New Survey Shows Growth For The Future

Over the years (starting in 1991) we have made it a priority to design, produce and publish the results of our own home grown surveys for the industry. Those numbers will continue to be published. Yet there has always been a desire to see an alternative third party survey be produced. Several years ago the Futon Association made an attempt to get it done. Unfortunately, Association Research, the firm hired to make it happen, was unable (even with the help of several influential industry players) to deliver. The reason was a lack of participation. That survey did ask manufacturers to reveal unit and dollar numbers which many were unwilling to disclose.

Since that time there has been nothing done to get this project revived, that is until now. Several months ago at a meeting of the Futon Association Board of Directors, Pattie MacMillen (FAI President and owner of Ecin Industries in Fall River, MA) told the board about a student run program at a local branch of the University of Massachusetts at Dartmouth. The Slades Ferry Bank Business Research Center at the University, run by Nora Gamin Barnes, Ph.D., employed students matriculating at the University’s Charlton School of Business. Under the direction of Dr. Barnes teams of business students would take on survey projects for just about any situation. Pattie and I went to meet Dr. Barnes and we discovered a real gem. The program had done research for numerous clients including companies like Scott Lawn Company (the grass seed people), JC Penney, Alpert’s Furniture, the Cranberry Industry, several municipalities, banks, manufacturers and retailers.

The survey project was accepted by the program’s director and we set out to help create the survey instrument. Since this would be the first survey of its kind produced by the Association we decided to look for benchmark numbers in the following areas: kinds of stores that sell futon sleepers; how much business those stores do; what price points sell best; shopper demographics; and some correlations between the different results.

During the months of September, October and November our student team conducted hundreds of telephone interviews from a master list of furniture retailers representing a broad spectrum of stores. They called specialists and full line stores, and stores of every size in the spectrum. The study is valid at ±3%.

The results of the survey were delivered at a presentation event in December (the 13th). These results were made available to all FAI members that week, and a summary has since been released to the trade and business press. Here are a few of the highlights:

• Ninety-three percent of stores sell futon sleepers
• Seventy-nine percent of stores sell futon sleepers for more than $301
• Forty-two percent of stores sell futon sleepers for more than $451
• Seventy-nine percent of stores see the futon industry definitely or probably growing in the future
• Consumers over the age of forty are spending up to $750 for a futon sleeper

Bottom Line: The results of this new survey confirm many of the numbers published here. At the same time they portray a very different picture than some of the numbers published in Furniture Today. Their (F/T’s) consumer perception number, which stated that the mean average of what consumers expected to pay for a futon ($200), could be a number that reflects not what furniture retailers are actually selling but what is perceived by consumers who make these determinations based on advertised prices not on an actual shopping experience.

Land of the Free and Home of the Brave

This March (21 to 23) the industry will assemble its best and brightest in Philadelphia. Why Philly? Not to mention the 40 million consumers and thousands of retailers within a day’s drive, and the fact that several major players have new national distribution centers focused into the area, would be pure folly. The Association has also made a major effort to promote the event by distributing over 100,000 8 page brochures touting the show in four of the major trade journals that serve the furniture industry, and a direct postcard campaign to the region as well.

In the midst of all this hoopla and excitement comes the unfortunate press release from the SSA. Their release said they made a unanimous decision not to participate because of High Point Pre-market, yet they are still taking space at the show. Can someone say, inconsistent? Was there really a pressing need to to tell the world about a withdrawal of support? Its like telling the world that you are not going on vacation this year because you’re broke.

The real shame is that when Furniture Today printed their story headline on the cover (11.17.03) it sounded like FAI was teetering on the brink at the news, when in reality they had already made the adjustments necessary to move forward and keep specialty sleep in the mix.

The story itself was great and mentioned comments by FAI President Pattie MacMillen stating her concern with the message being sent by SSA to its members. The fact remains, FAI’s 20th Anniversary Show will be a huge success just like all the others.

The funny thing is FAI announced that their show will be in Las Vegas in 2005 over a year ago, and with all the changes happening there (see related story on page 8) who knows, maybe we will all be back together again. Gotta love it.

Mayor Laffey Update

Everyone loves the holidays, or so thought Mayor Steve Laffey when he offered private citizens the opportunity to put up their favorite holiday displays on the lawn in front of City Hall in Cranston, RI. “This property belongs to the taxpayers,” said Laffey. And they came. First was a large Menorah to celebrate Chanukah, then came Santa, and Frosty the Snowman. Then a beautiful, almost full size Nativity scene was installed by a resident.

Then the Grinch showed up. Steve Brown, a lawyer with the American Civil Liberties Union (ACLU) had some problems with the Nativity scene and wanted to protect the rights of those who don’t like the mixing of church and state. Mayor Laffey was quick to point out that private citizens put the displays up, and that all are welcome in Cranston. “Like the Grinch, I hope Mr. Brown’s heart grows two sizes today,” Laffey said.

But this was a light moment during a month that saw the effect of reforms the Mayor had made that will save the City over $300 million over the next forty years, and the completion of an unqualified audit (showing a small surplus) on time and with no recommendations for the first time in maybe thirty years.

Like the Bumble, in Rudolph The Red Nosed Reindeer, Cranston has a sore tooth.

Fortunately Mayor Steve Laffey has a knack for painless extractions. More battles face the feisty CEO but he is a match for them all.

Oh yeah! And on top of all this the Laffey’s added a new baby too. Audrey Elizabeth Laffey was born to Steve and Kelly on November 26th the day before Thanksgiving.

The Mayor was scheduled for some face time with Bill O’Reilly Christmas week to discuss the progress in Cranston. Who knows, by the time you read this Cranston may not have the lowest bond rating in America. Go get’m Steve!

What’s the Buzz?

Function Style Value- What makes a buzz word a buzz word? And who says when its buzz or hype? The two buzz words I have been hearing most often in relation to the furniture biz these days are comfort and fashion. With the advent of HGTV and shows like Trading Spaces and Queer Eye for The Straight Guy everybody’s a “dezynah” on a budget these days. Personally, I say comfort rates and fashion bites.

With futon sofa sleepers the buzz words all fit. Comfort, function, style, versatility, and value are all benefits realized by your customers and are the reason you should be carrying the category in your store or stores.

Can You Say, Football and Bambino?

By the time this book hits the streets in San Francisco the New England Patriots will have made their way through the playoffs and be headed to the SUPER BOWL for the second time in three years. They will beat the tar out of the Philadelphia Eagles (or whoever) in Houston, a team they crushed way back in week two. Also, with A-Rod, Curt Schilling, Keith Foulke, and Magglio Ordóñez now in Boston with the Red Sox (am I dreaming), 2004 could be a huge year for the New England Sports Nation, of which I am a loyal citizen. FL

To obtain a copy of the FAI Survey go to futon.org and join today.—Editor

FL