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Mattress warranties hot topic at conference

By Larry Thomas -- Furniture Today, April 9, 2006

Henderson, Nev. — Although mattress warranties didn't appear on the agenda of Furniture/Today's first-ever Bedding Conference, the topic clearly was top of mind.

Several speakers identified warranties as a key issue facing the bedding industry, while others used their time at the podium to push for a reduction in the industry-standard 10-year warranty.

"The customer loses and the retailer loses in our current system," said Barrie Brown, president of Top 100 retailer Mattress Giant. "But I don't think there's the will to make the change."

During an address kicking off the second day of the conference, Brown pointed out that no other big-ticket consumer product is covered by such a long warranty. Plasma TVs typically have two-year warranties, while a $30,000 car usually has a three-year warranty, he said.

However, virtually all mattresses have 10-year warranties and those covering some specialty sleep products are as long as 20 years.

Brown chastised bedding manufacturers for not having the courage to shorten warranties.

"The standard answer from manufacturers is that they're waiting for Sealy to make the change," he said, referring to the industry's largest producer. "We're like a bunch of lemmings waiting for Sealy to change."

During a panel discussion the day before Brown's presentation, representatives of several leading producers said that, from a competitive standpoint, it would be difficult to shorten warranties if Sealy does not.

"There's not a person in here who wouldn't like to see them (warranties) at one year, but the reality is that we're also competing against Tempur-Pedic and Select Comfort and all the rest," said Larry McKay, president of Comfort Solutions by King Koil.

Spring Air President Jim Nation was more blunt, putting the blame squarely on Sealy.

"The problem with warranties is not the people sitting at this table," he said, referring to fellow panelists representing Simmons, Serta, Comfort Solutions and Therapedic.

(Sealy, which is preparing to go public, opted not to participate in the panel discussion because it is in the midst of a "quiet period" mandated by the Securities and Exchange Commission, which prevents them from talking about their business.)

Most panelists said a warranty of one to five years would be appropriate for a mattress.

"Five years is about right. I'm not sure one year would be enough," said Nation.

Therapedic President Gerry Borreggine, however, said the industry is "misleading the consumer" and that even one year is too long for him.

"I have always felt that warranties should be measured in months, not years," Borreggine said.

Two other panelists, however, said retailers must at least share the responsibility.

"I don't think the warranty is a manufacturing issue at all," said Bob Sherman, president of Serta. "It is a retail issue. The largest retailers can control what happens."

Simmons Chairman Charlie Eitel said shorter warranties would give retailers the opportunity to sell extended warranties — a major profit center for consumer electronics and automobile dealers.

"It is an opportunity for the retailer to take charge of the risk and possibly make money on that risk," Eitel said.

During his presentation, Brown said he agreed with that sentiment, and said his company has successfully experimented with extended warranties on floor samples, exchanges and other products not covered by the manufacturer.

The mattresses covered by the extended warranties, he told the audience, have warranties of one to five years, depending on the price point.

Since Mattress Giant started the program three years ago, Brown said, the effort has generated an additional $20,000 a month in revenue — and resulted in only five warranty claims.

"It is the most profitable thing we sell in our stores," he said.

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Mattress warranties hot topic at conference

Apr 13, 2006

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