Kirby Opco, LLC, doing business as The Kirby Company (stylized as KIRBY), is a manufacturer of vacuum cleaners, home cleaning products and accessories, located in Cleveland, Ohio, United States. It is a division of Right Lane Industries. Dealers, sales reps, service centers, and distributors are located in over 50 countries. Kirby vacuum cleaners are sold via door-to-door or though arranged-scheduled in-home demonstrations via their website and the company is a member of the Direct Selling Association. The Kirby website can also take vacuum cleaner orders and ship directly to the customer as well, without having to arrange for a scheduled in-home demonstration. All Kirby vacuum cleaners are built in both Edgewater, Cleveland, Ohio and Andrews, Texas, United States.

History

thumb|Kirby Sentria (2006–2012)

Jim Kirby (1884–1971) designed the first Kirby vacuums for George Scott and Carl Fetzer after World War I, although the Kirby name was not used on a vacuum cleaner until the 1930s. James Kirby invented the "vacuette" circa 1919. The company's primary competitors included The Hoover Company and The Eureka Company, both of which began operations in 1909, as well as Bissell that started building carpet sweepers in 1876. Their primary European competitor was Electrolux, which started 1924. Dyson, Miele and Sebo followed in the 1980s, and Shark began in the 1990s.

Introduced in 1916, the Edgewater, Ohio, factory was opened by the Scott & Fetzer Company at Locust Ave. (now Franklin Blvd.) and W. 114th St., and the Vacuette Electric was introduced.

One of the key features is the amount of suction the motor generates. Beginning in the 1950s, owner's manuals listed an innovation the company called "Triple-Cushion Vibration" rug cleaning action. The current Avalir 2 has been given an airflow rating of 132 cubic feet per minute, which allows it to lift the carpet off the floor, flexing the surface to be cleaned, whereby the brush roll that spins at 3,200 RPM agitates and lifts the dirt, while grooming the carpet fibers from the base of the carpet. The owners manual recommend that the carpet nozzle be lowered close enough to the surface so as to maintain a secure suction and minimize breaking the suction while cleaning the carpet. Another feature of the Kirby system is the modular design of both vacuum and accessories, allowing machines to be configured for numerous uses, from normal floor cleaning, tile surface scrubbing, wet floor mopping, to furniture shampooing and as a compact, handheld vacuum with extension hose attachments for various cleaning chores. This versatility also provides for add-on sales or bundling of the complete system.

Starting in the late 1940s the carpet cleaning floor nozzle with the brush roller could be removed, and the 1948 owners manual for the Model 508 called it the "Triple-Cushion Vibrator", which was powered by a removable rubber belt that was in contact with a metal shaft extending from the vacuum turbine blades, powered by the electric motor, and reattached to a brush used to polish floors, or an extended plastic hose that could accommodate a furniture dusting attachment. The Model 508 was also the first to offer a simple device on the front of the carpet nozzle called the "Belt Lifter" which was a metal lifter that easily removed the rubber drive belt and allowed other attachments to be installed on the drive unit. To accommodate cleaning rugs of a delicate nature, the "Belt Lifter" could disengage the rubber drive belt, allowing just suction to clean the surface which is still offered on all machines. Machines built in the 1930s, 40s, 50s and 60s are in operation worldwide and can be repaired or rebuilt with factory original parts.

All models used a cloth bag that allowed airflow to pass through and clean the air exiting the machine. Earlier versions of the cloth bag used dense duvetyne, and later corduroy cotton and wool fabric bags where fine grit, dander and other foreign contaminants collected. The cotton bag briefly had an integrated cleaning pocket within, called the "Sani-Pocket" introduced in 1964 with the Sanitronic, where embedded dirt could be dislodged from the interior surface of the bag while keeping the dirt contained inside. The owners manual for the cloth bag equipped machines recommended that the cloth bag be emptied after cleaning had been finished, to avoid dirt, fungus and bacteria from setting in the fibers of the bag, and preparing the machine for the next time.

Starting with the Tradition model, an internal, disposable paper bag was introduced in addition to the cotton cloth bag. The disposable paper bag provided a protective barrier against the interior surface of the cloth bag and offered the convenience of storing the cleaner when finished, and not requiring that the bag be emptied every time. With the introduction of the Generation 3 model in 1990, a HEPA certified dirt containment filter bag, labeled as "Micron Magic" which minimizes dust being expelled into the air from the machine. Beginning with the Generation 3, all Kirby's are installed with a self-propelled transmission, called "Tech Drive Power Assist", which is engaged with a lever at the bottom next to the foot operated power switch.

In the 1930s and the 1940s, Kirby started to offer their products in retail environments, and introduced the "R" series. They are identical to their "C" series, with differences being the power switch installed on the handle. The first model was the R, followed by the 2R, 3R and 4R. In 1970, input from Kirby distributors, dealers, management and customers guided Kirby engineers in developing the second-generation models, introduced as the Kirby Classic. This gave the opportunity to expand its manufacturing facilities outside of Cleveland. This coincided with the rising popularity of wall-to-wall custom installed carpet. In 1972, after Kirby Company founder Jim Kirby's death the previous year (1971), Kirby West began operations in Andrews, Texas at 1345 NW 101 Street (also known as North Seminole Highway), which doubled the company's manufacturing capacity.

