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From Home Furnishing Business

Take 5: A Conversation with Bob Sherman

In October 2013, Bob Sherman stunned the mattress industry when he resigned as CEO of Serta, the nation’s largest-selling mattress brand.

It was a brand that had become No. 1 during his 25-year watch, aided by effective marketing programs like the Counting Sheep and a revolutionary product line called iComfort that would rack up $1 billion in retail sales faster than any brand in the industry’s history.

But Sherman, who spent more than four decades in the mattress industry, soon realized he wasn’t ready to ride off into the sunset. So he and his wife, Barbara Bradford, a former Serta executive who has been in the mattress business more than four decades herself, began looking for ways to get back in the industry.

And in January of this year, the 65-year-old Sherman again stunned the industry by announcing he had formed a company called Visionary Sleep Products that had acquired a pair of Restonic licensees that operated factories in Buffalo, N.Y., Fayetteville, N.C., and New Albany, Ind. The deal included the licensees’ stock in Restonic, giving the new company majority ownership of the Restonic brand.

Sherman recently spoke with Larry Thomas, senior business editor of Home Furnishings Business, about what it’s like to be back in the mattress business and what he hopes to accomplish with his new venture.

Home Furnishings Business: Why did you decide to come out of retirement and return to the mattress industry?

Bob Sherman: We’re a 24/7 mattress couple. We would go out to dinner at night and talk about how the day went, and we really missed those conversations. We missed the people that worked for us for 25 years and helped us build the company. We missed the retailers, the excitement of the business, the analysis of the business, the weighing of the competition and looking for opportunities.

A couple of our former management people left their jobs, and we had conversations with them, and they really wanted to get back into the business. So we decided to set the criteria: We were going to be happy working in that environment. We decided that we wanted control over whatever we were going to do. We didn’t want to be owned by a private equity group. We did not want to take on substantial debt. And we wanted to have fun!

For over a year, we looked at numerous opportunities, made an offer on a couple, but they just didn’t work out. And all of a sudden, this one came into play, and we really thought the situation was perfect for what we wanted to achieve. And so far, it has been a blast. I’ve really enjoyed being back. My wife is enjoying it. Our management team, which is younger than I am, has bundles of energy, and they’re really putting in an ‘A’ effort.

How can you not have fun when you have a 50-foot banner (announcing his return to the industry) at the Las Vegas Market? (laughs) I mean, that’s really what we’re about…being creative…making a statement…getting people to think and talk about you. We know how to do that, and it’s fun.

HFB: It sounds like those guiding principles are similar to the ones you had at Serta.  

Sherman: Most definitely. The company we have today is not a heck of a lot smaller than what we started out with. Our first (Serta) license was $4 million in sales. And Serta back then was only about $200 million (in annual sales). Obviously, the industry was smaller, and the competition was smaller, but we’re really putting in a lot of the same principles that we utilized there.

HFB: What are some of the more significant changes that have occurred in the industry since you left?

Sherman: The biggest change I’ve seen is the consolidation at retail. Mattress Firm, over the last 3 ½ years, has purchased a lot of their competitors. Most markets had two or three sleep shops competing against one another. Today, a lot of them only have one. That has really opened up a phenomenal opportunity for the large local retailer or the regional retailer to step up his bedding advertising, to go after that business, to get into the sleep shop business if he desires. Bedding was growing in importance when I left, but the departments today are so much larger. Some of these large furniture retailers are carrying 60, 80, or 100 sets of bedding on the floor. They’re not afraid to have 5,000 to 10,000 square feet in their store dedicated to it. That is really a change from where it was a few years ago.

I’ve also seen consolidation of (furniture) retailers. The big chains are continuing to grow. The mom and pops are disappearing. In almost every market I look at, the retail furniture environment is so different from what it has been. There seems to be one dominant retailer that is growth oriented. 

Obviously, the bed-in-a-box has also been a big change. A few years ago, it was a few retailers doing a lot of business online. But I think a lot of that has been replaced by the bed-in-a-box. (The success of online companies such as Casper) just reinforced that people do not enjoy the bedding shopping experience. Some of the stores are starting to understand that they must make this a more enjoyable process.  And I’m not sure all the retailers know how to deal with the bed-in-a-box. I don’t think they know how to deal with social media and the digital advertising that needs to be done today. I think most retailers are floundering in that regard.

HFB: What opportunities do you see for your company and the Restonic brand as it goes up against several much larger competitors?

Sherman: Today, you go onto a floor and all the mattresses are gray, black, and white. It’s very male oriented. They look like sweat pants (laughs). The women who design our products view this as a tremendous opportunity for us going forward.

The industry has gone to inward thinking, where a supplier will look at a floor and say, ‘how can I make more money on this floor.’ We look at it and say, ‘how can we help them get more business and make more money.’ It seems like all the analysis today is about how to improve profit. It’s not really thinking about how to help the dealer grow his business. We’ll make money if the dealer grows his business.

Today, there are a lot of people selling similar products. The major lines today put out a lineup, and you pretty much have to pick from this lineup. We do it a little differently. If you’re best-selling bed is $799, we want to figure out how to make you a $999 product that’s different so you can step up and sell better bedding. If you’re key price point is $999, we want to work on $1,299, and so on. We feel we have the flexibility of working with retailers to customize product to fill whatever the dealer’s needs are.

The national promotions that are being run by the majors force dealers sometimes to take reductions in costs that aren’t completely supported by the manufacturer. Retailers believe they have to match those prices in order to be competitive. That’s quite beneficial to the manufacturer, but less beneficial to the retailer. This provides us an opportunity for merchandising and marketing what the retailer wants to sell, instead of what the manufacturer wants to sell.

HFB: Serta became the largest brand in the industry while you were CEO. Do you have a similar long-term vision for Restonic?

Sherman: No, not really. When we started Serta, it was not our goal to be number one. Our goal here is pretty simple. We want to have an increase every year that is larger than the industry. So if the industry is up 5%, we want to be up more than 5%. That means we’re capturing market share and somebody is losing market share.

At our monthly meetings, we remind ourselves that we’re here to have fun. We’re not here to take on a lot of debt. We want to enjoy that we’re doing.

As we go forward, it’s not our plan to go out and just keep buying (more factories) and growing. We want to do it strategically. We want to make sure we can handle it. We want to make sure that it fits with what we’re doing, and how we’re doing business. 

HFB: How have the other Restonic licensees reacted to your new company?

Sherman: Their support has been really exciting and encouraging. I met with them a couple of months ago -- every owner showed up -- and we had a discussion about what the vision could be and what we could do together and what it would take in terms of cooperation. Restonic has been extremely strong in regional pockets, but hasn’t really had the ability to do anything outside of where the factory is located.

The thing you have to remember is that each of these licensees … are all successful in their own markets. So to make investments, whether its people, equipment or facilities, sometimes is very difficult. So for the licensees to step forward and say, ‘let’s do this,’ was very encouraging.

For example, we have rented a new space at the Vegas market, and will move there in January 2018. It’s twice the amount of space we currently have. We want to make a stronger statement. This requires an investment in the build-out and rent, and things of that nature, and the other licensees were unanimous in their support to do this. They have been extremely cooperative.

HFB: Will your company be taking the lead in product introductions, or do the licensees do that in their own markets?

Sherman: We laid it out for the licensees that there had to be consistency of product from one facility to another. There had to be consistency of specs. We are instituting national specs and putting together product lines that really tie everybody together. They are embracing that concept.

However, our number one goal is to help the retailer grow his business, and sometimes retailers need special products or special tweaks. So the local plants have the flexibility to design products to fill the need for major retailers in their markets. We’re really doing the best of both worlds. We’re providing a national umbrella and national specifications, and that’s going to be the majority of our sales, but we don’t want to take away that ability (to be flexible) because then we’re just like the other major companies. We want the local plant to fulfill the dealer’s needs so he can do more business.

For 80 years, Restonic has been building outstanding beds. One of the big surprises that we came across is that they really overbuilt beds. They just didn’t spend millions on marketing. If anyone took the time and actually compare (Restonic with competing products) spec to spec, they really had an outstanding value. We just want to add consistency to it.

Forty Under 40: A Purpose Driven Mission

Forty Under 40

 

 

Having been raised in the Information Age, Millennials are the most tech-savvy generation yet. They transitioned from snail mail to e-mail to text messaging in under a decade and have an affinity for the digital world. Their inherent need for speed is in their DNA, and they expect instant gratification.

As a result, a large portion of the workforce is drawn to STEM careers (science, technology, engineering and math) and hard technical skills. And even though top employers today value technical skills, most of them say ‘soft skills’ are just as important.

