1

A GUIDE TO:
PERSONNEL POLICIES
OPERATING PROCEDURES
STORE ADMINISTRATION

ROYAL MATTRESS RETAIL DIVISION

3
THIS SHEET IS TO BE SIGNED, and DATED TO CONFIRM READING OF OUR GUIDE TO
POLICIES AND PROCEDURES.

I have read and understand the Royal Mattress Retail Employee handbook and agree to
follow its guidelines and procedures to the best of my ability.
_____________________________________
Signature

______________________
Date

_____________________________________
Signature

______________________
Date

_____________________________________
Signature

_______________________
Date

_____________________________________
Signature

______________________
Date

_____________________________________
Signature

______________________
Date

_____________________________________
Signature

______________________
Date

_____________________________________
Signature

______________________
Date

SECTION 1: EMPLOYEE POLICIES

MISSION STATEMENT
The philosophy of Royal Mattress has always been to offer the highest quality sleep
products at the lowest possible prices backed up with exceptional customer service. It is
with this intention we formulate our mission statement:
To promote and environment of Respect, Caring and Trust in order to excel in our
relationships with our customers, our community and each other. We strive to
continuously improve our ability to serve all those whom we can reach through the quality
manufacturing and retailing of our products.

CORE VALUES
The Core Values are the essential and enduring beliefs of our team they are the guiding
principles:
CONTINUOUS IMPROVEMENT

We make every effort to reach our full potential as a company and as individuals. By
using best practice techniques and striving for excellence, we continually ensure the most
efficient and effective processes are in place.
CUSTOMER FOCUS

Our focus involves cultivating a customer consciousness, taking responsibility for ensuring
customer satisfaction and enhancing the quality of a customers experience by meeting
their needs through friendly, knowledgeable and efficient service.
HONEST, INTEGRITY, RESPECT

We want to create a culture that fosters honest, reliable, trustworthy employees who
exercise personal accountability and demonstrate genuine concern and respect for others.
TEAMWORK

We work collaboratively with others to achieve common goals, to be part of a team and
work together, providing information and exchange of ideas in a way that promotes open communication
and understanding.

5
EQUAL OPPORTUNITY
Royal Mattress policy and intent is to provide equal employment opportunity for all
persons regardless of race, colour, religion, national origin, marital status, political
affiliation, affectionate orientation or gender identity, disability, sex or age.
Royal Mattress intends to act with fairness in its employment practices. Equal
employment opportunity applies to all aspects of employment practices including, but not
limited to, recruiting, hiring, placement, promotion, demotion, transfer, training,
compensation, benefits, layoff, recall and termination.
RECRUITMENT PROCEDURES
Royal Mattress intends to recruit, hire and place applicants on the basis of the applicants
relevant knowledge, skills and abilities. The decision to employ an applicant will be based
solely on the individuals qualification for the particular position along with other requisite
magnitude of the work assignments and the full scope of responsibility for the position will
be fully discussed at the time of recruitment.
NEW EMPLOYEES
New employees upon confirmation of job placement will receive a package from our
payroll department that includes information forms necessary for the processing of payroll.
This information must be completed and returned to our payroll office within twenty-four
hours of hiring a new employee in order to be included in the next applicable pay run.
Royal Mattress believes in having an open door policy for its employees and
management. Your immediate supervisor is responsible for proper training and
instructions with regards to Royal Mattress policies and procedures. If you have questions
or concerns your supervisor is unable to satisfy you are invited to present them to the Sales
Manager.
HIRING AND COMPENSATION
A person employed by Royal Mattress will receive a letter at the time of hire detailing the
salary/commission or hourly wage. At the same time the person will receive a position
description specifying job responsibilities and indicating whether the position is full time
or part time. At the time of hire, Royal Mattress will also provide detailed information on
benefits and a copy of the Retail Handbook. If there is a change in any of the parameters
in the hiring letter, job description, and benefits or personnel policy during the course of
employment, the employee will be notified of the change in writing.
In setting compensation, Royal Mattress may consider, among other things, external labor
market rates, and equity with other jobs within the organization and the companys ability
to pay.
ORIENTATION AND TRAINING
A new employee will serve a three-month orientation and training period unless the
employees hiring letter specifies a different period. This is the time frame during which
you and your supervisor are expected to realize whether or not the Royal Mattress work
environment is suitable for you for the long term.

WORK SCHEDULE HOURS OF WORK

Management and full time sales employees will follow a schedule as defined by the Sales
Manager. That schedule will comply with the following guidelines and will be laid out in
such a manner as to adequately staff the store in as efficient a way as possible without
impacting on our ability to best serve our customers.

GUILDELINES

If the employees schedule includes two days or less of working till 9PM the total
number of hours to be worked that week shall be 45.5 hours.

If the employees schedule includes more than two days of working till 9PM the total
number of hours to be worked that week shall be 44 hours.

If the employees schedule includes working on a Sunday 3.5 hours may be deducted
from the total number of hours to be worked that week.

Each employees schedule shall include a minimum of one workday a week, which
commences from the time the store, opens and concludes at 9PM.

Each employees schedule shall include five working days per week and a minimum of
8 hours per working day unless the store hours for that day are less than 8.

