Website Closers® presents high growth Mattress, Adjustable Bed, and Bedding Accessories Brand that has been bringing comfort, relaxation and reduced stress to its customers by operating successfully in the niche field of adjustable bed frames and mattresses.
Current ownership is searching for a highly synergistic buyer with the experience and capital to become a partner to grow the business beyond its current $50M sales volume. Current ownership would like to remain on and roll a significant portion of equity (20-40%) as they believe the company has only scratched the surface of scale, and is well on its way to a $100 Million Revenue Company.
With the universal appeal of giving customers an enjoyable night’s rest, this brand has developed a strong reputation for high-quality retail mattresses and has employed a strong social media presence across multiple platforms to expand their audience.
As sales have expanded and increased rapidly on their $1,800+ Average Order Value, so did their SKUs, with the company now offering 68 branded SKUs and thousands of accessories. They have become a leader in the retail mattress vertical, enjoying sales year-round with no seasonal factors.
The company is very unique in that it both manufactures is mattresses in its own Florida-based manufacturing plant, and it sells via eCommerce on its branded website and Amazon. In addition to its own manufacturing, the plant and equipment they have invested in for their own products allows them the ability to manufacture US-made safes for other 3rd party brands. White label mattress and bedding manufacturing is a whole growth opportunity for the business – one that has not been focused on, but one that can be highly lucrative for the brand as it continues to scale. US Made products can charge a premium since there is no lag time on shipping and visiting the plant is very easy.
This is a significant and evergreen industry. The global adjustable beds and mattress market was valued at $6.24 billion in 2021 and is projected to grow by 8.8% through 2030. Sales are booming not only to individuals and families, including people buying homes for the first time, but also for commercial use, particularly within the healthcare and hospitality industries.
The rising level of consumer comfort with online shopping is also providing new advantages for eCommerce companies that promote something everyone desires, which is a good night’s sleep. That’s particularly true of adjustable beds, which are enjoying increased sales as a fast-growing number of consumers recognize the health benefits of using adjustable beds, including reducing back pain, breathing easier, and having better circulation.
Having done an exceptional job building up a loyal customer base for their products, this brand has some lessons to teach on how to tap into the public’s longing for comfort and excellent nighttime support.
Launched six years ago, the company has grown to offer 5 models of adjustable beds, 3 lines of mattresses, and a large assortment of accessories with more now being developed. While the company spent 3 years with a trusted and reliable main supplier, they now are fully manufacturing their products in their own production facility.
The facility began operations in August 2021 and began producing 25% of their products by the fourth quarter of 2022. That has risen to 35% by early 2023. The factory is where they produce mattresses, toppers, dog beds, pillows, sheets and additional sleep accessories.
With sales on both their Shopify website and on Amazon, their manufacturing facility has been critical to maintaining their inventory levels as sales continue rising, with dramatic spikes over the holiday season. This has been essential for the company to maintain Amazon sales velocity and a Best Seller ranking on Amazon within the adjustable beds category.
The company sells to a wide cross section of buyers that cuts across age, income and location. They are amid a growing trend among customers who show a preference for adjustable beds or traditional frames. In fact, a lot of the success in this industry is driven by word-of-mouth referrals, where satisfied customers recommend adjustable beds to family members, friends and other associates, and this company certainly has benefitted from that as well.
The company has taken a unique and very successful approach to their sales, marketing a feature-rich adjustable bed and then selling the mattress as a bundle – an offer that increases the overall value for the consumer.
It worked exactly as intended. The company is making 35+ shipments per day from their warehouse, including 15-20 orders that go through Fulfillment By Amazon. Sales are so strong that new inventory orders are placed weekly among their 10 suppliers.
While the company has effectively used PPC ads on Amazon for years, there are other avenues that have been successful in driving sales. That includes PPC ads on Facebook, Instagram and YouTube, and of course on Google.
To boost their organic traffic, the company has made strong use of video marketing on sites such as YouTube, Snapchat and TikTok, and email marketing to a hefty database of 7,000+ subscribers. They also maintain a content production calendar for their social media platforms, with posts updated daily.
SEO has expanded their customer base as well, which includes a backlinking strategy, and affiliate influencers being paid for backlinks.
These marketing tools have given the company the kind of exposure they desire, with 45,000+ sessions on their Shopify sites and 72,000+ sessions on Amazon.
This brand has clearly put to bed any concerns about their future ability to grow and scale this business. The addition of their own manufacturing facility has dramatically improved their inventory levels and the company is poised to increase profits by expanding their manufacturing operations and diversifying their SKUs. They have the ability to grow to $100M in very short order with the manufacturing capacity already in place to get there. Running out of inventory is not a concern for them – since they own the manufacturing element of the business.
The current ownership is interested in remaining with the business while selling a majority share of the company and partnering with the buyer in the future, particularly one who can help grow the company at a faster rate.
