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A long and successful career in retail management prepared Jeff Stroud for many of the ins and outs of being Founder and President of Private Quarters. What surprised him was the profound satisfaction and sheer joy he has found in running a company that literally changes lives.
Private Quarters offers high-quality bed and bath furnishings that let people create a spa-quality comfort zone in the most intimate areas of their homes. The 4-year-old company is so dedicated to creating comfort that its growing numbers of distributors are known as “comfort consultants.”
Those consultants and their clients provide Stroud with the supreme satisfaction he feels daily from knowing that Private Quarters gives them comfort in their homes, an outstanding income opportunity and a culture that lets them feel comfortable just being themselves. Stroud says Direct Selling Association President Neil Offen predicted the company’s influence in a way that, at the time, Stroud didn’t understand.“When I went to my first DSA annual meeting, I felt like such a wannabe,” he says. “Neil Offen came up to me and said, ‘Jeff I’d like to talk to you.’ I thought: How does he even know who I am?”
After Stroud showed Offen the fledgling company’s mock-up product catalog, Offen said that the company was unique in the industry, offering products no other company sold. “He said, ‘You know, it’s going to grow fast. It will be a challenge for you and your family, and it will change a lot of things for you. I hope you’re ready for it. But it’s all going to be worth it,’ ” Stroud says.
“I thought that then he’d say that I was going to make a lot of money, but he said, ‘You’re going to change a lot of people’s lives.’ I felt completely confused about what he was talking about.”
Now, after four years of seeing transformations in the women and men who have joined Private Quarters,Stroud gets it.
“It’s not so much about the income they earn or their love for the product, though both of those are significant,” he says. “What changes their lives more than anything is that they gain newfound confidence in themselves that they never had before. They become a new person, and their lives do change.”
Stroud also loves watching his consultants’ entrepreneurial side grow, and he believes that his father, whose influence really started it all, would have loved it.
Stroud’s father was the founder of Stroud’s Linen Warehouse. He opened the first store in Pasadena, Calif., in 1979—the year Jeff Stroud started college. It eventually grew into a 60-store chain.“It was like Bed Bath & Beyond, without all the beyond,” Stroud says, “but it catered to a more affluent customer.” Stroud looked forward to the day he would help run the family business. His dream was to become its president. After gaining seven years of retail management experience at another large department store, he joined the business. He served as vice president of several areas in the chain in preparation for achieving his goal.
But then his father fell ill, and a new CEO was named to lead the business. Eventually, Stroud’s Linen Warehouse was sold to an investment company, which closed it several years later, just after Stroud’s father passed away. For Stroud, it was a devastating time. In one short period, he lost his father, his family’s business, his dream, his career and his income. But he was determined to go on, perhaps reopening some of the chain’s stores.
Chinese food changed his mind.
One night, after having some Kung Pao Chicken, Stroud opened the fortune cookie. The fortune: “Don’t look back. Only look ahead.”
So Stroud abandoned the idea of reopening the familiar linens store, but he didn’t abandon the knowledge and skills he had gained. He researched online and catalog sales. Then he came across an article about legendary investor Warren Buffet, who had just bought The Pampered Chef. “I didn’t know anything about direct selling,” Stroud says. “I didn’t even know what The Pampered Chef was. But sales were estimated to be over $700 million that year. I wondered why a guy like Warren Buffet would be buying a Tupperware-type company.”
So Stroud launched into research on direct selling and discovered that the DSA Web site listed numerous companies that sold home furnishings—baskets, candles, home decor and everything for the kitchen. But, he wondered, in this $30 billion industry, where are the bed and bath?
“It was like that scene from The Sound of Music where Mother Superior says that when God closes a door, he opens a window,” Stroud says. “I felt that this was a window that was left open
for me.” He called his father’s business partner Wayne Selness. At first, Selness thought Stroud was nuts. But the more they talked, the more intrigued Selness became. The two contacted direct selling expert and consultant Alan Luce to help them figure out whether the business had a chance of being successful. The process ended with a series of focus groups who attended Private Quarters test parties. The results stunned them. Luce had advised them that the new company could be successful if it could sell $300 to $400 of merchandise at each party. At the test parties, sales exceeded $800.
Moreover, guests reported that they enjoyed the process of learning how to properly layer linens to create a supremely comfortable bed, as well as being able to touch and feel the linens. And they felt that the consultant served as a personal shopper who was completely knowledgeable about the products. Guests emphasized that none of those experiences were available in department stores, so they were much more engaged than they would have been in a retail environment.
With those encouraging results, Stroud launched Private Quarters late in 2004, with Co-Founder Selness as CEO and Luce as a member of the board of directors. It achieved $1 million in revenue after just nine months and has grown steadily since.