These are to be considered minimum guidelines only. As always, those in position of

management are expected to be present over and above these guidelines when adequate
staffing is unavailable.
Any requests for changes to the schedule must be submitted in writing and must be
approved by your immediate supervisor. The supervisor will consider the needs of the
business as well as the employees reasons in determining whether or not to grant a request
for a change in schedule.
The Sales Manager must approve overtime for part time employees
APPEARANCE
Salespeople are required to dress in a manner so as to reflect to the public the business like,
professional, conservative corporate image Royal Mattress wishes to convey.
For gentlemen this means clean-shaven, a collared shirt, dress pants and dresses shoes. For
ladies this means any business-like combination of slacks, skirts, sweaters, blouses, etc.
If you are unsure what is acceptable ask you store manager.

HOLIDAY SCHEDULE
Employees are entitled to eight public holidays with pay:

New Years Day

Family Day
Good Friday
Victoria Day
Canada Day
Labour Day
Thanksgiving Day
Christmas Day
Boxing Day

An employee does not qualify for a paid holiday if the employee:

Does not work his or her scheduled regular day of work preceding and following the
holiday
Having agreed to work on a public holiday, does not report for and perform the work
without reasonable cause

PART TIME
Part-time employees will be paid their regular rate of pay in accordance with the
Employment Standards Act of Ontario. It is the responsibility of Management to schedule
these employees to no more that 12 (twelve) hours in any workday and no more than 44
(forty-four) hours in any workweek. Should an emergency arise, which requires a
deviation to this policy, the Sales Manager must be notified in advance.
FULL TIME
Full-time employees will be compensated for all authorized hours worked above their
regularly scheduled workweek in Lieu Time, which may be requested by the employee.
Such a request will not be unreasonable denied, however, approval will be subject to the
needs of the operation. The time must be taken within six months of it having been earned.
The employee will have 3 (three) months during which to request and arrange the time off
after which the company (Store Manager) will schedule the time off at its discretion.
QUALIFYING PROVISIONS
To qualify for Statutory Holiday pay, the part time employee must have worked their
regularly scheduled shift prior to the holiday (not necessarily the day before the holiday).
Also, they must work their regularly scheduled shift after the holiday (again, not
necessarily the day after the holiday). Both conditions must be met to be eligible for

8
Statutory Holiday pay. The employee has no entitlement to Statutory Holiday pay if he or
she fails, without reasonable cause, to work all of his or her last regularly scheduled day of
work before the public holiday or all of his or her first regularly scheduled day of work
after the public holiday.
For example:
Thanksgiving was Monday October 8, 2001.
J. Smith is scheduled to work on Thursday October 4. He completes that shift.
That is the last day he is scheduled to work that week. J. Smith then works on Friday
October 12, which is his first scheduled shift after Thanksgiving. He will qualify for
Statutory Holiday pay for October 8.
S. Jones is scheduled to work October 5, but calls in to say he does not want to work that
day. He does not work anymore that week. S. Jones then works on Wednesday October
10, which is his first scheduled shift after Thanksgiving. He will not qualify for Statutory
Holiday pay because he did not work his last scheduled shift before the holiday.
CALCULATION OF PAY
Statutory Holiday pay is calculated using the following formula:
Hours worked in a four week period divided by 20.
VACATION LEAVE
Except where otherwise warranted, regular employees will accrue vacation time based on
the number of years of employment with the company.
Every employee shall upon the completion of one year of employment and for every full
year thereafter be entitled to and shall take two weeks paid vacation. Vacation may be
taken as one two-week period or two one-week periods. If the employee wishes to take
their vacation in periods of time of less than one week, they may do so upon written
request and approval from their supervisor.
Upon the completion of ten years of employment every employee shall be entitled to a
third week of paid vacation. This additional week may be taken as one full week off or
may be split up into smaller segments as long as the smaller segments do not duplicate the
same day of the week on multiple occasions (you may not take off five Mondays or five
Saturdays to make up the third week).
Upon the completion of twenty years of employment every employee shall be entitled to a
fourth week of paid vacation following the same conditions as the third week.
The employees supervisor must approve vacation leave. The employee should request
annual leave as early as possible; four weeks in advance is the minimum required notice.
If the requested leave is for five days or more, the employees request and supervisors
approval must be in writing.

9
Royal Mattress encourages each employee to utilize allotted annual leave during each year.
All other accrued annual leave will be forfeited as of December 31 each year.
The formula for calculating vacation pay is:
2% X # weeks of earned vacation X gross pay
Your pay stub indicates the current balance in your vacation account. You must request
your vacation pay in writing, one week in advance. While the money in your vacation
account lawfully belongs to you, Royal Mattress policy discourages release of vacation pay
unless you actually take your vacation. If circumstances are such that you must have
access to these funds during a non-vacation period, our payroll office must receive a
written request on or before the Friday PRIOR to the pay week in which you wish to
receive the money. Bear in mind receipt of monies may take up to 10 days.
In the event there is a balance in your vacation account at a point in time when you leave
employment with Royal Mattress, you will receive these monies on your final pay cheque.
PERSONAL LEAVE
Employees faced with an urgent personal matter that cannot be handled after working
hours should obtain permission in advance from their supervisor for time off. Employees
are required to schedule personal appointments outside of working hours whenever
possible.
Each Royal Mattress employee should notify their supervisor each day the employee will
be absent from work due to illness or, if the duration of the absence can be predicted in
advance, at the beginning of the absence.
SICK LEAVE
Non-probationary full time employees are entitled to one paid sick day (with Doctors
certificate if requested) for every full year of employment completed, up to a maximum of
six sick days per calendar year. Sick days may be accumulated from year to year up to a
maximum of eight days.
For commissioned sales people, deductions for days off after sick days have elapsed will
be based upon 1/5 of the weekly base salary plus 1/10 of commission payable for
applicable two-week period.
Full time employees who upon their birthday have at least 1 sick day in their sick day
bank, may choose to trade that sick day for 1 paid feel good day off that must be
requested and approved prior to scheduling.

