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RETAIL PERSPECTIVE
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by Dave Garretson
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Futons on the Net
A look at Futon Furniture Web Sites
Like everything on the world wide web, the
cyber futon business is exploding, climbing upward, upward,
upward. If you havent tried it already, see what comes
up when you look for futon at your favorite search
engine. When this was written in late January 2000, we found
128 sites at Yahoo and 245 at AOL Search. What numbers would
you get now? Go see for yourself. The number you find today
will be higher, probably much higher, just two months later.
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Gary Chase of www.furniturechannel.com |
David Daniel launched his company, Quality Design, and his
site, www.futon-covers.com, at the same time in October 1999.
My goal was to make $2,000 profit per month, said
Daniel. Well, in the first month I made $3500 profit,
the second month $4400, then $5800, and it keeps on going
up.
I never knew what a futon was until I worked here,
said Daniel, referring to Sleep Zone, a bricks and mortar
retailer, in Johnson City, TN. Daniel, twenty-five, has worked
in the store two years.
Mark, the owner of Sleep Zone, has been very supportive.
Hes got his own site selling airbeds, and he hosts my
site, said Daniel. The idea of selling futons
or covers on the internet intrigued me. I researched it on-line
and jumped in head first. I lined up suppliers, bought Microsoft
Front Page, put the whole thing together myself, didnt
pay a dime, and here I am. I show about a hundred premium
covers and a dozen solids on my site.
Bryce Nord started his web site, www.mrfuton.com, at about
the same time, but he had a different objective in mind. I
set out to provide an on-line brochure to support my store,
he explained. Nord owns Futon Furniture & More in Annapolis,
MD. Im getting fifty hits a day, and I cant
imagine getting fifty visitors to my showroom every day.
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David Daniel of www.futon-covers.com |
At present, Nord has no intention of selling on-line. Futons
arent packed for individual shipment, he said.
The odds are that the customer will end up receiving
a box of sticks. Some customers will buy on-line, but thats
a small percentage. Most people want to see it and feel it
and test it. I encourage on-line shoppers to buy locally.
Its your money, and I think its best spent where
you live.
John Reynolds agrees. Www.ntxmattressfuton.com is the web
site for his store, Texas Mattress & Futon, in Arlington,
TX. We sell in the local area, and thats it,
he said. Its not really practical to go further.
Weve sold a few covers, and frames a little bit in-state
where I know what it costs. I get e-mail from Florida and
New England begging me to sell them something. But with three
hundred dollars shipping cost, itd be suicide for me
to do it.
Jeff Ainsworth of J&M Futon in Greenfield, MA, has found
a way to ship long distances. Everything he shows on his web
site, www.bigfuton.com, is UPS-able. My web site mirrors
my retail store, he said. Customers nearby can
see what we sell, but the web also broadens our geographical
reach. We can ship anywhere in the U.S.
At The Futon Shop in California, Suzanne Diamond reports
that their web site, www.thefutonshop.com, is doing an equally
good job of driving local business to their eighteen stores
and creating new business nationally.
We started with it three years ago, and now were
doing $60,000 to $90,000 on-ine, said Diamond. Half
of that is local. They order on-line and pick up at a store.
The other half are shipped out. You wouldnt believe
how much we ship to the east coast!
The key to our program is that we call each on-line
customer from one of our stores, to confirm the order, answer
questions, make sure theyre getting the product that
suits them, and of course, to upsell them if possible. Our
average internet sale is $700, which is better than we do
in-store.
At Zenkura in San Diego, CA, Bob Loop was slow to embrace
the internet. He launched his site, www.zenkura.com, in March
1999. Im an old dog learning new tricks,
said Loop. Two guys came in to buy a futon, and persuaded
me to let them develop a site for me. Why not? I really didnt
think anybody would buy on-line from us, but I figured wed
give it a try.
Its the most rewarding phenomenon Ive
experienced in my twenty years in this business, said
Loop. Weve sold our futons to customers in Florida
and New York, and Ive met wonderful people. So far,
its been a thoroughly delightful experience.
At first, we didnt get anywhere, nothing happened.
Then I bought a banner on the Futon Life web site, and that
got us rolling. When the first order came in, I thought someone
was fooling me! From there we did more and more, expanded
and upgraded, and now Im stoked on it.
Zenkura offers free shipping anywhere in the U.S. except
Hawaii. As the manufacturer of both the futon mattress and
frame, Loop was able to find a workable price point. The
trick was to avoid making the on-line price so low that my
wholesale vendors would be upset, or so high that it might
hurt local business at my own San Diego stores, by making
us look too expensive. Nothing goes out by UPS. We superbox,
palletize and wrap, and above and beyond that, if we make
a mistake or damage something, Im willing to eat it.
Why do customers buy on-line?
Its not for bargains, said Loop. By
the time you factor in shipping, most people will not save
money buying on-line, not on a futon. These are people who
simply dont want to take the time to go out into the
real world and go shopping.
Allen Hyduck of Fantasy Futons in Mesa, AZ, agrees. They
sell and ship across the country, to customers of their web
site, www.futons.net. On-line customers are time savers,
or maybe they dont like talking to people, said
owner Allen Hyduck.
Sometimes it can be a time-saver, too. Maybe the wife
does the shopping and has trouble dragging her husband back
to take a look at what she picked out. Now he can see it on-line.
I think theres a good reason we sell futons
all over the country, said Suzanne Diamond of The Futon
Shop. Many people live in smaller communities, and theyre
just not finding ample selection. For them, its not
about price, its about finding what they want.
