Industry Updates part 3
Simmons Futons Ignores “Out of the Box” Thinking
FL
United Sleep Products General Manager Paul Sullivan pulls out a map of the United States. To the East of the Mississippi, everything is shaded green. To the West of the river, it’s a dull tan. He points to the green.
“Yesterday,” he says, “this was our territory.” He picks up the map and symbolically tears it up. “Now, territories are irrelevant. We can affordably ship anywhere.”
Sullivan is referring to Simmons Futons’ new Superbox program, which he says is the most important feature added since United Sleep acquired the Simmons license nearly five years ago.
“Don’t get me wrong,” he says. “We’ve done a lot of great things: Four-position hinges, Beautyrest Futons, brand name slipcovers. But before, everything we did was limited by how far we could ship it and still have the cost make sense to the futon retailer. That’s all out the window now,” Sullivan said.
Inside each Superbox, Simmons Futons has somehow managed to fit a full size futon frame
Vacuum-Packed futon and two pillows. The finished size of the box is smaller than that required for all FedEx shipments. The futon has 8” of foam and fiber and fully recovers in hours after opening.
“Everyone wins,” says Sullivan. “Retailers who’ve been carrying our product already can store it in less space. Futon retailers who haven’t been able to land our product cost effectively now can. With the Superbox, we are a legitimate national player.”
Futon stores choose one of three Superbox programs. The first option, obviously for the largest dealers, is Direct Container. Finished Superboxes ship directly from United Sleep’s overseas facility to the dealer.
For stocking dealers, Simmons Futons ships from their East Coast facility to the customer’s warehouse. Sullivan says, “That’s the way most of our dealers prefer to work. It gives them flexibility with their inventory.”
The third option – and a totally new one for Simmons Futons – is a Direct Fulfillment program, or as Sullivan prefers to call it – the ’Zero Commitment’ program.
“Once we had this program in place and had developed the Superbox so that it could be affordably FedEx’d to someone, we realized that if the retailer wants, he shouldn’t have to stock anything. We can ship the futon directly to the customer’s house.”
Sullivan expects the new Direct Fullfillment program will appeal most to futon retailers who like to keep minimal inventories or like to do business non-traditionally.
“For the catalog, kiosk or internet futon retailer, it’s the perfect fit.”
Sullivan says that the Superbox program is a natural extension of the same message that United has been touting for years.
“We’ve been telling dealers to ‘Simply Say, “Simmons,”’ but we weren’t doing enough to make it simple. The Superbox program speaks directly to that need.”
Sullivan feels that the complexity of the futon industry has driven dealers away from the business.
“Your greatest strength over-extended is your greatest weakness, and that’s quite apparent in the futon industry. Our greatest strengths are all the options available to consumers, but those options often frustrate the dealer and the consumer. We wanted the Superbox to eliminate a lot of the difficulty in decision-making.”
That’s obvious upon first glance. The Simmons Superbox is limited to four finished “sofas in a box.” Each futon frame is paired with an upholstered futon that specifically matches it. Sullivan acknowledges this lack of choice will take a while from some to get used to, however he is quick to point out that the consumer can still add a new slipcover or zippered futon cover to customize their futon.
“The oldest rule in selling is that 80 percent of your sales are made by 20 percent of your products. Most futon stores can’t afford to keep all 100 percent of those options in stock and available to customers, so the Superbox program only includes fabrics and futon frames that have been proven winners for us.”
Sullivan acknowledges that the program might be increased to include step-up futon mattress options or additional futon frames down the road but is committed to keeping the program as minimal as possible, to ensure maximum opportunity without hassle.
“For a long time, we’ve been saying “Simply Say, “Simmons.” Now we’re going to show people how simple this business really can be.”
Gold Bond, Adonis, & SIS Futon Covers NOW in High Point IHFC Main Building
Gold Bond moves to an expanded showroom this fall (IHFC 1318) where the futon innovator will show with futon industry co-leaders SIS Futon Covers and Adonis Furniture. Gold Bond is the nation’s largest volume producer and futon manufacturer of futon mattresses.
Gold Bond’s expanded premium line is enabling futon retailers from Florida to Oregon, California to Maine, to present what Gold Bond believes to be, “Our most compelling futon mattress and comfort presentation to sofa sleeper shoppers, ever.”
Gold Bond will show the ultra-premium “Visco Opulence” ($399 retail, full ), and super premiums “Coil Wrap” ($299), “Wool Wrap” ($269), “Cotton Coil” ($269), “SofTouch” ($249) and “Comfort Coil” ($199) at the new market showroom.