Futon cover Stats: Retail

We did some polling of the leading futon cover and pillow manufacturers and compared these numbers to what we learned from the retailers. We discovered some very interesting futon cover facts.

Futon Cover Manufacturers

We asked futon cover manufacturers what their hottest price point was. Their answers divided this side of the equation into two distinct camps. There is a lower end futon cover camp whose average hot price point is $25 and a higher end camp whose hot point is $55 (these numbers are based on full size futon cover). The same two camps emerged in the answer to the second question i.e. By percentage, what portion of your total futon cover sales are from repeatable stock and what portion are from factory selects (factory selects futon covers are fabrics that are available for a short time or "as is" per availability)? The lower end companies sell 35% from repeatable fabrics and 65% from the factory select futon covers while the higher end companies sell only 15% in factory selects and 85% from repeatable stock.

Futon Cover Retailers.

We asked the futon retailers the following two questions:

  • Of your total futon cover sales what percentage do you sell for less than $75, between $75 and $150, and over $150? The averages broke down as follows: less than $75; 22%, between $75 and $150; 68.75%, and over $150, 9.25%.
  • Of your total futon cover sales what percentage do you sell from in-stock inventory and what percentage from futon cover swatches that, in turn, you have to order for the customer? The averages broke down as follows: 42% from in-stock and 58% ordered from swatches.

The retailers are selling significantly more futon covers (70%) in the $100 range than any other price point. We concluded, therefore, that the sale of low end  cheap futon covers, at least among the futon specialists we spoke to, is a smaller part of their overall business. We also deduced that even when these retailers sell from in stock futon cover inventory they are selling a $100 futon cover seven out of ten times. The other conclusion we reached was that futon manufacturers, in an effort to differentiate themselves from each other by carrying many fabric styles, have given the retailers no choice but to sell from swatches. But as it works out, most futon retailers seem to like this set-up better. It gives them a large spectrum of fabrics to sell from and it keeps their finished futon cover goods inventory investment low.

Bottom line: The better futon covers, both quality and margin wise are dominating sales in the specialty futon shops. There is a distinct advantage for futon cover manufacturers who sell from re-orderable stock since these products (priced from $75 to $150 at retail) seem to dominate retail sales (69%). The jury is still out on the issue what the best overall strategy for selling futon covers is. Retailers seem to be successful with both the in-stock inventory and the special order futon cover method. We think that a balanced approach would work best. Retailers should maintain a substantial inventory of finished futon cover goods in the hotter fabrics, and also offer the wider selections available in fabric swatches.

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