Case Study of Blackberry Creek Mattress
When we first began working with them in December 2012, Blackberry Creek Mattress had a main store in the college mountain town of Boone, NC and a smaller location in Blowing Rock, NC. They were successful but always strived to improve. We worked together in all aspects of the business.
We helped Dick, the owner define his vision to structure the business so that it would be saleable within 5 years and aligned with his values and principles. Lines of Communication were clearly defined, job descriptions created for everyone, and the company transitioned to a mission and value driven company where everyone was aligned with the mission.
Financial Tools and Processes
We created pro-formas, a budget and dashboards which became major tools in managing their business. These enabled us to analyze the cost to benefit of moving the smaller store to a more expensive, larger mall location. The process of creating the budget with the owner, general manager, and bookkeeper helped everyone focus on profits instead of just sales.
Sales and Sales Management
We defined accountabilities for Marc, the general manager and sales manager, and gave him the tools and training to become a very successful coach. The selling strategies and a customized sales process enabled more consistency for every customer entering their showrooms regardless of which sales associate worked with them. They had a selling process that was very trainable and allowed them to now hire by personality traits instead of experience. Rebecca, their bookkeeper, helped out on the floor and became one of their most productive sales associates in the company.
Their sales team was made up mostly of part time college students paid an hourly rate. They hired well but nothing was driving performance until we implemented a win-win performance based bonus plan in which there was a goal and a stretch goal each month. The results were exceptional because the team either attained the store goal or stretch goal consistently.
Dick was a very good merchant and buyer however he benefitted greatly from some missing analytical management tools. Their margins increased substantially
Blackberry Creek is a very successful business with growth in percentage from 2013 to 2015:
- Revenue - 17%
- Gross Margin - 3%
- Close Ratio - 12%
- Average Sale - 8%
Blackberry Creek is now in a very good position to be sold and Dick now manages the business from Florida through Marc using the management tools that are part of the company culture.