Thermomix TM 5 Launch – A Retrospective

Firstly, a Disclaimer: whilst my partner works as a consultant for Thermomix, this post is entirely my own viewpoint as a Thermomix customer. Because just like Vorwek, I too believe in not telling my consultant before I do something, so these are entirely my own views as someone who purchased a Thermomix (in my case 2 years ago) and seeing it replaced by a newer model – the TM5.

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And for sure, I can understand people, who bought a TM31 more recently to see it replaced, being upset. The most common complaint ‘if only I had known a new one was coming, I might have waited‘ has some merit.

Vorwerk released the TM5 unannounced as a blind launch, rumours not withstanding.  There have of course been rumours on the web for literally years, even when I was buying one – so eventually one of them was going to be right.  And if you had bought one the week before, to see an improved model the next week, I can understand the frustration – up to a point.

Because yes, Vorwerk messed up on the launch, but not in the way you think.

Vorwerk are not alone in doing hard releases without warning, and if you put yourself in the manufacturer’s shoes for a minute, you can see why.  Vorwerk spend millions in R&D to uniquely improve the product, taking several years in the process.  But in the food appliances market, the direct competition are solely focused in a race to the bottom in trying to make the cheapest product at the lowest cost and build quality because they think most customers aren’t discerning enough to demand long lasting high quality goods.  But worse, it’s a market place where some of the competition (no, not the one that begins with a ‘B’) takes old TM patents to knock out cheap products for relatively little R&D, invariably using lower quality materials on those parts to further cut costs.

And so your cheap food appliance breaks after 2 years?  Forget servicing it, go buy a new one.  The marketing spin of ‘does everything a TM does for a fraction of a cost!‘ is a great one, because by the time a TM eventually dies you’ll have replaced the cheap imitation one several times over, or got fed up and bought a TM… but by then the imitation vendor has still got your cash.  This is obvious when you trawl the forums to find the number of consumers who’ve experienced broken appliances before learning the lesson and switching.  It is very, VERY hard to find the reverse situation of ‘gee, I had a TM but it kept breaking, and now I have a KuChef and it’s so much better’.

So the benefit of a blind launch should be evident – give the competition as little headroom to respond as possible, to thereby provide the maximum time where the TM5 is out on its own, before cheaper inferior quality products close the gap just enough to repeat the above cycle.

So, frustrating as it is, I really have no problem with a blind launch; despite what some people are saying, it’s NOT deceptive and it’s not misleading, it’s frustrating.

The 1st problem I have with the frustration is that the complainants themselves are not agreed on who qualifies for some sort of redress.  Should people 1 month ago be entitled to something?  3 months? 1 year?  Heck I’ve only had one for 2 years out of the 8 the TM31 has been out for, I demand a discount too!
Because wherever you draw the line in the sand, people just on the other side of the line will be unhappy.  Even if Vorwerk had soft-launched say 3 months notice ahead of availability here’s what would’ve happened.

  1. The people who bought just before would be up in arms about it instead.
  2. Sales would dry up for 3 months while people hang on for the TM5 to become available.

Which brings questions I’m sure the complainants would be less keen to answer like ‘What do the consultants do for a living in the meantime?’, and ‘what do the factory workers who make it do in the meantime?’, because it’s not a business that stockpiles months of stock up in advance – in fact very few businesses can afford to do so.

The 2nd problem is the complainants themselves are not agreed on what redress they actually want.

– A discount (and if so, how much)?
– A free bowl and blade?
– A trade-in?

This is evident in the petition on Change.org – which requests ‘Thermomix Germany’ (who don’t even exist) to

Address the issues surrounding the misleading way Thermomix AU have handled their customers and provide a fair and satisfactory resolution.

But whatever the offer ends up being, again, some people will still be unhappy.  And frustrated.  And the problem with this frustration is it goes downhill into increasingly illogical arguments to try and justify the frustration.  Here’s a small selection to sample.

“[i] suffer subsequent devaluation of my purchase”

You didn’t buy it as an investment with the intent to resell it later,you bought it to use it.  Full stop.  I didn’t buy my iPhone 5s to use it and then afterwards sell it as an investment either.  Just as well given it’s now only worth 10% of its value (new, not used), versus a TM31 which is still worth ~75% of its value, especially once the vanity flood of sellers who want to ‘upgrade’ clears Gumtree.

“My TM is outdated / obsolete.”

