Production was started in 1973 and marketing began in 1983. At first, many people were skeptical about this attempt to compete with the booming American market on the basis of material costs which were about three times higher and wage costs that were four times higher. Soon, however, people were surprised to see that the importers themselves were turning to the company for consulting advice and tips on innovation at the same time as general authorities and bodies were being established in the industry - groups such as the German Association for Waterbeds, the IWB, to which virtually all importers, dealers and manufacturers would later apply for membership. Then there was the collaboration with scientific institutions, journals and trade fairs, all of which seemed to be preparing for a market which was ripe for exploitation.

As the German manufacturer started to become more and more successful and the US waterbed market and its products began to lose ground, the activities of competing companies seemed to be limited to aggressive attacks, probably based on the idea that the best company in the field must also be the best target.

Even from a superficial viewpoint, there was hardly anything to compare them to the American manufacturers. Large, modern production halls on enormous, almost romantic, green areas of industrial development. Inside were the latest machinery, technology and logistical processes together with friendly, highlycommitted staff responsible for technology, hand-crafted production and administration. From a financial viewpoint, information suggested that this "sample company" was in an extremely healthy position and financially independent. It was acknowledged to be a company that paid its bills on time, a company which was generous in issues of goodwill and constantly on the lookout for new skilled staff and ways to improve the working atmosphere.

This company could today almost describe itself as the only waterbed manufacturer in the world. After all, we know of no other company which develops and produces all the components for a waterbed itself: liners and water bladders, fabric and upholstery processing, heating systems, care products and furniture and frame construction, all comfortably meeting domestic requirements for health and the environment rather than being produced to uncontrolled export standards.

This is essential to ensure that the components are compatible with each other, thereby achieving longer life expectancy instead of finishing up as end-of-line models. Primarily, however, it is an issue of health: after all, we spend about a third of our lives sleeping and breathing on a mattress. Poor-quality softening agents found in the majority of cheap synthetic liner materials are rated as carcinogenic (see the report released by the Hamburg Environmental Institute warning of dangerous poisonous substances in many everyday objects).

We have also noticed that although there is not that much of a price difference between import products and "Made in Germany" products in Germany, the same American products are often sold at just a fraction of this cost in the USA. After carrying out a little more research into this, it emerged that unusually high profit margins were indeed added to these American products based on the motto "the more expensive, the better" - - well, better for the company's cash flow anyway.

Another reason for the success of the waterbeds made in Germany could be that certain extra something you notice in the personnel, a certain independent spirit which can be seen in the management style and in how people work together. When we arrived we were given fruit and vegetables as well as tea, coffee, cake and juice. The people working there seemed to be unusually down-to-earth and committed to their job. They didn't seem to have time for formal hierarchies or forced manners, they clearly just had one target in mind: giving the best service they could.

The structure of the sales division seemed to be just as unconventional. The classic model of having external staff out on the road had been thrown out years ago and been replaced by more effective means of communication like the telephone, fax and Internet - the target was to provide better support and service to the dealers who formed the customer base and spend far less time ineffectually sitting in traffic. It remains to be seen how far the customer, in this case the dealer, is prepared to do without the visits and cozy flattery of the sales representative. It certainly gives the companies selling imports and their sales representatives something to think about.