American Mattress executives stay connected to sales floor
David Perry, Bedding editor -- Furniture Today, February 9, 2009
ELMHURST, Ill. — The principals of American Mattress, the Elmhurst, Ill.-based sleep shop chain, have written a compelling growth story with a formula of hard work, customer focus and savvy team building.
Frank DeMaio and Mike Kenna recently shared some of the secrets of their success with Furniture/Today. They made a well-received presentation at the newspaper's Leadership Conference, providing the kinds of specific insights about their business that many retailers are reluctant to share. The two are co-owners of American Mattress, which operates more than 80 sleep shops throughout Chicagoland and in Indianapolis.
Here are some of their best practices:
uStay connected to the business. “We are a couple of hard-working guys from the sales floor,” said DeMaio. “We know what guys on the sales floor go through. We are guys who are still out there training and selling customers.”
In their previous jobs, DeMaio and Kenna were both regional sales managers for another Chicago-area sleep shop chain. When that chain changed hands, they wanted to maintain a family atmosphere in their business. So they joined forces to purchase American Mattress, then an 18-store chain. Under their leadership, the company has more than quadrupled in size. It proudly notes that it is “family owned and operated.”
Both DeMaio and Kenna are intimately involved with the operations of American Mattress. “We came from the floor and we remain on the sales floor,” DeMaio commented. “That gives us a tremendous advantage over our competitors.”
The two also realize that “people are our biggest asset,” DeMaio noted. “Our job is to motivate and improve our people. We are only as strong as our weakest person.”
uPay attention to the details. “You have to make sure the pillows are perfect,” DeMaio said. “You have to control everything that you can. The look of your stores is very important.”
American Mattress is moving to a new display concept for its sleep shops, one that introduces a more home-like look, with a logo emblazoned in the floor, a race track design, a fireplace at the store entrance, and well-accessorized vignettes. The goal is to encourage the customers to spend more time in the stores and to boost sales.
“It is a much nicer environment to sell higher-end bedding,” DeMaio said. Those details will pay off in higher sales tickets, he said.
uFocus on the customer. The customer buying a twin or full-sized mattress today might be the master bedroom customer tomorrow. DeMaio puts it this way: “We treat the $200 customer as well as the $4,000 customer.”
One way they do that is by concentrating on every customer. “Shaking that hand is a big thing,” DeMaio said. And a good job on the telephone is also a key. “The retailer who wows them on the phone wins,” DeMaio said.
uChange with the times. The current tough climate provides an opportunity to closely examine costs, the principals say. “When business is good,” Kenna said, “no one looks at where you can save money.” American Mattress monitors expenditures carefully and is looking “to sharpen up,” he added.
The company is also changing its media buying habits in this tough sales climate. It is negotiating radio and TV buys on a quarterly basis and is looking to its print outlets “to work with us” on good deals. In the last two years, Kenna said, the company has shifted most of its ad dollars to radio and TV — and has seen its average unit selling prices rise dramatically.
uFind strong business partners. Serta, the company's leading mattress supplier, is the key supplier. American Mattress is part of a nationwide network of Serta-supported sleep shops. “Serta is truly a partner,” Kenna said. “They are there for us in good times and in bad times.”
DeMaio offered a similar description. “Serta is a true partner,” he said, describing them as completely committed to the success of American Mattress.
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