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BedTimes June 2011

THE BUSINESS JOURNAL FOR THE SLEEP PRODUCTS INDUSTRY

A matter of trust

Firms succeed with leaders employees can count on

Figuring out the right growth strategy for you Low-cost, easy ways to reward employees


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JUNE 2011

InSide Features

20 Right sizing

It seems natural to want to grow your business larger and larger. But bigger isn’t always better. To help you find the best growth strategy for your company, BedTimes considers the advantages of expansion and the benefits of staying small.

28 It’s all about trust

Being a trustworthy leader isn’t just a moral issue, it’s a practical one, says leadership expert John Hamm. If employees don’t trust you, they won’t feel safe. If they don’t feel safe, they won’t take risks. Without risk taking, your company won’t thrive.

Departments

9 Management Issues

Instead of thinking of business as a competition re-imagine it as a web with an emphasis on connections. A consultant explains why this model can lead you to great success.

13 Employee Relations

Your employees deserve a reward for a job well done but you’re too cashstrapped to give big raises or bonuses. BedTimes offers you more than 50 low-cost, easy ways to recognize good work.

16 Up Close

Dan Schecter’s career has led him from foodstuffs to foams and fibers. Regardless of what this Carpenter Co. vice president is selling, he knows the importance of talking directly to consumers.

www.bedtimesmagazine.com

5 Editor’s Note 7 Front Matter 33 Industry News 47 Newsmakers 48 Calendar 49 ISPA News 50 Advertisers Index 51 C lassifieds 52 Last Word

BedTimes | June 2011 |

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EDITOR IN CHIEF Julie A. Palm 571-482-5442 jpalm@sleepproducts.org ASSOCIATE EDITOR Barbara Nelles 336-856-8973 bnelles@sleepproducts.org CONTRIBUTORS J. Tol Broome Jr. Dottie DeHart Marvin Marshall Linda Seger Dorothy Whitcomb ART DIRECTOR Stephanie Belcher 336-201-7475 stephanie@jimmydog.com Vice President of ADVERTISING Sales Kerri Bellias 571-482-5444 kbellias@sleepproducts.org Ad Production & CIRCULATION manager Debbie Robbins 571-482-5443 drobbins@sleepproducts.org COPY EDITOR Margaret Talley-Seijn BedTimes deadlines Editorial deadlines for the Industry News and Newsmakers sections of the August issue of BedTimes are earlier than usual. We need all news releases and photos by Monday, June 27. Volume 139 Number 6 BedTimes (ISSN 0893-5556; Permit 047-620) is published monthly by the International Sleep Products Association. Periodicals postage paid in Philadelphia, PA. Administrative and ISPA offices 501 Wythe St., Alexandria, VA 22314-1917 Phone 703-683-8371; Fax 703-683-4503 Postmaster Send address changes to BedTimes, 501 Wythe St., Alexandria, VA 22314-1917. Contents © 2011 by the International Sleep Products Association. Reprint permission obtainable through BedTimes.

www.bedtimesmagazine.com

Editor’sNote Industry women coming together T

he mattress industry has long been dominated by men. Walk through a mattress factory— from the plant floor to the executivelevel offices—and the majority of faces you’ll see are male. The same thing is true at supplier companies and in retail showrooms. That isn’t to say that women don’t play important roles and make significant contributions. They do. There just aren’t that many of them. Not long ago, a few of these women got to talking—about their relatively small but growing numbers, about how they’d like to get to know other women better, about how they’d like a forum for exchanging ideas and more opportunities to grow professionally. And so the International Sleep Products Association’s Women’s Network was born. The fledgling group got together earlier this spring for cocktails and conversation during the ISPA Industry Conference & Exhibition. It was a diverse group, ranging from veterans who’ve spent decades in the industry to newcomers working in their first mattressrelated jobs. Some of those gathered knew everyone in the room; others were attending their inaugural industry event and making introductions. What they had in common was a passion for making a difference in their companies and the industry at large. The energy and enthusiasm in the room was amazing. The ISPA Women’s Network is still taking shape. Early plans call for gatherings and educational seminars at industry events such as ISPA EXPO and furniture markets. There’s no fee for joining the group and membership

is open to any woman in the industry, not just ISPA members. If you’re a woman in the industry and want to get involved, a good place to start is the ISPA Women’s Network Facebook page, which gives you a chance to connect with others, exchange information, plan events and shape the future of the group. If you’re one of the many men, encourage your female colleagues to get involved. Early deadlines The August issue of BedTimes has early advertising and editorial deadlines so that we can send extra copies to the summer Las Vegas Market. The ad insertion deadline is Monday, June 27. Ad materials are due Tuesday, July 5. All news releases and photos for the Industry News and Newsmakers editorial departments are due Monday, June 27. Upcoming editorial and advertising deadlines for the magazine always can be found at www.bedtimesmagazine.com. BT

Julie A. Palm BedTimes | June 2011 |

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PATRON: HRH THE PRINCE OF WALES


FrontMatter Sleep linked to brain function, weight gain, infant growth Roundup of latest research shows importance of optimal rest

R

ecent sleep research from the United States and United Kingdom shows how important proper sleep is to a variety of human functions.

Improper sleep ages the brain Both sleeping too little and sleeping too much can result in a decline in brain function, according to British researchers. Specifically, sleeping less than six hours or more than eight hours can age the brain by up to seven years. Researchers say the optimal amount of sleep —seven hours per night—resulted in the highest score for every cognitive measure. Scientists at the University of London collected data on 5,431 men and women, age 35 to 55 in 1985, who were part of the long-term study known as Whitehall II. From 1997 to 1999, participants were asked about how long they slept on an average weeknight. The questions were repeated in 2003 and 2004. Those whose sleep patterns remained unchanged were compared with those who reported changes in their sleep. All participants were given tests to assess memory, reasoning, vocabulary, global cognitive status and verbal fluency. About 25% of women and 18% of men reported sleeping less over the www.bedtimesmagazine.com

course of the study and they had lower scores on the tests for reason, vocabulary and global cognitive status. The study found that 7.4% of women and 8.6% of men slept more over the course of the study and those people had lower scores on all the cognitive tests except memory. “The main result to come out of our study was that adverse changes in sleep duration appear to be associated with poorer cognitive function in later middle age,” says Jane Ferrie, a senior research fellow in the department of epidemiology and public health at University College London Medical School. The report was published in the May 1 issue of Sleep. Night owls at risk for weight gain A regular habit of staying up late and then sleeping in puts people at risk of gaining weight, according to research from Northwestern University in Chicago. People who go to bed late and sleep late eat more calories in the evening, more fast food, fewer fruits and vegetables, and weigh more than people who go to sleep earlier and wake up earlier, researchers found. Several studies have found a link between duration of sleep and weight

gain. Northwestern researchers say this is the first U.S. study to explore the connection between when people sleep and weight. “Human circadian rhythms in sleep and metabolism are synchronized to the daily rotation of the earth, so that when the sun goes down, you are supposed to be sleeping, not eating,” says senior author Dr. Phyllis Zee, professor of neurology and director of the Sleep and Circadian Rhythms Research Program at Northwestern University’s Feinberg School of Medicine and medical director of the Sleep Disorders Center at Feinberg and Northwestern Memorial Hospital. The study included 51 adults—23 late sleepers and 28 normal sleepers. Late sleepers went to sleep at an average time of 3:45 a.m. and awoke by 10:45 a.m. Normal sleepers, on average, were up by 8 a.m. and asleep by 12:30 a.m. The study was published online in the journal Obesity. Infant growth spurts linked to sleep A new study finds a connection between the amount babies sleep and their growth spurts. Specifically, growth spurts are tied to an increase in total daily hours of sleep, as well as an increase in the number of daily sleep bouts. “The results demonstrate empirically that growth spurts not only occur during sleep but are significantly influenced by sleep. Longer sleep corresponds with greater growth in body length,” says Dr. Michelle Lampl. Lampl is lead author of the study and serves as the Samuel C. Dobbs professor of anthropology at Emory University and associate director of the Emory/Georgia Tech Predictive Health Institute. The study, co-authored by Michael Johnson, a professor of pharmacology at the University of Virginia Health System, appeared in the May 1 issue of Sleep. In the study, data on 23 infants were recorded over a four- to 17-month span. Researchers analyzed their daily sleep records and growth patterns. BT

