The Green Guy
A recognized expert in organic home products.
It's Time for a Wild Ride in Organic Beds!

So, what's going on?  It seems like it's taking forever to get organic bedding products (including mattresses) as well as the prices all going up!  Well, let me tell you, we're in for a wild ride through the rest of 2007 - and here's why:


Organic materials are once again in short supply.  Since the new U.S. federal flame retardant rule went into effect on July 1 and stocks of non-compliant standard mattresses dried up, August saw many consumers "jumping ship" to the organic side of the ocean.  Let's face it, there's only so much organic cotton - and that's where the crunch is. 


Organic companies are small.  There is a reason why mattress companies like Sealy, Serta, Simmons and Spring Air (collectively known as the "S Brands") don't make organics - it's a specialty market, the controls are higher and the learning curve is beyond them.  So, organics are made by smaller, family owned companies.  Yes, even Vivetique, Natura, Land and Sky and Royal-Pedic (just expamples, there are MANY more) are family owned and operated.  It's harder for them to handle growth and supply issues, so that just adds to the time it takes to get products.


The dollar is declining - fast.  I could go into a whole discussion about the housing market and the broader U.S. economy, but that would be boring.  The bottom line is, much of the better organic raw materials are funneled through Europe or European sources - which means paying in Euros, which are much stronger than the dollar.  The Canadian manufacturers (Natura, Sleeptek) who sell to U.S. dealers/customers have taken the biggest hit here.  This is squeezing manufacturers to the point of the following:


Prices are going up on organic bedding products.  There's no denying it - and it's happening fast.  Land and Sky, Green Sleep, Sleeptek and Natura have all announced varying degrees of price increases taking effect next week.  In fact, Land and Sky's initially proposed price increase was so obscene that some dealers were ready to jump ship.  They've calmed it down a little bit, but it's still the most dramatic price increase on a single brand in the industry for the past 3 years.


So, what does this mean to you?  It mean's you're going to be paying more, it's going to take longer to get if your dealer doesn't have it in stock now, and the price separation between organic and standard that had almost disappeard is going to be back (unless you compare against Tempurpedic or Select Comfort, at which point organic is probably still less).


In my humble expert opinion, it does not look rosey out there for organic mattresses this fall and coming winter season (traditionally the busiest time).  We are in the throws of a major credit crunch here in the U.S. which is causing consumers to better evaluate every major purchase.  The only bright spot is going to be bedding (pillow, sheets, etc.) as people look to satisfy themselves organically by plastering all types of organics on top of their standard, chemical filled beds.


In times like this, people are usually less likely to move and more likely to improve their existing living space.  Unfortunately, it's the financing of the living space that is the problem.  Over the last 5 years, banks and finance companies (yes, and even furniture stores) have trained people to tap their home's equity in order to finance major purchases and projects.  That's not going to happen now as their home values are declining at the fastest rate in 37 years (Source:  2nd quarter housing data, U.S. Government). 


So take this recipe of declining consumer sentiment, less credit to tap and rising prices and you've got some worried folks on the horizon.  The only good news in all of this is that the smaller, family owned companies are also quite flexible and can make quick decisions on a dime (that is - if they want to!).  If these were the S Brands, churning along like the gigantic corporate machines that they are, they probably wouldn't be recognizing the issue until sometime next year. 


In any case, if you read this before October 1st and were sitting on the fence waiting to see if a sale was coming, it isn't.  Since many of these increases were just announced (some as recent as this week - last week of September), it's going to take time for dealers and retailers to adjust.  Get in while you can!

2007-09-27 19:11:13 GMT
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