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Two Smaller Companies and One Large: Just Filling The Niche

Dave Jaeger's S&J Woodworks - A Futon Fine Woodworking Showcase
Zad Designs & Manufacturing - Where Technology Meets Craftsmanship

United Sleep Products Strikes!
Sometimes, a little reputation can go a long way.

In November of 1995, Simmons President Zenon Nie was touring the mattress factory at United Sleep Products, headquartered in Denver, PA. In his unique style, Nie thoroughly inspected every aspect of the operation, trying to determine whether or not Simmons and United could partner on any projects.

Along the way, he spied a futon in United’s lobby, and casually mentioned that Simmons was in need of a new licensee for their futon business. After a full-day of scrutinizing the first rate quality of United’s operations, he wondered, “Would United Sleep Products be interested in pursuing the licensing agreement?”

The rest, as they say, is history. United Sleep Products was awarded the license, based solely on their history of quality performance. From there, they’ve built a factory and a business within their business. They employ 70 people in the futon division alone, and sell more than 20 million dollars worth of inventory per year. On average, the futon division assembles 1,000 futon cushions every day. Amazingly, all of this has happened in just three years. And how they’ve made it happen reads likes a book on how to build a business from the ground up.

Know Your Business

Much of USP’s success has come from styling the futon division after their already successful bedding business, and not after what other futon manufacturers have done.

“I know what works for us,” says General Manager Paul Sullivan, a 20 year veteran of the bedding industry. “No matter what works for other people, if we can’t fit something into our system, inevitably it’s not the best thing for us or for our dealers.”

After examining the return rates faced by some all-wood manufacturers, United Sleep Products opted to offer frames with all metal bodies, and wooden arms. In doing so, they developed a product with few defects, and along the way created a whole new niche. In many retailer locations, the Simmons frame is positioned at a lower cost than all-wood offerings, while offering many more style options than all-metal.

Explains Sullivan, “From the very beginning, we were conscious to do whatever it took to minimize returns. There is a very easy way to cost the hard dollar amounts of returns, but the “soft” dollar amount is much harder to track, and is even greater. We have always preferred to spend more on quality materials up front, and avoid the problems that could come back to hurt us later.”

Today, every Simmons frame must pass the rigorous MTL testing procedure, meaning the rack can withstand a 200 pound object landing on it without damaging it. The end result, of course, is a durable product with few returns for the factory. Maintaining this high level of product performance is a responsibility largely shouldered by USP’s Vice President of Quality Assurance Phil Garnett.

“Everyone in manufacturing knows that shipping a quality product is job number one, but when you’re doing the work as a licensee for someone else, it takes on an entirely different direction. When someone gives you their name to place on a product, they’re giving you a tremendous amount of trust, and we are absolutely committed not to just maintaining the public concept of Simmons, but in also improving it further.”

Garnett is spearheading the trip to ISO certification, and not merely to be able to say they ‘did it.’

“Many companies want that ISO stamp so they tout it in sales presentations, but it means much more to us than that.”

Garnett’s diligence was noted one year ago, when Arthur Andersen completed an in-depth study on the Simmons futon line, when compared to competitors.

“One of the most satisfying things was that retailers rated our overall quality of product as being over twenty percent greater than our competitors,” says Garnett. “That’s exactly what we’re doing here - not just build a different product, but a better one.”

Good Name, Great Product

United Sleep Products has worked hard to capitalize on the Simmons name, by offering a complete line of Simmons futon frames, futon mattresses and zip and slip-covers. This has also been by design.

“The Simmons name is very recognizable to the public,” says Vice President of Sales Tom Nieman, “and by offering all three components of the futon with the Simmons name, we’re offering a complete package. It’s easy to understand. It’s easy to buy. It’s easy to order, and it’s easy to receive.”

Indeed, most Simmons dealers opt to become a Gallery dealer, which opens them up to the entire selection of futon mattresses, frames and covers. Attractive marketing racks allow the typical dealer to show “an entire selection of futons in 200 square feet,” according to Nieman.

The frames offered in the line show a wide variety of styling, from contemporary to traditional. Nieman feels this speaks volumes about the futon industry as a whole.

“Anyone who takes a good look at our line will see that the futon market is getting wider and wider. We have futon styles that will catch the eyes of a wide variety of people, from the college student, to the adults, whether the futon will be used in a bedroom, den or living room.”

United Sleep Products currently manufactures futons under the Simmons Beautyrest, the Simmons Beautysleep, and the Simmons Slumbertime name, and a few entry-level futons under the United Sleep Products name. This offering, says Nieman, gives them a wide breadth of line.

“With several different mattresses, we really feel we can reach whatever budget and feel someone is looking for. We have several cotton and foam models, with as much as a 5 year warranty, and then the Beautyrest product, which offers a full ten year replacement warranty.” He adds that the famous Beautyrest coil system takes on an even different dimension when placed on a futon.

“As amazing as the individually pocketed coils are on a mattress, they are perfect on a futon,” says Nieman. He notes the flexibility of the coils, which are more easily folded than many other innerspring futons.

Given their already strong depth, Nieman expects any further product enhancements to be at the upper end of selection.