BedTimes | June 2011 |

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ManagementIssues

Web thinking: A better way to win

Making connections is more effective than competing By Linda Seger

C

ompetition is at the heart of business. This has long been a given. We were told this is the way things were, are and always will be. But in the past few decades, a new business model has been emerging. Some call it “web thinking.” Like both the World Wide Web and the spider web, it’s an image of connection rather than competition. And many believe it has a better possibility of bringing success to our businesses. Web thinking grew out of a problem that people noticed as they were entering management and entrepreneurial positions. They saw the damage that a rat-race mentality can cause—everything from stress and heart attacks to broken families. Out-of-control competition can lead to dishonest business practices and bullying to stay ahead of the game. It can lead to trying to destroy the competition and eventually destroying your own business in the process. There is an old saying, “The teeth of the wolf determine the fleetness of the deer.” Some believe we only www.bedtimesmagazine.com

accomplish something when we’re pushed and threatened. For too long, it was presumed that this was the only way to succeed. But now many believe that our world is not ruled by survival of the fittest, but by survival of those who cooperate. Collaborative at the core Web thinking is being used, in one way or another, in virtually every discipline, from biology to theology to music to psychology. In the film industry, some of the most successful writers and directors also are the most collaborative: Steven Spielberg, Meryl Streep, the geniuses behind Pixar. Academy Award-winner Ron Howard has said that through the years he has become a more collaborative director. It would make no sense to work with the best people in the busi-

ness and not to listen to their ideas. Turning to another realm, game theorists have discovered that those who cooperate win more often than those who simply compete. Why would connectors be more successful? Because collaborators help each other, sharing information and resources. Consider another adage: If you step on everyone’s fingers and toes on the way up the ladder, there’s no one to catch you when you fall. Web thinking is based on teamwork. You still have goals, but no one is sabotaging those goals. People are heading in the same direction and contributing their skills and talents to the final product. Exchanging information In web thinking, there’s an exchange of information among team members. Web thinkers focus on uniqueness rather than imitation. They see their contributions within a larger picture, recognizing that nothing is ever accomplished by one person alone. Web thinkers connect for success. Once connections are formed, synergy can begin. Synergy can be defined as a way of working together so that the total effect is greater than the sum of two or more of its parts. After synergy is generated and people begin to work together, energy moves out—becoming greater than anything one person can do. Focus on flexibility Linear thinkers try to preserve the status quo. The hierarchical boss guards and clings to his position, even though everything may be telling him that it doesn’t work. This rigidity leads to arrested development and inflex-

‘In the end, life is much less a competitive struggle for survival than a triumph of cooperation and creativity.’ BedTimes | June 2011 |

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ManagementIssues

Relax...

ible behavior. But life and business keep moving and changing around him and his company fails because he doesn’t respond. Web thinkers are flexible thinkers. They recognize that the business world is not stable, but always in flux. Flexible thinkers are able to move with the change. Like a spider web responding to the pressure of the wind, we move within the dynamic give-and-take of progress.

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Weaving webs Consider this thought from biologist Lynn Margulis: “In the end, life is much less a competitive struggle for survival than a triumph of cooperation and creativity. Indeed, since the creation of the first nucleated cells, evolution has Web thinking proceeded through ever more intricate recognizes that both arrangements of the spider web and cooperation.” And consider the World Wide Web this from Tim are metaphors for Berners-Lee, creator of the World Wide the thinking Web: “(I had) a of the future. growing realization that there was a power in arranging ideas in an unconstrained web-like way. …I liked the idea that a piece of information is really defined only by what it’s related to and how it’s related. There really is little else to meaning. What matters are the connections.” What matters are the connections: That’s at the root of web thinking. Web thinking recognizes that both the spider web and the World Wide Web are metaphors for the thinking of the future. Don’t compete. Connect. BT Linda Seger is an internationally known script consultant, keynote speaker and seminar leader. She has had her own business since 1981 and credits her success to the concept of “web thinking.” She has given speeches and seminars in 32 countries. She’s the author of 12 books, including Spiritual Steps on the Way to Success: Gaining the Goal Without Losing Your Soul and Web-Thinking: Connecting, Not Competing for Success, which recently was re-released as The Better Way to Win: Connecting, Not Competing for Success. For more information, check www.lindaseger.com. www.bedtimesmagazine.com


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EmployeeRelations 51 ways to show workers you appreciate them Low-cost ideas are easy to do

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ith the economy still tight but people working harder than ever, many companies are looking for simple, inexpensive ways to reward employees. American Express’ Open Forum (www.openforum.com), an online community designed to help small business owners grow their companies, offers a long list of things you can do for your employees—besides giving them raises or big bonuses: 1. Let an employee dump the one project she likes least on you. 2. Let a worker use the chief executive officer or president’s office for a day. 3. Give someone the front parking spot for a month. 4. Send handwritten thank-you notes.

11. Send a bouquet of flowers. 12. Prepare a short video montage that celebrates an employee’s accomplishments. 13. Deliver a public thank you. 14. Send birthday cards to workers at their homes. 15. Pay for an employee to take a fun class, maybe cooking or skydiving. 16. Find something an employee likes to collect, such as stamps or coins, and give him one for his collection.

27. Help employees with gas prices by giving them gas cards. 28. Provide formal letters of appreciation for their personnel files.

18. Write a note to a worker’s family, sharing how important the person’s contributions to the company have been.

29. Create a “day pass” that employees can turn in to take a day off, no questions asked.

20. Buy a worker tickets to a concert, show or other event. 21. Provide a small gift card to an employee’s favorite store. 22. Give a worker a book or CD by her favorite author or artist. 5. Name a conference room or lounge after a worker.

23. Pick up the tab for an employee to have a family portrait taken.

6. Invite an employee’s spouse in for lunch on the company.

24. Pay for a worker’s child to go to camp.

8. Buy a video game for the employee to give to her child.

26. Give workers movie tickets.

17. Let workers suggest a way they would like to be recognized.

19. Keep the break room stocked with employees’ favorite drinks and snacks.

7. Give a worker a reserved parking spot.

25. Buy a few extra boxes of Girl Scout cookies, tins of Boy Scout popcorn or other fundraising items from employees’ children.

30. Find a deal on three-day cruise tickets and give a worker a short vacation. 31. Allow employees to be flexible with their hours. 32. Let them choose one day a week to work from home. 33. Have a birthday cake delivered to the office on birthdays. 34. Get other employees to write something positive about the person. Collect the comments in an album, box or frame to give to the person. 35. Start a company “Wall of Fame.” 36. Find out what an employee is passionate about and give her a gift that relates to that.

9. Provide an extra vacation day.

37. Create and give an award they can frame and keep.

10. Buy new desks, chairs or other pieces of office furniture.

38. Surprise workers with a catered picnic or party.

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BedTimes | June 2011 |

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EmployeeRelations

41. Pay for a membership in a trade association of their choice. (The International Sleep Products Association is always right for your mattress business. For information about joining, check www.sleepproducts.org.) 42. Have a staff appreciation day once a month and celebrate with a catered lunch.

49. Allow them to dress casually on Fridays. 50. Have a massage therapist come to the office once a month and give massages.   51. Create a relaxation room where employees can go during the day to read, play video games or just hang out during breaks. BT

43. Provide a catered breakfast. 44. Give an employee a new job title. 45. Provide a worker with one-on-one mentoring. 39. Have a mobile car wash come to the company and clean personal vehicles. 40. Get them subscriptions to their favorite magazines.

14 | BedTimes | June 2011

46. Institute a “playtime” when employees can play games or sports. 47. Host an annual awards ceremony. 48. Celebrate the anniversaries of when employees joined the company.

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UpClose Embracing the world of social media to sell sleep

Veteran marketer takes Carpenter Co. into new realms By Dorothy Whitcomb

D

an Schecter and his colleagues at Carpenter Co. want to have a conversation with consumers. No pressure. No hard-core sales pitch. Just log onto www.sleepbetter.org to join a rapidly growing online community devoted to sharing information about sleep and having some fun while doing it. New media—represented by SleepBetter.org and the host of social media tools to which it’s linked—and Schecter seem to have been made for each other. Even years ago, when his creative energy was focused on hamburger and deli meat rather than foam and fiber fill, Schecter decided that talking directly and honestly with consumers was the best way to market products—even if you work for a supplier company. Schecter began his career at Keystone Foods, a major supplier of beef and chicken products to the fast-food industry. When the company wanted to add deli meats to its product line, they charged him with the project. “It was a great training ground,” he says. “I was working to create a whole new market segment and it was my first shot at structuring an organization and talking directly to consumers. I learned that our customers were not the be-all and end-all. It was their customers that really mattered. I learned how to create demand and that adding value to a product was the only way to go.” In 1976, Schecter was recruited by Sara Lee Corp. to develop a market for its low-sodium, low-fat foods. There, he was able to build on the lessons learned at Keystone Foods. “Sara Lee is a very sophisticated outfit and working there allowed me

16 | BedTimes | June 2011

Celebrity connections Dan Schecter (left) leads Carpenter Co.’s ‘Sleep Better Dream Bigger’ marketing campaign, which makes use of well-known personalities such as singer Jewel to spread its message.

to add value in a heart-healthy environment and create demand in a very big way,” he says. Looking for new opportunities, Schecter left his post as division sales manager at Sara Lee in 1989 to take a job as vice president of sales at Pacific Coast Feather Co., a Seattle-based producer of down pillows, comforters, feather beds and other sleep products. The shift from deli to down was an easy one.

➤ Bio in brief Name Dan Schecter Company Carpenter Co. Title Vice president of sales and marketing for consumer products Location Richmond, Va. Education Schecter earned a bachelor’s degree in business administration from the University of Alaska. Family He and his wife, Barbara, have been married for 31 years and have one son.

