Lux Svenska AB
Lux cleans up with risk-free vacuum cleaner sales door-to-door
Lux Svenska AB, the vacuum cleaner and air purifier retailer, continues to flourish, thanks largely to its minimal credit losses. The firm’s sales force makes full use of Decision Support Max, whose interactive voice response service allows them to quickly ascertain the credit worthiness of their customers.
It is hard to find more skilled salespeople than those selling vacuum cleaners door-to-door. The vast majority of Lux’s salespeople are graduates of the Lux Business School, which provides Sweden’s most highly acclaimed sales training, combining sales theory and practical exercises alike. Lux’s current CEO, Morgan Lindström, attended the school from 1995 to 1997, and following a number of years at other companies he returned to Lux in 2001.
“I felt so at home here, and truly appreciated the potential the company had,” he recalls. Lux was brought under the ownership of Morgan, and two other former Lux Business School attendees, in 2008, something which has helped the company develop further.
“We would really like to expand the company even more quickly, but because talented salespeople are in great demand out on the market, it’s sometimes difficult for us to retain them.”
Ninety-nine per cent of the firm’s customers are private individuals, and visits are carried out on a random basis. Despite their five-figure price tag, Lux vacuum cleaners are equally popular with those living in one-bedroom rented accommodation as with owners of luxury villas. As a pure sales enterprise selling products on credit to a diverse customer base, you may think Lux is a prime candidate for high credit losses. In actual fact, the company’s losses remain constant at under one per cent.
“This is mainly down to Soliditet, and the scoring model we have developed in partnership with them,” explains Morgan. This model combines Soliditet’s Score Consumer rating with a selection of Lux’s own parameters – for example, that customers are not approved for credit if their annual income is below SEK 70,000, or if they are in debt to the Swedish Enforcement Authority.
“Around 80 per cent of our customers are approved immediately, while others are referred to a manual verification process in which a decision is made by myself, in consultation with my two fellow owners, using Soliditet’s Solsidan portal.”
Morgan argues that Lux’s success in maintaining such low credit losses, in spite of applying such a generous credit model, is further explained by the fact that its salespeople spend at least one hour with the customer.
“During our visits with customers we aim to sow the seed of a relationship, at the very least. This just isn’t possible for those working in a regular retail outlet,” he points out. More recently, Lux has also begun selling growing numbers of air purifiers to its commercial customers, while plans are afoot to further expand the company’s activities.
“I must say that we are really happy with the close cooperation we enjoy with Soliditet – this is something we certainly don’t want to change,” adds Lindström.
Facts about Lux Svenska AB
Lux Svenska AB is Sweden’s leading company providing door-to-door sales of vacuum cleaners and air purifiers. Established back in 1901, the company began rapidly expanding after it started selling vacuum cleaners, in 1912, on the initiative of Axel Wenner-Gren. Following a merger in 1919, Lux changed its name to Electrolux, and continued trading under that name up until 1992.
Jointly owned by Morgan Lindström, Paul Trygger and Timo Keränen, Lux Svenska AB became an independent company in January 2008, and no longer sells Electrolux products exclusively. However, Lux is affiliated to Lux International AG, an organisation based in Switzerland.
Feel free to read more at www.lux.se