10
LEAVES OF ABSENCE
A leave of absence is time off the job that is outside the definition and time periods of
holidays, annual, personal or compensatory leave policies.
of absence is entitled to non-probationary employees who suffer a
loss in their immediate family. The employee will be granted three days leave of absence
with pay provided such days fall on or before the day of death and the day after the funeral
on regularly scheduled working days of the employee. Immediate family means the
employees father, mother, spouse, child, broth or sister.
BEREVEMENT LEAVE

of absence for one month or less may be granted to an employee in

cases where a short period of time away from the job would be in the best interests of the
employee and the company. No compensation is available during a temporary leave.
TEMPORARY LEAVE

will be granted to an employee who serves on jury duty or who is

subpoenaed by court to serve as a witness. An employee must present a court notice to her
supervisor in advance to be excused.
COURT LEAVE

PERFORMANCE REVIEWS
Each performance review should be positive and interactive process whereby both
supervisors and the individual being reviewed can learn from one another.
The supervisor will work with the employee and, as appropriate, other staff to develop
performance expectations for each staff member and make sure these expectations are
communicated to the employee. The objectives of a performance review are:
1) to determine the employees eligibility for a change in duties, status or pay;
2) to provide the basis for determining job training needs;
3) to give employees an evaluation of their performance and assist them in improving
their performance; and
4) to inform supervisors of any questions or concerns an employee may have about
their work.
Each staff member will have a performance review six months after commencing
employment at Royal Mattress and at least once a year thereafter. The performance review
will involve both a meeting and a written summary of the supervisors evaluation of the
employees performance.
The employees signature on the written summary will indicate that it was presented to the
employee. Each employee may make comments about the appraisal; such comments will
be included in the employees personnel file along with the written summary.

11
PERSONNEL FILES
Royal Mattress will maintain personnel file for every employee. Employees may request
to review their personnel file buy may not remove any documents. Documents or
references given to the organization in confidence with the understanding that the
employee will not see them should not be maintained in the personnel file.
The company maintains personnel records vital to you as an employee. If information in
your records is not correct, problems could arise concerning your taxes, your employee
benefits or other important matters.
You should be sure your records are always kept up to date. Please keep your supervisor
and the Payroll Department informed of any changes in your home address, telephone
number, martial status, life insurance beneficiaries, number of dependents etc.
Information in your personnel records is considered by Royal Mattress to be private and
confidential and will not be released to anyone but yourself without your written
permission unless required by law. Access to these records is restricted to those working
in our payroll department and senior management.
Information in your personnel records is considered by Royal Mattress to be private and
confidential and will not be released to anyone but yourself without your written
permission unless required by law. Access to these records is restricted to those working
in our payroll department and senior management.
During normal business times Royal Mattress automatically reviews hourly paid and full
salary paid employees in the month of May. Employees earning a commission or a
combination of salary and commission do not receive annual pay reviews as it is expected
their income will increase as sales increase or as they move into higher volume sales
positions within the company.
SEXUAL HARASSMENT POLICY
Royal Mattress is committed to maintaining a workplace free of harassment of any kind
and from any source, whether management, co-workers or visitors, while treating all
complaints fairly and evenhandedly in order to prevent frivolous or malicious accusations.
This policy applies to all work situations and work-related social events. The policy
applies to all phases of employment, including recruiting, testing, hiring, upgrading,
promotion or demotion, transfer, layoff, termination, rates of pay, benefits, selection of
training and travel.
All employees must familiarize themselves with Royal Mattresss policy on sexual
harassment. By definition, sexual harassment is any unwanted attention or action of a
sexual nature by someone in the work place that creates an intimidating, hostile or
offensive work environment. It will also be considered sexual harassment to harass an
employee because of that employees gender, even if the harassment is non-sexual.

12
Prohibited behavior includes but is not limited to unsolicited and unwelcome contact that
has sexual overtones. Examples are:

Written contact, such as sexually suggestive or obscene letters, notes, invitations or

art;

Verbal contact, such as sexually suggestive and/or inappropriate or obscene comments,

threats or slurs;

Physical contact, such as intentional touching, pinching, brushing against another body,
impending or blocking movement, assault, coercing sexual intercourse; and visual
contact, such as leering or staring at anothers body, gesturing, displaying sexually
suggestive objects or pictures, cartoons, posters or magazines.

