american mattress

8/4/2019 American Mattress

1/23

Sleep Shop Opportunity


2/23

Where Mattresses WereSold1988

Sleep Shops

16%

Furniture Stores

54%

Department Stores

22%

Other

8%


3/23

Where Mattresses AreSold

2007

Sleep Shops

41%

Furniture Stores

36%

Department Stores

7%

Direct to Consumer

5%Warehouse Clubs

4%

Other

4%

Factory Direct

3%


4/23

Consumer Preference has Shifted

Department stores losing groundo 22% to 7%

Furniture stores losing groundo 54% to 36%

Sleep Shops Gaining Considerably

o16% to 41%


5/23

How Consumers ShopMattress Specialists 60%

Furniture Store 35% Factory Direct 35%Manufacturer branded store 34%

Department Store 30%Warehouse club 24% Lifestyle Furniture Store 13% Internet 6%

Discount Department Store 5%

Source: Furniture Today and HGTV Consumer Views Survey, 2008


6/23

How Consumers Shop

Mattress specialists are the preferredchannel for the X generation ages:

Under 25: 74%

25-34: 70%

35-44: 65%

Source: Furniture Today and HGTV Consumer Vies Survey, 2008


7/23

The Serta Philosophy

We grow our business by growing our

retailers business

Americas Mattress was formed from thisphilosophy in 2001. Adhering to this mission

statement the Americas Mattress program hasgrown to one of the largest sleep shop

operations in the country.


8/23

Americas Mattress

Ranked #9 in the 2007 Top 25 Bedding

Retailers

and growing fast!

Source: Furniture Today and HGTV Consumer Vies Survey, 2008


9/23

Why Americas Mattress?

Turn-Key OperationGrowth

Operations

Training

Marketing

Products

Systems

TurnKey100Program

New Concept Store!!

Proven Business Mode l


10/23


Growth

- Detailed Market Analysis- Determine market potential & growth plan

- Long term multi-unit strategy

- Real Estate Acquisition

- Best sites at the best prices- Commercial broker specialists

- Construction Expertise & Support

- Pre-qualified contractors across the US- Exclusive Territories

- Allows you to control your destiny!

Proven Business Model


11/23


Operations Dedicated team across the US and at Group office

Local Serta representatives provide continuing support

Focus on driving RETAIL sales and profitability

Sharing of best practices

Provide a complete toolbox to help your business

Ongoing Communication and Support Programs Weekly One Minute Advisor

Quarterly Newsletters Onlyfor AM Dealers

You are in business for yourself but not by yourself!



12/23


Training Bedding Business Management Course

Week long course for all new dealers Premier bedding training course nationwide

Opportunity to meet and discuss best practiceswith other AM owners

Grand Opening Assistance Complete sales and merchandising training

Systems and back-office training

Local marketing launch program support

Launch Training Plan Implementation Goes from -90 days to +90 days of opening



13/23


Marketing- Full resource center developed exclusively for

Americas Mattress owners

- National Advertising Fund to create awareness

- Local Marketing Support and aggressive coop

programs to drive traffic- Americasmattress.com for dealers and customers

- Website templates available for use

- E-commerce capability which enhances dealer

profitability through internet sales- Fully integrated market penetration strategy



14/23


Communications- Sertamarketing.com with Americas Mattress portal

- Specific Americas Mattress created events

- Example: Americas Mattress National One Day Sale, allfinancing charges paid for by Serta.

- RESULT: 11% Increase in Sales



15/23


Products

- Full line of products designed to compete atall price points and quality

- Annual & mid-year new product introductions

- Americas Mattress exclusive Value linedesigned to improve margins

- Americas Mattress exclusive featuredproducts such as the Resort Suite Plush

- Preferred Vendor Program for Accessories



16/23


Products

- Perfect Day: $1,999-$4,999- Vera Wang Specialty: $1,999-$3,999

- Vera Wang Innerspring: $999-$1,999

- Serta Perfect Sleeper: $799-$1,299- AM Value Line: $299-$749

RESULT:

- Americas Mattress owners enjoy blendedmargins well above industry average



17/23


Systems Point of Sale Software and Hardware Package

- Software system designed exclusively forAmericas Mattress owners

- Sales ticket processing, inventory controls,delivery scheduling, sales reports and more!

- All hardware preloaded with the software for only$800 exclusively for Americas Mattress owners

Gives you the edge vs. your competitors



18/23


Americas Mattress New Concept Design

- Serta and Americas Mattress saw need forchange through extensive consumer research

- Rileys and Williams commissioned to designinnovative, exclusive customer experience store

- The Results:- 22% increase in sales

- 130% increase in accessory sales

- $100 increase in average ticket

- 4% increase in gross margin- 17 point increase in closing rate



19/23

Why Americas Mattress?Proven Business Model


20/23


Five Designs to choose from


Coastal Contemporary Craftsmen

Rustic Traditional


21/23


Americas Mattress Benefits Summary

- Protected Territory- Turn-Key Launch Program

- New Dealer Financial Assistance Program

- Level 1 Pricing Provides Higher Margins

- Preferred Vendor Program

- Competitive Advertising Coop Program

- Annual Owners Conference

- No Franchise or Royalty Fees- Low Investment Opportunity

- Extensive OngoingTraining & Support

- High Profit Potential



22/23


The Results for 2008

- 50 new Americas Mattress stores openedthis year alone and another 25 projected!

- Territories still availablefor now.

- Now is the time to join the fastest growing

segment of the mattress industry with themost successful company of 2008, Sertaand Americas Mattress



23/23

american mattress

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