Website Closers® presents a Business in the Home Bedding Industry, which is positioned primarily in the Adjustable Bed and Mattress Niche. The business is a complete package, with both eCommerce Sales Channels as well as Manufacturing, both for their own Brands, as well as for the Brands of others. While their consumer sales are primarily via Amazon at the moment, their Branded Websites are growing as well.
Much of this company’s success is based on providing high-end products at an affordable price with no compromise on quality. Management has astutely gone the opposite route of the traditional industry approach, with exceptional results. Most large, big box chains offer their heads-up only adjustable beds at a reasonable price point but make customers pay a premium for the accompanying mattresses. In contrast, this company retails outstanding, feature-rich adjustable beds. It then sells the mattress as a bundle to add value for the consumer. The company is positioned well in the middle tier in terms of price points.
The primary vendor for adjustable beds, with whom the company has a trusted and reliable relationship, is based in Thailand. Some other key suppliers for raw materials and accessories are from China, India, Mexico, El Salvador, Turkey, Russia, and the U.S.A. Following an A.B.C. supply chain empowers warehousing and distribution leadership to operate the supply chain with an understanding of actual costs and performance. They can then make informed decisions on further cost savings and efficiencies, including outsourcing.
The classic adjustable bed line is the most popular and represents about 30% of sales. This is the primary business line and includes five models. Following beds are three lines of mattresses and an enormous range of accessories.
Notably, the business enjoys robust year-round sales, with peaks during all national holidays and a spectacular fourth quarter. November 2022 was the largest Sales month in company history. As a result, cash flow is incredibly stable, and management has continually and successfully reinvested profits, evident by the prolific year-over-year growth rate.
The majority of sales, around 70%, are made through their powerful Amazon storefront, which witnesses over 72,000 monthly sessions. The platform is used as a launchpad for products before expanding into off-Amazon paid marketing, including D.S.P., Social Media, and Google.
Management has recently begun actively engaging in social media with a comprehensive strategy, and the results appear promising. An ongoing content production calendar focuses on aggregating content daily across every social media platform. Additional recent work includes creative video development, front-end website development, refreshed branding, refined packaging design, and customer experience improvements.
The Shopify-built websites account for the remainder of sales. Organic traffic is produced via on-page and technical SEO. Implementation is ongoing, and the backlinking strategy will be executed through relevant affiliate influencers rather than paid-for alternatives. Those websites realize 45,000 monthly sessions—a number that continues to escalate.
Daily LTL freight shipments and Amazon F.B.A. orders are shipped from the company’s 100,000 sqft warehouse and manufacturing facility. A 30–90-day supply of inventory is typically maintained there, and one month or less is kept at Amazon F.B.A. facilities. Inventory orders are placed weekly, and excellent payment terms have been negotiated. Leading vendors are paid net 60 days from the departure of port, others net 30, and a few on shipment.
The tremendous scale opportunities at its fingertips make this business even more enticing than others in its class. Manufacturing has and will continue to directly and significantly improve the bottom line, as has been demonstrated since the facility in Florida has been operational. The manufacturing equipment is already purchased, operational and in full force – this gives the company the opportunity to continue to increase margins (versus sourcing product) and increase their sales to third-party brands, something that is in very high demand given the problems in China and with Supply Chains.
SKU diversification presents another auspicious method to boost revenue, and broadening and refining social marketing is verily attainable. With a capital injection, revenue and profits would almost certainly skyrocket, launching this company into the stratosphere. Retail distribution and wholesale is a whole separate animal, but one that can be even more interesting for retailers given that many of their products are American Made with short lead times.
The managing partners primarily focus on forecasting and overseeing department team leaders. These departments include but are not limited to marketing, manufacturing, logistics, warehousing, customer service, I.T., sales, and finance. Several independent contractors are used for copywriting, graphic design, 3D rendering, and animated videos.
Market projections suggest the wide adoption of adjustable beds or traditional frames to increase for the foreseeable future and beyond. This would have happened years ago, but a few players pushed the average consumer out due to price points and a lack of competition.
This business has a highly effective and established team, an insatiable appetite for its products by the public, and exemplary financials. Furthermore, no special skills outside the scope of traditional eCommerce business maintenance are required to run this profitable and burgeoning vertically integrated company.
