by Joe Tatulli
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 futon store owners.”
After examining the return rates faced by some all-wood futon frame manufacturers, United Sleep Products opted to offer futon 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 futons.
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 futon 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 futon 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.”
Simmons Futons - 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 futon covers. Attractive marketing racks allow the typical dealer to show “an entire selection of futons in 200 square feet,” according to Nieman.
The futon 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 futon 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 futon 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 futon 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 slip cover, 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 futon 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 futon 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 futon 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 futon 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 futon 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.
FL