“I quickly learned that the pillow business is like the food business,” Schecter says. “These are products that everyone needs and has an emotional connection to.” In 1999, Schecter became vice president of sales for Richmond, Va.-based Carpenter Co., the world’s largest maker of polyurethane foam and a leading processor of polyester fiber. The company provides components for various uses in the bedding industry and markets pillows, pads and toppers through its consumer division. “We make products that enrich people’s lives and I’m evangelical about this,” he says. “There’s not a day that goes by that I’m not excited.” Much of Schecter’s current enthusiasm is for the “Sleep Better Dream Bigger” campaign that Carpenter launched in 2009. The effort began the company’s focus on social media, using SleepBetter.org, Facebook, YouTube and other outlets. “With new media, the game is to build communities and be visible to consumers in a noninvasive, educational way,” Schecter says. “These online communities are like an ecosystem. They live and grow on their own.” Many campaign components incorporate celebrities such as singer Jewel and actress Betty White to carry Carpenter’s “less stress through better rest” message. The company also has had success with catchy awardwinning videos— “Paranormal Pillow” and “2 Guys 600 Pillows”—that quickly went viral with millions of views. Entertaining campaign messages have a core theme. “They all have a common thread that informs people about the imporwww.bedtimesmagazine.com


tance of getting a good night’s sleep,” Schecter says. And people are getting the message. “Our ‘likes’ on Facebook will soon eclipse 37,000,” Schecter says. “I get emails all the time thanking me for the information we provide. It gives me a great deal of personal satisfaction to know that we’re helping people get a better night’s sleep.” Golf matters Weekend mornings are devoted to golf, a game that Schecter says he plays badly but still loves. He’s active in First Tee, an organization that introduces the game to underprivileged children, and Schecter identifies closely with the kids. “I came from a very poor family and had to work for everything. I turned out alright,

www.bedtimesmagazine.com

but there are many others who don’t,” he says. “Golf teaches values that are important for success. You have to play by the rules; you have to count all the strokes, so you can’t lie; and you have to be respectful of the environment and the people around you.” Spreading sunshine In addition to First Tee, Schecter and his wife, Barbara, work in other ways to improve the lives of the less fortunate in their community. Through the Sunshine Society, they spend time with hospitalized children, some terminally ill. Working through the River Bend Community Group, he says, allows them to help underprivileged families who are dealing with some sort of tragedy. Both commitments, Schecter

adds, are fueled by his conviction that, “There but for the grace of God go I.” Treasured possessions Proof that beauty is in the eye of the beholder comes from Schecter’s two most treasured possessions: “On the wall in my study I have a clay mask that my son made when he was 5 years old. It’s the ugliest thing you’ll ever see, but I love it,” Schecter says. “Right next to it is a rock my nephew gave me in 1983. It’s a great rock!” Downtime Schecter has a long and varied list of ways to unwind. Top hobbies: game fishing off Key West, Fla., attending the opera at the Carpenter Center in Richmond and traveling to New York and Washington, D.C., for theater. BT

BedTimes | June 2011 |

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A matter of

Employees can’t thrive without leaders they can count on

D

By Dottie DeHart

o your employees trust you? The brutal truth is probably not. It may not be fair and you may not want to hear it, but chances are that previous leaders have poisoned the ground on which you’re trying to grow a business. Make no mistake: Unless you and all the leaders in your company can gain the trust of your employees, performance will suffer. And considering how tough it is to survive in today’s business environment, that’s bad news for your company. Why is trust so pivotal? According to John Hamm, it’s a matter of human nature: When employees don’t trust their leaders, they don’t feel safe. And when they don’t feel safe, they don’t take risks. When no risks are taken, there’s less innovation and less “going the extra mile.” “Feeling safe is a primal human need,” says Hamm, author of Unusually Excellent: The Necessary Nine Skills Required for the Practice of Great Leadership. “When that need isn’t met, our natural response is to focus energy toward a showdown with the perceived threat.

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“Without trust, people respond with distraction, fear and, at the extreme, paralysis,” Hamm adds. “And that response is hidden inside ‘business’ behaviors—sandbagging quotas, hedging on goals and avoiding accountability or commitment.” Hamm calls trustworthiness “the most noble and powerful of all the attributes of leadership.” He says leaders become trustworthy by building a track record of honesty, fairness and integrity. For Hamm, cultivating trust isn’t just a moral issue, it’s a practical one. “Trust is the currency you’ll need when the time comes for you to make unreasonable performance demands on your teams,” he says. “And when you’re in that tight spot, it’s quite possible that the level of willingness your employees have to meet those demands could make or break your company.” Hamm has spent his career studying the practitioners of great leadership through his work as a chief executive officer, venture capitalist, board member, consultant and professor of leadership at the Leavey School of Business at Santa Clara University in Santa Clara, Calif. www.bedtimesmagazine.com


trust L

eadership expert John Hamm was named one of the country’s Top 100 venture capitalists in 2009 by AlwaysOn and has led investments in many successful highgrowth companies as a partner at several venture capital firms. He has been a chief executive officer, served on the board of more than 30 companies and has been an adviser and coach to leaders at companies such as Documentum, Cisco, Hewlett-Packard and McAfee. He teaches leadership at the Leavey School of Business at Santa Clara University in Santa Clara, Calif. His new book, Unusually Excellent: The Necessary Nine Skills Required for the Practice of Great Leadership was published by Jossey-Bass/A Wiley Imprint in February.

In his new book, Hamm explains that most employees have been hurt or disappointed at some point in their careers by a manager. That’s why leaders often are in “negative trust territory” before they make their first request of an employee. For a team to reach its full potential, leaders must act in ways that transcend employees’ fears of organizational power. As a leader, you must go first—and model trustworthiness for everyone else. Being trustworthy creates trust. But beyond that, there are specific things you can do to build trust at your organization. Be authentic First, realize that being trustworthy doesn’t mean you have to be perfect. You don’t even have to be especially warm or kind, Hamm says. On the contrary, some of the most trustworthy people are harsh, tough or socially awkward, but their promises are inviolate and their decisions fair. “As anachronistic as it may sound in the 21st century, men and women whose word is their honor and who can be absolutely trusted to be fair, honest and forthright are more likely to command the respect of others than, say, the nicest guy in the room,” Hamm says. “You can be tough. You can be demanding. www.bedtimesmagazine.com

You can be authentically whoever you are. But as long as you are fair, as long as you do what you say consistently, you will still be trusted.” Look for chances to reveal some vulnerability. We trust people we believe are real and human—imperfect and flawed, just like us. Hamm offers Carl, a self-made success and CEO of a software company, as an example. Carl had a Ph.D. and held senior management positions at several large information technology companies. But he came from a family with humble roots and was the first kid in his family to go to college. The stories Carl used when leading his team came from his own rural upbringing. He told them from the heart. He would emphasize a point not by referencing some academic theory, but with a story about working in the corn fields. “Carl knew that if he was authentic, it would be much easier for him to earn his team’s trust,” Hamm says. “The best leaders consciously present themselves as accessible and open and vulnerable. They talk about their fears, challenges and failures with humility, candor and, at times, even humor to break down barriers. They know this doesn’t threaten their power but rather increases their influence.”

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Tell the truth “Telling the truth when it’s not convenient or popular or when it will make you look bad can be tough,” Hamm says. “Yet, it’s essential to your reputation. Your task as a leader is to be as forthright and transparent as realistically possible. Strive to disclose the maximum amount of information appropriate to the situation. When you feel yourself starting to bend what you know is the truth or withhold facts, find a way to stop and tell the truth.” Never make the “adulterer’s guarantee”—in effect, saying to an employee, “I just lied to Person A, but you can trust me because I’d never lie to you.” When an employee sees you being dishonest, she’ll assume that you’ll do the same to her. She’ll start thinking back through all of her conversations with you, wondering what was real and what was disingenuous. In his book, Hamm describes an incident that took place at a well-known, fast-growing technology company. A young, but talented associate had what he thought was a plan for a powerful new marketing initiative. So he asked the chief marketing officer to broker a meeting with the CEO to make a presentation. During the presentation, the CEO was polite but noncommittal and wrapped up the meeting quickly, thanking the presenter for his initiative. Ten minutes after the meeting, the CEO called the CMO into his office and said, in essence, “That presentation was absolutely terrible. That guy’s an idiot. I want you to fire him.” “The story of this harsh and unjust firing spread—as it always does—throughout the company. Morale slipped and the CMO never completely trusted his boss again,” Hamm says. “The CEO’s reputation for trustworthiness had been wounded forever. The wreckage from one seemingly small act of dishonesty was strewn all over the company.” Accept ‘good failures’ Don’t punish “good failures.” Good failure is a term used to describe an initiative that, by most measures,