Soft skills such as leadership, communication and collaboration are crucial, and the Millennials who were selected for the Home Furnishings Business Forty Under 40 list exhibit all of that, and more.

However, according to Caroline Beaton, a contributor to Forbes magazine and a workplace psychology journalist, there are four additional soft skills that are under appreciated, but essential in the modern workforce:

Attention: Attention to detail is the ability to achieve thoroughness and accuracy when accomplishing a task. But Jake Rozmaryn, CEO of Eco Branding, told Forbes that his firm sees a lot of “careless typing and formatting errors in Millennial applicant writing and work samples, cover letters, resumes, etc.” In the workforce, even the grandest project depends on the success of the smallest components. It really is “all in the details.” Time management and the ability to follow through are must-have skills as well.

More Than College: Bachelor’s degrees may now be less important than they used to be – largely because they have almost become commonplace. College education isn’t the simple recruiting filter it used to be. Most entry-level business jobs involve a customer-facing component, but few colleges offer classes preparing students for sales, customer support or client relationships. Therefore, curiosity and commitment, not college, will be among the most important skills for Millennials in 2017 and beyond.

Agility: To adapt to the rapidly changing demands of modern work, employees need agility and the ability to overcome setbacks. Agility manifests itself in individuals as resourcefulness, goals-driven behavior, a team player mentality, and relentlessness. Agility is “not getting stumped at an early stage,” said Anna Crowe, CEO of Crowe PR. Instead it’s “here’s plan B and C to get us where we need to be.”

Humility: Not taking yourself too seriously, admitting when you don’t know stuff and asking for help when you need it are some of the most advanced skills of all. In the digital age, it has never been easier to inflate your successes and white-lie your way to and through a job.

In summary, Millennials want their work to serve meaningful purpose. They’re looking for career development, more meaningful conversations, and a more connected workforce. Companies that can find ways to make their workplaces exciting enough to attract good Millennial talent can reap the rewards by harnessing their power and developing future leaders.

The Millennials on the newest Forty Under 40 list are on that track. And for those Millennials out there who may be waiting for their own nomination -- be a story worth telling.

A Story Worth Telling

Success requires passion, resilience and wisdom and the talented home furnishings professionals you will see on the following pages have had a measurable impact on their brands, their peers, their companies and the industry.

Meet the Home Furnishings Business 2017 Class of Forty Under 40, a fine selection of ambitious individuals. Some are entrepreneurs and some are leaders who have climbed the ranks of the family or corporate ladder, but all of them have what it takes to excel in their fields and are ready for any challenge that may come their way. As the new generation of home furnishings executives, their stories are worth telling.

 

Steven Allegrezza, 32

Company: Magnussen Home

Position: Merchandising/New Business Development  

Steven AllegrezzaSteven Allegrezza has brought new levels of innovation, creativity, technology and profitability to his newly created role at Magnussen Home. He manages and maintains the e-commerce distribution channel, and the day-to-day operations that comes along with each e-commerce account. This includes managing the online catalog, updating content and maintaining reports to track sales metrics, trends, profitability, and inventory availability. He is credited with consistently finding ways to streamline, improve and enhance existing processes and procedures and has earned a reputation for boosting efficiencies and profit as he helped grow the business in this channel by 40%.

Steve is an active volunteer at his local church and helps with youth ministries. He volunteers at his local SECU house when he’s not coaching little league baseball. He is described as honest and trustworthy and a credit to his generation.

 

Vergil Arbuckle, 37

Company: BDI

Position: Business Development Associate

Vergil Arbuckle

With nine years of customer relations experience and six years at BDI, Virgil Arbuckle has been named BDI’s most valuable customer service rep - for six years -  before his recent promotion to business development associate.  He is experienced and accomplished. In his new role, he will play a key role in enhancing communication between the external and internal teams on a variety of new sales initiatives and will be responsible for working toward profitability goals.

Virgil knows his product and his customers and has developed strong relationships. He responds quickly to the needs of his clients and provides thoughtful insight. He is thorough and sets the bar for his peers in the industry. Virgil has a degree in architecture from North Dakota State University.

 

Sarah Bumps, 36

Company: Davis Furniture

Position: General Manager/Buyer    

Sarah BumpsSarah’s education in retail store management came long before she obtained the title of General Manager/Buyer. Sarah grew up watching her father Roger, and learning from him. With Roger being semi-retired, Sarah is essentially running the store as an owner. She oversees the sales manager, office manager and warehouse manager and finds time to attend both Las Vegas and High Point Markets as a buyer for the store. She is thoroughly invested in continually bettering the business, has an outstanding work ethic and attends networking conferences, buying group symposiums and performance group meetings to hone her skills. For Sarah, it’s not only about running the store, it’s about creating a company that brings comfort and excitement to her clients through thoughtful design work. She strives to better the business year after year.

Often giving of her time to better the local community, Sarah is a Wenatchee Chamber of Commerce Board Member, a YMCA Executive Board Member and has worked with local wildfire victims and insurance companies to develop furniture rental programs for displaced families. Her spirit is strong.  Sarah holds degrees in Interior Design and Business from Seattle Pacific University.

 

Katelynn Calonkey, 32

Company: Mister Robert Fine Furniture and Design

Position: VP of Design

Katelynn Calonkey

Katelynn Calonkey is well known and respected in the Home Furnishings Industry for her vision and influence. She has a keen sense of fashion and a savvy presence. Katelynn has increased the scope of the design-side of this 59-year-old family business and has propelled the firm into its focus on fine furniture that bridges classic design with an edgy urban identity. With a background in marketing, Katelynn has elevated the store’s marketing strategy and has built a strong social media presence with followers in the residential and commercial communities.

Katelynn’s efforts to organize and host community events have impacted business in a positive way.  She has challenged the firm to stretch beyond the norm with her keen merchandising skills and has navigated the store out of the proverbial box and helped it emerge into a thriving retail/design store. Selected as a featured designer, she has worked with some of the top designers in the Oklahoma City metro area and has been touted as an expert on trends and forecast of home and corporate fashion.

Selected for the Leadership Norman Class of 2017, Katelynn also serves in additional volunteer roles to benefit civic and non-profit organizations.

 

Chris Cannon, 33

Company: Cannon’s Fine Home Furnishings & Interiors

Position: President    

Chris Cannon

Chris grew up in the furniture industry and was fortunate to work with industry giants and mentors that taught him how to succeed. At 33, he is president of the store and oversees nearly every aspect of the retail business as well as the other companies established under the Cannon’s Home Furnishings umbrella. He also has the highest average ticket of anyone else in the company. With strong leadership skills, he is an inspiration to those around him and exudes a great deal of energy and enthusiasm. Chris enjoys the diversity of design challenges and is adept at providing clear solutions to bring projects to fruition successfully. He has established a defined growth strategy for the next generations to come.

Chris is involved with his local community and has served as a board member for the Chamber of Commerce. He often helps other small businesses by offering marketing advice and assistance crafting their business plans.

 

Brian Cattin, 38 and Gregory Cattin, 32

Company: Gallatin Valley Furniture

Position: Co-President   

Brian and Greg Cattin

Brian Cattin has a “way” with people that allows him to seek out and really connect with the stores customer base, which has helped him develop accounts bringing over $2 million in sales to the store.  As someone who is very goal driven, Brian has quietly but diligently become a driving force for the development of the company’s business goals.  He has successfully managed the sales staff, which has resulted in an increase in sales by over 40%. Brian also developed a plan for a remodel of the store and has created an interior design division within the company.

Paired with Brian as co-president, Greg is enthusiastic and extraordinarily organized. But he is also a quiet and humble individual. He is a bright, and creative talent as well as an innovative merchandiser. Since 2012 Greg has been responsible for all buying for the company and has successfully integrated the latest trends into the store’s product lineup. He worked side-by-side with Brian to revitalize and remodel the family owned business. Greg’s efforts have helped increase store sales by 40% in just three years. Not only is he a leader in the family business, he is a leader in the community and has a tremendous amount of responsibility for his age.

Brian and Greg support Haven, an organization for battered women and the Warriors and Quiet Waters Organization helping veterans adjust from post-war injuries. Greg also serves as a board member for the Museum of the Rockies.

 

Veselina (Vee) Curfman, 36

Company: KAS Rugs, Inc.

Position: Regional Sales Manager    

Veselina Curfman

Credited with significantly growing the South and Midwest sales territories, Vee Curfman manages a large territory for KAS Rugs. In addition to handling her own national accounts, she manages other reps accounts within the territory. She is responsible for developing the team and their overall growth and consistently meets and exceeds sales goals. Vee leads by example and serves as a mentor for her team. In her previous position at Star Furniture, Vee was a top salesperson and developed a strong retail background, which has served her well.

