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INDUSTRY UPDATES
INDUSTRY PROFILES: AN INTERVIEW WITH AT HOME'S SIGMOND
GORDON
By Dave Purdy
Purdy: Sig, the futon furniture business has had an
interesting history, where did it begin for you?
Gordon: In 1987, when I was still a factory representative
with thirty years experience in the furniture industry, the
Futon Association’s Board invited me to speak at their
annual Expo in Montréal. Because of my ten year involvement
in “lifestyle” furniture, I was asked to help futon
specialty store owners understand how they might utilize other
products, such as RTA wall systems, to increase their sales
without the need to expand their floor selling space. Part
of that presentation was devoted to emphasizing the need for
quality in any product the retailer bought, as well as presenting
it to the consumer in the most creative and attractive way
possible.
At that meeting I met Ted Goldman, who owned National Woodcraft
of Canada. Ted had been making futon frames for an early wholesaler,
New Moon who had just unfortunately filed for bankruptcy.
I proposed to Goldman that he make futon frames for me, he
agreed, and I left Montréal the owner of a wholesale
futon frame company. Simultaneously, I began buying futon
frames from Malaysia. My thinking at that time was to level
the competitive playing field in the growing list of domestic
manufacturers as well as early importers to the US market.
The next several years were spent adding to At Home’s
customer base, learning how to operate a business, and sharing
the excitement of participating in what was a new and growing
furniture category.
Purdy: What was your plan to stand out from the crowd?
Gordon: Well, by 1992 it was clear to me that to move
ahead I would have to find a way to differentiate my product
line from other importers and the perceived notion that “import
means poor quality”. An important characteristic then
shared by imports was a weakness in the quality of the finish.
I decided to focus on a quality finish as my number one goal.
I began researching manufacturers in Indonesia, and during
my first visit there, I chose one of six possible companies
I had researched earlier. During the next year, the success
of At Home’s Tenley series made by that first supplier
became apparent. The Tenley confirmed my belief that if retailers
were able to offer futon furniture that gave consumers what
they expected to find in a good quality furniture store, both
retailers and consumers alike would be comfortable buying
the imported product.
Purdy: Sig, where are we in the price game ?
Gordon: At Home has been trying to make it possible
for any retailer to have quality products and present them
in a way that will turn the shopper into a customer. Most
of us know that furniture shoppers are motivated by more than
price alone. A $99.00 price tag may be possible in every store,
but, color, texture, shape, quality, effective display and
of course effective sales associates are what influence most
buying decisions. Effective, profitable retailing is an enormous
task- so many things have to come together precisely. Think
about it! Finding loyal suppliers, creating displays that
excite the shopper, financing, internal systems, floor plans,
competent salespeople, productive/effective advertising, trucks,
insurance—- some days, retail is just a nightmare.
Purdy: That’s a long list. How do you deal with
it all?
Gordon: We can’t solve all the issues retailers
deal with but we can help with at least the first two. At
Home helps retailers who are beginning or improving their
futon areas with floor planning, sourcing and a never ending
pitch to improve quality. Good quality doesn’t have to
be high priced, but it can never be “cheap”. However,
futon frames are only part of the story. I talk at length
with retailers about the elements of the futon furniture business
in which we may not be directly involved. We stress the value
of selling a quality futon mattress and the excitement of
quality fabrics for covers. To be sure, an absence of either
in a store’s merchandising will hurt the bottom line.
Purdy: Okay Sig, what about issue of customer complaints?
Gordon: We all understand how costly and time consuming
it is to service customer complaints. This year we solved
the most persistent problem importers and their customers
have experienced—splits in long rails. Through the use
of thicker rails and steel supports breakage has been more
than reduced—it has been virtually eliminated! Our mission
is to have zero returns for 1998-1999, and we are well underway.
Purdy: How do you see 1999 shaping up?
Gordon: What began as a lackluster year turned around
dramatically after the Futon Expo in late May. Since the Expo,
our sales have been on a steady and increasing course.
Between now and the end of the December, we will introduce
four new models, plus an additional finish. In addition, three
arm styles will have optional drawer storage for chairs, doubles
and queens. I am looking forward to 1999. I am predicting
that futon furniture sales will follow the stock market to
all time highs.
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Lofa Sales Announces Viens’ Factory Expansion
Atelier de Bois J.A. Viens, affectionately
known by its customers as Joe’s Wood Shop, has undertaken
a major factory renovation this summer to keep up with increasing
demand for its “Canadian Grey” pine futon frames.