22 | BedTimes | June 2011

is well planned, well run and well organized, yet for reasons beyond control—an unexpected competitive product, a change in the economy—it fails. In other words, good failures occur when you play well, but still lose. If you punish employees for a good failure, you instill a fear of taking risks, stifling creativity and innovation. Instead, Hamm says, you should strive to create a “digital camera” culture. “There is no expense associated with an imperfect digital photograph,” he says. “You just hit the ‘delete’ button and it disappears. No wasted film, slides or prints. And we are aware of this relationship between mistakes and the consequences when we pick up the camera. So we click away, taking many more photos digitally than we would have in a world of costly film. Because we know failure is free, we take chances and in that effort, we often get that one amazing picture that we wouldn’t have if we were paying a price for all the mistakes.” Don’t squelch bad news Do you shoot the messenger when he brings you bad news? If so, you can be certain that the messenger isn’t bringing you all the information you need. In most companies good news zooms to the top, while bad news— data that reveals missed goals, lurking problems or feedback that challenges

a strategy—is kept quiet. “We must instill a confidence and a trust that leaders in the organization value the facts, the truth and the speed of delivery, not the judgments or interpretations of ‘good’ or ‘bad,’ ” Hamm says. “Make it crystal clear to your employees that you expect the truth and nothing but the truth from them. And always, always hold up your end of that deal. Don’t ever shoot the messenger and don’t ever dole out some irrational consequence.” “Excellent leaders build a primary and insatiable demand for the unvarnished facts, the raw data, the actual measurements, the honest feedback, the real information,” he adds. Monitor your fairness meter Precise agreements about what is fair are hard to negotiate because each of us has our own sense of fairness. But at the level of general principle, there is seldom any confusion about what seems fair. Just ask yourself: Would most people see this as fair or unfair? You’ll know the answer. “If you treat your followers fairly and do so consistently, you will set a pattern of behavior for the entire organization,” Hamm says. “This sense of fairness, critical to the creation of a safe environment, can be reinforced not only by complimenting fair practices but also by privately speaking to—or if necessary, censuring—subordinates who behave unfairly to others in the organization.” Don’t take shortcuts Every company wants to succeed. That’s why there’s constant pressure to let the ends justify the means. This pressure becomes especially acute when either victory or failure is in immediate sight. That’s when the ethical and moral constraints are sometimes abandoned—always for good reasons and always “just this once.” “Sometimes this strategy even works,” Hamm says. “But it sets the precedent for repeatedly using these tactics at critical moments.” And when employees see you breaking the code www.bedtimesmagazine.com


Three more keys to building trust By Marvin Marshall Any positive working relationship is based on trust. An environment of trust assumes that both parties will be safe and it carries with it an implicit message that you have each other’s best interests in mind. That’s why employees can accept criticism and even anger from a boss they trust. The employees know that the boss has good intentions. Once trust is lost, it’s hard to recapture. Many professional relationships have ended with “I don’t trust you anymore.” To have optimum working relationships, all parties must feel a sense of trust. The question then is, How do you develop trust between people in the workplace? After all, when you have people from various backgrounds coming together to work, they typically don’t have a history with each other and there’s no inherent base of trust to grow upon. That’s the reason managers need to be proactive and create an environment of trust that’s apparent to all employees. Following are ways to do that.

Limit lecturing To ensure that employees will make good decisions, managers often begin by lecturing. If you reflect on this, you’ll realize that lecturing implies that you don’t have faith in their decision-making abilities. This can result in their becoming defensive. In addition, employees can lose faith in their own confidence to make decisions. If people don’t have faith in themselves, then the manager’s faith in them decreases even more. The lecturing begins again and a vicious cycle starts. Even well-intentioned lectures convey a subtle, negative message that what the employee has done is wrong or not good enough. Everyone is sensitive about being told what to do. Employees want to prove themselves in the workplace and lecturing robs workers of the satisfaction of their using initiative. Rather than lecture, consider using reflective questions such as, “What do you think about…?” “Have you thought of…?” or “Would you consider…?”

Listen to learn Epictetus is credited with saying, “Man has one tongue but two ears that we may hear from others twice as much as we speak.” For managers to be able to effectively communicate with and influence their staff, they must be able to listen to and value others’ feelings and ideas. “Listen to learn” means not inserting your opinion and not judging what another person is saying while he’s speaking. Too many managers quickly evaluate an employee from their own point of view and then approve or disapprove of what the person is saying. This is listening autobiographically. It shuts down an employee’s self-confidence and initiative and quells open communication. Listening is a skill that can be improved. It starts by getting ready to hear what is about to be said. It means refraining from the all-too-common practice of hearing a few words and then jumping in with a response. You may have experienced the feeling that arose when someone finished your sentence before you had a chance to do so. When a manager interrupts an employee who is attempting to communicate, it prompts a negative emotion. No one enjoys being interrupted when trying to make a point. see page 26

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of organizational honor and integrity to which your company is supposed to adhere, they lose trust in you. “Betray your organization’s stated values when you’re feeling desperate—by lying to clients or spinning the numbers to get out of trouble with your boss—and you devalue the importance of trust and honesty in their eyes,” Hamm says. Sort out the bad apples As a manager, you need to be able to separate the bad apples from the apples who just need a little polishing. The cost of untruths to a company can be huge in terms of time, money, trust and reputation. You have to recognize that you aren’t going to be able to fix a thief, pathological liar or professional con artist—all of these must go, immediately. “In my coaching practice, there are three failure modes that I will decline to coach: lack of integrity, lack of commitment and chronic selfishness. These are character traits, not matters of skill, practice, knowledge or experience,” Hamm says. “That said, one huge mistake leaders make is to doubt or distrust someone because their work or performance disappoints us. Performance problems should be managed fairly and with little judgment of the person’s underlying character, unless that is the issue at the root of the trouble. Ultimately, unlike my failure modes, improving performance is often merely a matter of feedback, course correction and some coaching.” Accept imperfection “Trustworthiness is never entirely pure,” Hamm says. “Everyone fails to achieve perfection. So the goal for a leader is to make wrong choices as rarely as possible. Admit them quickly, completely and with humility. Fix them as quickly as you can and make full recompense when you cannot. Trust is the most powerful—and most fragile—asset in an organization, and it is almost exclusively created, or hampered, by the actions of the senior leader on the team.” BT

www.bedtimesmagazine.com


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from page 24 All people want to be acknowledged and don’t wish to feel that you know what is about to be said. Interrupting is an indication that you don’t care about hearing the other person’s viewpoint as much as your own. Managers who listen well acknowledge their employees’ feelings and opinions. Staying quiet and listening is difficult for most of us, but it’s the surest way to improve communication and build trust. It’s important to let people know that you’re willing to listen, even though it may not result in agreement. A simple “Talk to me about…” is an effective way start to a dialogue. When you feel tempted to interrupt, redirect the impulse by thinking, “Will I be more effective if I listen first?”

Delegate & praise

People often think, “If I want something done right, I have to do it myself.” Effective managers know that delegating tasks is essential for building trust in the workplace. When you hold onto tasks and don’t delegate, you deprive your employees of an opportunity to advance their skills. Accept the fact that growth comes through struggle. Coddling your employees hinders their professional development and implies that you don’t have faith in them. Treating people as if they are responsible and empowered increases their chances of becoming so. Once an employee completes a task, you should

Listening is difficult for most of us, but it’s the surest way to improve communication and build trust.

focus on progress rather than on perfection. If the person’s effort doesn’t meet your expectations, you still can find something positive to praise while helping the employee understand what still needs improvement. This is far more effective than a barrage of comments that foster a sense of failure. A positive approach creates an incentive for doing a task well. Criticizing provides a disincentive. Remember, there isn’t any empowerment more effective than self-empowerment. Continually ask yourself how you can communicate in a positive way. For example, saying, “You’re bad tempered” means the same thing as, “You need to work on controlling your temper.” However, the first labels the person, whereas the second enables the person. People grow more by building on their strengths and aptitudes than by working on their weaknesses. This doesn’t mean that an area of weakness shouldn’t be addressed, but it does mean that a manager’s emphasis should be on what an employee can do, rather than on what the employee can’t do. The simple belief that something can be done is the spark that ignites the brain to act.

A trusting environment

Without trust in the workplace, communication and teamwork erode. Morale decreases and turnover rises. By using these three strategies, you can build your employees’ trust in management, creating a workplace filled with innovation, creativity and, ultimately, higher profits for all. BT Marvin Marshall, an educator, writer and lecturer, is widely known for his programs on discipline and learning. His approach stems from his experience as a recreation director and camp counselor, a classroom teacher, a school counselor, an elementary and high school principal and a district director of education. He holds a certificate from the William Glasser Institute. For more information, check www.marvinmarshall.com.

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28 | BedTimes | June 2011

BIG

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Determine the right growth strategy for your company

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By J. Tol Broome Jr. t seems to be the way we’re wired: If we own a 42-inch flat-screen television set, we want a 47-inch one. Why order the 8-ounce steak when the restaurant offers one that weighs in at 10 ounces? The 20-foot boat should be traded in for a 24-footer at the first opportunity. A business with $1 million in annual sales must hit $1.1 million next year. After all, bigger is always better. Isn’t it? The entrepreneurial spirit behind most small businesses leads owners to want to grow their ventures. But getting larger and larger isn’t always the best strategy. Just ask management guru and author Charles Handy. “Americans think big. This has helped make them the most powerful nation on Earth, but bigger is not always better, either for our bodies or, I suggest, for our organizations,” Handy said in a 2008 interview on American Public Radio’s “Marketplace” business news program. “Why does almost every business that I know seek to grow in size, year after year, in fact, as if there were no limit?” Handy continued. “Humans are most comfortable in clusters of 10 to 12—family-sized groups. Put them in armies of hundreds and thousands and they cease to be individuals…just numbers in jobs. Humanity too easily yields place to bureaucracy.” Does Handy have a point? It depends on what you want your business to be. To figure out the best strategy for your business, consider the advantage of both getting larger and staying smaller.

www.bedtimesmagazine.com

Why BIGGER is better Greater profit potential From an absolute dollar perspective, the bigger a business becomes, the greater the profit potential. If your business generates a net profit of $75,000 on annual sales of $500,000, then conceivably you can make $150,000 in profit on sales of $1 million, if margins stay the same. It should be noted that growth comes with a downside when times get tough. As a company grows, so do fixed expenses, making it more difficult to adjust when an economic downturn or recession hits. Economies of scale A bigger company generally is better able to leverage fixed expenses. For instance, professionals such as attorneys and accountants don’t charge you double just because you have two warehouses instead of one. Economies of scale also can help you negotiate better deals from suppliers. The more you buy, the more likely you are to get a better per-unit price. The result is that economies of scale often will improve your relative bottom line as you grow. Again turning to the example of a business that earns $75,000 on $500,000: An enhanced profit margin due to better efficiency could result in $200,000 in profit on sales of $1 million. Management depth Most small businesses are very reliant on the owner to work long hours to make the operation run smoothly and this can lead to high burnout rates. As a business grows, an owner is able to hire additional people to take on some of the management burden. Not only can this reduce the stress, it can bring in new ideas to improve products, marketing or operations.