Originally from Bulgaria, Vee recently became a U.S. citizen and is fluent in many languages. She is an active volunteer at her daughter’s school in PTO activities, the classroom and the volleyball and soccer teams. Her strength and determination to succeed are unparalleled. When the Brazos River in Houston overflowed and the Curfman family lost their home and all of their possessions, Vee kept a positive attitude, showed a tremendous sense of calm and took minimal time off from work. A true testimony to the hard worker she is.

 

Robert Kenyon Davis, 33

Company: Diakon Logistics

Position: VP Client Solutions     

Robert Kenyon DavisTireless in his endeavors, Rob Davis is exactly the type of young, innovative and ambitious talent the industry needs but has difficulty attracting. His vision for Diakon embodies the desires of the demographics they serve. Rob has developed trusting relationships with retailer clients by using his ability to develop solutions for existing and anticipated opportunities.  He helps clients improve service offerings particularly with new and under-utilized technology that helps improve operational metrics, customer interaction and situational awareness. He also helped improve recruiting processes within the company to attract and retain high quality talent. Rob is credited with creating many effective operational procedures.

 

Shirley Disbrow, 39

Company: Cory Companies/Joseph Cory Holdings

Position: Controller    

Shirley Disbrow

Shirley Disbrow joined Cory 19 years ago as secretary to the CFO. She was responsible for providing administrative support to the various functions within the accounting department. When the opportunity arose, Shirley transitioned to specialize in handling accounts payable. Having demonstrated strong aptitude for accounting and a competence that would make her excel, she earned a promotion to accounts payable manager with supervisory responsibility for a support administrator. It is through the Women@Cory program, which provides development and advancement opportunities to women who demonstrate potential, achieve results and express a desire to grow, that Shirley was promoted to the newly created position of controller.

As a 2017 graduate of Rutgers University, Shirley holds a BS degree in accounting and will actively pursue her CPA certification.

 

Mike Douglas, 35

Company: Malouf

Position: Vice President of Sales

Mike DouglasAs the fourth employee hired by Malouf, there are few jobs Mike Douglas hasn’t done. From unloading freight to developing a nationwide sales team, Mike has been a critical component of Malouf’s success. Under his leadership, the company has maintained triple-digit growth for the past six years. He has a talent for managing risk and has helped the company expand its product offerings while maintaining a distinct brand image and voice. Under his direction, the company has earned multiple design awards for packaging and marketing materials. He also oversees the development and implementation of company training programs.  Mike draws from his experience to aid in product forecasting and purchasing. His efforts to streamline wholesale operations has resulted in sales growing by more than 100 percent adding 2,000 accounts and more than 4,000 stores to the channel over three years.

Through his participation in the Malouf Foundation, Mike has supported initiatives for Habitat for Humanity, Sleep in Heavenly Peace, Utah Foster Care and The Family Place. To fulfill his desire to give back to the community, Mike volunteers at fundraisers for Citizens Against Physical and Sexual Abuse and contributes monetarily to the cause to help ensure no one is turned away from the shelter. 

 

Jacob Egan, 32

Company: STORIS, Inc.

Title: Manager, Consulting Services     

Jacob Egan

Jacob Egan had only been at STORIS for three years when he brought his first “Top 100” client live. This is an achievement typically not met in less than five years. Two years later he was offered his first management opportunity to be Team Lead of the Consulting Services Department. He embraced the challenge with determination and hard work and quickly gained the respect of all staff reporting to him, including those with greater tenure in the company. Less than one year later, he earned a promotion to Manager of Consulting Services and has since brought another “Top 100” client live. Jacob has proven that he is a bright, motivated individual who stands by his word. Under his leadership, the division set a record revenue-generating year in FY ’15 and matched the record in FY ’16. Under his guidance, his department set a new record, completing 28 months in a row with zero open help line cases at months end.  His experiences and know-how of industry specific best practices is invaluable to the growth and success of those he mentors.

When he’s not focused on work, Jacob leads a group of men for the “movember” charity organization, which helps raise funds and educate others about health issues specific to men. Jacob’s passion mirrors the organizations mission, which is to “have an everlasting impact on the face of men’s health.”

 

Collier Feinberg, 29

Company: Soicher-Marin

Position: National Sales Manager

Collier FeinbergComing from a “furniture family” background, 29-year-old Collier Feinberg has experienced a lifetime of events in the furniture industry.  He manages a sales team of 52 and develops their talent while boosting sales using analytical data to achieve his objectives. He’s got sales in his blood! Collier eagerly accepts any challenge and follows through to completion. Being a self-starter, Collier is an eager, high energy, individual who brings positive value to his team. While at his previous position with Furniture Brands USA, Collier completed the FBN intern program, which introduced him to all aspects furniture manufacturing.  He developed three under-performing sales territories and when FBN filed for bankruptcy Collier was one of only 21 people retained. When Furniture Brands exited bankruptcy to become HHG, Collier successfully developed and maintained e-commerce sales for nine brands.

Collier was named Thomasville Junior Leader for 2016 and Director of Due South, Thomasville’s Philanthropic Group. He also organized their junior soccer program.

 

Ryan Hale, 39

Company: Kelly’s Furniture

Position: Assistant Manager    

Ryan Hale

After only five years at Kelly’s Furniture, Ryan Hale was promoted to assistant manager. In this role, he trains new sales associates and develops and motivates the existing sales team. Ryan oversees the appliance department, which includes ordering and merchandising. In addition to his regular duties, Ryan has also achieved over $1 million in sales for the past three years in a rural market of only 60,000 in a 60-mile radius. He is self-driven and sets very high goals for himself and almost always hits the mark. He serves in a support role to the president collaborating on store promotions and events.

When not at work, Ryan is busy coaching his two sons’ little league and soccer teams.

 

Sabrina Howley, 36

Company: Rotmans

Position: Executive Assistant to the President      

Sabrina Howley

Sabrina Howley is dedicated to Rotmans and the furniture industry. Not only does she handle hiring for the company (they have 160 employees), she also supervises all e-commerce orders (Rotmans has 2,500 hits per day on their website) and correspondence for the company, which touts $37 million in sales. Sabrina plans and executes store events, and documents and analyzes the sales performance for the company’s 47 sales persons. As a dedicated employee Sabrina does whatever it takes to improve the company, including taking interior design courses and attending job fairs on her own time.  She developed a program to attract new employees and is working with operations on a new ERP system. Currently she is working closely with the IT department to enhance the company website to yield greater web sales.

In her spare time, Sabrina helps manage her daughter’s softball team. She is also active in her local Chamber of Commerce. She is an accomplished painter and even had one of her paintings showcased in the White House. As a single parent, she held two jobs to put herself through college. She is currently married with two children.

 

Alex Jafee, 30

Company: Household Furniture

Position: Vice President    

Alex Jaffee

As a leader in the business and in the community, Alex Jafee has taken on a lot of responsibility at the young age of 30. As VP of Household Furniture, he is in charge of the overall management of the business including buying, merchandising and hiring. He also assists in real estate analysis and participated in the selection and subsequent opening of new stores in 2015 and 2016. In 2015 Alex spearheaded the selection, implementation and conversion of a new software system and has been diligently teaching employees how to get the most out of the new software. Additionally, in an effort to recoup a large amount of previously unrecovered warranty dollars Alex successfully implemented a vendor charge back program. He is also an active participant in several buying groups and Next Gen.

Alex leads the company’s Secret Santa community event each year and is a member of the board for BASE, a non-profit that aims to inspire and motivate underprivileged children through baseball.

 

Robert (Bobby) Jones, 29

Klaussner Home Furnishings

Position: Director of Motion and Import Upholstery

Bobby Jones

Being raised in a family-owned retail furniture environment, Bobby Jones has a real passion for the industry. At 29, he has the energy and enthusiasm needed to succeed. With his technological know-how, he is helping to drive sales and growth. Now on the manufacturer side, he loves the continuous evolution of the industry and the challenges it presents to him. His innovative contributions for the motion division of Klaussner include a new Complete Comfort Control app with enhanced lumbar support features and new, better and more appealing fabric applications for both motion and import upholstery.

Bobby serves on the board of the First United Methodist Church in High Point, N.C., and is very active with their youth program and its link with the community.

  

Jonathan Kashanian, 33

Company: FJ Kashanian Rugs

Position: Vice President   

Johnathon KashanianJonathan Kashanian manages all sales and customer relations for this family owned business, which spans four generations. In his day-to-day dealings, Jonathon believes that being honest and fair is what builds long lasting client relationships.  His management style fosters a team atmosphere, which has helped the company achieve status as a 10-time recipient of the America’s Magnificent Rugs Award. Though he started working at the company during a difficult time in the home furnishings industry, he credits his success to a combination of good luck and applying what he’s learned from his parents.