The original 11,000 foot facility, located just south of Montréal
in the town of Chambly, was expanded in June 1995 to 16,000
feet by adding a warehouse. This time, however, it was necessary
to add another 4,000 feet to production to 3,500 feet for
a wood storage and shipping area, bringing the total up to
23,500 square feet!
“Our concept of marketing the top selling hardwood frame
designs in pine is what sets us apart from the rest,”
according to Mitch Wapen of Lofa Sales. “By using ‘Canadian
Grey’ instead of white pine, we start out with stronger
wood. People appreciate that.” Viens’ frames also
feature metal ball-bearing rollers and seat sections that
extend to the ground...each designed to add strength and reduce
problems throughout the product line.
It took several years for the market to realize that a well
designed and manufactured pine frame could hold its own against
the hardwood imports, but now that the secret’s out,
keeping up with orders has replaced getting new business as
the company’s highest priority. Vice President Gilles
Viens, who runs the company along with mother, Fernande, and
sisters, Carole and Nicole, has engaged a professional “production
consultant” to ease the transition to higher volumes
and has also ordered the installation of a $150,000 Computerized
Numeric Control (CNC) point-to-point machine needed to save
time, and increase quality and efficiency.
Except for January’s Ice Storm in Québec, 1998
has been a banner year. Year-to-date sales are up over 20
percent from last year, the factory has landed one of the
world’s largest furniture retailers as an account, and
new innovations have virtually eliminated former quality control
issues. All in all, as they say in Canada, “If it’s
pine...it’s fine!” For more information on Viens’
futon frames, call Mitch Wapen at (450) 424-1431.
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Omni’s Limited Addition Line Adds New Pillow Pak
After numerous customer requests, Omni Softgoods
has added a “Pillow Pak” to its line of Limited
Edition covers.
Limited Edition, a swatched program of low cost/high profit
covers offered on a first-come, first-serve basis, features
covers in single, double, and queen sizes. All covers are
constructed with a five inch corner and three sided zipper
for a great fit.
The new Pillow Paks contain one Limited Edition cover and
two 17 inch square pillows, packaged in a zippered, heavy
duty, see-through package. Solids are coupled with matching
pillows, prints have coordinating pillows.
Omni updates its Limited Edition swatches on a regular basis
as inventory changes. This means there is always a fresh supply
of new fabrics to choose from with the added option of choosing
the cover only or the new Pillow Pak.
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Omni Notes... What’s In It For You?
Free Covers...Omni Notes has always offered its customers
a wealth of information about Omni products and services,
but the next issue may net customers an added bonus. A new
promotion premiering next month will prompt customers to thoroughly
read each issue and to know their Omni customer number. In
each issue a customer number will be hidden somewhere in the
copy; When that customer finds his or her number and notifies
an Omni sales person, a cover will be sent out to them free
of charge. If the customer misses their number a consolation
prize will be sent out.
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If You Liked The Movie, You’ll Love The Fabric
Omni Softgoods’ latest update will feature their newest
tapestry fabric, TITANIC. Depicting scenes from the early
1900’s, TITANIC’s mystical color combo of icy blue,
deep purple, and teal on a black background promise to make
it a bestseller. Used on a pillow, with one of Omni’s
many fringe options this beautiful new woven jacquard provides
a real vintage look. Watch for it!
For more information contact Omni Softgoods: (800) 283-8037.
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Gold Bond’s Futon Message Takes To The Open Road
Over the summer gleaming 48 foot Gold Bond tractor trailers
began pulling up to leading futon retailers’ receiving
docks in a style that can’t be missed. The big rigs glide
along the interstate under a new creamy white, gold and pale
green make-over each one a moving billboard for “The
World’s Finest Futon Mattress”.
Gold Bond, the world’s largest futon mattress manufacturer
and the mattress innovator known for having replaced the thin
futon mat with premium mattress choices for consumers in the
early 1980’s, is now taking its message to the open highway.
The futon leader’s 15 truck futon fleet is being transformed
by bold new graphics to send the message that futons are “mainstream
America” sofa sleepers.
Gold Bond was established at turn of the century. Today it
leads the national and international futon sales explosion
with its products, retail advertising support and its “Making
People Comfortable Since 1900” message.
Each tractor-trailer makes over 20 million consumer impressions
per year, according to the American Trucking Association,
based on 21 days per month operation during daylight hours.
