“No other product in [a consumer’s] home has more of an impact on overall well-being than a mattress,” President Mike Kenna says.

Premier Business Partners:

Serta Co.

Partners Mike Kenna and Frank DeMaio have grown American Mattress from 18 stores to 80 locations throughout the Chicago market. However, they intend to continue functioning like a close-knit, family owned operation.

“Our philosophy has always been, no matter how big we get, we’ll run like a small mom-and-pop company,” Kenna says. “We give our salespeople a percentage of their specific store, so we run like a franchiser. When an employee has a vested interest in the store, they will go above and beyond to treat that customer like family. And it doesn’t matter if a customer is spending $20 or $5,000; every customer gets treated like family.”

American Mattress was founded in 1990 with 18 stores until Kenna and partner Frank DeMaio bought the company in 1998. They grew the company to its current 80 locations throughout the Chicago area, as well as into Indiana and Wisconsin.

The company specializes in sleep products including mattresses, headboards, sheets, pillows, frames, futons, day beds and related accessories. American Mattresses is also the exclusive dealer for Serta in the Chicago area, and it has also expanded into luxury product lines made by Vera Wang.

Kenna took time recently to speak with Furniture & Interiors magazine about globalization, health and the sleep products industry, and his vision of the future for American Mattress.

Furniture & Interiors:  How has American Mattress dealt with the economy?
Mike Kenna: There is 10 to 12 percent more business in the summer months, which has an influence on the economy. We market differently in terms of advertising, and we made adjustments with the times.

We’ve just changed different price points and have been more aggressive with advertising. The last one-and-a-half years have been a little more difficult, and we have to be more aggressive with prices. In terms of our customers, we offer longer financing and better products with lower price points.

Customer service is something we strive [for], and we’re best at it in the Chicagoland market. Everything is delivered the same day within a two-to-three-hour window, and we deliver until nine at night.

F&I: What are recent trends in the sleep products industry?
MK: People in today’s society want to be healthier. They are eating healthier and doing different things and are more cognizant of it, which trickles down to our products, too. A mattress is where we spend one-third of our life. Since people are more into the healthier lifestyles, it plays into the higher-end products we carry. People are realizing that this is a product they get so much use for every year. If they buy it right the first time, they only replace it every 12 to 15 years. No other product in their home has more of an impact on overall well-being than a mattress.

F&I: Are there plans for future growth?
MK: We’re always looking to expand. In the Chicago market, we are filling holes and gaps where we need penetration. Through TV and radio, we advertise in certain areas, so in 2008 we will be filling in the gaps. So, expansion in the future is very possible. We’ll fill some holes, improve some locations and expand into some areas that we’re not in. We expect to have eight more stores in the next 12 months.

F&I: What distinguishes the company from the competition?
MK: A mattress is a personal item. It is also a blind item, where customers are coming into the stores wanting to get the knowledge and trust somebody to advise them. The way we approach our customers is to first build their trust.

We sell comfort – we don’t sell price or specs – so just getting the best deal in the world defeats the whole purpose. That is why we’ve trained our salespeople to zone in on their comfort. If they don’t like the product within 30 days, they could exchange it.

They also get a 60-day price guarantee. If they see anything else in the marketplace that is the same or comparable, we beat that price. So we guarantee our price and we guarantee their comfort. It is our attention to detail that separates us from our competition

F&I: Do you have practice any links with the community?
MK: We work with the Susan G. Komen [Breast Cancer Foundation] ... to try to raise some funds for that cause. We also support Easter Seals.

F&I: How do you train your personnel?
MK: Our training consists of about four or five weeks because they have to know the product inside and out. We deal with training at the office level and store level through manufacturer representatives, who train our people.

F&I: What is your vision of the future for American Mattress?
MK: We’re expanding and filling the gaps through penetration in every area. We’re filling the gap between Chicago and Indianapolis, and possibly going more into the Wisconsin market through the Milwaukee area.  

Our goal is to make sure we’re taking care of every customer because over half of our business is repeat and referral. We’re very proud of that fact because a customer has to feel 100 percent comfortable when referring friends and family. When we see a referral or a repeat customer, we know we’re treating our customers like family.