 

 

 

 

 

 

Hilary Kennedy, 32

Company: Dixon Smith Interiors

Position: Vice President of Finance and Operations    

Hilary Kennedy

In one year, Hilary Kennedy revamped a traditional, old-line firm into a modern, profitable design business. She reduced inventory and grew sales while overseeing a complete remodeling of the store. She has reimagined and reorganized the family business.

As an honors graduate from Vanderbilt University, Hilary began her career as an auditor for a Fortune 500 company before successfully transitioning to her current role as VP of Finance and Operations for Dixon Smith Interiors. She has directed the staff to implement new practices and procedures in various departments, including accounts receivable, warehousing and inventory control.  Hilary is also the leader for the artists outreach program to identify and promote local artists both in the shop and with the press. She successfully implemented a point of sale process that has greatly contributed to enhanced profitability.

Hilary is an active member of the Baton Rouge Junior League and serves on the Holly Days fundraising committee. She is also a member of the Forum 35 group, a local business organization that promotes young executive talent.

 

Austin Klopfenstein, 32

Company: Klopfenstein Home Rooms Furniture/Ashley HomeStore

Position: Chief Operating Officer    

Austin KlopfensteinFor the last ten years, Austin Klopfenstein has tirelessly worked 72-hour work weeks and his efforts have paid off.  Under his direction Klopfenstein’s revenue has jumped from $6 million to over $28 million dollars annually, increasing the bottom line to over three times the industry standard. Dedicated to the store’s success he oversees all the day-to-day operations which includes marketing and merchandising initiatives. He is well positioned for continued success. Described as a man of immense integrity he is also a genuinely kind person.

Austin is a 2007 graduate of the Kelly School of Business at Indiana University.

He is involved with several local charities and enjoys working with young people. He is also very involved with his church.

 

 

Hayley Leocha, 33

Company: MicroD

Position: Marketing and Communications Specialist

Hayley Leocha

Hayley Leocha has a passion for the home furnishings industry. She’s also an advocate for women and Millennials. She is creative, organized, technically savvy and a very good writer - a rare combination to find.

Leocha oversees all marketing efforts for MicroD. She plans, implements and manages integrated marketing campaigns for internal and external audiences across numerous markets creating brand awareness. She has developed training programs utilizing webinars, which have been a huge success for prospects as well as employees. Every year she develops a strategy and design theme for MicroD, focusing on customer retention and satisfaction. Leocha is a true team player.

Leocha is involved with Therapy Dog International and even has her own certified therapy dog. She often volunteers at her local hospital, library and schools. She is a member of the YMCA program planning committee and a core team member, handling public relations for the Refugee Resettlement Program at her church.

 

Shannon Lodermeier, 31

Company: FurnitureDealer.Net

Position: Senior Client Strategist    

Shannon Lordermeier

As the senior account manager for 40 of FurnitureDealer.Net’s retail clients Shannon Lodermeier is responsible for creating and managing a website plan that is tailored to their business goals and needs. In effect, Sarah becomes their trusted adviser in all things digital and website-related and maintains long-lasting partnerships with her clients. She is the main liaison between the clients and her internal team, delegating tasks and coordinating with the internal staff to ensure projects are completed in a timely manner. She is an asset to the senior client-facing team.

Shannon sets the bar high and has a powerful problem-solving mindset.  She was a lead presenter at the company’s user conference in the Fall of 2016, which resulted in in elevating many of their clients’ websites to the next level. This year, she created a new CRM system that brought organization and transparency to the entire FurnitureDealer.Net team.

Shannon cares about the health and wellness of her colleagues and has led yoga classes for employees on her own time. She even leads a “healthy lunch group” dedicated to planning and serving healthy means at work.  Shannon also cares about the environment and participates in an Earth Day clean-up program in her community. She cares about diversity in the workplace and women’s rights and isn’t afraid to stand up for what she believes in.

 

Steven, 31 and Cyrus, 29 Loloi

Company: Loloi Rugs

Position: Principals    

Steven and Cyrus Loloi

Thirteen years ago, Loloi Rugs was a company with four employees, a small office in Dallas, and an idea to design and handcraft the world’s most original rugs. Today, Loloi is a major player and has hundreds of employees, multiple warehouses and thousands of products, due in part to the hard work and dedication of Steven and Cyrus Loloi. The two brothers are taking the family business by storm and have been instrumental in inking deals to be the exclusive rug manufacturer for Magnolia Home and Ellen DeGeneres.

Over the years, the brothers have gained knowledge in all areas of the business working at non-management, labor-intensive job assignments. Steven, who has been with the company for eight years, is now Senior Vice-President. He has outstanding leadership qualities and has a keen interest in sales development and designing product.  The younger Cyrus, who is now the VP of Marketing, has been with the company for six years and currently supervises the company’s outbound marketing and education programs to help grow the business. 

The Loloi brothers are very involved with the family business and all the charity work they do. They are committed to improving their communities any way they can, including supporting Habitat for Humanity and its vision of bringing affordable homes to the community.

 

Jay Lorenzo, 27

Company: Aico /Amini Innovation Corp.

Position: Manufacturer Representative      

Jay LorenzoJay Lorenzo received four nominations for this honor by four separate individuals - a true testimony to his passion, energy and work ethic. As a rep for Aico, he stepped into the Central Florida territory and has done an exceptional job in every way.  As a result, he was nominated for Rookie Salesman of the Year.  Jay is very hands on and possesses follow-up capabilities that are second to none. Not only is he a hard worker but he also has a terrific personality and is very pleasant to work with. He is described as a true team player, who knows how to create strong relationships. He has a spirit and drive that is noticeable from the moment you meet him.

Jay is a City of Hope donor and advocate, and regularly attends and participates in charity events hosted by dealers.

 

Neil MacKenzie, 38

Company: Universal Furniture

Position: Director of Marketing      

Neil MacKenzie

Neil MacKenzie has a drive for excellence. That coupled with his knowledge of digital media is what landed him this nomination. As director of marketing he sets the strategic and creative direction for Universal’s brands, overseeing all elements of support, including web, social, advertising, promotions, PR and events. He has educated the sales force (and company executives) on how to create a positive brand impression through multiple channels of influence. He creates and leverages consumer-friendly content across digital platforms to build awareness, drive traffic and create engagement opportunities for customers. In the last year, he has launched new websites for each brand, resulting in significant growth across all brands of more than 100%.  Neil has enhanced the company’s market experience. His initiatives have led to double-digit gains in traffic, market over market.

Neil works with and donates to First Tee of the Triad, which provides educational programs that build character and values for youth through the game of golf.

 

Sam Malouf, 37

Company: Malouf 

Position: President and CEO    

Sam Malouf

Sam Malouf started Malouf with his wife Kacie as a college student. The company was actually born from a bad shopping experience. A young couple buying sheets thought that quality, price and packaging could be better. So, they started selling sheets out of their two-bedroom apartment and learned as they went. Six years ago, they hired their first full-time employee. Business began to blossom with noticeable growth and new product lines.  As president and CEO, Sam now leads a team of 200 employees. He makes strategic decisions, oversees cash flow and financing, and directs real estate management and planning. He is actively involved in product development and lends his thoughts on product packaging. Sam keeps the bar high.

He recently received the EY Entrepreneur Of The Year Award in the Utah Region.

Sam runs the Malouf Foundation, which provides comfort items to those experiencing hard times.

 

Anna McGaha, 35

Company: Fine Furniture Design

Position: Marketing Director        

Anna McGahaAs marketing director, Anna is responsible for the planning, development and implementation of Fine Furniture Design marketing, special events, and public relations activities. She has developed a multi-faceted strategy to propel FFD’s brand to the next level with thoughtful and well-orchestrated communications. Under her leadership, FFD completed a rebranding and launched several licensed product lines each supported by ad campaigns. At the recent Spring High Point Market Anna’s trade communication strategy resulted in over 30 articles and features for FFD across the leading trade publications. These achievements have resulted in the company experiencing tremendous growth.

Anna is passionate about her Greek Culture and is teaching the language to her two young daughters. She volunteers her time to a variety of charitable activities and to her local church.