Sexual harassment also includes continuing to express sexual or social interest after being
informed directly that the interest is unwelcome, and using sexual behavior to control,
influence or affect the career, salary or work environment of another employee.
The procedure for reporting and dealing with sexual harassment is as follows:
1) If a persons behavior makes an employee uncomfortable, the employee should feel
free to immediately advise the person that, in the employees opinion, the behavior is
inappropriate and the employee would like it stopped.
2) If the employee is not comfortable discussing the issue with the person, or if the
person fails to respect an employees request, the employee should report the incident
to his or her supervisor. If, for whatever reason, the employee does not feel that the
supervisor is a suitable person to whom to report the incident, the employee should
contact a higher level supervisor.
The person who receives the complaint will conduct a prompt, thorough, fair investigation,
giving careful consideration to protecting the rights and dignity of all people involved.
Immediately, this person will make a written report to the Royal Mattress General
Manager to determine whether any disciplinary action is necessary.
The General Manager will take those steps he/she feels necessary to resolve the problem,
which may include verbal or written reprimand, suspension or termination.
It is the policy of Royal Mattress to have a zero tolerance when matters of sexual
harassment at the work place are concerned.
It is the responsibility of every employee to become familiar with the details surrounding
sexual harassment including its definition, how to recognize it, what to do about it and
how to prevent it from occurring.
Royal Mattress takes this policy very seriously and violations may result in immediate
dismissal without notice from the company.
The Human Rights Commission publication regarding this subject is to be found in this
handbook and is considered mandatory reading by all employees.

13
WHAT DOES SEXUAL HARASSMENT MEAN?
Sexual harassment means that someone is bothering you by saying or doing unwanted or
unwelcome things of a sexual or gender-related nature. For example, someone who makes
unwelcome sexual or gender-related remarks and gestures by:

touching you inappropriately

making offensive jokes or remarks about women or men
making sexual requests or suggestions
staring at or making unwelcome comments about your body
displaying sexually offensive pictures
being verbally abusive to you because of your gender

Sexual harassment does not have to be sexual in nature. It can also mean that someone is
bothering you simply because you are a man or a woman. Making stereotypes about one
gender or the other can be a form of sexual harassment.
Sexual harassment happens most often to women, but it can also happen to men or
between members of the same sex. Usually sexual harassment is a pattern of behavior that
happens frequently over a period of time. However, a single incident can be serious
enough to be considered harassment as well.
WHEN IS IT HARASSMENT?
Sexual Harassment in Employment and Housing:

Someone says or does something to you of a sexual nature that you do not welcome.
This includes behavior that a person knows or ought to know you do not welcome.
Your boss, landlord, or other authority figure uses their position of power to sexually
harass you. By being in a vulnerable situation, it is difficult for you to speak out about
the situation. The person in authority uses the position to help them get away with
unwelcome sexual comments or actions.

Sexual Solicitation or Advance:

A person suggests that if you become sexually involved with him or her, he or she will
give you a promotion or some other type of incentive.

Sexual Harassment and Reprisal:

A person who has authority or power denies you something important, punishes or
threatens you for refusing a sexual request, or for complaining about inappropriate
sexual behavior or comments.

Sexual Harassment and a Poisoned Environment:

Sexual harassment can have a bad effect on, or poisons, the places where you live,
work or receive services. Even if the harassment is not directed at you, it can still
poison the environment for you or others.

14
How do you know if the environment is poisoned? One way is to look at the effect of
negative comments or actions. For instance, if certain sexual or gender-related comments
or actions make you or others feel uncomfortable in the workplace or unwilling to return to
work, this could indicate that the work environment is poisoned.
WHAT CAN I DO?
If you have been harassed, you could try to tell that person to stop.
If it happens at work, one thing you can do is speak to the persons boss or tell your union
representative. If it happens in your building, you can notify your landlord. Although you
can try to make the harassment stop, it is not your responsibility alone.
Employers, contractors, professional associations, unions, and people who provide rental
housing accommodation and other services, have to make sure that sexual harassment does
not occur on their property, in their workplace, or in their facilities.
SEXUAL HARASSMENT CAN LEAD TO VIOLENCE
Silence or doing nothing will not typically make sexual harassment go away and
sometimes such behavior can lead to violence. If you feel uncomfortable or threatened,
speak to a person in authority about it (a supervisor, the owner of the store, etc.). You can
choose to contact the Ontario Human Rights Commission to make a complaint. Where
harassing behavior makes you feel like youre in danger or leads to violence, you should
call the police.
The commission has prepared a policy document called Policy on Sexual Harassment and
Inappropriate Gender-Related Comments and Conduct, which is available on our Web site.
For more information about the Ontario Human Rights Commission or this brochure,
please visit our Web site at www.ohrc.on.ca, or call in confidence during regular office
hours from Monday to Friday.
Toll free
TTY

1-800-387-9080
(416) 314-6526

TOBACCO AND OTHER DRUGS

Royal Mattress is committed to compliance with applicable health codes and to reasonably
accommodating the preference of both smoking and nonsmoking employees.
Smoking is not permitted inside any Royal Mattress facility. Check with your store
manager to see if there is a designated smoking area outside of your store.
For reasons, of safety, public relations and other concerns, use of tobacco in the workplace
is prohibited with exception of a designated area.
Royal Mattress prohibits the unlawful manufacture, distribution, dispensing, possession or
use of a controlled substance in the workplace.

