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Tom Russell

Metal beds makers fight back on pricing

Metal beds importers and manufacturers want retailers to know they aren’t taking the onslaught price increases in steel and other raw materials lying down.

Many are working to limit increases in their own prices to retailers through efficiencies in their operations. Others are considering changing source locations to secure better pricing.

For many, it’s a fine line between using more materials like wood in the finished product, without giving retailers the idea they are abandoning the metal category altogether.

In recent years, importer Fashion Bed Group has added more wood and wood-and-metal and models to the line. Still, metal beds remain a core of the line.

To limit the effect of raw materials price increases, Fashion Bed is looking at changing suppliers in and outside of China to get the best deals on finished product. It also is studying its current distribution network to create more centralized warehousing opportunities that help bring the finished goods closer to the customer base.

Manufacturer Corsican will soon offer five main finishes on eight twin beds in the line, versus the more than 100 finishes now available. The change will enable the company to perform larger production runs on these models. When it takes effect in July, the program will effectively lower the wholesale price of one of those beds from $600-$700 to $350-$475.

Manufacturer Wesley Allen says it works closely with its suppliers to make sure it is getting the best deals on raw materials.

“They have been very good at helping us save money,” said Wesley Sawan, director of private branding. “They work closely with us to find alternative sources of steel that does not compromise the quality of our product.”

Sawan said the company also plans to reduce overhead through a new computer system it expects to have in place by January. He said it will help the company process orders more quickly, automatically invoice customers, and better manage receivables.

“It’s better for us to do things like this on the inside rather than raise prices on the outside,” Sawan said.

Elliott Jones, president of manufacturer Elliott’s Designs, said he had not raised prices in at least two years before a June 1 increase of 10% across the board.

Jones said the company has absorbed price increases in the past couple years on materials such as steel rods, which have risen to $75 per 100 pounds from about $30 per 100 pounds during that period.

“I think the fact that this was our first price increase (in that time) was the best anyone could expect,” he said. “We held off as long as we could, but we can’t continue to lose money.”