 

Dale Mullen, 38

Badcock Home Furniture & More

Position: Home Delivery Manager   

Dale MullenDale was hired in 2012 to assist in starting a completely new process for Badcock’s home delivery program. He has been a huge asset. He determined the logistics, set delivery maps and created most of the SOP’s for Badcock’s home delivery operation. Dale started with centralizing deliveries from the warehouse for one store in Lakeland, Fla., and now has 23 - from Ft. Meyers to St Petersburg to Orlando. Next up is Mebane, N.C. Ultimately Dale is responsible for all routing, loading deliveries, customer service and returns for all 23 locations, overseeing a team of 70 employees. He is motivated and passionate about his career and the company. Dale’s credo is “evolve or become extinct” and he imparts this motto to his entire team.

When not working, Dale attends college classes, coaches his son’s baseball team and sits on the Board of Directors for the South Lakeland Little League. He also finds time to help with his two daughters’ activities.

 

Andrew Novick, 40

Company: HUB Furniture Co

Position: VP Operations    

Andrew Novick

HUB Furniture Co., has been family owned and operated since 1913. Andrew Novick represents the fourth generation to run the company and has succeeded in changing the dynamic of the organization and its advertising program to better meet the needs of the customers they are trying to reach. He has enhanced the vendor line-up to more closely match the needs of today’s younger shoppers, and changed the branding of the company by creating a new logo. Using his marketing prowess Andrew is responsible for putting HUB on the social media map and has successfully reconstructed the company website. He has also overseen the remodeling of some of the retail space within the stores.

Andrew supports the traditions of the Novick family, who have quietly built a reputation for being donors of money, time, energy and furniture to local nonprofits like Preble Street Resource Center, the United Way and the Jewish Community Alliance of Southern Maine.

 

Jake Pickel, 39

Company: Johnny Janosik

Position:  Regional Manager Specialty Stores

Jake Pickel

Earning two promotions within the first year of employment is quite an achievement. But that’s exactly what Jake Pickel did when he was hired at Johnny Janosik. He now manages four physical locations, positioned within two separate markets and also performs duties as the outdoor program buyer. Under his direction the store has experienced a 57% year-over-year sales increase in the category. In short, Jake handles a tremendous amount of responsibility with an excellent attitude and aptitude for learning. He is well liked and possesses strong management capability.

Jake is actively involved in the company mission to support Habitat for Humanity and participates in the company’s annual Charity Gold Tournament as well. He is also an active volunteer of Trout Unlimited, an organization dedicated to the upland habitats for trout and other aquatic species.

 

Scott Price, 39

Company: Toms-Price Furniture

Position: President      

Scott PriceAs president of Toms-Price, Scott Price is involved in all aspects of the business and is directly responsible for merchandising, the promotional calendar, revenue growth, store facilities and store management supervision. He is also the broadcast spokesperson for the company. Scott’s prodigious work ethic and family furniture business background allow him to identify and solve problems quickly. He has opened several stores including an extremely successful outlet store in 2005. Under his leadership, the store has achieved revenue growth every year, except one. Recently, Scott developed an independent design and project design business for high net worth individuals, which has been remarkably successful and continues to gain momentum with projects in the U.S. and the Caribbean.

Despite his work-related time commitments, Scott has been a board member of Rise International for ten years and served as president for four years.  He also serves on the leadership council at Willow Creek Church. Recently, Scott and his wife Meghan became foster parents providing a loving home environment for three children.

 

Jay Root, 30

Company: Furniture Sales of Mid America

Position: Director of Ecommerce and Training  

Jay Root

Jay Root is a true sales professional. He solves problems, builds relationships, and has gained the trust of some of the largest internet players in the industry. He’s a hardworking, likeable guy who conducts himself in an ethical way. Jay has been instrumental in developing and executing a sales training program for his family’s wholesale rep business. But perhaps his greatest achievement to date has been to expand the sales channel for Internet-only retailers as well as brick and mortar Top 100 retailers.  Jay is always exploring new opportunities to grow the firm including helping retailers to improve online sales via service platforms like freight consolidation and augmented reality.

Jay is a newly named ambassador for IHFRA. He is also a board member for Field Club of Omaha and has been an active participant in the Big Brothers program.

 

Harrison Rose, 32

Company: Marty Rose and Associates

Position: Manufacturer’s Representative  

Harrison Rose

As a manufacturer’s rep, Harrison Rose works with a variety of accounts in the highly competitive Chicago area representing some of the best manufacturers in the industry. He is known by his clients and competitors as a hardworking, knowledgeable, respected professional. Harrison handles sales training, new business development, maintaining Top 100 accounts and merchandising and marketing the products he represents in the marketplace. Having represented the industry well at the ripe young age of 32, he makes a positive impact in the marketplace. He volunteers his time to help others and assists folks that are new to the industry.

Harrison is an executive board member of IHFRA, is involved with Democracy Now news organization and is a volunteer with the Renaissance Collaborative which helps house and employ low-income households on Chicago’s South Side.

 

Ozge Sayan, 37

Company: Bedgear

Position: Creative Director

Ozge SayanOzge Syan helped evolve the Bedgear brand from the standard branding of bedding to a more contemporary style of branding that the company needed to excel in its category. She did this using sleek designs and a narrative that says “performance” and “recovery” as opposed to the usual story of bedding products. Ozge constantly strives to make sure Bedgear always looks like the industry innovator it is. She runs a time-crunched department and manages a team of artists and designers that consistently produce above par. Under her direction, Bedgear’s artwork has been featured in the Boston Globe and Sports Illustrated.

Being a first-generation immigrant Ozge is proud to volunteer for “Bridge to Turkey” and helps support projects in the fields of education and public health care for children in her native land of Turkey. She also volunteers with “Ticket to Dream” a program that helps provide assistance to foster youth. She has a 6-year-old son, and likes plate painting and belly dancing.

 

Christopher Saylor, 28

Company: Furniture Superstores

Position:  Co-owner  

Christopher Saylor

In one simple word, Christopher Saylor is what many of us aspire to be - a hustler. His determination and drive have led him to achieve entrepreneurial goals that would take most individuals years to accomplish. At 28, Chris is the Co-Owner of Furniture Superstores as well as the North Valley Antique and Collectibles Mall. Nominated by three different individuals for this honor, Chris is not only admired, but he is praised tremendously for his achievements.

Approximately one year ago, Chris and his brother Jon purchased a $5 Million, 50,000 sq. ft. facility and built a new Design Center showroom with a new multi-dock warehouse and multi-level racking system.

Aside from his multitude of accomplishments, Chris has managed to maintain a steadfast sense of family, both inside and outside of his vocational duties. He is known for having a caring personality with a big heart, and has been active in supporting charities that fund a plethora of causes, such as the Boys and Girls Ranch.

 

Cameron Cook Sellers, 33

Company: Palliser Furniture

Position: Director of Marketing    

Cameron Cook Sellers

As Director of Marketing, Cameron is responsible for the development and supervision of all marketing and communications strategies for Palliser with an emphasis on digital marketing. She has been in the industry for more than 10 years. At her previous post at Natuzzi, Cameron successfully re-launched a new progressive marketing/communications approach with a mix of marketing programs tailored for industry dealers and consumers. Having worked in China for Uttermost, her unmatched international experience in home décor brings a fresh perspective to branding, promotion, marketing and social media. Cameron’s proven track record has earned her the respect of many of the Top 100 retailers she works with at Palliser.

Cameron is the chairperson of a new division for the City of Hope and an active member of the WithIt organization serving on several committees. She also supports fundraising efforts for the Humane Society, American Cancer Society and the Levine Cancer Institute.

 

Jay Steinback, 38

Company: Rothman Furniture & Mattress

Position: CEO and President    

Jay Steinback

As president and CEO, Jay Steinback accepts sole responsibility for the overall direction and success of Rothman Furniture & Mattress.  With his knowledge of the industry and business expertise, he oversees the management team, providing guidance, strategy and future plans for growth. He is also the face of the company within the St. Louis community. The implementation of Rothman’s e-commerce website is considered one of his major accomplishments. And in an effort to provide additional internet-based exposure, Jay developed Rothman’s social media presence providing an additional tool to engage with and attract new customers. Carrying on the family legacy, Jay has managed to build upon Rothman’s historical achievements and drive the company forward. 

Through his leadership and passion for service, Jay is committed to enriching the community and supports several local charities, including Ronald McDonald House, Operation Food Search and H.E.R.O.E.S Care which helps furnish the homes of active and retired military members.

  

Maureen Smithe, 37, Meghan Smithe, 36, Caitie Smithe, 35 and Colleen Smithe, 34

Company: Walter E. Smithe Furniture & Design

Positions: Buyer, Director of Marketing, Designer and Director of Advertising

Smithe Sisters

The fourth- generation Smithe sisters have been involved in the family business since they were little. They would accompany their father to work on the days following warehouse sales so they could remove tags from merchandise, earning a nickel from their grandfather for every tag removed. As they grew, they worked weekends and summers and went through designer training in order to work directly with clients. After college, each sister pursued a career outside of the family business eventually returning and earning their “stripes” in their own right.