15
ATTENDANCE AND PUNCTUALITY
Your supervisor relies on your prompt and regular attendance. It is essential you report to
work in a timely fashion so as to be ready to wait on customers at the designated time. For
employees responsible for opening a store, this means you should be in the store early
enough before opening time so the store is prepared and lit with doors open at the
advertised opening time for our customers.
If you are going to be late for work or absent you must notify your supervisor by phone
prior to your expected start time. If absence is due to illness, your supervisor may require
you to present a Doctors note upon returning to the work place.
ABSENTEEISM AND TARDINESS
All employees are expected to report to work as scheduled and to work their hours plus
overtime if required. Employees who fail to report to work as scheduled will be charged
with an absence occurrence and will receive appropriate disciplinary action.
Employees will be considered tardy if they are not at their posts prepared to commence
work at their scheduled start time. Excessive tardiness shall receive appropriate
disciplinary action.
Royal Mattress encourages all employees to arrive at work five or ten minutes prior to their
start time so they may be at their post ready to begin their job on time, all the time.
EMPLOYEE DISCOUNTS
Employees purchasing regular priced merchandise for their own use or the use of their
immediate family (Mother (in-law), Father (in-law), Brother (in-law), Sister (in-law) or
Grandparent), are entitled to a 30% discount off Royal Mattress manufactured goods and
20% off everything else provided the order is written in the employees name, is being
paid for by the employee at the time of purchase or by payroll deduction (maximum pay
back period is six months).
A good neighbor discount of 10% off Royal Mattress manufactured goods other
merchandise may be offered to friends of employees and extended family (any family not
listed above).
All discounts are based upon the original book price of merchandise. Discounts can not be
applied to off-price or special value merchandise, nor can they be added on top of other
discounts or offers.
Employee discounts are to be offered ONLY to CURRENT employees of Royal Mattress.

16

DISCIPLINE
Failure or inability to follow the rules and procedures as outlined in this handbook or as
instructed by the supervisor shall result in appropriate disciplinary measures.
Serious breaches in discipline may result in immediate termination from your employment
with this company. A serious breach of discipline would include but may not be limited to
an employee guilty of willful misconduct or willful disobedience or willful neglect of duty.
Less serious breaches will result in the following or a combination of the following
disciplinary measures, each of which (with the exception of a verbal warning) will become
a permanent part of the employees records on file.
1. First, verbal warning from the supervisor outlining the problem and offering
suggestions to deal with it. Performance Alert Forms may be used to document verbal
warnings.
2. Second, a written warning outlining the problem and offering suggestions to deal with
it.
3. Third, a written warning with a 3 day suspension without pay.
4. Fourth, a written warning with a 5 day suspension with pay.
5. Fifth, a termination interviews and letter.
If you feel you are being unjustly disciplined you may appeal by addressing the General
Manager in writing.
BENEFITS
Employees who regularly work more than 25 hours a week and have been employed by
Royal Mattress for more than six months consecutively are eligible for Royal Mattress
extended benefits:

Extended health Care (optional)

Prescription Drug Coverage (optional)
Basic Dental Care (optional)
Long Term Disability (non-optional)
World Travel Assist (optional)
Life Insurance (non-optional)
Accidental D & D (non-optional)

17
Royal Mattress pays the majority of the premiums for these benefits, however some items
must be paid by the employee and are payroll deducted. If you are eligible for these
benefits you will receive a benefits brochure outlining the details of the benefits, annual
deductibles where they are applicable and payroll deductions.
LUNCH/COFFEE BREAKS
Every employee shall in the course of each 5-hour shift take one 30-minute break or two
15-minute breaks.
Employees working a 12-hour shift may be compensated for in whole or in part by Royal
Mattress for one of their meals that day.
The store manager shall decide the timing of these breaks so as not to interfere with the
proper running of the store.
EXPENSE ACCOUNT
Employees who incur out of pocket expenses during the course of completing their work
assignment for Royal Mattress shall be compensated for those expenses so long as they
were pre-approved by their supervisor.
In order to be recompensed for these expenses an Expense Account Report must be
completed by the employee within 90 days. Original receipts must accompany this report
for all expenses claimed along with an explanation detailing what the expense was for.
The report must be approved and signed by the supervisor before being processed.
MILEAGE ACCOUNT
All mileage must be paid from the employees regularly Base store (never from home).
Mileage will not be considered for any work assignment at an employees Base store(s)
or for any mutually agreed upon Regularly Scheduled Shift: away from the Base
store(s).
A mileage allowance will be granted to employees who agree to work away from their
Base store(s) for emergency relief assignments. In addition, mileage will be paid any
time an employee is required to use their vehicle for company business within a scheduled
work assignment (i.e. Service Calls).
A Mileage Report detailing the point of departure, destination and kilometers traveled
must be submitted to the employees immediate Supervisor. Please have mileage
accumulate to a minimum of $10.00 and/or within 90 (ninety) days before submission.
Mileage allowance is $0.36 per kilometer.
PROFESSIONAL SHOPPING
It is the practice of Royal Mattress to employ the services of professional shoppers
(mystery shoppers) on a regular basis in an effort to constantly improve the quality of the
relationship between our customers and us. The shopper gives us a detailed report

