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 (ready to assemble) 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 futon 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 futon 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 futon 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 futon 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.

FL