Maureen was the first to return in 2004 joining the merchandising team as a buyer with a focus on driving merchandising blocks that demonstrate the company’s ability to deliver furniture and designs that appeal to each of their clients.

Meghan returned in 2014 as director of marketing and Colleen has been director of advertising since early 2016. The two work hand-in-hand on driving the strategic vision for the company and the day-to-day task of managing messaging and promotional plans. Meghan and Colleen have taken the lead on developing a new brand strategy and ad campaign. As with any 72-year-old brand, updates are needed to keep it fresh and relevant. Fittingly, the sisters created the Smithe Family Makeovers, in which the sisters conceptualize and execute makeovers for real client homes. The campaign has generated immense attention and is successfully redefining the perceptions Chicagoans have about Walter E. Smith.

Caitie stepped back into the role of designer in early 2016. She balances her time between the showroom and the home office where she partners with the merchandising team to scout trends and influence how those trends are represented across Smith’s product offering.

The Smithe family has military roots and the sisters are proud to support the local Honor Flight Organization. They also support the Barrington Youth & Family Services organization where Meghan is an auxiliary board member. Maureen actively supports her local parish Refugee Committee. Among the four of them, they have 17 children – the next (5th) generation.

 

Trey VanHoose, 35

Company: Big Sandy Superstores

Position: President    

Trey VanHooseAs a third-generation furniture guy, Trey VanHoose learned the business by working his way up the ladder the old-fashioned way. He progressed from the warehouse, to sales, to store management to president of this privately owned, family-run, Top 100 retailer. His passion, work ethic and ability to relate to people go against the typical “Millenial profile.”   He is a caring individual who serves as the “glue” for the company and continues fostering a “family feel” for nearly 700 employees. Trey has overseen tremendous growth in the Columbus, Ohio market and is well versed in all areas of the business. He is credited with developing a loyal, hard-working team that operates like a cohesive unit. He is the total package…the real deal.

Trey carries on the “golden rule” family tradition by supporting local charities and youth sports throughout the communities Big Sandy Superstore serves.

 

Ashley Yaraghi, 26

Company: Safavieh

Position: National Account Executive    

Ashley Yaraghi

At 26 Ashley Yaraghi is a force to be reckoned with. In a short time Ashley has built a strong foundation by opening new accounts and growing others that were struggling before being turned over to her. She has met and exceeded all challenges presented to her and is hands-on in all phases of the business.  Through her tenacity Ashley has grown a small team into a powerhouse taking charge with direction for customer fulfillment and satisfaction. She manages each account, shoots and styles their unique shots and handles all shipping issues. She also leads the Social Media team, growing the company’s Instagram following to nearly 350,000 people. She is also the video spokesperson on YouTube.

Passionate about helping others, Ashley earned an award from the Salvation Army for “doing the most good”.  She is a graduate of Boston University and Imperial College of London and a former Wayfair Creative Design team member.

 

Sam Zavary, 40

Company: Exclusive Furniture

Position: CEO    

Sam Zavary

Sam Zavary’s father started a small furniture business years ago, and despite a downturned economy, Sam turned it into a multi-million-dollar operation and one of the top furniture retail stores in Texas.  He also grew the staff to approximately 200 employees. As the highest-ranking executive in the company, Sam’s primary responsibilities include making corporate decisions, and managing every aspect of operations, from warehousing to retail stores, to purchasing and philanthropy. He is well respected and a long-time leader in the Houston furniture scene.

Sam believes in giving back to the communities that his six locations support.  Already an annual participant in local blood drives and serving as a collection point for Toys for Tots, Zavary also donates fully furnished rooms to deserving families as part of a 12 Days of Christmas promotion.

        

 

In Good Company

 

As a magazine whose mission is to help you grow your business, we believe growing your employees is also an integral part of that mission. Accordingly, in this section we present a look back at some of our past picks, once again brought before you as repeat honorees. Looking at their achievements since their last appearance on these pages, it’s easy to see that there are plenty of big wins from these fine young men and women. They continue to be a story worth telling.

 

Sarah Dretsch, 40

Company: Weekends Only

Position: Senior Buyer

Sarah DretschDedicated to personal and professional growth, Sarah Dretsch was promoted to Senior Buyer a few years ago and loves what she does. She is passionate about the Weekends Only brand and works hard to help move it forward. She buys fabric and leather upholstery and loves sourcing new merchandise for this top 100 company. She also manages an assistant buyer who is responsible for ancillary categories. Fully understanding customer needs, Sarah provides a commercially viable range of merchandise at competitive prices. Sarah also led a company-wide “Training Palooza” that involved industry reps and the store’s entire sales team earning accolades as a “rising young star” by Ashley Furniture. She has a considerable amount of responsibility and excellent leadership qualities.

Sarah has been a Big Sister in the Big Sister, Big Brother program for the last ten years.

 

Mandy Jeffries, 34

Company: Colfax Furniture

Position:  President

Mandy JeffriesSince the last time she was recognized for this honor, Mandy Jeffries has been promoted to President of Colfax Furniture.  She is now responsible for overseeing all operations and planning for the future of the company.  Since her promotion, she has managed the company successfully and has elevated staff morale, participation and overall attitude.  As a leader, she has the confidence, passion and determination needed to lead the company into the future. She is excited to see what the future holds.

Mandy continues to serve on the board of Next Gen Now and participates in various furniture industry organizations. She is active in the local chapter of the American Heart Association and has been awarded one of the Triad’s outstanding women in business award.

 

Lael Thompson, 38

Company: Broyhill Home Collections

Position: Chief Operating Officer

Lael ThompsonThere are some people whose personal and professional growth can’t be put into a box. Lael Thompson is one of those people. During his 18 years in the industry, he has rebuilt the family business and achieved results that out-perform industry benchmarks. He successfully transformed a small, unpainted furniture gallery into one of the largest Broyhill Stores in America. Lael’s heart beats for the success of the people in the home furnishings industry. He has a history of building strong relationships and likes to connect people who can benefit from sharing information thereby helping them grow their business. He strives to make the industry stronger, smarter, and more profitable.

Lael currently serves on the board for HFA and helped re-build Next Gen Now by rooting the “under 40’s” in the industry on a path for success while having fun. He is excited to help expose the members of this group to the best thinkers and most successful companies in the industry.

 

Kyle “Bo” Coconis, 32

Company: Coconis Furniture/Mattress 1st

Position: Merchandise Manager and Associate Store Manager

Kyle CoconisSince his last nomination for the Forty Under 40 honor, Bo Coconis has grown into an outstanding leader in all areas of the company helping to fuel growth and success. His passion for the business is a driving force toward a bright future for Coconis Furniture.  He has become adept at handling challenging situations particularly in the service area. Aspiring to learn and share ideas with fellow retailers, Bo is a member of Impact Consulting Services’ performance group and serves on the HFA Next Gen board. He also assists with the Furniture First Next Gen group. Bo is a well-respected member of the home furnishings community.

Along with his brother Chad, Bo started a “Tee It Up Fore Autism” golf outing which is still going strong and now in its eighth year. 

Take 5: Cameron Capel

Take5:Cameron Capel

 

In 1917, A. Leon Capel got his first look at a mechanical tractor, and quickly realized there wasn’t much future for his tiny business making rope plow lines that farmers tied to their mules while working their fields.

The forward-thinking Capel was undeterred, however, and decided to buy a sewing machine so his ropes could be braided instead of twisted. The braids were then sewn together to form the first-ever reversible braided rug.

Two years later, Sears Roebuck bought 5,000 of them and included a picture of Capel’s creation in its famous catalog.

And the rest, as they say, is history.

One hundred years later, those braided rugs (and woven rugs, as well) are still produced in the small town of Troy, N.C., where the company’s founder fashioned that first rug. About 150 of the company’s 200 employees work at facilities in Troy, and its domestically-made product accounts for roughly half the company’s annual sales.

The founder’s three sons, A. Leon Capel Jr., Jesse Capel and Arron Capel ran the company after their father retired, and when the trio retired a decade ago, four of the founder’s grandchildren took the helm.

Today, Leon Capel Jr.’s daughter, Cameron Capel, who is vice president of national accounts, and her cousins Ron (managing director of the company’s eight retail stores), Richard (director of manufacturing), and Mary Clara Capel (director of marketing and administration) are leading the company into its second century. But they’re taking time to celebrate the first 100 years with a year-long series of events that have included a cake-cutting ceremony at the High Point Market and a festive catered lunch for employees, where each worker received a $100 gift card.   