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Success breeds success Management guru Peter Drucker said that the purpose of any business is to create a customer. As a business grows, it creates more customers, which leads to even more customers. Expanding your business by adding facilities, increasing advertising or expanding lines brings in more customers, who will, in turn, tell more prospective customers about your business. This increases revenues— and profits—without much effort on your part. One danger of keeping a business small is that it can stagnate, which can lead to a shrinking customer base and eventually failure.

A bigger business is likely to have higher cash flow. For example, a business with an annual cash flow of $100,000 would sell for $400,000 at a 4x multiple while a business with a $200,000 annual cash flow would sell for $800,000 at the same multiple. Second, bigger businesses often bring even larger multiples because of other advantages I’ve already discussed (economies of scale, management depth, etc.). So if the business with a $200,000 annual cash flow could attract a multiple of 5x, the sale price could jump to $1 million.

More attractive when it’s time to sell It’s generally true that the bigger the business, the higher the potential sales price. There are two reasons for this. First, most businesses sell based on a multiple of cash flow.

Easier to manage While a small business often is highly dependent on the owner for critical tasks, many owners prefer it this way. They know what it takes to manufacture highquality products, generate sales,

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The good side of SMALL

provide good customer service and do the myriad other tasks required to keep the doors open. And they like doing it all. Small companies have fewer employees, which typically means fewer personnel-related headaches. For instance, a business with 10 employees might go a year or more without any turnover. A venture with 100-plus employees is likely to be in constant hiring mode. Less leverage A small business generally can be run with less or even no leverage compared to a larger venture. Less leverage makes a business more nimble and better able to weather disruptions in cash flow. The leverage issue

www.bedtimesmagazine.com


often moves front and center when a business owner considers expanding and needs to borrow money to do so. While borrowing money is a traditional, practical way of expanding, some small business owners don’t want to take on the stress of accumulating debt. Less risk I cited as an advantage of being a big business that larger companies generally make higher profits, but larger businesses also take on more risk. If you run a stable small business that generates an adequate profit to provide for your family and employees on a consistent basis, you might not want to risk the extra expense and debt that it can take to expand your facilities or add workers. Tighter expense control As a business grows, it becomes more challenging to maintain control over

Small companies have fewer employees, which typically means fewer personnel-related headaches. expenses. Tasks must be delegated to employees, who may not share the owner’s mentality about spending company money. This can result in wasteful spending on everything from office supplies to travel to inventory. If you keep your business small, you’re more likely to keep tabs on every dollar that goes out the door.

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Easier to cross-train A smaller business with fewer employees often enjoys more employee loyalty—some workers are likely to be family members. This loyalty and commitment allows you to more easily cross-train employees to be competent at multiple tasks. A business with 100 or more employees will have fewer opportunities to cross-train, which can result in idle time and inefficiency. So, while bigger might be better when it comes to TVs and boats, the optimal size of your business is a matter of preference. Weigh these considerations to determine the best growth—or no-growth—strategy for your company. BT J. Tol Broome Jr. has spent nearly 30 years working in commercial lending at various financial institutions and currently is an executive vice president and manager of the Specialized Lending Group at BB&T.

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IndustryNews New entity brings Vegas, High Point markets together

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$1 billion building-buying spree has put the Las Vegas Market and much of the showroom space in High Point, N.C., under the control of a single ownership group, unifying the two largest furniture markets in the United States. A new entity, the International Market Centers, will operate the World Market Center in Las Vegas, as well as more than a dozen showroom buildings in High Point, including the International Home Furnishings Center. After a final set of real estate transactions close, the IMC will own about 11.5 million square feet in both cities. “What a wonderful week for news this has been,” Bob Maricich, IMC chief executive officer, said at a news conference May 3 in High Point. “Yesterday, we were able to close on virtually everything. This is an unprecedented event for the furniture industry. There has been lots of conjecture in the last couple of months and these were incredibly complex transactions with four different sets of owners. It wasn’t possible for us to be as transparent as we would have liked to be. But we feel that pulling this all together was really the best solution for all—the employees, the cities of High Point and Las Vegas, the furniture industry and the markets. We are uniting the primary assets of the home furnishings industry, and really, it’s the dawn of a new age of collaboration and cooperation that will make our industry and the market itself stronger.” Maricich previously was president and CEO of the Las Vegas Market and, before that, president and CEO of Century Furniture. The new IMC is organized into two divisions—home furnishings (including mattresses) and gift and home decor. It will operate from headquarters in both High Point and Las Vegas. Officials say they plan to continue the current schedule of four major furniture markets a year—two (winter/summer) shows in www.bedtimesmagazine.com

Market merger Officials and financial backers of the new International Market Centers announced their plans for the High Point, N.C., and Las Vegas furniture markets during a news conference in High Point May 3. Pictured (from left) Scott Graves, Oak Tree Capital Management LP; Phil Loughlin, Bain Capital Partners; Bob Maricich, IMC chief executive officer; Tom Mitchell, president of IMC home furnishings division; Georgia Davis, interim leader of IMC gift and home decor division; and Randy Eller, IMC chief transition officer.

Las Vegas and two (spring/fall) in High Point. IMC’s current assets include 13 buildings of more than 10.6 million square feet in both cities. Properties include the IHFC and the Market Square complex (consisting of eight properties)

in High Point, as well as all of the Las Vegas Market buildings and the 59 acres on which they sit. IMC is in the process of acquiring five additional High Point properties including Showplace, Showplace West see page 34

L&P posts 10% rise in first-quarter sales

Components supplier Leggett & Platt, which has headquarters in Carthage, Mo., announced sales of $896 million in the first quarter of 2011, a 10% increase over the first quarter of 2010. Earnings per share were $0.30 for the quarter. The company’s total sales from continuing operations in the residential furnishings division, which includes domestic bedding products, were $457.5 million, an increase of $25 million, or 6%, over the first quarter of 2010. Inflation accounted for the bulk of the sales increase, the company said. Total sales from continuing operations in the specialized products division, which includes the Global Systems Group machinery division, were $165 million, an increase of $38 million, or 28%, over the prior-year quarter. “We are very encouraged to see higher market demand and sales growth during the first quarter,” said David Haffner, L&P chief executive officer. “That growth enhanced earnings, but was offset by higher raw materials costs, as previously anticipated. We implemented price increases during the quarter in response to cost inflation. As a result, we expect improved margins in subsequent quarters.” During the first quarter, L&P repurchased 5.4 million shares of its stock at an average price of $23.29 per share and issued 1.8 million shares through employee benefit and stock purchase plans. As a result, outstanding shares decreased to 142.6 million. see page 36

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IndustryNews

from page 33 and three North Hamilton Street showrooms. Upon closing, which is anticipated in 30 to 60 days, IMC will own and operate a total of 18 showroom buildings. The majority of the investment in IMC is held by two entities—private investment firm Bain Capital Partners, headquartered in Boston; and by a subsidiary of investment funds managed by private investment firm Oaktree Capital Management LP, headquartered in Los Angeles. Real estate firm Related Companies, furniture maker Bassett Furniture Industries and affiliates of the original developer of the Las Vegas Market—Network World Market Center—also are investors. “All assets in the portfolio have been recapitalized with significant equity investments, providing for long-term

stability and creating a growth platform for the industry,” a news release stated. Some buildings involved in the deal had been in receivership. In addition to Maricich, the IMC management team includes several industry veterans: ➤ Tom Mitchell has been appointed president of the IMC home furnishings division. He has managed more than 7 million square feet of home furnishings trade marts in his 32-year career and is a founding member of the High Point Market Authority. ➤ Kathy Venezia, IMC chief financial officer, began her finance career at Related Companies and joined the Las Vegas Market in 2004. ➤ Georgia Davis, who has 20 years of experience in the home furnishings industry, is serving as interim leader of the IMC’s gift and home decor division

while a search for a president of the division is under way. ➤ Randy Eller is IMC chief integration officer, responsible for the transition and integration of the acquired companies into one operation. Eller, who has more than 30 years of experience in the gift and home sector, is president of Eller Enterprises. “I believe with all my heart that the resources we bring to High Point and Las Vegas will invigorate the respective markets and our industry by attracting new buyers and laying the foundation for our future,” Mitchell said. “By bringing business partners together four times a year with new product, we will spur order writing on a scale that will deliver bottom-line results for our tenants and fill retailers’ showrooms with the latest products.”