18
on how we appear through customers eyes as well as information with regards to store
policy and security.
PAY PERIODS
Royal Mattress remunerates its employees on Thursday or Friday every other week
through the means of direct deposit.
COMMISSIONED PAY EMPLOYEES
Employees receiving all or part of their income from commissioned earnings should be
aware of the following:
Commissions are calculated upon a percentage of all orders invoiced during the pay period
for the store at which you are based. This calculation is continuous and can be interrupted
only by your absence by sickness beyond the number of earned paid sick days
accumulated, or by absence from a special sales event as announced by the company. You
continue to receive commission credit even when you are on vacation or on your day off.
Because your commissions are calculated by calendar days and are based upon the stores
volume of sales and not your personal sales, you will find your first commission payment
to include credit for sales that were made even before you began working for Royal
Mattress.
For the same reason you will find commission payment when you leave your employ with
Royal Mattress will not include all of the sales you personally had a part in making.
SPIFFS
There will from time to time be certain products, which we wish to encourage the sale of
through the use of offering a bonus to the salesperson that writes the order.
Spiff programs will be available to all sales staff, full time or part time. Details will be
announced with written memos as necessary
PAYROLL DEDUCTIONS
We can, with your permission arrange automatic payroll deductions for the purpose of
buying Canada Savings Bonds and employee purchases. You will receive literature at the
appropriate time of year (usually October) if purchasing Savings Bonds.
Other payroll deductions we are required to make by law will also appear on your pay stub.
These include Federal and Provincial income tax deductions. Unemployment Insurance
premiums, Canada Pension contributions and Garnishments.

19
TIME CARDS
Time cards are to be filled in by hourly paid employees and are to indicate paid
Hours only. The store manager must initial hours of work on the time card before or
after the normal hours of operation for that location in order to be paid. Under no
circumstances is one individual to fill out another individuals time card. Time cards must
be in the hands of our payroll department before noon, the Monday of a pay week in order
to be processed in the weeks pay run. Time cards received after noon hour on Monday
will be processed in the following pay week. An hourly employee who leaves the store
during the course of the workday must indicate on their time card the time they leave the
store and the time they return.
HEALTH AND SAFETY
Royal Mattress has a firm commitment to providing for the health and safety of our
employees. To fulfill this commitment:

We provide and maintain a safe and healthy work environment.

We comply with legal requirements and follow acceptable industrial practices.
We strive to eliminate all foreseeable hazards that could case fires, security losses, and
damage to property and personal harm through injury or illness.
We strive to educate and maintain awareness of health and safety issues amongst all
employees.
We deal with concerns about hazards in the workplace and other situations in
accordance with good business practices and according to the requirements of the law.
We recognize that Occupational Health and Safety concerns not just some, but all
groups in our workplace. We therefore work actively to encourage input and
comments from all groups in our workplace.
We can control the incidence of accidents through good management combined with
active employee involvement. Accident prevention is the direct responsibility of
everybody who works here, regardless of position or title.
Our management will do everything in their power to comply with this companys
accident prevention requirements as they apply to every facet of our business.

Our employees accept the responsibility to work safely following all established
procedures and instructions and will report any unsafe or unhealthy conditions to
management.
All subcontractors hired by this company must meet or exceed our standards for safety.
Any health and safety issues should be brought to the attention of your supervisor.
ACCIDENTS
The following notice shall be posted in a prominent position where all employees will see
it on a daily basis. The form is called in case of accident and can be ordered from home
office if required.

20
In case of accident:
IF THE INJURED PARTY IS UNCONSCIOUS, HAS STOPPED BREATHING OR IS IN SERIOUS
MEDICAL EMERGENCY, DO NOT WASTE AND TIME CALL 911

Otherwise:
1. Apply first aid immediately.
2. If medical attention beyond first aid is necessary arrange transport for the injured party
to the nearest hospital with an emergency ward.
3. Record the accident in a first aid journal.
4. If medical attention beyond first aid is required, the immediate supervisor must fill our
an accident investigation report, including all known details of the accident, how, when
and where it occurred, what materials or equipment was involved and statements of
any witnesses and the injured person.
5. Forward all information and paperwork to the attention of Accident Claims Officer
at Royal Mattress Head office, 5280 South Service Rd., Burlington, Ontario
FIRST AID KITS
Every Royal Mattress location shall be outfitted with a first aid kit, which shall include a
minimum of the following:
A current edition of a stand St. Johns Ambulance First Aid Manual.
1 card of safety pins.
12 adhesive dressings individually wrapped.
4 sterile gauze pads, 3 inches square.
2 rolls of gauze bandage, 2 inches wide.
2 X 4-inch sterile bandage compresses.
1 triangular bandage.
The Store Manager shall ensure the first aid kit is properly outfitted at all times.
It is the responsibility of each and every person employed by Royal Mattress to ensure that
members of the public are served in a courteous, polite and efficient manner. By the same
token, in the performance of your duties you are expected to treat your fellow employees
with similar respect and courtesy.
As the Human Rights Code states:
Whereas it is public policy in Ontario that every person is free and equal in dignity and
rights without regard to age, race, creed, colour, sex, marital status, religion, nationality,
ancestry, place of origin, citizenship, language or political affiliation.
Royal Mattress supports this philosophy. Should you feel that you or another employee is
not being treated with dignity and respect, bring this to the attention of a senior supervisor
immediately.