Look up obsolete in the dictionary.  A biplane is obsolete – it’s no longer fit for the purpose it was designed for, and are now museum pieces.  But whilst a TM5 has a couple of extra Swiss army blades on it – that you may or may not find useful – that the 31 doesn’t, the TM31 is still just as capable of meeting your needs today as when you purchased it, and still far more capable than any appliance put out by a company not called Vorwerk.

“My TM will no longer be supported”

Says who exactly?  Yes it will.  Having had relatives who had very early TM models recently get theirs serviced after over 20 years use, I think you are safe.

And so on…

But yes, as I said before Vorwerk messed up a touch with the launch.  So what should they have done?
With the benefit of hindsight, either or both of the following:

a) They should have released the TM5 for a significantly *higher* price ($200 would have done it) than the TM31, which would be justified to cover some of the huge (and unprecedented) R&D costs gone into developing it, and then reduced it down to TM31 price after 6-12 months.  This would remove the anger of many who paid for a TM31 last week with a smaller feature set than the TM 5 released 1 week later and at the same price.

b) Had some sort of offer ready to go on day 1 for existing customer.  Again some people would still be unhappy, but a lot less of them.

But if there’s one thing I’ve learned watching the launch of this its this:  you can’t please all of the people *any* of the time.

army_knife

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31 comments on “Thermomix TM 5 Launch – A Retrospective
  1. Well Said! says:

    Excellent. Agreed! Well said.

  2. Elizabeth says:

    What a great balance approach… Thank you!

  3. Jenny Sullivan says:

    Hi Hihan, that’s a very good article n Thankyou for your honesty. I just have to say that the TM 5 is not n doubt ever will b the same price as the TM 31 it is actually $50 more n that is for a very limited time. End of Oct to b honest. Also customers who purchased after the 20th of Aug have been lucky enough to actually get to decide if they wish to purchase the 5 or get 31 at a discount price. Also the handful of 200,000 + ,Aus n NZ customers the handful of people that r upset will learn to love there TM31 if they r being looked after I’m sure.

  4. Roneen says:

    Well done, fantastic write up… Send a copy to Today Tonight and everyone else that has been negative about the launch.

  5. MARYANNE SKITT says:

    Fabulous big Thankyou.. I’m a consultant and this really helps 🙂

  6. pp says:

    Thank you so much, well written, being objective. Hopefully, many of those disgruntled customers will read this article and realize that perhaps they have over-reacted. I am a consultant and have both sitting side by side on the bench, and while the TM5 does have extra features, I still use and instinctively go to use the TM31 because it is an amazing wonderful machine that does everything the TM5 can do.

  7. Evelyn says:

    Very well said, I wish more people could see it like this as it is exactly what I have been saying!!

  8. This is a fantastic article! Really well said. I hope it gets shared on all TM pages on FB!!

  9. Alice says:

    Well said, and I would add to that that our society has become used to consumerism. When I was a girl it was unheard of for an appliance to last only 2 years your washing machine, fridge etc lasted 20 years, my first car was older than I was (it was a 25 year old Hilman Minx). These days companies release the next ‘shiny thing’ to replace the poorly made 2 year old thing they sold you as the ‘then shiny thing’ but the Thermomix is not like that it is quality and made for longevity. The problem is in the way we have been conditioned to feed the insatiable wanting of a throw away society. I love the perspective you put on this 🙂

  10. Erica says:

    Brilliant article, very well said.

  11. MaryM says:

    I don’t completely agree with what you’re saying. I do understand that, with a new product launch, you’re always going to have some people who aren’t happy; but you could say that in most situations in which you’re dealing with human beings! There are a lot of reasonable people out there who might be a bit miffed/disappointed, but who understand that things get upgraded and sometimes you just miss out. Nevertheless, what Vorwerk did was to ensure they could continue selling a soon-to-be-superseded product, at full price, to unsuspecting consumers. By not telling their consultants a damn thing, they have created a situation in which their representatives have been (unintentionally) lying to their customers; many have reported being assured a new model was not on the horizon anytime soon. Going with your own alternate scenario of a soft launch with about 3 months’ notice, they could have handled it in two ways that I can think of to “stop sales drying up”: either offer the TM31 at a discounted price (say, the $200 you thought they should have slapped onto the TM5 price), or offer the TM31 at full price but with some extras (e.g. an extra bowl & blade plus a couple of cookbooks). Vorwerk hasn’t broken any laws, but they have destabilised their customers’ loyalty and that is really poor PR, I don’t care where you’re from.

