Lexington, KY - At age 23, many young adults are still trying to figure out what they want to be when they grow up. But in the early 1980s, Kim Knopf not only knew what she wanted to do, she also had a plan to do it.
Armed with a business plan, a certificate of deposit from her future in-laws as loan collateral and a partnership with her future husband and in-laws, Knopf opened her first mattress store in Charleston, W.Va.
Even with her youth and inexperience, Knopf saw an opportunity, and today she owns more than 90 retail stores in four states under two brands: Sleep Outfitters and Mattress Warehouse. She opened her first Kentucky store about six years ago and now has more than 20 locations here, including two in Lexington and one in Nicholasville.
Knopf, a Louisville native, said she had confidence in her concept because she could see the need for bedding to break out from big department stores and become a specialized business, like electronics. She believed this offered her customers a better value proposition for several reasons. Her typical store ranges from 3,000 square feet to 5,000 square feet, so with lower overhead, she could offer lower prices. The concept also offered a nice return on investment, because the inventory turns quickly.
Additionally, department stores also had long waits for delivery. In some cases, it was difficult to get products delivered within a week, she said. The other plus for customers with her concept was the focus on service and the specialized knowledge her sales force offers about the health aspects of sleep.
"We focus on the whole sleep experience - not just selling a commodity," Knopf said.
From a sales and marketing perspective, this hits the nail on the head by selling the benefits - not the features - of the products.
Still a believer is traditional print ads, inserts and television ads along with radio ads at certain times of the year, Knopf is moving some of her marketing focus to the company's website and Facebook page. She said customers visit websites and social media sites to investigate products before visiting a retailer. In fact, one mattress company she works with has research showing 90 percent of buyers take that approach.
She said most customers have seen or heard of her company from multiple marketing channels. Regular readers of this column know I call that approach 360-degree marketing, and as markets continue to become more fragmented, it's the approach that's going to work for most businesses.
Knopf also is considering adding live chats and more video to her website, which is a trend right now. If you're looking for ways to connect with customers, this is a good way to do it, because people want to interact with companies. Consumers want a dialog and are no longer totally satisfied with the one-way conversation traditional ads offer.
Even though the country is still in an economic downturn, Knopf said her business actually increased last year. She attributes this to aggressive advertising. Again, this is something to take note of. Many companies decrease their marketing budgets during a slow period to save money. As this example proves, that is exactly the opposite approach that should be taken.
Knopf enjoys the constant change and evolution of the business as the economy and culture change.
"We approach every day like this is a new business," she said. "I see change as an opportunity. We try to anticipate trends and stay ahead of the curve."
One example of a cultural change is the size of beds people are buying. Larger beds have become more popular, because the parents' bed has become extended living space for TV watching, reading and other family time.
Another change the company is trying may be generational as well as cultural. Knopf's oldest daughter, Karrie, who's just one year older than Knopf was when she started the business, has joined the company. She wanted to add organic products like linens and pillows to the showroom. So the company now offers lavender, soy and buckwheat pillows as well as new types of sheets.
"She provides a different viewpoint," Knopf said.
Being aware of trends and cultural changes is important for businesses. Change is inevitable, so organizations have to be flexible enough to roll with the change and not get stuck in the mindset of what used to work.
One thing that hasn't changed for Knopf is the family aspect of her business. She says her company culture reflects that. With 300 employees, the company is still small enough to be close knit, even though it's in four states.
"We started out as a family business, and we're still a family business," Knopf said. "We have a lot of passion around that."
Mary Hemlepp, APR, is co-owner of the Lexington-based public relations firm Wiser, Hemlepp & Associates. Contact her at mary@wiserhemlepp.com.