21
HOUSEKEEPING
The first impression a Royal Mattress customer receives upon entering a Royal Mattress
store is their lasting impression of the company.
Royal Mattress stores must be kept neat and tidy. Sidewalks must be kept free of debris,
ice and snow. Adjacent property must be kept in a clean state. Carpeted areas must be
vacuumed and steam cleaned on a regular basis. Non-carpeted areas must be swept.
Furniture and fixtures must be dusted. Refuse must be removed daily. Windows must be
cleaned regularly.
MAINTENANCE
Fixtures and equipment in the store must be maintained on a regular basis in accordance
with the needs of the particular item.
Heating and cooling devices must be maintained by a home office authorized company by
means of a maintenance contract. It is the store managers responsibility to ensure such
contracts are in force, adequate for their location and up to date.
Lighting fixtures and electrical apparatus are to be monitored and kept in good running
condition. Repairs other than light bulb replacement are to be done by a head office
authorized electrician.

22

SECTION 2: OPERATING PROCEDURES

EMPLOYEE RESPONSIBILITIES
Royal Mattress employees are expected to be civil and treat people with respect and
dignity. Employees are expected to share the basic philosophy of the company and to
support its mission. Employees are expected to approach their work with a positive
attitude and be team players. Where there are problems, employees are expected to be part
of the solution. Every employee is expected to represent the company well and to avoid
sharing information deemed confidential by the company. Additional policies and
employee responsibilities are described below.
EMPLOYEE BEHAVIOR
In order to ensure the efficiency of operations and rights and safety of all, Royal Mattress
has established certain policies to guide employee behavior. Employee conduct on or off
the job should not:
1. Interfere with business operations;
2. Bring discredit to the organization;
3. Be offensive to persons or groups who work with the organization or to coworkers; or
4. Interfere with the rights and safety of others.
Examples of the types of behavior that may lead to disciplinary actions are given below,
although each situation will be handled individually.

BEHAVIOR FOR WHICH A WARNING MAY BE GIVEN

Failure to call supervisor when being late for work.

Inefficiency or lack of application on the job.

Willful waste of materials, supplies, equipment, etc.

Creating or contributing to hazardous working conditions.

Routinely reporting to work after scheduled start time.

Routinely leaving work before scheduled end of workday.

Leaving work during work hours without notification or permission.

23

Smoking in an area where smoking is not permitted,

Conducting personal business on company time.

Improper use of a Corporation facilities, vehicles, equipment or telephones.

Improper dress during work hours.

Conflicts of interest.

SERIOUS OFFENSES THAT MAY RESULT IN SUSPENSION OR DISMISSAL

Threatening, intimidating or coercing fellow employees.

Use of profanity or abusive language.

Criminal or notorious behavior or actions off the job, which bring discredit to the
Corporation.

Insubordination (refusal to follow managements instructions on job-related matters).

Working while under influence of alcohol or drug substances.

Failure to complete assignments in a timely manner.

Failure to report taking prescription medication that affects safe job performance.

SERIOUS OFFENSES THAT MAY RESULT IN IMMEDIATE DISMISSAL

Falsifying organization documents, e.g. time sheets, employment applications, etc.

Making public statements that discredit the corporation.

Gambling on Corporation premises.

Using Illegal drug substances on Corporation premises or during work hours.

Fighting, or starting a fight on Corporation premises or during work hours.

Immoral or indecent conducts on Corporation premises or during work hours.

Theft of Corporation, fellow employee or client property.

Carrying a weapon on Corporation premises.

24

Sexual harassment of fellow employees or clients.

Discrimination due to race, colour, religion, national origin, sex, age, sexual
preference, handicap, or veteran or martial status of fellow employees, applicants for
employment or clients.

Harming or threatening a client.

PERSONAL APPEARANCE
Salespeople are required to dress in a manner so as to reflect to the public the business like,
conservative corporate image Royal Mattress wishes to convey. If you are unsure of what
is acceptable, ask your immediate supervisor.
Body jewelry and gentlemens earrings are not acceptable.
All Royal Mattress store personnel are required to wear a name badge as supplied by the
company bearing their first name. These badges are the property of Royal Mattress and
are to remain on Royal Mattress premises at all times.
Employees should be neat in appearance and clean. Daily attire and personal appearance
should be appropriate to the job duties being performed by the individual. Supervisors
have the responsibility for requiring a reasonable and professional appearance on the part
of employee. Employees will be informed of appropriate dress verbally.
PUBLIC RELATIONS AND POLITICAL ACTIVITY
No employee may formally represent Royal Mattress as a spokesperson unless authorized
to do so by the President.
SALES AND SERVICE PHILOSOPHY
All sales and service policy decisions are made on the basis of our ability to make the
customer as happy as possible while being as economically efficient as possible to the
company. One should ask oneself, What would I reasonably expect if I were the
customer?
TELEPHONES
Telephones should be answered on the second or third ring. When the phone is answered
the caller should hear Thank you for calling Royal Mattress (location), how may I help
you? Naming your location when answering the call helps eliminate frustration and
wasted time for your customer who may not realize theyve called the wrong store. As
well Royal Mattress employs the use of a 1 800 telephone system. When 1 800 is
being used, the customer has no idea which store they will be connected to since the
connection is made electronically to the store nearest the caller, therefore identifying your
stores location at the call answering stage becomes a customer courtesy.