Recently, Cameron Capel spoke with Larry Thomas, senior business editor of Home Furnishings Business, about the challenges of running a 100-year-old family business and the growth prospects for the rug category.

Home Furnishings Business: As you know, a very small percentage of family-owned companies remain in the hands of the founding family in the third generation and beyond. What have been the keys to keeping the business strong – and family members happy – for such a long time?

Cameron Capel: It can be challenging, and not even because it’s family. In any work environment, you’re going to have disagreements, but when you’re family, it obviously brings other challenges. There are four of us from the third generation who are involved, and we each have our own strengths. We all handle different areas of the business, so we’re not stepping on each other’s toes. It just kind of worked out that way.

When we come together for board meetings or management meetings, sometimes there are disagreements, but we’ve found that the four of us are very open to listening to other points of view. We keep an open mind. It’s not just ‘my way or the highway.’ You can’t have that in a family business.

Plus, we’re able to leave (problems) at work and not bring them home. We don’t let it get in the way of birthdays, anniversaries, holidays and other family events.

HFB: What are your earliest memories of the company?

Capel: I remember going to visit my Dad in his office when I was a little girl. Just being a little kid, I didn’t really understand what was going on. But I also remember going to the outlet store (in Troy) and climbing on piles and piles of rugs.  It was like a jungle gym (laughs). That was before we had display racks.

All four of us started working here in our teens. Some of us worked in the outlet store, learning to sell rugs. I worked in the office -- answering phones or filing. The boys did a little harder labor. They got to drive forklifts and stuff like that.

After college, the other three came back to Troy and started working for the company. I went straight to New York and worked in the Garment District in the fashion industry for two years. I always say I went from rags to rugs, but it was an easy transition.

HFB: In addition to parties earlier this year in your Las Vegas, Atlanta and High Point showrooms, what other anniversary celebrations are being planned?

Capel: We’ll continue to celebrate all year. We’ll be doing a big party in High Point on Oct. 14, the first day of the October market. One thing that we did in April that everybody seemed to like was ‘pop a balloon for cash.’ When you placed an order, you got to pop your balloon. Inside was anywhere from $20 to $100 in cash. Some people who got $20 were just as excited as the people who got $50. We’ll continue to do that, because I think that was a big hit.

Recently, we had a big employee celebration here in Troy. We had lunch brought in for all of our employees. They didn’t have to work for a couple of hours, and everybody got a $100 gift card to celebrate our 100th year. I think they really appreciated that. We wouldn’t be where we are without all of our loyal employees.

HFB: What challenges and opportunities do you see for the rug category?

Capel: The market has shifted so dramatically over the past decade. The price points have had a major drop. It’s such a different animal now, and it’s constantly changing. For years, our sweet spot was $499 wholesale for a five-by-eight. Now, with machine-made rugs, you can get down to $99 or $199 for that five-by-eight. But I feel like we were able to respond to that change the past two markets with some great-looking products.

We have really worked hard on revamping our line and listening to our customers’ needs. We have had a lot of introductions (in the past year), and we’ve had a great reaction to them. I think it’s because we’re listening to our customers and giving them what they want. 

The Millennials are the ones driving these lower price points. They’re buying rugs at $199 or $299 retail. They move around, and since they didn’t spend much money on their rug, they’ll just leave it and go buy another one. As they grow and settle down and become more prosperous, I think they’ll spend more money on rugs and home furnishings in general. But they’re buying them more often because their tastes change, or they move. We’re not specifically marketing to them (Millennials), but we’re responding with product lines at those lower price points. That was a huge focus for us at the April market. There was a time when we really didn’t have a product that was applicable to that generation.

HFB: Does is present any special challenges being a domestic producer in this pricing environment?

Capel: It does. We have thought about going offshore to complement our braided rugs with a less expensive line. We’ve toyed with that, and even brought in some samples and some proprietary items for (specific customers.) But we’ve found, frankly, that the quality is just not there. Yes, it’s less expensive, but there are a lot of reasons why it is less expensive. We’re completely vertical, and there’s a lot of labor involved. But we feel like we make the best braided rug out there. People appreciate the quality. They appreciate that it’s American-made. And they will pay more for an American-made product. And they will pay more for quality.

Motion Furniture Meets Technology

What Sells: Motion Furniture


This may come as a shock, but you are likely to see the words “motion furniture” and “technology” in the same sentence throughout this story.

Yes, we’re talking about the same motion furniture that, not all that long ago, was limited to basements, man caves, and other areas of the house that were largely out of public view and used only by guys named Bubba.

But today’s motion furniture user just wants a comfortable place to relax after he – or she – comes home from work. And the relaxation begins with the press of a button to open the ottoman, adjust the head rest and even provide lumbar support for that aching back.

And since most people can’t go more than 30 seconds without checking email on their smartphone or tablet, they’re constantly needing a place to charge the device. So a USB charging port is conveniently located in the arm of that same piece of motorized motion furniture, so the user can relax, surf the internet, check email and charge the device – all at the same time.

It’s all about motion furniture for today’s technology-laden, always-on culture. There’s an app for it, too, but more on that later.

“The bridge is being built between our everyday tech lives and our everyday relaxing lives,” said Bobby Jones, director of motion and import upholstery at Klaussner. “The technology is the overall driving force for growth in the category.”

Jones and other executives believe the motion category still has plenty of growing room left. The growth may not be as rapid as it was in the early 2000s when it was being driven by flat-screen television sales, but our rapidly changing technology needs will be a force for years to come.

 

“That’s where we’re seeing the innovations,” Jones said of the motion category. “You can’t really update too much on the stationary side, so I think motion is where we will continue to see the innovations.”

But stationary upholstery is having a major influence on motion upholstery because producers are designing their motion products to, well, look more like stationary products.

“Our product is much different today that it was just a few years ago,” said Chuck Tidwell, vice president of merchandising and product development at Franklin. “It has the look of stationary, and oh, by the way, it’s got reclining action.”

One way Franklin has achieved that “stationary look” is by adding legs to its motion furniture, a process that Tidwell said isn’t as easy as it sounds. That’s because the product must be designed, in effect, around the mechanism. And with many of today’s motion pieces having as many as three motors (for the ottoman, head rest and lumbar), it presents some significant challenges. But the result makes it well worth the trouble, he said.

“As the styling improves, it’s just going to continue to grow,” Tidwell said of the motion category. “People today usually buy recliners and motion furniture because they want to be comfortable. It’s the stationary look, but has reclining comfort”

A survey of recent motion furniture purchasers by Impact Consulting Services, parent company of Home Furnishings Business, indicates producers are achieving the proper blend of style and comfort. On a scale of 1 to 7, with 7 being the highest on the satisfaction meter, 27.6% rated their purchase a 7, and another 31% gave it a 6.

Only 6% rated their purchase a 1, meaning they were not at all satisfied, while 9.5% gave it a rating of 2, the survey results said.

Interestingly, some 52.7% of respondents said the style of reclining furniture was not an inhibitor to their purchase, but 47.3% said it was. Plus, a surprising 52.6% said they preferred a manual reclining mechanism, and another 16.4% preferred a “push-back” mechanism activated by body pressure. A more modest 31% said they preferred a power mechanism.

Tidwell said around 41% of Franklin’s motion and recliner sales are units that include power mechanisms, while Jones noted that Klaussner’s “fully loaded” motion sofas, which are equipped with a power ottoman, power headrest and power lumbar support, are outselling units with manual mechanisms by an incredible 9-to-1 margin.

“Getting our retailers to commit to flooring at least one piece fully loaded is the key,” said Jones. “It offers a great in-store experience (for consumers). It’s one thing to be comfortable with the power headrest, but once you experience that with the lumbar support, it makes a powerful sales tool.”

And the Impact Consulting survey showed that consumers are willing to pay a little more for these features. The survey said 52.1% of respondents would pay an additional $50 for a power recliner, and another 25.8% would pay an extra $100.  And surprisingly, 11.2% said they would pay more than $200 extra for that feature.

So what’s the next hot innovation in motion furniture?

At Franklin, it’s a radically re-designed seating system that makes the product more comfortable and easier to deliver – a win for the retailer and the consumer -- while Klaussner recently unveiled a Bluetooth-based app that allows the user to control the motion sofa through a smartphone or tablet.

Tidwell said Franklin’s new seating system was a huge hit at the High Point Market in April, and its popularity has caused the company to start converting its product line to the new system much faster than originally planned.

“It has really turned our factory upside down. But that’s one of those high-class problems,” he said.