Today’s Private Quarters comfort consultants offer thick, sensuous towels; generous, comfy robes; soft, warm pajamas; nightgowns; loungewear; throws; shawls; and scarves. But its top product isn’t a single item. It’s the Blissful Bed System, which creates “Seven Layers of Bliss.”
“It’s not any one product. It’s all a system and it has to be put together.” Stroud says. “The bath and spa and the outer bedding are secondary in the presentation. They’re the frosting on the cake. But most people have several bedrooms in their homes, so they come back for more. Sales add up quickly. If you get a couple of pillows, a down comforter and a feather bed, that’s several hundred dollars just to outfit one bed.”
Private Quarters’ comfort consultants say their clients appreciate the sumptuous linens. From expressions of “wow” when clients first touch the Blissful sheets and towels to quick reorders from party attendees whose spouse refuses to sleep on anything but Private Quarters’ products, consultants get lots of great feedback.
Parties aren’t the only way Private Quarters’ consultants sell their products. Some comfort consultants are interior decorators or owners of bed-and-breakfast inns who use Private Quarters’ products in their guest rooms. They earn additional money by offering their clients Private Quarters’ products instead of referring them to a retail store.
“We’re finding that the interior decorator has the opportunity to use our catalog, fabric swatches and kit to work with their normal clientele,” Stroud says. “Decorators can help clients buy pillows, comforters and other products that they would ordinarily go to a retail store and buy, but the decorator wouldn’t earn money on the retail products. Now, they can sell to clients and earn a good income.”
Consultants are attracted by Private Quarters’ luxurious products and the outstanding income opportunity, as well as the company’s accepting culture. Consultant ranks include men and women, people from every age group, ethnicity and geographical region in the United States, and both full- and part-timers.
The company’s first comfort consultant, and still one of its top mentors and leaders, is Stroud’s wife, Jean. She is the friendly face of Private Quarters in the company video that demonstrates The Seven Layers of Bliss. She also sees herself as a consumer advocate.
“I believe that every experience in life should be a good one,” she says. “Why not enjoy your business transactions and daily tasks?”
Jean is so committed to customer service that she now shops primarily from direct sellers for their one-on-one service during home party buying. She also likes supporting other women who have chosen flexible hours and income so they can stay home with their families. And she thinks it’s just a lot of fun to shop in a highly personal service environment. She also believes in choosing products that deliver genuine benefits.
“I almost always fall asleep as soon as I hit the pillow and wake up right before the alarm, feeling rested and refreshed,” Jean says. “I do not understand why someone would spend $300 on shoes or a handbag, but I do think that every dollar spent on a comfortable bed is worth it.”
Jean and more than 1,000 other comfort consultants have spurred Private Quarters’ growth. The privately owned company doesn’t release revenue figures, but Stroud points out that it has moved into a larger warehouse and distribution center three times in its short history. The current facility is about 60,000 square feet, compared to the company’s first 10,000-square-foot warehouse. The company has also expanded across the country from its original base in California.
Stroud credits much of Private Quarters’ success to the company’s Vice President of Product Development and Design, Lana Burke, a highly respected veteran of the home textile industry who has earned the industry’s equivalent of the Oscar. She also happens to be CEO Wayne Selness’ wife.
“She puts forth design and style that appeal to a lot of different demographics,” Stroud says. “Everybody loves comfort, and our comfort story has universal appeal, but the styling of our outer bedding attracts a lot of different women.
Burke says consumers are definitely searching for products that provide comfort and respite, but the impact of bedroom aesthetics can’t be overlooked.“Our lives are dominated by the fast lane,” she says. “Hyper-speed, wanting it now, instant gratification, global communication. Life is too fast. The bedroom is our last defense. We need to protect it as a sacred space to re-energize and renew.”
She believes using high-quality bedding and bath linens transforms a simple bedroom into a restful retreat. The biggest mistake people make when shopping for bedding, Burke warns, is buying something just because it’s on sale. One of her favorite Private Quarters products is the 400-thread-count sheet. “It is super soft and has a great satin piping,” she says. “The 500-thread-count sheet is also fantastically super soft with incredibly deep pockets and nice double-stitched hems.”
Stroud is confident that Private Quarters’ high-quality products have paved the way to a bright future for the company and its comfort consultants. He sees no reason to venture outside the bedroom and bathroom of the house in the company’s product line and, for the present, he plans to keep the company within U.S. borders. Instead, he simply wants to make the company more robust and introduce even more Americans to its opportunity.
“I look forward to changing more people’s lives for the better,” he says. “What I see on the horizon is offering more and more peopleanother source of income and the satisfaction that goes along with achieving success. We’ve laid the foundation. We know that we have the right business model. Our products sell well and will continue to. The only question left is who the women and men who will spread the business across the country are going to be. We’re still very small. There’s a lot of opportunity.”
