Back in the 1980’s, Dire Straits was on to something when Mark Knopfler and Sting harmonized about manufacturers wanting to move those refrigerators and color TVs.
Part satire and part social commentary, "Money for Nothing" was as much a chart-topping tune about consumers’ insatiable desire for large household status symbols as it was about the blue-collar grind deliverymen endured to get appliances off the truck and into middle-class homes.
That scenario largely hasn’t changed since the ’80s, but consumer ardor for big-ticket household items has moderated over the past two years as home dwellers faced a global pandemic, a glacial supply chain, and long waiting lines as purchases were restricted to short-staffed big box retailers, who had problems of their own getting large appliances out the door.
Fast forward to Labor Day 2022, and that scenario is changing.
Large appliance makers increasingly want to move refrigerators, large-screen televisions, and other appliances out the door, especially in the months leading up to Christmas Day, and they’re cutting prices to prove it.
For instance, Lowe's is knocking $700 off the price of its 22-cubic foot Samsung (SSNLF) French Door Refrigerator this week and is offering free delivery.
Best Buy (BBY) is getting into the act with up to $2,000 off on select LG, Maytag, and GE Profile large appliances. So, too, is Walmart (WMT), which is slashing prices on its LifePlus Compact Washing Machine from $899 to $292 through Labor Day weekend.
“If you're in the market for a new large household appliance, now may be a good time to buy,” said Shaun Martin, a Denver, Col.-based investment advisor. “Appliance manufacturers typically release new models in autumn, and with inflation abating somewhat, prices on 2022 models are likely to be lower than they were last year.”
Inflation Hasn’t Taken a Big Bite Out of Appliance Prices
Part of the reason manufacturers and retailers are going so low on large appliance prices is that inflation, relative to other products, hasn’t been as tough on those products.
According to TraQline, major appliances averaged a 7% price increase before and after the pandemic (through the first quarter of 2022).
Compare that figure to other big-ticket household items like windows and doors (where prices are up 36% over the same timeframe), kitchen cabinets and countertops (up 34%), and flooring (up 25%).
Couple low inflation with the need for manufacturers and retailers to move new 2023 appliances onto the market, and consumers find themselves in the sweet spot when shopping for large household mainstays like refrigerators, outdoor grills, and HVAC units.
“The end of the year is usually a very good time to buy appliances and 2022 is no different,” said Dennis Shirshikov, chief strategist at Awning.com, a real estate investment company. “With inflation mostly under control and supply chains starting to work at full capacity we are seeing appliance prices fall.”
Buyers are also in a great bargaining position this year, as many have stopped spending, and some stores are overstocked in anticipation of the busy fall season, Shirshikov noted.
“Plus, supply chain issues have gotten much better, and global shipping prices are falling quickly as we get back to capacity as a global economy,” he said. “Both are positive indicators for consumers looking to make large appliance purchases.”
Tips for Getting a Good Appliance Deal
Getting the best price may be easier this fall and winter, but there are no guarantees. Take these tips to the showroom floor to cut the best deal.
Negotiate and get price matching. Large appliance purchases are negotiable and $100 off of a $1,000 appliance may only be 10% savings, but it’s also $100 more in your pocket.
“You don’t need to be overly aggressive when you negotiate, simply make it clear that $900 is the most you are willing to pay and be willing to walk away,” Shirshikov said. “There are dozens of other companies selling the same appliance and if you come back and want to buy full price no one will turn you down.”
Go online and be flexible. There are certain strategies you may use to lower the price even though the discounts on appliances might not be as substantial as you'd like.
“Websites, applications, and browser extensions that offer cash back, like Rakuten, can help consumers save even more money on already discounted products,” said James Crawford, founder at DealDrop, a coupon and discount platform. “You might save 10% to 20% by purchasing alternative products.”
‘Using a credit card that offers cash back on purchases can also help you save money on major appliances,” he added.
Pay attention to delivery dates. Review appliance-selling website platforms closely due to potential supply chain concerns.
Crawford cautions that certain products may be delayed three to six months.
“Yet some merchants provide a "show me what's in stock" filter on their website so you can see what is immediately accessible if you need it now,” he noted. “Therefore, it's generally not a good idea to wait for a very excellent offer if you're looking for a big appliance and spot a nice deal. Seize the opportunity now.”
Grill, baby, grill. Right now is the perfect time to buy a grill due to the earnings calls of both Weber (WEBR) and Traeger (COOK) -- two industry leaders.
“The consumer has shifted towards experience buying, leaving grill companies with too much inventory,” said Wes Wright, founder at CookOut News, an outdoor grilling industry news platform. “The grill companies are cash strapped from the lower sales and higher inventory levels. That's forced Weber to cut their dividend and Traeger to amend their debt covenants.”
Those forces have negated inflationary pressures leading to big sales on grills as Americans head into the off-season.
“Traeger said on their last conference call they will increase promotions this year to move inventory and Camp Chef opened an online outlet for overstocks,” Wright added.
