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Retailer says I went too far in touting 1-year warranties
Did I go too far with my recent call for a move to one-year manufacturer warranties on bedding? (See related column.) Some of you, my faithful readers, believe I have. A number of you have said that it would be more realistic to move from 10 years to five years, rather than ratchet manufacturer warranties all the way down to one year.
Michael Bloss of PM Sleep Center in Eau Claire, Wis., is one retailer who makes that point. In the interests of keeping the dialogue going on this critical issue, I share his letter with you:
“I own PM Sleep Center. I have been in this business for 35 years. I have sold every major mattress brand and many minor brands during this period. For the 35 years I have been selling mattresses, the issue of warranties has been addressed many, many times. Most major manufacturers have successfully reduced the warranties from 20 years to 10 years, but many minor manufacturers still offer warranties up to 20 years.
“If manufacturers reduced warranties to one year, majors would lose a substantial market share. I don’t think major brand recognition will overcome the lack of warranty protection. A more realistic goal would be to reduce the warranty to five years on top-of-the-line mattresses.
“I think the minor manufacturers would reduce their warranties to 10 years. I believe customers will still purchase the major brands even with this discrepancy of warranty coverage.
“The real issue that I am facing in the market is ‘comfort guarantees.’ The cost of these warranties is borne by the individual retailers. If major manufacturers want to really stand behind the dealers they should couple a reduction of warranty coverage with a plan to support retailers in the case of a comfort guarantee claim.
“If you know a manufacturer who would significantly support us with a ‘comfort guarantee’ program, let me know. I will find room for his product on my floor.”
Thanks, Michael, for your letter. I would say, in gentle response, that my call for a reduction of manufacturer warranties to one year is made with the idea that retailers would then sell extended warranties to consumers who want them. A consumer could wind up with a five-year warranty, if she wants one.
I would also say that Michael offers an interesting invitation to bedding producers. Do I hear any takers for his request for a comfort guarantee program?
I appreciate the time that Michael took to write me that letter. I close with a point I repeat often: I always welcome your calls, letters and e-mails. This is not “my” bedding column. It is “our” column.
Dave Perry commented:
Dear Retailer: Well said! You make some excellent points. Why are we making our life more difficult by making comfort returns easier?-Dave
Retailer commented:
In an industry that produces one of the lowest EBITDA's around, why would we not think about reducing warranties to 1 year with an option to sell an extended warranty and actually put some dollars to the bottom line. I am not a fan of manufacturers supporting the comfort guarantee, because it not only makes it more expensive for our partners, the manufacturers, but also more expensive for us, the retailer. One of the biggest obstacle we face in furniture retail is to make a sale and keep the product in the customer's house. Why would we want to offer something that would go against this concept? I don't know about you, but one of our largest costs is delivery and by no means do I want to be sending out trucks to pick up comfort guarantees. I think the industry, in particular the manufacturers, should focus more money on technology and training, so that we, the retailers, can be confident that we helped our customer make the best decision the first time.
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