“We’ve detected a push for even more luxurious upper-end products, and we’re always seeing if there is a way to develop something new that would give people a different, if not superior feel. Currently, we’re experimenting with some silk and cashmere products, and seeing if that might be something valuable to the consumer.”

A Good Cover-Up

As their product took on more popularity, United Sleep Products realized that they needed a final ingredient to make the offering complete. Says Mitch Gelbard, VP of Futon Sales, “More and more of our customers wanted a complete piece of Simmons futon furniture, and that meant right down to the cover.” This time they opted to follow tradition, rather than fight it.

“We were very aware how difficult and expensive the cover business can be, relative to fabric and all,” says Gelbard. “Rather than trying to get into the type of business where we offer hundreds of covers, we decided to choose several that have been consistently popular. When we approach our suppliers, we always ask them to please sell us ‘what’s hot.’ We’re not interested in re-inventing the wheel. We want to offer what’s selling.”

The current offering includes about five dozen fabrics, 36 of which are available as in-stock covers. All covers are available in either zip or slipcover, the later of which comprise the vast majority of USP’s sales.

In many ways, the slipcover seems to be an option ideal on the Simmons frame. As it covers up the entire metal rack, leaving the exposed wood arms bare, the completed look is of an all-wood futon, at a price that is considerably better than many all-wood styles. The unique combination is not lost on the customers, who, says Gelbard, “often find themselves surprised to learn that the frame has any metal at all. The slipcover gives it such a finished look, they assume that the construction is all-wood. Naturally, they’re quite surprised to learn the price when compared to many all-wood frames.”

The Power of Multiples

“Without a doubt,” says VP of Manufacturing Ed Wolff, “our mattress business, both directly and indirectly, has done a lot to support the futon business.”

Doubling up on sales and shipping have done wonders to help United Sleep Products to service their dealers better. Says Wolff, “The majority of our futon customers are also mattress customers, and we ship out the futon orders with the mattress orders, so our trucks are making fewer but bigger stops.”

Having a powerful futon name along with United Sleep Products’ reputation makes selling that much easier, according to Nieman.

“Between the United Sleep Products mattress line and the Simmons futon line, we have two very distinct product offerings. Generally, our reps find that one becomes an immediate fit for the customers, but the other can become a good fit too, after we’ve had enough time to prove ourselves.”

Go West, Young Man

When asked about future plans for the Simmons line, GM Sullivan’s eyes turn west of the Mississippi.

“Being headquartered in Pennsylvania, we’ve done an outstanding job of handling the northeast, and our mattress factory in Fort Wayne, Indiana is continuing to grow business in the Mid-West. We have several West Coast accounts, and will continue to work westward, doing whatever we need to do to grow the name of United Sleep Products and Simmons futons.”

Much of the responsibility for managing the growth falls upon the shoulders of the futon division’s manager John Ketterenchuk.

“Currently, we have about seventy people working out of one facility that’s just under 100,000 square feet, but managing the expansion is very, very important,” says Ketterenchuk. “We know that our current facility can handle more business, but the question is, ‘How much more?,’ and ‘What do we have to do to be ready to expand when we can’t grow here anymore?’”

That question may need to be answered very soon. Recently, for the first time ever, the futon factory, barely three years old, actually edged out the corporate mattress headquarters in monthly sales, escalating the natural rivalry between the two plants. When asked which plant will ultimately come out on top, Sullivan smiles.

“To tell you the truth, I have no idea. But I’ll promise you one thing: it’s going to be one heck of a race.”

Marcus Grimm is a freelance writer and the Editor of “Between the Sheets,” the sales training newsletter for mattress retailers, and has written for several regional publications. His fictional story, “The Devil Made Me Do It” appeared in the January issue of Rant Magazine.

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Dave Jaeger’s S&J Woodworks
- A Futon Fine Woodworking Showcase
by Joe Tatulli

Dave Jaeger does it the old fashioned way, twenty at a time. Jaeger started his career in futon furniture working for William Brouwer, one of the early pioneers of the convertible futon frame. After the business folded and Brouwer had moved to Japan, Jaeger opened his own shop and continued making frames in the fine woodworking tradition he had always employed before and during his tenure with Brouwer as production manager.

I drove out to Canton, Massachusetts to visit him and found his shop to be a classic mix of fine woodworking tools and commercial power equipment all laid out for doing the short runs of stools and futon frames his firm produces.

Because Jaeger is a one man show he prefers the companionship of his three dogs, which all appeared at the door barking with excitement as I made my entrance. To control them he uses “dogs” as their cumulative call name. “Miss Brooklyn is our latest addition,” says Jaeger, as a summer shorn Old English sheepdog bounds over to give me a lick on the face. Jaeger’s other dogs include McDuff, a very energetic Shetland sheepdog, and Miss Roxie, the matriarch, an Australian shepherd.

Jaeger works almost exclusively with cherry wood and is currently in the process of building about thirty cherry stools. His products speak of several different styles with design influences that move from Asian, and European, to American and some that come from his own personal creative perspective.

“I make both custom and short run furniture here (at S&J Woodworks),” says Jaeger. “The stool seats are almost ready for the band saw.”