  12. Vanessa says:

    I disagree with many points of your opinion and agree with some.

    Firstly, I agree that the launch was “messed up”. Only not in the way that you think.

    I also agree that the argument “If only I had known a new one was coming, I might have waited” had merit. A lot of merit.

    I disagree that the impact of an earlier release announcement would have had the impact you imply with “bottom dollar competition”. The similar machines out there are currently not even a replica (or thereabout) of the TM31. They are closer to the TM21. There is no way some sort of replica of the T5 would have come out in a couple of months.

    I disagree that consultants would have needed to be the ones to take the “financial hit” with an earlier release announcement, though that is what Thermomix Australia would try to do. If you look at their business plan and the breakdown of commissions, consultants get a really raw deal compared to what happens higher in the food chain. A simple solution is that the TM31 could have been sold a bit cheaper – or even just with the big extras they already included to intice people to buy before the TM5 was released with no knowledge a new model was just days away – for a few months, costs absorbed by head office.

    Bringing me to the next part that I agree with you, that the TM5 should have been released at a higher price, that is whatever it will retail for permanently. I disagree with reducing it later. Sneaky tactics like this are not helpful, open honest communication is. If it were announced three months ago that a new version is coming out Sept 6, retailing at $2XXX and TM31 models will be sold at $1689 until that time (or TM31 as a result will sell for $1939 with free travel bag and toolkit) I guarantee you sales will still have been made. Lots of them. Consultants or workers in France wouldn’t have lost anything, probably the opposite. The profit margin for the big guns would have been marginally less, but well worth it to be a moral, trustworthy company.

    They didn’t want that though. They wanted to milk every cent they could out of innocent consumers. I truly hope people see their true colours and do not have dealings with Thermomix Australia as a result.

    I also disagree with you that the Thermomix (or iphone) is not necessarily bought as an investment. Maybe *you* didn’t buy it with this intent, but that doesn’t mean it’s not a factor in other people’s minds.

    The fact you use “arguments” such that people who are upset about what has happened, have had grammatical slip ups or company errors, brings the entire weight of your opinion down. Nitpicking the victims is a sure sign of no better argument to present.

    I *partly* agree with you that people may have been unhappy regardless of the timing of release date announcement. However, a lot *less* people would be upset, with a lot *less* valid reasons had it been handled appropriately by Thermomix Australia.

    Finally, I completely agree that “you can’t please all of the people *any* of the time”. You certainly can act in a moral and ethical way *all* of the time though. Thermomix Australia have not done this at all.

  13. Amy says:

    Really great review. I personally love my TM31, I only bought it three months ago. I have no desire to run out and get the TM5 instead. No need for the extra little features but fundamentally the same. Similar to the new iPhone 6….however if they had released a watch. Different story.

    I think the suggestion of slightly higher price for 6-12 months is a good idea too. Just to help with the transition.

  14. Hannah says:

    Perfectly put.

  15. Rebecca says:

    My consultant posted your article on her Facebook page and while I can understand your perspective, it’s no great surprise that I don’t agree with all of your comments because I am a recent TM31 owner.

    Having had my TM31 for just 13 days before the launch, it was a little hard to take knowing that people who ordered just a few days after me had a choice to upgrade or get a TM31 at a cheaper price. I can only imagine how upsetting it would be for people who took delivery the day before the launch. I really feel for people on TM31 payment plans, and for those who haven’t had their delivery demo yet who have to sit through a demo on a new machine! To me, that’s rubbing salt in wounds!

    Yes, the machine I fell in love with was the TM31 and I am very happy with it. But had I known that TM5 was just around that corner, I would have waited an extra two weeks to order.

    In hindsight it seems that Thermomix had an ulterior motive in offering such a great incentive for new customers in August — a ploy to just to sell off all remaining stock.

    I would love to know the sales figures of how many TM31 units were shifted in August, to see just how many people were affected.

    Yes, there’s always going to be a cut-off point, where people who were on the other side of it will be disappointed. But surely people who were charged full price for what Thermomix knew was going to be a superceded model just a few days later have a right to feel upset, particularly those who specifically asked consultants if a new model was coming out and elected to buy the TM31 on that basis.

    I fully understand that the majority of consultants were kept in the dark and I think it’s sad to see that some people are blaming consultants for lying. While no one would want to deprive consultants of income, there would have been ways to do it to ensure the TM31 stock was sold and consultants wouldn’t lose commission.

