The Problem With Bedding Warranties

All products have warranties, but ours are out of the ballpark compared to other big- ticket items. Why do bedding manufactures give such long warranties? The short answer is - because they can.

Mattresses are very well made products and are unlikely to have a true defect. In addition, most true defects appear in the first year or two. We really do use warranties as a tool to imply credibility and reflect quality. Some less well know brands give even longer warranties for that reason.

The Current System

This current warranty system has created increasing incremental problems though. Unfortunately there's been a tolerance or acceptance of these problems, written off as the “cost of doing business.” Here's the hard cold facts - customers don’t like buying mattresses, they resent having to, and they're not anxious to go through the process again anytime soon.

Long warranties seem to give that assurance. Neither manufacturer nor retailer will ever get a “leg up” on their competitor with the product itself. We operate with such limited parameters (mattress, foundation, wood, steel, foam, fibers, fabrics) that there is nowhere to go. We can’t make them wider and longer. New sizes are not in demand, i.e. Olympic Queen. So what are we to do?

Don’t get us wrong, today’s products are terrific, but from the eyes of the consumer,a bed is a bed is a bed. Few are impressed with the latest fiber technology when cars come equipped with talking GPS systems.

Warranties have not always been such a problem though, so what happened? Here are some of what we think are significant contributing factors:

Consumer Perspective

It’s the consumers’ fault. We're all consumers, so we are all guilty. It’s just human nature that we prefer to buy and do things we want as opposed to the things we need. When we do shop for a “need” product our attitude is:

“As long as we have to buy X, let’s make sure we get our money’s worth and also get reassurance that we don’t have to go through this process again anytime soon.”

We use our intellect, logic and reason to discern value. Sales training for many years was reactive in response to this attitude. Since the consumer is seeking value, let’s teach sales associates how to demonstrate it. Cost justification if you will.

Warranties have been used as one of the primary tools to establish value even if by implication. Five years: good, ten years: better, Infinity: “I’ll take it!”

Consumerism

We do not live in a vacuum and you can't effectively evaluate the problem of warranties without considering the larger context - the world of the consumer. Life today in North America, can be described as affluent - most peoples’ basic needs are met. Consumers have the disposable income to buy and do the things they want.

This environment has spawned an explosion of products and services and a proliferation of choice. Consider the high tech industry as an example. Consumers’ thoughts dwell in the realm of dreams and desires for the things they want to have or do.

We as an industry have to understand that this mindset has a negative impact on us. Many consumers are disappointed that dollars earmarked for dreams have to go to something as mundane and utilitarian as a mattress.

This creates the Needs versus Wants Paradox: where in an affluent society, there is a diminished sense of value for the things we need and depend upon most. This is why selling mattresses can be so challenging.

Competition

A share of $10 billion is worth competing for and there is no shortage of willing participants. The most aggressive of all competitors has been the specialty sleep shops. They've garnered a significant slice of the market causing the home furnishings and department stores to ratchet up efforts to get their share.

This increase in promotion and advertising has sparked the awareness of consumers. It’s a buyers market and empowered consumers go on a mission to seek out that elusive best value. Increased competition has also lead to longer retail hours. Most mattresses are sold when the majority of people are off work: evenings, weekends and holidays. It is not surprising that there is a significant turnover rate of retail sales associates.

Inexperienced sales associates lacking selling skills tend to take the course of least resistance by using warranties and comfort guarantees to make sales, cutting short the selling process. Consumers have an “out” increasing the likelihood that they may select a bed that they may be dissatisfied with.

Effect

Let’s now consider the negative impact on the various aspects of the industry and the parties that are involved.

Consumers are not happy with our warranties.They equate warranty life with comfort life causing them to keep mattresses too long. Expectations are not based on reality. Not understanding what warranties really cover, many if not most complaints are not for true defects.

Some legitimate complaints are voided because of stains, inadequate frames or abuse. In any case, if the complaint is denied, consumers think we are not living up to our commitment and they are not willing to take no for an answer. Feeling the pressure,retailers are taking them back at an alarming rate.

Can you name another industry that is so willing to take their products back? What is especially troubling is that even with this “open door policy”, consumer’s object to having to pay transportation costs in spite of the fact that they are getting a brand new product, in some cases several years after having purchased the first set. Some customers get multiple sets.

Damage to the Industry

Manufacturers want to sell beds, not take them back. In spite of the great advances in the product, the warranty system is antiquated. It's a shame to consider all that's involved in bringing a finished product to the point of sale only to have it returned for disposal.

It is probably impossible to calculate what the current warranty system is costing the industry. But there's no doubt that much of it has been passed along to the consumer and the rest has resulted in lower profits. The most damaging effect of the current system could be that it's tarnished the industry in the eyes of the consumer. All one has to do is look up “mattress complaints” on the Internet to see evidence of this. It is an “us versus them”mentality. Consumers think we are conspiratorial and that we don’t live up to our commitments

Solution?

So what's the answer? A comprehensive approach should be taken to address issues related to warranties, namely body impressions, comfort guarantees, and stains. These are key issues that cause the most angst to our customers and consequently to ourselves.

Further Suggestions

Here are a few more suggestions:

• Shorten Manufacturer Warranties
  This would open the opportunity for retailers to offer an “extended or enhanced warranty” (at an additional price) – providing the financial resources needed for retailers to accommodate the return of mattresses under appropriate terms. People don’t mind paying for extra services when they buy tires and many other products. In fact many consider it an investment that has real value because it gives them added protection and peace of mind.
  
  
• Make Changes to Comfort Exchanges
  This may be a worse problem than warranties in that manufacturers have no policy to take them back, nor should they without some compensation.There needs to be an agreed upon policy between manufacturers and retailers on what to do with the products that get returned. Comfort exchanges could be apart of the “enhanced” warranty mentioned above. It is not unfair to expect consumers to bear some of the burden if they are returning a product without any real defect.
  
  
• Better Educate Consumers About Body Impressions & Stains
  Solicit the help of the Better Sleep Council to educate the consumer about body impressions and warranties before they shop. We also need to provide better training for sales associates to more effectively address body impressions and warranty issues in a preventative manner with consumers.
  
  Very few customers are either aware of or understand the policy around mattress stains.

Now is the time to “right our ship” and fix these problems that burden our industry and alienate our customers. It would be a good first step in rehabilitating our image to where it should be in the mind of the consumer: as an honorable, respected and trusted supplier of products that enhance the quality of life.