The saw is a vintage Towlsey, thirty six inch model made in 1946 that is set up to cut the curved seats from five quarter, glued up and clamped, cherry blanks stacked up in another corner of the shop.

Jaeger explains the subtleties of the stool design, pointing out the angles that must be achieved in each piece to accomplish a perfect fit and the proper flare at the bottom so the whole unit is stable when it reaches its final destination in someone’s home.

“I cut enough parts in each run to satisfy both my current orders and still have enough finished pieces on hand for another run as the orders come in for more,” Jaeger said.

Jaeger’s biggest challenge, as the only body available, are the physical demands placed upon him by woodworking, at this level. “The futon frames are a real challenge because of the number of parts, and the assembled sections tend to be heavy,” he said. The frames are all made of solid cherry, and are fine examples of the woodworker’s art. “The arm frames are all solid five quarter (that’s an inch and a quarter for the laymen out there) cherry with raised panels I fabricate here,” says Jaeger. With runs typically in the ten to twenty unit size you can truly say that Jaeger’s product is almost in the same category as custom, and it is definitely hand-made, in the truest sense of the word. Everything Jaeger makes is put together with great attention to detail and each of his designs tends to be very sturdy without looking overbuilt.

My wife, Sharon, and I own several of Jaeger’s pieces including a full convertible futon sofa frame and a recliner chair, along with a beautiful coffee table and lamp table both made from the same piece of rippled cherrywood. We also took a trip to Dave’s home

in Rehoboth, MA, where his wife Sharon entertained while we took some photos of several pieces Dave has made and which are now part of his personal collection.

Jaeger is a craftsman who puts a great deal of care into his work and the quality shows.

You can reach him at S&J Woodworks, at 1-781-575-0250.

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Zad Designs & Manufacturing
- Where Technology Meets Craftsmanship
by Joe Tatulli

There is something about the entrepreneurial spirit that draws people to the futon furniture industry. Akim Azad and his wife Heewon met at the University of California at Santa Barbara where he studied electrical engineering and she international education. After a season for him in the industrial sector and for her in education they began a process that now has them in both the retail business and the manufacturing business in and around the Santa Barbara/Oxnard area.

“We have a 41,000 square foot plant in Oxnard,” said Azad,“and three beautiful Futon Gallery retail stores, in Oxnard, Ventura, and Santa Barbara.”

The couple started in retail with the goal of vertically integrating into full scale manufacturing. “We started first with the retail because that was the best way to see how and what sells,” Azad said. They soon moved into a small 700 square foot manufacturing space in Goleta, CA. It was here that they began making their first futon mattresses. They realized that most futon mattresses were made very differently than conventional mattresses. “We wanted to make our futon mattresses look more like a regular, traditional mattress,” said Azad, “and we also wanted them to be sold as ‘premium’.”

After purchasing a lace tufter and tape edge machine Zad Designs began producing their line and became well known among the local futon specialty retailers as a premium supplier. “We slowly gained a reputation of being a premium vendor, and we presently supply futon mattresses to mainly west coast dealers, as well as customers in Alaska and Hawaii,” he said.

In 1995 Zad Designs, to the best of my knowledge, showed the first pillow top futon mattress at the Winter San Francisco show and was written up in Bed Times at that time as an influence of positive motion in the futon furniture industry.

“The pillow top futon mattress was a natural step in our desire to produce a premium line of futon products,” he said.

The second step in the process was frame manufacturing. Azad had been bringing in product of his own design from Indonesia and selling the imports at all his stores. “We gained a great deal of experience by importing our own frame designs,” said Azad, “but importing has its drawbacks.”

Like many others before him Azad experienced a lack of quality control and a slow process of correcting problems. “As we began to see our business grow we decided to take the same steps with frames that we did with mattresses, and bring production in house,” Azad said.

In the beginning the firm made only pine frames, but has added alder and oak frames to its collection.

The final part of the puzzle came together in 1997 when the company began to manufacture its own softgoods collection. “It was a natural step for us to move into softgoods,” said Heewon Azad. “We had been making our own casings for years for our mattress production so making futon covers and other softgoods became an extension of what we were already doing.”

Currently Zad Design & Manufacturing is producing a line of fine futon covers in their self proclaimed ‘west coast look.’ “We are well positioned to deliver an extensive line of futon products for the futon specialty retailer,” said Azad, “Especially in the softgoods area.”

“Our next major challenge is streamlining our on-time delivery system for our retail dealers,” Azad said. By doing so Zad Designs believes their dealers can expect shorter delivery times and inventory reductions in their on-hand inventory. “We also have some very ambitious plans to develop a gallery program that will promote our frame and furniture programs,” he said. Azad told us that it has always been his mission to create premium products that will be well designed for style and function so American families will realize the beautiful way in which futon furniture can enhance their homes.

“It is the job of manufacturers and retailers to display, merchandise, and sell futon furniture like traditional furniture dealers do. Our futon furniture is well made and designed, and along with some of the other bedroom and living room pieces we are adding to our line, should provide a definite advantage to our dealers,” he said.

For more information contact Zad Design & Manufacturing at 805-486-8393.

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