Private Quarters’ lead offering isn’t a product. It’s a system of bedding products that show just how serious the company is about comfort.
The Blissful Bed System uses the company’s seven signature products, layered over each other to create “Seven Layers of Bliss.” It starts with a plush mattress cover. Next comes an inviting feather bed, followed by down pillows, 600-thread-count sheets, a blanket, a comforter and a stylish, protective duvet. The combination results in a beautiful, inviting bed that creates a cradle of comfort.
The company’s comfort consultants show the products at “getaway” parties in private homes, but they don’t take the party into the bedroom. Instead, they invite guests to imagine themselves on a weekend at a luxury hotel, where they are treated to the deepest, most comfortable sleep they’ve ever experienced. To help guests understand how the bedding system works, consultants make up a unique 2-foot-by-3-foot mini-bed, explaining in detail why each layer is important and how each product is different from anything found in a retail store.
For most guests, it’s the first time they’ve been shown how to layer a bed for maximum comfort. It’s also often the first time they’ve been able to touch and feel each individual bedding product, since retail stores typically display linens in packages. Bedding is offered in three quality lines—standard, superior and deluxe—letting guests choose products that fit their needs and budgets. Getaway party hostesses may buy deluxe bedding at standard bedding prices. The bed demonstration is the pivotal part of the party, but the pampering doesn’t stop there.
During the next step in the imaginary getaway weekend, guests venture to a spa, where they’re treated to thick, luxurious towels and robes, as well as spa products and accessories. Of course, they’re all part of the Private Quarters product line. Style and comfort are part of the discussion, and Private Quarters offers three styles throughout its product line—traditional, modern and natural.
The favorite product of company Founder and President Jeff Stroud is the feather bed, followed closely by Private Quarters, down and feather pillows.
“Most people have never slept on a feather bed,” he says. “I love it because of the sleep experience on it. Your body sinks into it, and it relieves pressure points. Most people normally end up having pressure points where the body hits the bed. They cause you to toss and turn in the middle of the night. But each feather in the feather bed acts like a little spring or coil that cushions the body. It’s like sleeping on a cloud.” He insists that once people sleep on it, they never go back.
He adds, though, that a good pillow that aligns the head and neck is crucial to a good night’s sleep. He likes a combination of down for softness and feathers for support.
“If you go online to the National Sleep Foundation’s Web site, you’ll learn that Americans are not sleeping well these days,” he says. “We’re getting progressively less and less sleep. At Private Quarters, we’re on a mission to help people get a good night’s sleep naturally as opposed to relying on sleeping pills. You won’t need sleep aids if you learn to make up your bed properly.”
Private Quarters found a way to comfort women at the time in their lives when they need comfort the most. And it all started with overstocks.
Like most companies, we experiment with different products,” says Founder and President Jeff Stroud. “After four years we had a collection of stuff that hadn’t sold that well, but they were still high-quality products. We were trying to figure out what to do with them. In one of our board meetings, Alan [Luce] suggested donating it to a battered-women’s shelter. Everyone thought it was a great idea.”
The company got its comfort consultants involved by turning the donations into a sales contest—one that had easy goals to meet. During April 2008, when a getaway party had guest sales of more than $500, Private Quarters donated special merchandise to a battered- or homeless-women’s shelter. Sales at parties usually average about $800. More than 50 shelters across the United States were selected for consultants to choose from, and the individual needs of each shelter were carefully assessed to ensure that each would be well-served. Consultants rallied around the effort, holding party after party to participate in the program. The result: Almost $100,000 in merchandise went to shelters across the country.
The company even developed special recognition for consultants who sold the most during that promotion. It inducted 11 women into the Founder’s Circle of Comfort. Participating in the award presentation was the director of one of the shelters the women’s efforts had supported.
And Stroud did something truly special for them. He tapped his musical talents—he holds a degree in music—to write and personally perform a special song for them.
“As I looked at the list of shelters benefiting from the program, I noticed what neat names a lot of them had,” Stroud says. “One of them was a shelter in Plano, Texas, called Hope’s Door, so I wrote a song by that name. I recorded it, created a music DVD from it and played it at the convention. The whole event was a real landmark for Private Quarters.”
To listen to the recording and see a list of shelters that benefited from the program, visit http://www.pqsharethecomfort.com. Stroud says Private Quarters will repeat the promotion annually and that he hopes to write a new song each year, using the name of a shelter as the song’s title.
Private Quarters has already found another opportunity to share the comfort. In recognition of National Domestic Violence Awareness month in October, it ran a special promotion, donating 15 percent of the retail value of all comfort wear sales to homeless shelters.
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