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IndustryNews

from page 33 “During the first quarter, we were more aggressive with our stock repurchases,” Haffner said. “We believe the economy is gradually recovering and our end-markets appear more stable. Accordingly, we are more willing to repurchase shares and to let leverage gradually move toward our target range. We ended the quarter with net debt to net capital below our long-term target range and over $450 million available under our existing commercial paper program and revolver facility.” L&P is moving into the third step of a three-part strategic plan. The final step envisions growth of 4% to 5% per year, on average,” Haffner said. “For the next couple of years, we expect market recovery to provide growth in excess of our target. Earnings should improve meaningfully as a result of our operating leverage and spare production capacity. Longer term, we expect growth to come from commercialization of innovative new products, expansion into potential new growth areas and normal GDP-like growth in our existing markets.” L&P expects sales of $3.5 billion to $3.8 billion in 2011.

36 | BedTimes | June 2011

Short U.S. bedding sales soar The wholesale dollar value of mattresses and foundations sold in the United States in March jumped 17.6% over the same month in 2010, according to the Bedding Barometer, a monthly sales report from the International Sleep Products Association. Unit sales (mattresses and foundations) rose 9.6% for the month and the average unit selling price increased 7.3% when compared to the prior-year period. For the first quarter of 2011, unit sales are up 3%, dollar values are up 8.3% and the AUSP is up 5.1% when compared to the first quarter of 2010.

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Select Comfort reports rise in first-quarter sales & profits

A

irbed manufacturer and retailer Select Comfort reported net sales for its first quarter were $193 million, a 22% increase over the prior-year period. The Minneapolis-based company reported net income for the quarter of $16.6 million, or $0.30 per diluted share, an increase of 114% compared to the first quarter of fiscal 2010. “Our first-quarter performance demonstrates the earnings potential of our business when we achieve solid sales growth and increased market share,” said Bill McLaughlin, Select Comfort president and chief executive officer. “During the quarter, we remained focused on leveraging our core business, executing against our growth-driving programs and controlling costs.”

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The company’s operating income increased by 86% to $26.4 million during the quarter. Operating margin rose 469 basis points to 13.7%. Gross profit margins increased 166 basis points, from 62.1% in the prior-year period to 63.8% in the first quarter of 2011. Select Comfort attributed the increase to a stronger product mix offset by higher raw materials costs. Sales and marketing costs in the first quarter increased 15% to $80.3 million, representing 41.6% of net sales. That compares to $70.1 million, or 44.4% of net sales in the prior-year period. The company said it had increased its advertising expenditures by 30% to $23.7 million in the first quarter. Cash flow from operating activi-

ties was $32.2 million in the first quarter, compared to $30.4 million during the same period last year. Capital expenditures were $2.7 million, compared to $1 million in the first quarter of 2010. At of the end of the quarter, cash and cash equivalents totaled $102 million and the company had no borrowings under its revolving credit agreement. “The momentum of the first quarter allowed us to advance initiatives designed to continue to broaden awareness and consideration for the Sleep Number brand and enhance customers’ store experience in order to drive longterm growth,” McLaughlin said. “We expect our efforts to generate strong earnings growth over the balance of the year.”

BedTimes | June 2011 |

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IndustryNews

Tempur-Pedic sales up 28% in first quarter Mattress maker Tempur-Pedic, which has headquarters in Lexington, Ky., reported net sales of $325.8 million in the first quarter of 2011, a 28% increase over the same period a year ago. Earnings per share were up 54% at $0.68. North American net sales increased 37%. International segment net sales increased 11%. On a constant-currency basis, international net sales increased 8%. Global mattress sales increased 29% over the prior-year period. They increased 36% in North America and 12% internationally. On a constant-currency basis, international mattress sales increased 10%. Pillow sales increased 13% globally—up 24% in North America and 3% internationally. On a constant-currency basis, international pillow sales were flat. “First-quarter sales and profits exceeded our prior expectations in both our North American and international segments,” said Mark Sarvary, Tempur-Pedic chief executive officer. “During the quarter, we made progress in our effort to enhance our product range and significantly increased our investment in consumer marketing as we seek to capi-

talize on the considerable market share opportunity we see for our brand.” Gross profit margin for the quarter was 52.3% as compared to 49.2% in the first quarter of 2010. The increase, the company said, was a result of improved manufacturing efficiencies, a favorable product mix and reductions in fixed costs. Operating profit margin was 23.1% as compared to 20.6% in the first quarter of 2010. The company attributed the increase to improved gross profit margins partially offset by increased marketing investments. Tempur-Pedic generated $55.7 million in operating cash flow in the first quarter of 2011 as compared to $23.3 million in the prior-year period. During the first quarter, the company purchased 1.32 million shares of its common stock at an average price of $47.35 for a total cost of $62.5 million. “We are pleased that our manufacturing and productivity initiatives continued to deliver significant benefits, which helped drive improved gross margin on a sequential basis,” said Dale Williams, chief financial officer.

Want customers to buy? USE PRESSURE IMAGING TO HELP YOUR CUSTOMERS FIND THEIR IDEAL MATTRESS

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IndustryNews

Southerland introduces bedbug-killing bed M

attress producer Southerland has introduced the patentpending Total Protection Sleep System with ActiveGuard. The Nashville, Tenn.-based company says tests show the sleep system is effective in killing bedbugs and dust mites in mattresses and foundations. ActiveGuard is the patented technology of Allergy Technologies LLC, a mattress protection supplier with headquarters in Ambler, Pa. The active ingredient is the Environmental Protection Agency-registered pesticide permethrin. The Total Protection Sleep System is an add-on technology available on all Southerland beds retailing for $699 and above, said

David Corbin, Southerland president. It is being sold through both Southerland’s contract and retail sales channels. Southerland describes the bed design as including the ActiveGuard technology in a fabric tucked within the recesses of the foundation and mattress. ActiveGuard technology will kill bedbugs, dust mites and their eggs on contact for up to two years, the company said. “Bedbugs and dust mites pose serious concerns and health issues and our increasingly mobile lifestyles have made the threat of infestation even greater than ever,” Corbin said. “This is one of the most proactive and effective steps

consumers can take to conveniently prevent the infestation of bedbugs or dust mites in their bedding. The idea of buying 24-hour protection from bedbugs that eliminates them on contact is huge, and judging from the reception we’ve had so far, this system is going to have enormous appeal to consumers as a preventive product.” The Total Protection Sleep System has been registered for sale with the EPA in all 50 states, Corbin said. Southerland and Allergy Technologies are promoting ActiveGuard and the new beds throughout the country at trades shows for the hotel, apartment, university and pest management sectors.

MATTRESS INDUSTRY

SUPPLIERS

ISPA: 703-683-8371 • www.sleepproducts.org

Make sure your company is prominently listed in the only directory specifically for the mattress industry! Soon all members will receive a call from a representative of MultiView, our Supplies Guide directory publishing partner. Be sure to talk with them about your opportunity to cost-effectively reach mattress industry buyers worldwide through ISPA’s online BedTimes Supplies Guide, www.bedtimessuppliesguide.com. The Supplies Guide will also be published in the December 2011 issue of BedTimes magazine. Companies that purchase an online listing by September 23rd will also receive a complete listing in the print version. Complement your listing with a display ad in the December issue of BedTimes, insertion deadline October 24th. Contact Kerri Bellias at kbellias@sleepproducts.org or 336-945-0265. To book your online listing now, call MultiView, Inc. at 800-816-6710 or email ispa@multiview.com.

40 | BedTimes | June 2011

www.bedtimesmagazine.com


Spring Air holds first international summit

Global gathering Spring Air International licensees from 10 countries met in Guangzhou, China, March 25-26. Spring Air President Rick Robinson (second row, far left) and Senior Vice President Eric Spitzer (first row, far right) plan to make the summit an annual event.

B

oston-based mattress licensing organization Spring Air International recently held its first summit for international licensees. The gathering in Guangzhou, China, on March 2526 was the start of a series of overseas meetings the company plans to hold annually. Twenty-six licensee members attended from Spring Air operations in

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Australia, China, Egypt, India, Indonesia, New Zealand, Singapore, South Korea, the United Arab Emirates and Vietnam, representing annual sales of more than $350 million. “Two years ago, we named this company Spring Air International for a reason,” said President Rick Robinson. “Our vision was to create opportunities for our overseas partners

to work together on manufacturing and marketing programs that result in a more unified branded product.” The first half of the meeting focused on new concepts and technologies for developing overseas products and programs. The second half enabled participants to share marketing strategies and tools to build and unify the brand around the world. “The majority of our licensees enjoy significant market positions in their respective countries,” Robinson said. “Many represent the secondor third-largest mattress producers in their trading areas. We view our international partners not only as experienced, successful businesses in their own right, but as a vital part of Spring Air’s future as a growing, worldwide company and brand.” The next summit is scheduled for February 2012, in Dubai, United Arab Emirates.

