unique concepts The Fluff that Dreams are Made Of


A bedding manufacturer licenses an interactive pillow-making experience through a stand-alone kiosk. Bernadette Starzee


T


he Dream Machine is a kiosk that creates customized pillows while customers wait. The kiosk marries an interactive experience with a personalized luxury product. Factors such as sleep habits, if available, and firmness preference are taken into consideration before designing a pillow. Customers can watch through a clear window as the fill floats around inside the machine and then as the pillow is sewn, filled and fluffed. The final step is choosing a personalized message or monogram, which is embroidered onto the white pillow with silver lettering. The whole process takes about 10 to 15 minutes. The Dream Machine is being licensed by Durable Products


Co., a Fort Atkinson, WI-based full-service manufacturer of air and spring mattresses, pillows and fill materials. The company, founded in 2002 by bedding industry professional Dave Young, owns a patent for what goes into the Dream Machine’s custom- made pillows—a blend of Everlon luxury fill and duck down. This is placed inside a 280-thread-count, 100 percent cotton pillow protector. The Dream Machine is currently stationed at eight high-end


linen and luxury gift retailers. The longest-operating Dream Machine has been operating in a linen store in Dallas, TX, for around a year—with gross retail sales of $80,000, according to Durable Products.


At the mall The company is promoting the kiosks through home, gift, bridal and furniture shows as it looks to expand into additional retail outlets. “It makes sense as an add-on for several categories of


retailers,” says Young, noting that the machine can be used within an inline store or as a stand-alone business. Due to its portable nature, it can even be taken to multiple venues by the licensee, Young says. He adds that his company is engaged in talks with an entrepreneur who is looking to use it that way. When placed near the entry of an inline mall store, the


machine has the potential to draw traffic into the store. “When you put something with live action in the front, people want to see what’s going on,” Young says. When used as an add-on, the


28 Specialty Retail Report n Winter 2011


machine does not require extra staff, as existing staff can be trained easily, he says.


The fine print According to Young, licensees operate the machine at a 70 percent gross profit margin. For a start-up cost of about $15,000 a licensee gets exclusive rights to operate the machine in its territory for one year and enough raw materials to sell about $4,000 worth of pillows. The renewal cost is $5,000 to $7,000 per year, depending on the contract. There are two days of training at the company’s Wisconsin facility, and Durable Products will coordinate any necessary repairs through providers near where the retailer is located. “So far, we have not had any failures among the eight machines we have in stores,” Young says. The Dream Machine makes standard, queen and king size


pillows, as well as travel, ring bearer and boomerang-shaped “side-sleeper” pillows. Ranging from $99 to $159, the suggested retail prices are a


barrier for some shoppers. However, Young says, many people are willing to pay for a high-quality pillow that offers a healthy, comfortable sleep and also makes a unique gift. “Retailers can adjust the price depending on their location,” Young says. “In a lower-end area, you might charge $99 for a standard-sized pillow, whereas you could charge $149 in a high-end mall.” According to Young, the pillows are bought as gifts in about


40 to 60 percent of the sales. “The percent is higher for some venues and around the holidays,” he says. “For instance, for Valentine’s Day, a pillow with a personalized message can be a great way to buy yourself out of jail.” Young notes that the pillows have been a hit at bridal shows.


“They make a unique wedding gift—they can be embroidered with the couple’s names and wedding date, and chances are, the couple won’t get seven of them,” Young adds. For more information, please visit dreammachine.com.


Bernadette Starzee, a Long Island, NY writer who covers business, sports and lifestyle topics, is a senior writer for SRR. She can be reached at starzee@optonline.net.


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