In the Boston area, 30 million impressions per year are the
norm, the ATA reports, while the Department of Transportation
calculates the average traffic at the I-91 Gold Bond exit
in Hartford at 138,800 impressions per day.
“Our drivers travel the country’s busiest highways—the
area between Boston and Washington, DC. for example. They
have always been proud of the goods inside their trucks. Now
they take pride in their truck’s exterior and spread
the good word as well.” Robert J. Naboicheck, Gold Bond’s
President, who conceived the campaign, said.
“Gold Bond trucks are designed to make people think positively
about futons and provide our company with strong brand name
identification,” Mr. Naboicheck said. ”Retailers’
response has been very gratifying for us.”
For additional information, please contact Robert Naboicheck:
800-873-8498.
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Bedroom Distributors expands warehouse
Bedroom Distributors, Inc. has expanded their warehouse service
centers to a number of new market areas, and the Fort Worth,
Texas based importer has recently more than doubled their
Texas warehouse facility. Bedroom Distributors, Inc. also
warehouses in Sanford, Florida in joint venture with Waterfall
Industries, owned by Anthony Lupo and Glen Moller. “This
warehouse is currently serving Florida and the East Coast,”
said Don Bumgardener, company president. “Florida customers
can enjoy freight to their door on Waterfall’s own company
truck, with free freight on $750 minimum orders,” he
said. Smaller orders will also be available from $13 to $49.
“Our Hard Body Futons™ are now available in golden
oak finish on selected styles, and the medium oak finish,
our champion finish, is also ready to go,” added Bumgardener.
In addition to their Texas and Florida warehouse facilities,
the company also has two distributors for the northeast and
west coast. “Innovations in Hartford, CT is now carrying
some of our best selling frames for quick shipping, and The
Futon Place in Santa Barbara, CA is handling sales for the
west coast. We are proud to be associated with these successful
distributors,” he said.
Bedroom Distributors now can successfully service the entire
United States with competitive freight rates, and ship extremely
fast. “Service is the name of the game, and we feel like
we have the best service in the industry, and our hard body
frames are totally unique to anything else on the market.
They have 30 percent more wood, and weigh one-third more than
eighty percent of the other imports. If you don’t believe
us, just try lifting one. Weight never lies!” said Bumgardener.
For more information, give Futon Don a call at 800-934-3881
or to reach Waterfall directly call 800-771-9330.
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Harlee Opens New York Showroom and Warehouse
Harlee International of Corona, CA has opened a showroom
in New York City, and is part of their new warehouse location
at 735 Lorimer Street in Brooklyn. “We (Harlee) will
be able to serve the East Coast more efficiently through this
facility,” said company president Steve Leichter, who
added, “It will also allow our dealers to see new products
at this showroom.” This move has been prompted by the
demand for the new Generation II frame designs and bedroom
pieces. The new warehouse combined with their Fall River,
Massachusetts warehouse will allow Harlee to service all their
East Coast dealers more efficiently.
For more information contact Harlee International: (800) 745-7660.
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August Lotz Ready For Season and High Point Market
As the frenzied “futon season” continues, August
Lotz reports record sales on all facets of their frame and
mattress lines. “Even though our sales were ahead of
projections going into the ‘98 season, no one could have
been able to forecast the sales explosion we’ve seen
since this year’s Futon Expo,” said company President
Mark Schlichter. “Luckily we keep an inventory large
enough to keep up with our quick ship program, so even during
the peak portions of the season we’ve been able to maintain
our 48 hour turnaround time with minimal delays.” Among
the big sellers this year are the “Convertible Sofa Sleeper”
line, with hidden seat decks and invisible hardware; the wood/metal
line, with sinuous seat springs and poly-deck on the frame;
and the promotional items which bring the retail price of
an August Lotz made frame down into the $299 range.
In keeping up with the demand for their product, August Lotz
is anticipating the opening of a West Coast distribution facility
by fall. Shipments leaving the Wisconsin based company reach
most central and eastern points in two to four days, but West
Coast shipments can take five to seven days to arrive at the
customer’s door. By having a distribution center serving
California, Oregon, and Washington, an even larger number
of August Lotz customers can enjoy expedited shipping times.
University Furniture & Futons in Victoria, British Columbia,
Canada has been ordering August Lotz products for distribution
in western and central Canada. “Despite the depressed
rate of exchange, retailers in the Canadian market have been
clamoring to sell the product line,” Schlichter said.
