Domestic futons vs. Imports

by Joe Tatulli

In futon industry that has thrived on imports, Big Tree has chosen another path to success. "We all grew up in the import business," said Glade, who added that it would be very easy for Big Tree to go the import route. "For the last five years, I went to Taiwan six times per year," said Pecoraro. Yet Big Tree remains a domestic-only futon frame manufacturer. "When you look at both worlds, importing vs. making it yourself, making it here is just plain easier, if you have the capability to do it," said Glade. Pecoraro pointed out that the frustrations of missing parts, shipping delays, and long distance quality control are all eliminated by making futons right here at home. "Yeah, those import price points look real good, but the benefits of making it here in California vastly outweigh any advantage those points would give us in this current marketplace," said Glade. "Futon marketplace which seems to be moving towards a higher quality, higher price level at retail," added Pecoraro.

Futon Sets One Stop Shopping

This past March Big Tree began the process of becoming a full futon program manufacturer with the introduction of The Big Sleep, their own futon mattress manufacturing company. The Big Sleep manufactures a complete line of futons and futon covers at its own plant in Los Angeles, CA. "Our futon production includes a number of SKU's for both the Clubs and our more conventional furniture and bedding customers," said Glade. "This futon mattress manufacturing capability also allows us to offer our dealers a great cost savings on freight when they combine futon furniture and futon mattress orders," said Pecoraro. The company is just coming on line and intends to be a major supplier of high quality futon mattresses to both specialty stores and the many conventional furniture stores now jumping on the futon band wagon. "We have some real surprises for the industry," said Glade, who added that The Big Sleep will be introducing a higher-end futon line in the upcoming year. Big Tree is also very excited over the recent addition of two industry veterans, Bruce Sheppard and Stuart Greenberg, to the team. "Their experience in futon field has already proven to be invaluable," said Glade. Glade also praised Mark Mandale, the company's new production manager, and design engineer Mr. Oh, who have already brought the company up a couple of notches. "Let's not forget to mention our shipping manager Ron Kim and our great office staff: Norma, Chris, Diana, Jennifer and Tammy who have been able to stay normal during our tremendous growth," added Pecoraro.

"The struggle for us is convincing new futon retailers to make a commitment to a comprehensive program," said Pecoraro. "Many of the futon dealers we are calling on now want a futon frame on the floor so they can say they have a futon. Our challenge is to show them that the potential for this product, as a stand alone category, can only be realized when they show room groupings in a gallery setting, " said Glade. "We are now poised to give them a genuine good, better, best program," said Pecoraro. "With six futon frames and several futon mattresses all made right here in the United States," added Glade.

My visit to LA convinced me of several things. First, Big Tree is poised for big things and they've only just begun to scratch the surface. Their futon furniture plant is well equipped and their production management team is intent on delivering subtle improvements to an already fine line of solid hardwood futon in oak and alder. I am excited by the fact that they have made the choice, i.e., the capital investment, to be a domestic manufacturer. This shows a depth of commitment that only a handful of other companies can say they have made. Second, Big Tree has either by design or providence maintained a wonderful balance between sales/marketing driven decision making and the more linear cost/production side of the success equation. Glade spoke of the great working relationship he and Bob Pecoraro, and their other sales associates, have with owners Raymond Kim, Young Lim, Sr., and General Manager Young Lim, Jr. This balance allows Big Tree to produce what their dealers want and need, quality futon furniture on time and on target. With all the right pieces in place, Big Tree has definitely built a great foundation for a great future.