From Home Furnishing Business
King Koil’s Mattress Stimulus Package Results in 20 New Retail Partners
2020 by Laurie Northington in Business Strategy, Industry
After deferring payments on all new floor samples and inventory for its retail partners through January of 2021, King Koil has announced 20 new retail partnerships in Texas and the Pacific Northwest.
The program, called the “Mattress Stimulus Package,” was designed to give retailers relief from the cash crunch many experienced earlier this year as a result of temporary store closures due to the COVID-19 pandemic.
“When the pandemic hit and retailers across the country began to close their doors, our team knew we needed to develop an innovative solution that could be implemented quickly when storefronts began to reopen,” said David Binke, chief executive officer of King Koil. “With minimal early revenue and limited cash flow upon reopening, our Mattress Stimulus Package helped not only our existing retailers kickstart sales and restore their financial health, but also proved to be an appealing incentive for new retail partners to place our products on their floors.”
To complement the stimulus program, King Koil developed two new, sharply priced mattresses. Built with specifications that higher-priced mattresses typically carry, the company’s two mattresses are designed for retailers to promote to drive store traffic.
A 15.5-inch, hand-tufted mattress featuring pocketed coils, gel memory foam and enrobed in a stretch Tencel™ fabric can be promoted at $999. A 15-inch model, ready to promote at $799, offers a combination of micro coils and a pocketed coil system with gel memory foam that is dressed in a stretch Tencel.
New and existing retailers who have participated thus far in the stimulus package have taken advantage of the new price points as well as the company’s existing products, placing – on average – four to six models on their floors, according to Binke.
“Given the current economic environment, we knew it would be critical to offer a broader variety of price points so our retail partners could meet the needs of their customers, many of whom may also be experiencing financial challenges,” he continued. “While we will always have a focus on luxury products – and there are still consumers who are in the market for these goods – it was important to offer our retail partners with new designs at sharper price points to help them drive traffic and boost sales quickly as stores reopen.”
The stimulus package is available throughout the remainder of the year and is open to new and existing King Koil retailers on orders placed from the company’s factory in Arizona.