Both August Lotz and Cotton Belle, a prominent industry cover
company, will again be showing their wares together at the
International Home Furnishings Market in High Point, NC. Located
in showroom #218 of the Center Point building from October
12 through October 23, 1998 (See map on page 48). To schedule
an appointment call 1-800-826-7326 or just stop by and see
all of the latest innovations the industry has to offer.
For more information call August Lotz Co., Inc.: (715) 667-5121.
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Hickory Springs Comfort Lounger™ Promises Comfort
and Durability
The Comfort Lounger™ futon mechanism from Hickory Springs
Manufacturing Company offers the buoyant comfort and durability
of upholstered furniture while retaining the style and simplicity
of the basic futon frame. Its sinuous wire spring seating
system gives the Comfort Lounger™ a spring ride that
offers support and comfort unlike any wooden slat or tubular
seating system. “Because the futon’s comfort comes
from the basic unit rather than simply from the mattress as
with traditional futons, it is possible to use a thinner mattress
and still produce a more comfortable futon,” said Product
Manager Buddy Ray.
This Made-In-America futon mechanism features a tubular frame
of 16-gauge steel, a durable polypropylene decking and self-lubricating
nylon washers at all hinge points providing for smoother operation.
The Comfort Lounger™ measures 75 inches from arm to arm
and 54 inches from the edge of the seat to the top of the
back.
To provide the styling variations that create broad customer
appeal, the Comfort Lounger™ adapts easily and readily
to an extensive range of frame constructions, including leather
upholstered, fabric upholstered, wood, wicker and rattan.
This adaptability enables the customer to select styles ranging
from traditional to contemporary. For more information call
Hickory Springs Mfg., Co.: (828) 328-2201.
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Budoff to focus on Outdoor furniture
Outdoor casual funiture maker Budoff Classic Furniture introduced
a solid oak futon designed for porch and patio use and announced
it is ending its manufacturing of the indoor futon line under
the Monticello Oak Collection name.
The new product introduction was made to the casual furniture
trade in September at the Chicago International Casual Furniture
and Accessories Market by Budoff Classic Furniture, manufacturer
of The Monticello Oak futon collection.
The Outdoor Sofa Sleeper set includes a full sized futon,
chair, ottoman, coffee table, and end table and is expected
to retail at or below $2,999. Comparable outdoor sets retail
for about $4,999 but do not include the sleeper function inherent
in the futon.
The announcement was made this month by Budoff Classic Furniture’s
Jay Weber, vice president and general manager of the 60 year-old
company.
Budoff entered the casual outdoor furniture industry in 1939
when it began manufacturing Adirondack Chairs for the hotel
and residential trade. It now manufactures solid oak outdoor
dining sets, benches, chairs, and chaise lounges.
Each outdoor sofa sleeper will ship with a plush mattress
cushion, made from a water and mildew resistant specialized
foam.
“One superior aspect of our new outdoor sofa sleeper
sets is the inclusion of exciting, hot new fashion covers.
We have worked with leading suppliers like Sunbrella™
from Glen Raven to provide our dealers with the sharpest ‘looks’
available,” Mr. Weber said.
Fabrics are UV and mildew resistant and will be available
in solids and textures, he said. The selection includes a
taupe “Cobblestone”, “Sherwood Green”,
“China Blue” and striped “Yachtsman”,
“Black Streak”, “Silver Linen”, and the
moss green and white “Eden” patterns.
The sofa sleeper is manufactured from domestic solid white
oak with two finishes available: whitewash or a natural oil
stain. Both stains are sold over-the-counter at leading home
supply retailers. Annual touching up is recommended.
The line is marketed by The Glasser Group of Tampa, Florida.
For information, please call 800-466-9099 or FAX 800-303-6353,
or visit Budoff’s web site www.budoff.com.
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Zad Debuts Rustic Look Futon Furniture
Three new designs of antique pine and leather or rustic hardware
futon frames were well received at the San Francisco Design
and Furnishing show according to Mr. Azad, president of Zad
Design & Mfg. “We have been experimenting with some
new materials and looks which can add a new dimension to futon
furniture,” said Azad. Along with its existing line of
alder and ash frames, Zad Design revealed their new rustic
look futon frame styles with a complementary chenille futon
cover line. “Our new products were so unique that a lot
of retailers stopped by a second time to get another look,”
Azad said.
Zad Design is also producing POP posters and brochures for
their dealers along with seminars for retailers. “We
realize how important educating and training sales associates
are,” said Azad, “So we are offering in-house training
for our dealers.” For the dates of an upcoming training
session, contact the office at (805) 486-8393.
