They Came To A Fork In The Road

Things were going well for the young retailer. Then, as it happens in most success stories, there is usually a significant turning point where major decisions have to be made. "It was 1990 and we were ready to open a second store in Portland Maine, but it never happened. The T-shirts were printed, and we were ready to open, but I just couldn't negotiate a good lease. The landlord started to add all these strange conditions, and it just didn't work out." Shortly thereafter, the economy in New England took a nose dive, and the future of retailing looked bleak. "At this point," states Binkhorst, "I was concerned for our very future. The company had grown to include 12 people who depended on Burlington Futon for their livelihood. We had all worked hard to build the company, and we were dedicated to this emerging industry. We were known locally for making great futon mattresses and really enjoyed working with fabrics. The idea to wholesale these futon products seemed logical," he said. Due to its size, their relative distance to major markets, and formidable competition, wholesaling the futon mattress itself didn't make sense, so they chose futon covers. Binkhorst didn't realize it then; but, when he decided to move into the wholesale futon cover business and not expand the retail side,, he would soon be radically changing his entire operation.

"Compared to retail, it takes a very different set of skills to operate a competitive, wholesale, cut and sew business," says Binkhorst. "First was the search for sewers, as well as someone who could fix a broken sewing machine - that wasn't easy," he added. Binkhorst soon realized that the margin of error in the wholesale world is much smaller than in a vertically integrated retail business. Binkhorst's strategy also included a calculated risk that has paid off for this creative entrepreneur. "With the economic recession in New England, we decided to take advantage of the downturn and solidify our company's position. We were able to find good people, negotiate a favorable lease, and we were able to buy cutting and sewing machinery for ten cents on the dollar," said Binkhorst. Unlike the rest of the world, the futon furniture business was on a steep growth curve with plenty of new customers to go around, and Burlington got their share.

So with a strong retail store as a base, Binkhorst and company began to move into the futon cover business in earnest. The plan included the following standards: Pay attention to the details - all the futon covers made at Burlington Futon Company would be of the finest quality and constructed with the tailored look of a fine sofa, futon cover utilizing full side panels and a special zipper closure. Offer good customer service and take the time to listen to the customers needs. Research what is happening in the world of fashion and furniture and bring the latest styles to market. Be creative and innovative - always strive to find that little something different that no one else has.

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