    The most obvious way would have been to announce the TM5 a month or two in advance of its actual release and give customers a choice of what they’d like to purchase. Customers could have been give a chance to either purchase at TM31 at its current price or slightly discounted or pre-order the TM5 at it’s permanent (higher) price.

    This way, consultants would still make a commission, customers would have been empowered to make a choice on what machine they would like to purchase and Thermomix in Australia wouldn’t have had to endure what has turned into a PR disaster.

    What do i want from Thermomix? I don’t really know. I’m happy that they’ve acknowledged that there might have been a better way to handle the launch, and they’ve apologised to people like me. I’m also happy that they are going to look at ways of addressing the concerns of recent customers.

    Already, the fact that they’ve said TM31 classes will continue for as long as customers want them is a big win. When you buy a Thermomix, you buy into the support surrounding them. While I knew that my consultant would be there for me for questions, and that TM31 parts would be available for a long time to come, I was really disappointed that classes were going to stop at the end of the year (just three months away) and that there was uncertainty over future TM31 cookbooks etc. I’m glad this uncertainty has been cleared up.

    I’m not demanding an upgrade. I’ve used my machine lots in two weeks, so i’m not sure it would be fair to return it. But I think some compensation for recent purchasers would be fair.
    I’d be happy with an online store voucher or some type of cashback offer for recent purchasers of up to three months.

    That’s my TM5 launch retrospective 🙂

  16. Lyn Barling says:

    We said and I am in total agreeance. I love my Thermie and have only had her since Christmas. Not even a quiver of a thought to replace her for decades. Agree with the hindsight they should have made the price a couple of hundred more.

  17. Kristen says:

    “”My TM will no longer be supported”

    Says who exactly? Yes it will. Having had relatives who had very early TM models recently get theirs serviced after over 20 years use, I think you are safe.”

    But there will no longer be TMX31 demos, and the next 4 months are the last opportunity to attend classes with the TMX31. I think I also read that new recipes won’t be written for the TMX31? Doesn’t bother me personally, but I can see why some people would feel as though Vorwerk won’t be really *supporting* the TMX31… 😦

    Servicing is different to “supporting”.

  18. Shane Smith says:

    A profitable company like Vorwerk would be best served catering to the interests of it’s customers, and not being so bothered by giving competitors ‘as little headroom to respond’ by launching blind. Competition is just a plain and simple part of business at the end of the day! ‘If only I had known a new one was coming, I might have waited’ has a significant amount of merit! Because at the end of the day, most who are disappointed are those who expect that companies keep the market informed. And Vorwerk failed to do just that. Launching blind I’m afraid was more about the company than it was about its customers. A mistake they may well think about next time.

  19. jackie gilbert says:

    Even Mercedes had a run out sale of the current model. This way you have a choice. Take the discount or wait for the new model. Like Mercedes this is NOT a cheap product.

  20. Glen says:

    “The people who bought just before would be up in arms about it instead.
    Sales would dry up for 3 months while people hang on for the TM5 to become available.”

    I disagree. If they had said in June that “The new TM5 will be launched in 3 months”, this would have avoided the huge amount of very pissed off customers who bought them recently. Would there still be pissed off people? Yes perhaps, but nowhere near the amount there is now. Maybe like you said they could have increased the price somewhat on the new model (as you said the price now is introductory). People who had bought it in the last few weeks have very good reason to be very annoyed. I think advance notice of something to at least a minimum of three months should be given for something like this. What TM has done simply maximized the total amount of annoyed customers by conducting a secret launch.

    As for sales drying up? You have no evidence for that. That is when a smart business should discount the current machine in preparation so people can grab a great bargain for something that may have been financially out of reach before, or may be seen as a great deal. Many companies always phase out existing stock with mark downs and the like. So for me to hear that a big company like TM couldn’t have a period of discounts on current stock is ridiculous.

    By not marking down stock for the past 2-3 months and not making customers aware of the new model – they have violated the trust of their customers and tarnished their company image and reputation. The way they have also handled their complaints the last few days has been pretty bad – to me, it’s obvious that they neither care or are too ill equipped as a company to respond. Not good on any account.