BedTimes | June 2011 |

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IndustryNews

Shorts Correction BedTimes’ April cover story, “Make Your Website Front, Center—and First: Use the Latest Search Engine Optimization Techniques to Help Customers Find You,” provided an incorrect website address for learning more about SEO from SEO expert Bill Hartzer. The “Learn More” section of the story should have directed readers to www.billhartzer.com. BedTimes regrets the error.

Eclipse/Eastman expand in Russia Mattress licensing groups Eclipse International and Eastman House, both with headquarters in North Brunswick, N.J., have signed an

42 | BedTimes | June 2011

exclusive agreement with Consul Holding, a new licensee based in Moscow. The Russian manufacturer is licensed to produce and market both bedding brands throughout Russia. Consul Holding, led by President Irina Egorova, was founded in 1926 as a garment manufacturer and expanded into mattress production in 1996. The company’s sleep-related product line includes mattresses and foundations, top-of-bed linens, bedroom furniture and sleepwear.

Shifman rolls out line at Bloomie’s High-end mattress producer Shifman Mattresses has launched Handmade, a new collection of

luxury bedding available exclusively at Bloomingdale’s stores. Top beds have a suggested retail price of $29,000. “Bloomingdale’s and Shifman have a long-standing relationship and we are excited to further develop the brands together,” said Joe Laneve, senior vice president and general merchandise manager of home for Bloomingdale’s. “Our customers expect high quality and great value when selecting a luxury mattress and this exclusive collection with Shifman provides just that.” The Shifman Handmade collection includes natural materials, more comfort options and added design features.

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One-Stop Shop for ALL Expendable Parts Needs Atlanta Parts Depot, a division of Atlanta Attachment Company, has recently purchased the inventory of a major parts supplier and currently stocks over $5.5 million of spare parts.

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Your Gateway to the Mattress Industry March 14-17 IndIana ConventIon Center Indianapolis, Indiana USa

network and make business connections Find the products and services you need

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For information about exhibiting, please contact Kerri Bellias, kbellias@sleepproducts.org or call 571-482-5444.

The Voice of the Mattress Industry

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NewsMakers Hilding Anders installs Johansson at helm G

unnar Johansson has been named chief executive officer and a board member of bedding major Hilding Anders Group, which has headquarters in Malmö, Sweden. Johansson’s appointment was immediately effective when announced May 4 in a news release from the company. He replaces Anders Pålsson who, the release said, stepped down from his position after nine years at the helm of the company. From 1981 to 2009, Johansson was with Stockholm-based Svenska

Cellulosa Aktiebolaget AS, a personal hygiene and paper products company. Most recently, he was in charge of SCA’s hygiene products category, which has annual sales of more than 5 billion euros ($7.2 billion U.S.). “We are delighted to welcome Gunnar Johansson onto the board of Hilding Anders and feel that his credentials and background are ideal for the next phase of the group’s development,” said Fredrik Arp, Hilding Anders board chairman. “His prime tasks will be to accelerate organic

Anatomic Global creates new senior sales position Anatomic Global, a manufacturer of memory foam mattresses, has promoted Rick Vander Woude to national sales director, a newly created position at the Corona, Calif.-based company. Vander Woude has nearly 30 years of sales management experience in the specialty sleep category. He joined Anatomic Rick Vander Woude Global in 2009 as a regional sales representative. Previously, he was director of specialty sleep sales for Comfor-Pedic, a brand acquired by Simmons Bedding Co. in 2007. Prior to that, he held sales positions at Tempur-Pedic and Innomax. In the new post at Anatomic Global, Vander Woude is responsible for overseeing the company’s six regional sales managers and its network of independent representatives. He also leads the company’s sales efforts with specific retailers and buying groups. The company created the position when President Jeff Scorziell announced he will be taking a six-month leave of absence to conduct missionary work in Zimbabwe. “Rick has been one of our strongest producers and has been serving as a mentor to other sales representatives for some time, so I believe this is a very natural evolution of roles for him in our organization,” said David Farley, Anatomic Global chief executive officer.

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growth in mature markets and to pursue acquisition opportunities in emerging markets. Hilding Anders is an excellent company with a very good team and I would like to thank Anders Pålsson for his commitment and contribution to the group during the past years.” Hilding Anders operates in 40 countries in Europe and Asia. Its brands include Andre Renault, Askona, Dunlopillo, Hilding, Jensen, Myer’s, Perfect Dreams, Slumberland, Staples and Vono, among others.

CKI names Gordon president

S

leep accessories supplier Cadence Keen Innovations has promoted Steven Gordon to president. The title formerly was held by the company’s founder and principal Sam Montross, who is now chief executive officer. Gordon is responsible for managing all operations, sales and marketing functions, including overseeing Steven Gordon new product launches for the Fort Lauderdale, Fla.-based company. Gordon joined the privately held company in 2006 as senior vice president of sales and marketing. He has more than 30 years of experience in sales and marketing. Previously, he was executive vice president of his family’s business, Melannco International, which was named an Inc. 500 fastest growing company during his Sam Montross tenure. Gordon began his career as a trial attorney with the U.S. Department of Justice. At CKI, he is credited with leading the company through a significant period of growth, doubling sales and growing the customer base by 600%. “Every entrepreneur’s challenge is to find the right people to take on leadership positions,” Montross said. “Over the years, Steven has proven his competency in building the company with passion and using the same good business ethics with which I started the business.”

BedTimes | June 2011 |

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Calendar June

June 2-4 China International Furniture Exhibition Shanghai New International Expo Center Shanghai, China Phone 86-21-50550628 shby888@hotmail.com www.furnitureshanghai.com

July

July 21-24 Furnitex Melbourne Exhibition Centre Melbourne, Australia Phone 61-3-9654-7773 furnitex@aec.net.au furnitex.com.au

August

Aug. 1-5 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 info@lasvegasmarket.com www.lasvegasmarket.com

September

Sept. 14-18 Habitare Helsinki Exhibition & Convention Centre Helsinki, Finland Phone 358-9-150-91 info@finnexpo.fi www.finnexpo.fi

October

Oct. 22-27 High Point Market International Home Furnishings Center & other locations High Point, N.C., U.S. Phone 336-869-1000 dawn@highpointmarket.org www.highpointmarket.org

2012 January

Jan. 30-Feb. 3 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 info@lasvegasmarket.com www.lasvegasmarket.com

March

Sept. 6-10 International Furniture Market Malaysia Agro Exposition Park Serdang Kuala Lumpur, Malaysia Phone 603-8024-7736 info@ifm.net.my www.ifm.net.my

➤ March 14-17 ISPA EXPO 2012 Indiana Convention Center Indianapolis, U.S. 703-683-8371 kbellias@sleepproducts.org www.ispaexpo.com

Sept. 14-17 Furniture China Shanghai New International Expo Centre Shanghai, China Phone 86-21-64371178 furniture@ubmsinoexpo.com www.furniture-china.cn

April 21-26 High Point Market International Home Furnishings Center & other locations High Point, N.C., U.S. Phone 336-869-1000 dawn@highpointmarket.org www.highpointmarket.org

April

July

Busy city Two upcoming shows are set for Shanghai, China: The China International Furniture Exhibition June 2-4 and Furniture China Sept. 14-17.

48 | BedTimes | June 2011

July 30-Aug. 3 Las Vegas Market World Market Center Las Vegas, U.S. Phone 888-416-8600 info@lasvegasmarket.com www.lasvegasmarket.com

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ISPANews ISPA Earth goes social on Facebook, LinkedIn A dding to its growing list of social media efforts, the International Sleep Products Association has launched an ISPA Earth Facebook page and an ISPA Earth LinkedIn group. ISPA Earth is the association’s initiative to improve the environmental impact of the mattress industry’s operations and products. “Social media makes it easier to communicate about these important topics,” said Mary Helen Uusimaki, ISPA vice president of membership and communications. “For example, our Facebook page and LinkedIn group will help anyone interested in

used mattress recycling find information, share ideas, ask questions and make new connections. It’s no secret that used mattress disposal is a persistent and growing problem in

many states. Facebook and LinkedIn make communicating among manufacturers, consumers, recyclers and anyone in the business of making, buying, using and disposing of beds easier.” ISPA encourages people to post questions and information on both sites about mattress recycling or other topics involving the environmental impact of mattresses, including “green” materials and energyefficient manufacturing practices. For questions about any ISPA Earth efforts, email ispaearth@sleepproducts.org or check www.sleepproducts.org/sustainability.

Shorts Refer a new member & earn $100

Texas flammability bill could affect mattresses

The stronger its membership, the more effective the International Sleep Products Association can be, according to Mary Helen Uusimaki, ISPA vice president of membership and communications. More members means stronger advocacy efforts, better networking opportunities, broader industry communication and a more cohesive industry. Help build the association by referring a new member. You’ll earn a $100 gift card and industry recognition for your efforts. (A new member is any qualifying organization that has not been an ISPA member for the past 36 months.) For more information, email info@sleepproducts.org.

Texas lawmakers are considering an open-flame flammability standard for upholstery. Though the measure is focused on furniture, the bill includes a reference to “bedding” that could be used by regulators to create a state flammability standard for mattresses. The International Sleep Products Association believes existing federal mattress standards pre-empt application of such a law to mattresses and is working with the bill’s sponsor to remove any reference to bedding from the legislation.

Colorado bill would repeal bedding law Legislation recently introduced in Colorado would repeal the state’s bedding law, which requires used mattresses to be sanitized and labeled as containing new or used materials. The International Sleep Products Association opposes repeal and is urging Colorado to instead strengthen the state’s bedding law. ISPA submitted testimony opposing the bill containing the repeal and is speaking to media outlets in the state about the mattress industry’s concerns.

www.bedtimesmagazine.com

Draft of mattress standard moves forward In April, ASTM International’s Crib Mattress Committee held its second in-person meeting to consider the most recent draft of a crib mattress safety standard. That draft is based on a proposal prepared by an International Sleep Products Association task force. The committee decided that consensus support for the document is sufficient to begin the ballot process, which allows ASTM committee members to either approve the document or propose changes. The Crib Mattress Committee will then consider any proposed changes at future meetings, most likely in the fall. For more information, check www.sleepproducts.org/advocacy.

BedTimes | June 2011 |

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AdvertisersIndex A. Lava & Son Co. Steve Appelbaum 800-777-5282 (800-777-LAVA) www.alavason.com

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AFT Corp. Rick Brumfield 800-631-1930

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American Law Label Inc. Rocco Bruno Jr. 773-523-2222 www.americanlawlabel.com

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Bloomingburg Spring & Wire Form Vickie Schwarm 740-437-7614 www.bloomingburgspring.com

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BLR Martin Leroux 819-877-2092 www.blrlumber.com

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P.T. Dunlopillo Indonesia Sham Bharwani 62-21-3858626 www.dunlopillo.co.id

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Duroflex International George Mathew 415-990-4343 www.latexglobal.com

41

50 | BedTimes | June 2011

Eclipse International/ 15 Eastman House Stuart Carlitz 800-634-8434 www.eclipsemattress.com www.eastmanhousemattress.com

Latex Systems Kitti Charoenpornpanichkul 66-2-326-0886, Ext. 204 www.latexsystems.com

8

New England Needles Inc. Thomas Lees 800-243-3158 www.newenglandneedles.com

36

OHM Systems Inc. Catherine Anbil 513-771-0008 www.ohmworld.com

51

Pacific Spring Inc. Victor Nguyen 626-272-8882

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Precision Fabrics Traci Broughton 336-510-8009 www.pristinefabrics.com www.therapeuticbedding.com

31

Enriquez Materials & Quilting Inc. Silvia Enriquez 323-725-4955 www.enriquezquilting.com

11

Foshan Ruixin Nonwoven Co. Ltd. (Rayson Global) Himy Lee 86-757-85806388 www.raysonchina.com

48

Global Depot Pty. Ltd. Darren Nelson 61-7-3883-3031 www.globaldepot.com.au

32

Global Systems Group Russ Bowman 954-846-0300 www.gsgcompanies.com

C3

Quilting Inc. Dave Pritchett 614-873-6667 www.quiltinginc.com

30

Hengchang Machinery Factory Ren Ying 86-769-83307931 www.hcjixie.com

37

P.T. RubberFoam Indonesia Andreas Janssen 62-21-53662190 www.rubberfoam.co.id

17

Henkel Tim Brown 614-483-1149 www.henkelna.com

10

SABA North America LLC Jim Turner 810-824-4964 www.saba-adhesives.com

4

Hickory Springs Mfg. Co. Rick Anthony 828-328-2201 www.hickorysprings.com Intertek North American Inquiry Center 800-WORLDLAB www.intertek.com John Marshall & Co. Ltd. Peter Crone 64-3-341-2004 www.joma.co.nz Kenn Spinrad Inc. Randy Weinstock 800-373-0944 www.spinrad.net

2

Simalfa Darren Gilmore 973-423-9266 www.simalfa.com

23

25

Therapedic International Gerry Borreggine 800-314-4433 www.therapedic.com

12

6

Tietex International Ltd. Wade Wallace 800-843-8390 www.tietex.com

C4

XSENSOR Technology Corp. Isabelle Desroches 866-927-5222 www.xsensor.com

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Classifieds For Sale

For Sale

TAPE-EDGE MACHINES, MULTINEEDLE AND SINGLENEEDLE QUILTERS, long-arm label machines, sergers, etc. Contact Victor LeBron, American Plant and Equipment. Phone 864-574-0404; Fax 864-576-7204; Cell 864-590-1700; Email apesales@charterinternet.com; Web www.americanplantandequipment.com.

Quilters: Gribetz DG2100, DG5500, DG1200 computerized; GI4300 tack-and-jump capable; DG3200 computerized; EMCO 8413. Prices starting at $3,000 per quilter. Other: Spuhl, James Cash and Gribetz panel cutters from $3,000; WBSCO and Gribetz wrappers from $5,000; Spuhl unbalers from $2,500. Sergers-flangers, conveyor, long-arm sewing and double sergers also available from $500. If interested, email mattressmachine@gmail.com.

REBUILT AND RECONDITIONED MULTINEEDLE QUILTING MACHINES. Specializing in PATHE precision parts and service. Technical consultants. SEDCO. Phone 201-567-7141; Fax 201-567-5515. TAPE-EDGE MACHINES, QUILTERS AND MISCELLANEOUS SEWING MACHINES. Contact Frank Carlino, U.S. Mattress Machinery. Phone 815-795-6942; Fax 815-795-2178; Email usmattmach@hotmail.com. SURPLUS MACHINES FOR SALE BY OWNER. Will accept all reasonable offers. Purchases of multiple machines will be given better pricing. All shipping from one location.

Place your classified ad today!

Reach mattress industry professionals around the world with your advertising message through the BedTimes Classifieds. Rates: $3 per word for the first 100 words and $2.50 thereafter; minimum charge of $75. “Blind” box number: $50 per insertion. Ad copy and payment must be received by the first of the month preceding publication. Send ads and payment to BedTimes Classifieds, 501 Wythe St., Alexandria, VA 22314-1917. Contact Debbie Robbins, advertising production manager, for additional information. Phone 571-482-5443; Fax 703-683-4503; Email drobbins@sleepproducts.org

www.bedtimesmagazine.com

BedTimes | June 2011 |

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TheLastWord Consumers like Facebook’s ‘like’ button

C

onsumers are more likely to click on Facebook’s ‘like’ button to show support for a company or product than to write a review on a website, according to a new consumer behavior study from Harris Interactive. “Surprisingly enough, ‘likes’ are trumping reviews when it comes to sharing feedback, but this does not translate to Facebook being the first or only place consumers turn when deciding to try someplace new,” says Kara Nortman, senior vice president of publishing for City Grid Media. The telephone survey of 1,006 U.S. adults was conducted on behalf of

CityGrid Media, an online media company based in West Hollywood, Calif. “What this means for small businesses on the Web is that they should encourage ‘likes,’ but also round out marketing efforts to reach consumers across a variety of touch points.” About 20% of all survey respondents say they ‘like’ a business on Facebook to show support of it. Only 13% will write a review on a website. The numbers are even more significant when talking about younger consumers. Some 40% of people under 35 will “like” a business on Facebook compared to 18% who said they would write a review.

Survey says Texas is tops for business

Quotables

For the seventh year in a row, chief executive officers rate Texas as the No. 1 state in which to do business. CEOs say California is the worst, giving it the No. 50 spot, according to a Chief Executive magazine survey of 550 executives across the country. The best 1. Texas 2. North Carolina 3. Florida 4. Tennessee 5. Georgia The worst 46. Michigan 47. New Jersey 48. Illinois 49. New York 50. California States were evaluated on a broad range of issues, including regulations, tax policies, work force quality, education resources, quality of living and infrastructure. For complete results, including individual state rankings and an interactive map, check www.chiefexecutive.net.

#1

52 | BedTimes | June 2011

“Trust men and they will be true to you; treat them greatly and they will show themselves great.” — Ralph Waldo Emerson

“To be trusted is a greater compliment than being loved.” — George MacDonald

“Few things can help an individual more than to place responsibility on him, and to let him know that you trust him.” — Booker T. Washington

“You may be deceived if you trust too much, but you will live in torment if you do not trust enough.” — Frank Crane

“He who does not trust enough, will not be trusted.” — Lao Tzu

When it comes to looking for information about a business or product, Facebook is just one stop for young consumers. More than half (52%) of adults under 35 visit more than two websites before checking out a business. About 63% of respondents under 35 first head to Google, 24% visit Facebook, 21% look at reviews sites and 17% click on the first link on the search results page (whatever that link may be).

BIG number

2.63 That’s the size of the average U.S. household, according to the 2010 Census. It’s up from 2.59 in 2000 and reverses a decades-long decline in household size. Analysts attribute the increase to growth in the Hispanic population, which tends to have larger families, as well as parents and adult children sharing homes because of the recession. www.bedtimesmagazine.com


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E

ECo faBRICS, CoTToNS, pRINTS, jaCquaRdS, poLyESTERS, BLENdS, STITChBoNdS, waRp kNITS, fILLER CLoThS.

Tietex International Ltd., 3010 North Blackstock Road, Spartanburg, SC 29301, 864.574.0500 www.tietex.com

MATTRESS SOLUTIONS

BedTimes June 2011  

The Business Journal for the Sleep Products Industry

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