Theres a difference between an on-line shopper
and an on-line buyer, said Pat Dortch of Beyond Futons
in Charlotte, NC, www.beyondfutons.com. If they find
what they want at the site of a local retailer, thats
where most people will buy.
Initially, our intent with the site was to allow someone
an hour away to pre-shop us. Many of our customers surf the
net for futons. They come in here talking price, but most
of them buy from us because were local, theyve
already done their shopping at home, and they know exactly
what they are getting.
People will call me from their offices with questions,
while they are looking at our site, said Paul McNamara
of Waterbed Gallery in Ottawa, Canada, www.waterbed-gallery.com.
Theyll walk into the store with print outs of
our product photos. Its like a silent salesman for the
store.
We do it to give people an idea of what we have in
our stores, said Steve Wolf of Croydon Mattress Factory
in the Philadelphia, PA area, www.croydonmattress.com. Many
people mention it, and we often see people coming in with
pictures theyve printed out from the site.
You can see our store without leaving your house,
said Theodore Casparian of White Lotus Futon in Princeton,
NJ, www.whitelotus.net. Our goal on the web, however,
is primarily to sell globally, and secondly to promote the
store. People who find our site will see a product that cant
be found anywhere else. Weve had significant sales that
would not be made any other way, at a cost that is not that
great.
If you are not interested in selling beyond your local area,
the internet may be a nuisance to you. It never fails,
said Greg Bertholf of The Futon Company in Eynon, PA, www.thefutonco.com.
Ive got a store full of customers, maybe Im
here by myself, and some guy calls from Arizona to talk about
futons for a half hour. He saw our web site and he has questions.
Ill never sell anything to him, but there I am stuck
on the phone and I run the risk of losing the customer in
my store.
It does what its supposed to do, said
Jan Stone of Cottonwood Futons in Madison, WI, www.cottonwoodfutons.com.
We developed it for local area consumption and kept
it frankly very simple. I was afraid Id end up with
another master to serve. Now, I must admit, I am thinking
about upgrading it and expanding our geographic reach.
I was one of the first futon stores on the internet,
and Ive got one of the lousiest sites imaginable,
said Oubay Chebib of Fabulous Futon Factory in Winnipeg, Canada,
www.futon.mb.ca. We had no pictures, no text, no nothing.
Despite that, weve been selling a fair amount of product,
especially into the U.S.
I speak to each customer on the phone. Actually, thats
the only way they can get any information, because theres
nothing on the site. Boy, have they given me grief about how
terrible my site is! Well, our new site is ready to go, and
I think itll smoke anybody else out there. I want to
see eighteen to twenty three percent of my business coming
from the web.
Chebib is using an outside consultant to develop his new
site. Most of the retailers in this story developed their
sites informally. Typically, the sites were originally designed
by customers, relatives, or staffers. Do-it-yourself software
is available. A few used professional site designers or ad
agencies. Also, weve identified two services that specialize
in creating futon sites (see related story).
So, is a web site a worthwhile venture for every futon retailer?
Im shocked that all of my competitors are not
already on-line now, said Paul McNamara of Waterbed
Gallery. They dont understand that a futon buyer
is typically an on-line kind of person.
Its the least hassle of any advertising we do,
said Steve Wolf of Croydon Mattress Factory. If you
want to change it, its done within hours. No lead times
like in our other advertising.
The web is a very important part of the future,
said Suzanne Diamond of The Futon Shop. Customers in
remote areas are now tied into Planet Earth. They have access
to us, and we have access to them. Bricks and mortar retailing
will still be the most important thing to us, but I honestly
dont think you can be successful without a web site.
Not any more.
By all means, do it, everybody in futons should get
a web site, said Allen Hyduck of Fantasy Futons. Even
if its just a simple page that says here we are,
come see our store. Why not?
Your Futon Hits Parade
While youre on-line, take a look at these sites too:
www.futon.org This is the consumer site of the Futon Association,
and it gets about 5,500 unique hits per month, mostly from
the general public looking for futons. Even if you dont
have a web site of your own, buyers can find your store on
the web at this site.
The listing costs $25 annually, extra for additional locations.
The service is only available to FAI members. Membership dues
are $125 per year for retailers. The listing includes your
store name, address, phone, and street map. If you have a
site, your listing includes a hyperlink at no extra charge.
Details are available at the Futon Association members
site, www.futon.org, or by calling 800-327-3262.
www.futonlife.com This site is a service of Futon Life,
and it gets about 7,000 unique hits per month. This is another
site that will enable you to be listed on the web. Customers
find you by specifying a zip code or state. Your listing here
is free. All you need to do is fill out an on-line registration
form.
You can get higher profile on the site for a small fee.
For $10 a month, you can get a textual listing with a hyperlink
to your own site. For $20 a month, youll be listed with
sites that sell on-line, also with a hyperlink to your site.
Banners are also available.
If you dont have a web site, futonlife.com can also
create and host a web page for you. Details are available
at the site or by calling 401-351-0787.
www.furniturechannel.com This site is for local retailers
who want to compete against the dot.com retailers,
and it gets about 50,000 hits per month. It combines local
furniture retailers with on-line catalogs of manufacturers.
President Gary Chase is a long-time futon marketer, and futons
are among the products featured at this site.
Were the FTD of the furniture industry,
said Chase. The local retailer can sell on-line without
worrying about logistics, because all deliveries are local.
Your monthly hosting fee of $49 includes listing and web
site creation. There is also a small commission for on-line
sales. Customers find you by specifying a state or product
line. Details are available at the site or by calling 800-826-8868.
FL
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