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New Tufting Twine Meets FR Requirements
Milton, VT — Plastic Monofil Co., Ltd. has announced
the development of a nylon braided tufting twine that meets
all flammability requirements of the California Bureau of
Home Furnishings, Bulletin #117.
This new product can be used on the United Mattress Automatic
Tufting Twine machine and will help manufacturers meet flammability
standards. For more information call Plastic Monofil Co. Ltd.:
(800) 361-1190.
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August Lotz and University Futons Team up in Western Canada
Boyd, WI— Mark Schlichter and Dave J. Kunyk, presidents
of August Lotz and University Futons respectively, have announced
that they have joined forces in Canada.
University Futons will warehouse and distribute August Lotz
upper-end futon frames in British Columbia, Alberta, Saskatchewan,
and Manitoba.
“We see August Lotz frames as the primary ingredient
in our Gallery Program,” says Dave Harding, National
Sales Manager for Cordova Bay Group, University Futon’s
distribution division. “And by Gallery Program, I mean
we are placing today’s high quality ‘convertible
sofas’ right in mainstream furniture stores and are reaching
entirely new customers by doing so. Most bedding retailers,
as well as much of the public, hadn’t realized the huge
advancements in quality in the futon industry.”
“The Gallery Program, with its own display area, lighting
and excellent marketing materials provided by August Lotz,
not only benefits the salespeople, but also identifies the
products to the public in a very distinctive manner,”
he said.
“We are truly excited to be working with August Lotz.
Theirs is a long and sterling track record. It’s because
of their attention to detail that the public is becoming aware
that futon furniture surpasses many mainstream products in
function, style and value,” Harding said.
“We are a good fit for one another,” said Schlichter.
“They have put together a well developed plan. They have
done their homework, they know each of their markets very
well, and Western Canada is an area we can use additional
distribution.”
“The move is another step toward expanding our dealer
base in North America,” Schlichter said. “We have
a very aggressive growth plan.”
For more information contact August Lotz Co., Inc.: (715)
667-5121.
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Gold Bond Mattress Line Now Available in Western Canada
Futon mattress leader Gold Bond announced that its line of
premium futon mattresses are now available throughout Western
Canada following a distribution agreement with Cordova Bay
Group - the distribution division of University Futons Ltd.
of Victoria, British Columbia.
“University Futons will stock and distribute Gold Bond
throughout Alberta, Manitoba, British Columbia and Saskatchewan,”
Gold Bond President Robert J. Naboicheck said.
Gold Bond is the world’s largest and most respected name
in futon mattress manufacturing. Gold Bond is known as an
original innovator of today’s premium futon mattresses.
Gold Bond mattresses will be featured as the “comfort
centers” in “gallery programs” being established
under the supervision of David J. Kunyk, University Futons
President, and Dave Harding, Cordova Bay Group National Sales
Manager.
“We are truly excited to be introducing the superb quality
of Gold Bond mattresses to Canadians for the first time ever,”
Kunyk noted.
Gold Bond will provide retailers with its industry-leading
premium futon products including the best-selling Cotton Coil™
innerspring futon, the Wool Wrap™ futon mattress and
the Comfort Coil™.
Gold Bond retailers will be supplied with complete in-store
POP signage, literature that promotes the quality Gold Bond
futon message, and generous co-op advertising allowances.
For information, please contact Robert Naboicheck: 800-873-8498,
or Cordova Bay Group: 250-383-2557.
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Great Lakes Futon Goes west
Japhy Ryder, President of Great Lakes Futon of Milwaukee,
WI and Great Lakes Futon West of Flagstaff, AZ reports that
both stores are enjoying steady sales growth and “the
best location in town.”
Ryder, one of the industry’s pioneers in the U.S.(1979),
opened his Third Ward location alongside the Milwaukee River
in 1988, before the area was considered “fashionable.”
The Historic Third Ward now boasts a concentration of art
galleries, theater groups, restaurants, micro breweries, loft
condos and the Riverwalk.
With a view of the San Francisco Peaks and Route 66, Ryder’s
Flagstaff store is also housed in a rustic, historic building
with red stone walls, glossy plank floors and pressed tin
ceilings.
“I’m so lucky!” said Ryder. “Both stores
are so beautiful, both locations so culturally rich and interesting,
and we have the greatest, most enjoyable customers!”
In order to spend time in each location, Ryder is looking
for an experienced manager for the Milwaukee store. Interested
parties can contact Japhy Ryder at 1-414-272-3324.
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