Let me give you a little behind the scenes look at what we do here at the best little magazine for the best little niche in the entire home furnishings universe. When I started doing this, some ten years ago, I was alone. I mean that figuratively and literally. I wrote or got permission to reprint all the articles. I would call up all my advertisers and write their PR because most of them, although they knew what PR was, had no idea they actually had a “story” to tell. Many of the early ads were done over the phone with the advertiser telling me what they wanted to say, and me putting it together for them— all part of the service. The only thing I didn’t do was run the presses. Today things are a little different for us all.

I still do some of the layouts, but now I get a little help. Jeff Flynn, one of our art directors, puts together the page templates for me after we sit down and decide which story is going where. Jeff typically puts some silly headline where the final headline will go. This time, when I read the “silly” headline I sat back for a moment and decided to use it

What can I say?
Business is good.

No matter who I talk to lately, small retailer, larger retailer, distributor, manufacturer,or importer— everyone is busy. The Asian crisis (both in the realm of global economics and in the little futon furniture world) isn’t over nor is its impact fully understood, but as far as I or anyone else can tell it is having little or no impact on retail sales. Wall Street is currently in flux due to its many and difficult-to-pinpoint factors, but even this recent instability hasn’t significantly dampened the flow of consumers into furniture stores. As I look at the leading home furniture indicators in F/T and other periodicals there just doesn’t appear to be anything in the cards that will cause any real changes in the current shape of the growth curve.

What can I say?
The Chicken came first.

“The cover sells the frame,” or so says the conventional wisdom of the day. I have always believed that this mantra was true, and I still think it is as far as merchandising goes. But after a recent conversation with Dennis Bramwell, a sales rep for Lifestyle Solutions by Elite, I came to the conclusion that all is not as simple as it seems.

Bramwell contends that the key element or the most critical element of the triune component nature of the typical futon sofa bed is the futon mattress.
“You need to sell the mattress first,” says Bramwell. “Comfort is what people are really buying and the mattress is what provides the comfort.”

Logic would dictate that Bramwell is correct. The mattress part of the equation is where the tush test really happens. He did make it clear that a superior frame and cover add a great deal to the overall value of the product, but if a consumer is on a budget it is key to the future of the category that retailers sell the best mattress first. They can pick up the other dollars with a frame and cover within the consumer’s budget.

“I am not saying we should sell people inferior frames and covers. What I am saying is the mattress is the most critical part when it comes to long term customer satisfaction,” Bramwell said.
I called a few people around the country and proposed this question. “Of the three component parts of a typical futon sofa sleeper; the frame, the mattress, and the cover, which one do you key on when selling to a consumer? Which one is the most important to the sale?

The answers detailed reasons to support two of the three components, and there was, therefore, substantial support for Bramwell’s theory. As far as covers go most dealers see the cover as a given and therefore not a “critical” component to “the sale”.

There is a mail-in survey card (postage paid) on page 32 of this issue that will allow you to voice your own opinion.
Next issue we will give you the results of the survey and some, hopefully, intelligent commentary.

What can I say?
We’ve got you covered.

Last issue we ran Andrea Mainardi’s story on the state-of-the-industry, regarding futon covers. In preparation for her article Andrea surveyed a list of dealers that consisted of eighty to ninety percent futon and other specialty stores. The results (printed in the last issue and on the web at http://www.futonlife.com/fl/covers.html) painted an encouraging picture. For the sake of simplicity let’s call these results S1.

We also printed a survey card in the last issue to get a broader base for our continued mission of getting our readers the best information available anywhere. The number of responses was disappointing, but they did tell us that among the more traditional furniture stores there is a very different protocol for playing in the futon furniture category. Let’s call these results S2.

When you compare the two sets of figures you discover some very interesting trends. For instance, regarding the question of “best selling” price point, the S1 (specialty stores) results showed an even split between sales of the $75 cover and the $120 cover. On the other hand the S2 (more traditional stores) response was almost four to one in favor of the $75 cover over the higher priced units. How about the customer’s “prime reason” to buy one cover over another? The S1 results said Design and Color ran almost two to one over Price. The S2 numbers were just the opposite, at two to one, Price over Design and Color. As a percentage of total retail sales S1 said covers represented 19.3% of the total, while S2 said 8.57%. S1 results said specialty dealers carried about 600 swatches and 219 finished covers (on average), while S2 dealers showed only 200 swatches (66% less), and only 32 finished covers (85% less).

The bottom line is the more traditional the dealer the less apt they are to commit to a full program. Their smaller commitment to the category results in the minimizing of their success at several levels. The smaller commitment also seems to be based in a “belief system” that rules out the higher price points and other marketing and merchandising tactics the specialty stores use to sell more and earn better margins. Will they ever learn?

What can I say?
The Big One is coming.

The past few years have seen the Specialty Sleep Association and the Futon Association International walking down two separate paths. Today this is changing. The two groups have agreed to show together in Las Vegas this coming March 15 to 18, and continue to dialog about other co-located shows in the future. Many members of both groups see the alternative market (every mattress that is not a traditional innerspring) growing.

Defining some subtle issues may help us understand the dynamics we face as the entire home furnishings industry moves towards some form of consolidation in the future.

1. The Categories: The futon category is very distinct, as an industry and as a furniture product category, from the rest of the “alternatives” and is still emerging as a true, dual purpose sofabed. The other “alternatives” or specialty bedding product categories are each emerging separately. Flotation, air, foam, gel and other hybrids are moving along their own channels and are reaching audiences, both at the retail and the consumer levels, in different ways. Each category is typically a single purpose sleeping mattress and in some cases the vendor has the support of a parent “top four” marketing force, and I mean force.

2. The Associations: The Futon Association has always been futon only, with retail members that cover a broad spectrum of dealer formats, a high percentile being futon or other specialty stores. The Futon Expo has been “the” show for anyone looking to buy into the futon concept. The Specialty Sleep Association has been the association of record for the flotation industry, with an emphasis on recruiting other “specialty” vendors. Both associations are working very hard to bring both old and new friends into their respective folds.

3. The Dealers: Retailers are the key to any growth for either group. But retail membership is only a part of the puzzle. Although existing and new manufacturers are important, the dealer base is the key to any success at showtime. Both Associations are hawking for members in separate recruitment programs. Hopefully, all the members of both groups will be at the single show in Las Vegas.

4. The Ifs: If all the members come, and if they are joined by other curious buyers at the “One Show”, then there will be a “One Show 2” in Orlando. The “One Show 2” will put the two Associations to the test, and the test will reveal if either, neither, or both of the Associations are in it for the retailer. I hope it’s both.