Hearthlist Digest #249 - Monday, January 4, 1999 Happy New Year - State of the Industry by "Craig Issod" <[email protected]>
(back) Subject: Happy New Year - State of the Industry From: Craig Issod <[email protected]> Date: Mon, 4 Jan 1999 11:42:43 -0500 (EST) Happy Holidays and Happy New Year to all on the list. This is traditionally the time of year when Hearth Netheads give their opinions as to the most important trends and events of the last year...and our predictions for the coming one. I'm pleased to be the first to step forward and hold the "talking stick". 1998 - A year of change and growth. Industry consolidation continued. This is a double-edged sword for retailer, customers and manufacturers. On one hand, economies of scale come into play which allow for competitive pricing. Witness Vermont Castings actually LOWERING prices on many of their items. On the other hand, customers of large manufacturers may see a drop-off in personal customer service. No longer are you always talking to someone in Vermont about your "Vermont" Stove. Much of the "pull" of companies like Vermont Castings was that people could identify with the lifestyle, wants and dreams of the founders and employees. This era is slowly coming to an end. Dealers could also become too attached to a single manufacturer. Less choice means that a dealer cannot threaten to leave "x" manufacturer if the service or product is not up-to-snuff. My kudos to companies that can grow and still offer a "down home" level of support to customers and dealers. These are the companies that will stand out in the future. 1998/1999 - The Years of Y2K There is no denying that sales are being generated by the interest in Y2K. In fact, the incredibly warm weather of this fall is the only thing that stopped 1998 from being a record year. 1999 will be different - I predict a BANNER YEAR for retailers and manufacturers alike. Sales and interest have started out VERY STRONG. The HearthNet web site, which usually sees a downturn at this time of year, is instead seeing an INCREDIBLE INCREASE in the number of visitors and amount of interest. Our current statistics show that we are seeing 2500 visitors per day, reading about 20,000 pages/day. This is well over DOUBLE the traffic that we saw at this time last year. I can tell by the tone of the questions that we receive that the new visitors are BUYERS. Many of the visitors are searching our "shops" pages or dealer databases for the dealers nearest them. Here are some recent comments we have gotten from our visitors. "Thanks for your reply, which was very helpful. After the research I did at your web site, and by visiting a local store, I have chosen a wood stove." "I too was bewildered and almost scared of 'stoves' until researching your website, it is extremely thorough" "Great web site!! Lots of usable info!! It helped me find and purchase a replacement stove." "I have read almost all of your 1002 question & answers + Thanks for you web site... it's a great resource" "Thank you again for all your help. Do you know how many service calls we have had without an answer? We are very grateful" As you can see, these customers are buyers and users of hearth products. In fact, they represent a cross section very similar to the customers walking into the average hearth shop. As if Y2K was not enough to drive sales, other factors are also positive. The economy is strong and interest rates remain low. Ice storms in the south showed people once again the wisdom of having a backup source of heating. "Coccooning" the term invented by Faith Popcorn, remains a good description of the trend to stay home and enjoy the fire and other comforts of your house. The only real negative is the incredible low cost of other forms of energy. Oil is actually much cheaper than gas, and less people are apt to buy a stove to "save money". However, the other factors outweigh this small negative. So, lets hear from the crowd. Good or bad year ahead? What are the problems to be solved? ------------------------------------------------------ Craig Issod HearthNet at http://www.hearth.com [email protected] Everything your Hearth Desires ------------------------------------------------------ Buddha says "avoid error" ------------------------------------------------------