  21. helen says:

    I find the interesting part is you find it fit to make a comment about the complaintants don’t know what they want – but have any of you even asked us? also as you say your partner is a consultant so you have a vested interest in all of this “going away”. Furthermore have one of you reporters even rung the ACCC or the D OF FT to find out if what we are claiming is legitimate and if you haven’t – how does that make you have anymore credibility than Thermomix AU. Before you go printing whatever you feel like from whatever blog you write for – with now confirmation of facts with any of the complaintants and choose to answer questions that you ask on “our” behalf – maybe check your facts.

  22. Wayne Green says:

    Have you actually gone to the facebook page “Thermomix unhappy customers” of the people from Change.org. You have missed the whole point.
    1/ Some people bought the machine in order to become a consultant. They now have to buy a second machine and possibly sell the first so yes. It has devalued because they do have to sell it.
    2/ They are only running cooking classes till then end of the year for the TM31. (official release from TM Australia) And the new recipes are for a larger stronger more powerful machine. That is what the demonstration will be focusing on…
    3/ I rang head office and asked the manager direct a week prior to launch. She said no new model. Keeping in mind that she was sipping tea in the blue mountains only 3 weeks before with the secret launch. That then is a Lie. She lied to me. Now I have no trust in what TM Australia says because what other crap will they make up and say “well its a hard launch so it is good business practice to lie”
    4/ Canada is giving their customers 3 months grace period. They are doing a soft launch. It has nothing to do with stock levels. I have seen the size of the new factory. It is massive and can cope with a world wide launch. No they have ethics and don’t want the back lash and their consumer laws are stronger. If you did that there you would have to give a full refund.
    5/ Apple has the same problems with a cheaper product. You know when they are launching.
    6/ Everybody knew that counted in the industry the date Thermomix was going to launch. Hell there are even copies of the machine already months prior to launch that look so so similar it is not funny. I think the company is called Delamix and it is the same shape etc.
    7/Thermomix had to file patents so all the competitors knew what they were doing just by
    reading the patents. How dumb do you think we are.
    8/ Thermomix unhappy customers facebook page quite clearly says to make it clear what you are asking for. Refund, upgrade to new machines etc. Already legal advice is saying quite clearly they are in contravention of at least one major law. He should know as he wrote part of the law.
    check your facts first please. There are way more reasons than what I have listed why people are legitimately angry. Quite a few consultants have quit. If you are consultant who is on holidays during the selling period of the 3 machines then sorry you will have to pay full price. Bad luck. Oh sorry that is just good business practice. I forgot.

  23. Judy says:

    Agree with almost everything you say apart from the price – I think Thermomix should have reduced the price of the TM31 in Australia some time ago due to exchange rates – we always get a poor deal in Oz. If they had reduced the price of the TM31 some time ago they could have introduced the new model at the current price of the TM31. I personally feel they have been gaining from exchange rates for quote some time otherwise they would have made the new model more expensive.

  24. Anthony says:

    I agree with just about the entire article. However I think you’ll find that the year-old iPhone 5s is worth significantly more than 10% of its original price! (Try 75% or more.)

  25. Jenny says:

    I don’t agree with you. They could have built up hype & sold a lot of TM5s this month and lessened the price of the TM31, by not much,for a month, & given away an extra bowl etc; in an open honest way, pre-launch. And not given up any ‘secrets’. It’s a luxury item, one a lot of people spend a long time thinking over & saving for. It’s been a poor show.
    Personally, incredibly, I now have the T5 despite buying the TM31 in August, but I still think that whoever is in charge of marketing needs replacing…

    • Hihan says:

      Hi Jenny,
      Thanks for your comment.

      I’m interested in getting your view as to why you upgraded – as a long time owner I see the differences being pretty marginal personally – there’s nothing I couldn’t cook beforehand than I can now with a T5.

      Describing the TM as a ‘luxury’ item depends on your viewpoint I guess.
      Whilst it costs the same as a good cooker and burners (and a lot less than a top end cooker) you can hammer it daily for 10-20 years based on previous models.
      You can even run your kitchen whole kitchen on it.

      I’m not convinced that really meets the definition of luxury.
      .
      .
      In other news I have turned off the moderation – apologies to the people who wrote before and had the comments queued up while I was taking a holiday!
      I don’t agree with all the commenters below, but I have posted every single one of them regardless, which is something I know the Unhappy Thermomix Customers page are NOT keen on doing 😦

  26. […] Thermomix TM5 Launch – A retrospective […]

  27. Peter says:

    WE HAVE THE TM5 IN STOCK AND THE COST​ IS 400 EURO PER UNIT AND YOU BUY 2 UNITS YOU GET 1 UNIT FREE.

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