Since the mid to late 1980's, the Kirby Company has hosted a world convention every few years called "Kirby World", usually held in Nashville, Tennessee, bringing together from all over the world, dealers, sales representatives, and distributors. Over a three–day period, speeches & lectures given by Kirby company executives and other keynote speakers, musical numbers by a professional dance group, along with actors highlighting the company's success and other topics showcasing the importance of maintaining customer loyalty and satisfaction, the newest model Kirby vacuum is unveiled, along with new Kirby home cleaning products and accessories along with demonstrations of those items (in other convention rooms). Sales awards and bonuses were also given out to Dealers and distributors for their best overall sales from the previous year through the "Kirby opportunity" and "Road to success" programs. In the months to follow, VHS tape and DVD box sets of that years "Kirby World" convention were later sent out to Dealers and distributors to help aide in training of new sales representatives. These convention video box sets (VHS or DVD.) are hard to find as these were never made available to the general public; however, some have surfaced every now and then on auction sites such as eBay.

Berkshire Hathaway bought Kirby's parent Scott Fetzer in 1986 for $315 million. Warren Buffett has singled out Scott Fetzer to Berkshire's shareholders as the "prototype" for the "kind of company — and acquisition — he was interested in." According to Berkshire managers, "absolutely no changes were made to the existing Scott Fetzer business or management, and the entire business (and its jet) was preserved."

thumb|upright|Kirby G5 (1997–1999)

As of 2003, Kirby was the largest source of revenue and profit for Scott Fetzer, with approximately 500,000 sales per year, about a third of which are outside the United States. In 2003, Scott Fetzer sold the vacuums to about 835 factory distributors, who in turn sell the vacuums door-to-door.

In 2021, Berkshire Hathaway sold Kirby to the Chicago, Illinois based Right Lane Industries, ending its nearly century long history with Scott Fetzer.

Legacy sales

A major facelift was done to the Kirby line with the Generation 3 series in 1990, with G3 and later models maintaining a traditional form, but with a modern look and tech-drive transmission. Internal improvements between models have continued (such as HEPA filtration, beginning with the Gsix in 1999), but outward changes throughout the entire Kirby production have been mostly in color scheme or minor detail.

Pricing of new, used and older Kirby vacuum models sold online or by secondhand thrift stores can vary widely based on overall condition and what number parts; attachments & accessories are included with it in the sale. A number of companies and secondhand dealers also offer refurbished Kirby vacuums.

Criticism of marketing and sales practices

The practices of some of Kirby's independent distributors have been subject to criticism. The Kirby is included by Lon L. Fuller and Melvin A. Eisenberg, professors of Contract Law at Harvard Law School and UC Berkeley School of Law/Columbia Law School, as a textbook example of unconscionability. Kirby has been subject to relentless criticism by consumer protection agencies. In June 2004, the Arizona Attorney General filed suit against Kirby distributors for violations of the Telemarketing and Consumer Fraud and Abuse Prevention Act, seeking an injunction against any other home sales.

Kirby asserts it is not liable for the actions of its sales force, whom it describes as independent contractors.

Twelve distributors of Kirby vacuums in Massachusetts were cited for violations of the Commonwealth's wage and hour laws by the Massachusetts Attorney General's Office in July 2010. The 12 distributors were cited for a variety of different wage and hour violations including nonpayment of wage, nonpayment of minimum wage, misclassification, child labor, retaliation and record-keeping violations. The distributors were fined a total of $199,300 for the violations and also ordered to pay restitution.

Sexual assault

The Supreme Court of Texas held Kirby liable for a rape committed by one of its door-to-door salesmen, finding that the manufacturer maintained control of its distributors and their salespeople, by requiring its distributors to make sales via in-home visits, and that the risk was foreseeable. In that case, the court found that, had the employee's references been checked, Kirby would have discovered complaints of inappropriate sexual behavior at his previous employer and an arrest and deferred adjudication for indecency with a child.

The North Dakota Supreme Court also held Kirby liable in a similar rape incident, where the salesman was hired after being convicted of assault and with charges of criminal sexual misconduct in the third degree pending against him.

Fraud and RICO

A federal class-action lawsuit is pending against Kirby under the civil action provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO), for allegedly selling used vacuums as new; the complaint alleges that "Not only is Kirby aware of this practice, it 'participates in the scheme by, among other things, selling to its distributors duplicate or replacement "Original Purchaser's Registration" cards to be given to secondhand purchasers.'" The complaint also alleges that "Kirby commonly sells distributors new empty boxes and packaging material for the obvious purpose of repackaging units that the distributor previously sold to a prior customer." Kirby's motion to dismiss was rejected.

A class-action lawsuit was also filed against Kirby in Bullock County Court in Alabama over its sales practices, specifically its use of credit cards issued expressly to fund Kirby purchases, under Truth in Lending laws.

Actions against unauthorized dealers

Kirby has sued unauthorized Kirby vacuum cleaner dealers for United States trademark infringement where the cleaners are identified by the Kirby name and logo. The United States Court of Appeals for the Fifth Circuit has held that such use does not constitute trademark infringement. The United States Court of Appeals for the Ninth Circuit vacated an injunction granted in Kirby's favor by a lower court in that Circuit based on similar trademark claims against an unauthorized distributor.

Kirby also did not prevail in a similar action against an unauthorized dealer in Minnesota, where it asserted trademark infringement, false and unfair competition, and trade disparagement; the authorized dealer prevailed on a $90,000 counterclaim against Kirby for defamation and then in a suit against an insurer who refused to defend the suit when the dealer refused Kirby's settlement offer. Kirby's parent lost another such suit in Minnesota based on trademark infringement and other related state law claims.

Nor did Kirby prevail in a tortious interference with contractual relations claim in Washington against an unauthorized retailer; the Washington Supreme Court awarded attorney's fees to the retailer. However, Kirby has prevailed in cases where unauthorized retailers went farther than using the name and logo to identify the vacuum cleaner, misrepresenting themselves as the manufacturer and claiming the existence of factory warranty.

References

Bibliography

  • Miles, Robert P. 2003. The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers.