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early a half century ago, Verlo Mattress Factory Stores was born in
the back of a small furniture store in Wheeling, Illinois. Founded
by two school chums seeking to build a better mattress company,
Verlo’s philosophy was simple: to offer handcrafted mattresses while
keeping quality and customer service first. The two-man operation,
founded in the late 1950s, has grown to over 60 franchised mattress
stores, but its original philosophy remains steadfast.
A glimpse into the largest Craftsman-Direct® mattress retailer’s
past illustrates its unique presence in today’s marketplace.
Offering the only franchise opportunity in the $7.7 billion-a-year
specialty sleep industry, Verlo has set its sights on further growth
and franchise expansion.
Newly hired president John Siipola is leading Verlo Mattress Factory
Stores into the franchise reawakening. Assuming a position
previously held by only three individuals in Verlo’s nearly 50-year
history, Siipola oversees the planning and execution of aggressive
recruitment efforts for franchises, while maintaining a strong focus
on brand positioning and franchise relations.
Verlo Mattress Factory Stores founder, Dale Williams, said the
addition of Siipola to the corporate team is a definite move
forward. “John brings a wealth of outstanding franchise experience,
leadership and character with him,” Williams said. “As the new
president, John will work to bring growth to the franchise system
and a new focus to the Verlo Mattress Factory Stores’ business
model.”
Prior to joining Verlo, Siipola served as a franchise sales
consultant for PostNet International Corporation, a privately held
postal and business service franchise company. He was also employed
as the chairman of Big O Tires—a company with over 400 franchised
tire stores.
“A Verlo franchise presents one of the best business models I have
seen in my 24 years of working with franchises. This is such an
exciting time for Verlo because it is on the cusp of its growth
potential,” Siipola remarked. “The market has barely been tapped,
and clearly, there are areas we need to target. Verlo is definitely
poised for serious growth because the foundation has already been
built.”
The franchised Verlo organization is based in Whitewater, Wisconsin,
its business model sustaining the retail framework for custom-built
mattresses, ornamental design beds, futon mattresses, assorted futon
covers, futon frames, bolsters and pillows. Verlo also offers
700-thread-count sheet sets, Talalay latex and synthetic down
pillows and pads.
Currently, Verlo has a retail presence in nine states including
Colorado, Illinois, Wisconsin, Iowa, Missouri, North Carolina,
Georgia, Florida and Pennsylvania. Siipola said he plans to double
the store count over the next three to four years.
“There is ample room for expansion so this is a very achievable
task,” Siipola said.
Siipola’s short-term goals include improvement of the retailer’s
products and tools as well as increasing store traffic and brand
consistency/awareness.
“Verlo’s ‘Made Just For You’ tagline reflects the craftsman quality
and factory-direct company approach,” Siipola noted. “One of the
unique characteristics about Verlo is its craftsman icon and the
leather apron. It’s a strong and solid image, perfect for conveying
the handcrafted concept. This is what paints the Verlo story – a
story of differentiation. Our craftsman-direct story strikes a chord
with consumers who can watch through picture windows from the store
to see mattresses as they are handcrafted in the store to meet each
customer’s specifications.”
Siipola said he plans to utilize these differentiating factors to
bring Verlo Mattress Factory Stores to amplified national status
while increasing sales figures.
“I plan on making sure all franchisees maximize their operations for
the best return on their investment,” said Siipola. “It’s an
opportunity for me to draw on my past experiences with franchises to
help small business individuals achieve their personal and financial
goals.”
Siipola said Verlo Mattress Factory Store is a desirable investment
offering a unique niche in the franchise marketplace with its low
entry cost and small labor requirements. “The cost of entry into the
franchise system is extremely low compared with other similar
return/investment franchise opportunities,” Siipola noted. “Initial
costs to set up a retail/assembly location are just under $200,000.
Franchisees are also given the opportunity to populate a marketplace
with additional retail/showroom locations, using the initial
retail/assembly location to supply the finished product.”
Siipola said he is very impressed with the business model, citing
its efficiency, leveragability and rapid growth potential.
Typically, he noted that retail/assembly location footprints run
between 7,000 and 10,000 square feet, employing six to 10
individuals. Retail/showroom locations typically are 2,500 to 3,000
square feet, with an average of just 1.5 employees.
“When potential franchise owners look at our business model and
start to compare our operating expenses and affordable repeatability
within the marketplace, plus review the low labor issue, it becomes
a very desirable investment opportunity,” said Siipola.
As a technology-forward company, Verlo’s online portal, MyVerlo.com,
is the company’s main communication vehicle. All employees are
provided access to a wide variety of information—from sales tracking
to continuing education to online forums to sharing ideas.
“Since this system is Web-based, franchise owners can access the
information whenever and wherever Internet access is available. This
allows franchise owners to remain focused on growing their
business,” Siipola said.
With sophisticated systems already in place, Siipola is excited
about using his expertise and foresight to leverage an
entrepreneur’s personal future.
“There is an aggressive desire within the entire organization to be
successful and move ahead. And we are in control of our own
destiny,” remarked Siipola.
“It is clear the age of franchising is still alive and well. A
proven and successful business plan, such as Verlo’s, speeds the
start-up of a business. Franchise owners almost always outpace
independent business owners. Franchises grow more quickly and have a
much higher success rate than independents in the same industry,” he
continued.
Siipola cited Verlo’s spirit, growth mode culture, brand
positioning, operating systems and management team as key factors in
making the decision to join the Verlo team.
“Verlo is already steered for increased national success,” Siipola
said. “I’m looking forward to the day when there is a Verlo Mattress
Factory Stores in every suburban community. That time is coming!”
Siipola’s vision for Verlo Mattress Factory Stores’ future is very
obtainable. In fact, Entrepreneur magazine named 2005 as the year
that franchising itself became a trend. According to Entrepreneur’s
January 2006 issue, the total number of franchise units for all
Franchise 500® companies, including Verlo, grew 11 percent from 2004
to 2005—an impressive jump compared to the 4 percent increase that
occurred from 2003 to 2004. The previous year showed a drop in
franchise units.
“Increasingly, entrepreneurs are embracing franchising as a way to
expand their existing businesses,” noted Siipola. All this
translated into $134.2 billion in sales during the past fiscal year
for the 2006 Franchise 500® companies.
“Being a part of this esteemed ranking further validates our
franchise model and system,” Siipola concluded. “Collectively, we
will continue to build equity in the Verlo brand, which is what
franchising is all about.”
For further information on Verlo
Mattress Factory Stores contact us at:
www.verlo.com
(800) 229-8957
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