Not only does the new system make its seats more comfortable, the re-design allows the backs of sofas to be removed, which Tidwell said makes it easier to get them through small doorways and stairwells. Plus, if a mechanism ever needs repair or replacement, the service can be done in the consumer’s home. It’s no longer necessary to haul the sofa back to the factory.

“We originally were going to put the new system (only) in our new products, but because everybody wanted it, it’s now going into our new products and best-sellers,” said Tidwell. “And soon, it will be in our entire line.”

Jones said Klaussner’s Bluetooth-based app, called Complete Comfort Control, also was a huge hit at the April market. The free app allows the user to synchronize the seat to a smartphone or tablet and then operate the power mechanisms – all three of them – from the device. Such apps previously were available only with high-tech massage chairs costing thousands of dollars more.

The app includes a memory function that moves the seat to the user’s favorite position, as well as a reset button that takes the seat back to its upright position. Jones said the app is available at no upcharge with Klaussner’s motion sofas, sectionals, free-standing recliners and high-leg recliners.

“It was extremely well received. We’re looking forward to a lot of good retail action from it,” he said.

HomeStretch158MacMotionCapriceLaZBoyRowanWashington and EkornesFlexSteelEvianUltraComfortandAmericanFurnitureBarcaloungerKlaussnerHumanTouchLanesStallionandFranklin

Drilling for Dollars Using Sales Metrics

Coach's Corner


The ultimate sales performance metric is total sales. Everything else rolls up into it. If life was simple, this would be all we need, since it is the main end result we all want to maximize. However, as with any result, in order to understand how we got it we have to look at its main ingredients and analyze them. That is because you cannot teach, train or coach a result, you must work instead on the individual elements that go into making it happen. Only when the right things are being done in the right order and at the right time, do we generate the consistent high-performance results we desire.

Each of these main factors has its own elements that go into making it happen and so do the individual elements down the line. Over the past few years, we have dissected and discussed many of these individual performance measurements and how to use them as you work to improve sales performance. I think this time we should step back a bit and look at the process of analyzing our sales performance metrics. Perhaps in doing so it will make more sense to anyone that has struggled to put a sales management process in place.

It is really a process of digging down through the numbers until you find something that needs to be either corrected or congratulated. This is a similar method to what you would go through to analyze your P & L. First you would review each of the major expense categories against your target for it and if it is not where you want it to be, you would drill down to the line items that roll up into it and try to determine where you went south. Once you find a line item problem, you would look into all the things that affect it and see what might need to be fixed.

Using sales performance metrics to help drive improvement in that important part of your business is roughly the same. You look at each of your sales people’s individual sales results, then look deeper into the ones that did not perform to your target for them or at least to the store’s average. As with your financials, you would be searching for the specific performance area that is holding back or dragging down that person’s results. Having zeroed in on the specific number that is hurting performance the most, you then need to determine what they are doing wrong or not doing at all that is causing it. In essence, the sales metrics numbers are the objective measurements you use to point you towards a problem area. Once you have that, you will often use more subjective processes and information to fix the situation.

We need to note here that we are not always looking for those metrics that are low. It is very possible to be super high in any single measurement (even total sales) and actually be hurting the overall store effort. For the most part though, there is more to gain by bringing under performers up to an acceptable level. Therefore that will be our main focus.

First, you must establish a target for where each number needs to be in order to be at least acceptable. It is not fair to expect everyone to be a super star. So looking at your top writers and comparing the rest to them is not a good idea and will lead to jealousy and failure. The best approach with all of these metrics is to use the store average as your “line in the sand”. Certainly, if you have more than one type of sales effort in your organization, such as a design or in-home team, you can separate each type of selling process and use separate averages to establish your targets.

Total Sales

As stated earlier, the main metric we are all concerned with is total sales, which if you read this column regularly, you most certainly know is the result of the following equation: Ups X Close Rate X Average Sale. The more you can get your sales staff to understand that their success is the product of how many people they work with times the percentage of those they actually sell something to, times how much on average they sell each one, the more important these sales metrics numbers will be to them.

UPS

Once you have determined which total sales performances fall below where you want them to be, the first thing to look at is the number of Ups that the individual took. The number of Ups that a sales person goes through each month is very indicative of how they sell. If someone consistently needs more opportunities in order to hit your total sales target, they could be hurting you more than you realize. It is what I call the “double whammy”, because people that take less time with each customer will wait on more customers and they most often sell less than the store average to each one (see Revenue per Up), which means that the more customers you let them wait on, the more they hurt your business! 

You also need to be aware that those who wait on too few customers may be taking too long with each one. Generally, their total sales will be lower because they are so inefficient with the Ups you give them, but it might not put them below your target. So, you need to be aware that this is happening since it hurts you by causing you to need more staff to handle your traffic.

The Ups you allow each of your staff members to interact with are truly the most valuable asset you have as a retailer. Therefore, how they handle them from both an efficiency and effectiveness standpoint is extremely important to your business. Traffic per sales person is one of the very first things I review when asked to help improve a client’s sales. It is at the core of the store’s staffing needs, it lets me know how each person shares the workload and when compared to sales results it says a lot about their value to the company. Don’t forget its importance. And, when you do see a possible issue, then go on to the next metric which is revenue per Up, to see if there really is a problem and how bad it might be.

Revenue Per Up (Performance Index or PI)

Revenue per Up is defined as: Total sales volume divided by the number of customers seen (Ups), However it can also be calculated by multiplying Close Rate X Average Sale

Revenue per Up is the next critical metric used by management to understand the true effectiveness and efficiency of each salesperson.  It is valuable because it takes into account the effects of both close rate and average sale by combining their effects into one comparative index that indicates how many dollars of revenue are generated each time an individual salesperson greets a customer. This is the best way to determine how much of an issue you have with an individual. As an example; if the store average PI is $600 and your lowest person is delivering under $300, then every time they take an Up it is costing you over $300. If they are seeing 120 customers/month, there is nearly $40,000 walking out the door that you had a chance of getting, if virtually anyone else had waited on those people. If you rank your staff by PI, you will know where you need to spend your coaching time and effort!

Keep in mind though, that revenue per Up, like total sales, is a result that can’t be directly coached, it is mainly a “Red Flag” that makes you aware of how staff members are contributing to your business. Since Rev/Up = Close Rate X Average Sale, you must drill down to those numbers to find the driving factor for the performance.

Close Ratio

Defined as: Number of sales divided by number of Ups and expressed as a percentage, this metric really tells you how well your people are connecting to their Ups. It also gives you direct indications of the quality of their selling skills, since understanding and consistently using the right steps in an effective selling process is key to higher closing rates.

If this number is below the target you establish, there may be several reasons. It could be Ups related, such as having to take too many Ups because the store is short staffed, so they rush each one. Or, perhaps they burn through too many Ups because they can’t connect to most of the people they approach on the floor, so they keep getting back into the rotation. A big part of connecting is people skills related, which is the toughest thing to fix - you just can’t train “personality”. Often though, the problem lies in a failure to establish trust with the customers, which also can be caused by a lack of product knowledge, poor needs analysis and/or bad listening skills.

Lastly, many people can do all of the selling steps but just can’t or don’t ask for the order. Closing is just as important a step as it has always been, but with today’s customers we see that opening the sale properly and gaining the customer’s trust is the biggest issue we face. If they can’t open they can’t close and that is what a low closing rate tells you to look for.

Average Sale

Defined as: Total sales volume divided by the number of sales made, expressed in dollars. Average sale tells you if your people are maximizing their opportunity with each Up. When measuring individual performance and comparing one person to the store average, the conclusion to be drawn regarding higher performers is that they have the ability to recognize the greater needs of some customers.  In other words, higher performers have and consistently apply selling skills that lower performers do not possess or do not apply. Therefore, we must look for ways to improve how low average sale performers use the needs analysis process and whether they have the product knowledge they need to step customers up to better goods. Some people struggle to understand and use a store’s established good, better, best story to make sure their customers get exactly the product they want, short circuiting the process by just selling the low priced or advertised goods.

Ways to improve this include: training and coaching the sketching process to slow down/focus needs analysis, checking category and vendor performance reports to see if they avoid selling case goods or better vendors, and adding design skills or in-home abilities to their toolbox.

Finding the Answers

As stated, these numbers are the objective measurement of performance within your selling team. They tell you a great deal about what is happening, but they only give limited insight into why it is happening. They are indicators that should be used to point you in the right direction so you can find the answer the only way possible, through getting out on the floor and actually seeing what your people are doing with the customers you let them wait on. Observation, joining sales and giving feedback for improvement during the game is the best thing your sales manager can do to create a winning team by improving the performance of those that lag behind the rest.

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