathaway. Dealers are located in several countries throughout the world. Since the 1920s, Kirby's products have been sold only door-to-door using in-home demonstrations.[1]Contents [hide]

1 History
2 Warranty
3 Sales practices
3.1 Sales representatives
3.2 Sales practices
4 Kirby products online
5 Complaints
6 References

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History

The first Kirby vacuums were designed by Jim Kirby for George Scott and Carl Fetzer after World War I, although the Kirby name was not used on a Vacuum Cleaner until the 1930s.[2]

In 1970, input from Kirby Distributors, Dealers, management and customers guided Kirby engineers in developing the Kirby Classic. The model was an instant success, with soaring sales, forcing the company to expand its manufacturing facilities outside of Cleveland for the first time. In 1972, Kirby West began operations in Andrews, Texas. The facility doubled the company’s manufacturing capabilities.[citation needed]
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Warranty

The Kirby warranty varies depending on the model sold, but always has the lifetime factory rebuild plan. The warranty on the current model, the Sentria, is a three-year factory warranty excluding wear and tear. After the initial warranty expires, the rebuild plan is activated that is good for the lifetime of the original purchaser, in which the owner can have the Sentria completely restored to its original condition for a price determined by the United States Consumer Price Index (currently $175), plus shipping cost. In addition, if during this time the Kirby is damaged in a fire, the Kirby company will replace the vacuum with the current model for the same fee. In both of these instances, a new 1-year warranty comes into effect.
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Sales practices
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Sales representatives

There are numerous reports of Kirby salespeople being taught high-pressure and abusive sales tactics, being misled about pay and bonuses and misleading consumers about the sales contracts.[3]
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Sales practices

Sales procedures vary with each dealer. They include canvassing, door-to-door, and by-appointment.

An initial price is offered to the customer. The Kirby is presented as a long term investment or a home care system, superior to other vacuums. Either a manager is brought in to the demonstration, or the salesperson may call their manager to offer higher discounts until the customer is able to pay by cash or use a payment plan. [4] The price a Kirby is initially offered at may be up £3000 in the UK [1] and the majority of Kirby's are sold on credit with interest rates of 18% to 25% [2]

A three day return and deal cancellation period is promised to US customers.

"Purchasing Plans" offered are actually loans that can improve or degrade your credit rating, depending if repayments are made.
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Kirby products online

Kirby vacuum cleaners, new and used, can be found on eBay for prices ranging from $200 to $1900 for recent models. However, such sales are unauthorized by Kirby and do not carry any warranty. Some units originate from distributors that have left the business and are selling their remaining units at wholesale prices, and people selling reconditioned units.
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Complaints

Complaints about Kirby Sale's techniques have included overly aggressive sales tactics and sales to those who cannot afford or operate the Kirby, such as senior citizens or low-income families.[5]