25

WARRANTY ENVELOPES
Customers making a purchase at Royal Mattress receive a copy of the order placed inside a
Thank You envelope. Along with the customers copy of the order any applicable
warranties and a business card should also be placed in this envelope.
POLICY OVER-RIDES
When you are in the people business, it is inevitable situations will arise for which the
normal rules and procedures do not apply comfortably. At Royal Mattress these situations
may be addressed by bringing them to the attention of our Sales Manager who has policy
over-ride authority.
ONTARIO RETAIL SALES TAX (PST) & GOODS AND SERVICES TAX (GST)
WHO MUST PAY THE TAX?

Everyone who buys merchandise or services in Ontario must pay both taxes unless they are
specifically identified as being exempt.
Please be aware of the existence of GST exemption cards. These cards are fraudulent.
The government or Royal Mattress does not recognize them.
Note 1. Even though a tax may have been charged at the time of purchase, the purchaser
may be entitled to a refund from the Ontario Government by completing the form
Application for Rebate of Retail Sales Tax (which your store should have available for
the customers convenience). This would apply to someone who lives out of the province.
Note 2. To be exempt from GST the customer must give us a written statement that the
goods are being shipped out of Canada, and, the goods must be picked up by or delivered
to a common carrier.
Note 3. Even though tax must be charged at the time of sale, diplomats and other
international officials are entitled to rebates by completing the form General Application
for Rebate of Goods and Services Tax, also known as form 189E.

WHO / WHAT IS EXEMPT?

26
ISSUE

Merchandise for resale

Native Canadian Indians
Hospital beds purchased by
consumers
Hospital beds purchased by a
hospital
Hospital beds purchased by a
nursing home
Hospital mattresses purchased
by a consumer
Hospital mattresses purchased
by a hospital
Hospital mattresses purchased
by a nursing home
Shipment out of province
Diplomats

PST

GST

Exempt with certificate

Exempt with notation of ID #
from card, or, exempt if
delivered to the reserve
Must pay, even with a doctors
prescription
Exempt

Must pay
Exempt if delivered to the
reserve

Must pay

Must pay

Must pay unless buyer is

disabled
Exempt

Must pay, even with a doctors

prescription
Exempt

Must pay

Must pay

Must pay
Exempt with ID card from
External Affairs. Record ID
number on the order

Exempt with conditions

Must pay

Exempt on the written order of

a practitioner
Exempt

SECURITY
The manager of those stores outfitted with alarm systems is responsible for the proper
setting and disarming of alarm equipment. Royal Mattress employs the services of a
response company whose function is to determine if an alarm call is serious or false. In the
event of a false alarm, the response company will enter the building, reset the alarm, lock
up and do a written report which is to be forwarded to Royal Mattress head office. In the
event of a serious alarm, the protocol is to summons the store manager and the appropriate
authorities to deal with the emergency. The store manager will determine if senior
management needs to be contacted.
LIGHTING
During business hours the store should be well lit both inside and out so as to discourage
loitering and unlawful activities. During closed hours, enough fluorescent lights should be
left on in the store so as to allow security to see inside in a reasonable manner.

FREEBIES

27
From time to time our stores use low value merchandise (such as pillows) to give to
customers as an added incentive to close a sale or to appease a customer who has been
mistreated. We have no problems with this practice as long as common sense prevails and
proper paperwork is completed. Please however, be aware of the following:
Any merchandise found leaving Royal Mattress
premises without legitimate documentation would be
considered AN ACT OF FRAUD. The party or parties
responsible will be terminated without notice with
legal action pending. There will be no exceptions.
There will be no warnings.
GIFT CERTIFICATE
From time to time, Royal Mattress issues gift certificates. It may be for a general
promotion, or it may be to a specific customer. To be valid, it must be original, on
company letterhead and signed in ink by an officer of the company.
A gift certificate is like a credit, which can be used for payment towards anything. It is not
issued for specific merchandise. A gift certificate is a financial instrument, like travelers
cheques, MasterCard and Visa. This is not the same as a discount, which is an adjustment
to the price of specific merchandise.
CUSTOMER PICK UPS
Customers who choose not to take advantage of our delivery service will be afforded the
opportunity to pick-up their purchase from any Royal Mattress location.
The following guidelines are to be followed in the event of a pick-up.

Customers should be advised when it is possible to pick-up their purchase. If a

customer arrives unexpectedly, the employee(s) on duty will immediately initiate the
pick-up procedure, once any pending customer inquiries have been satisfied.
Any, or all, employees on duty will deliver the purchased product to the customers
vehicle and assist the customer in placing the product in, or on, the vehicle.
Liability limits our ability to assist any further.

Tie-Downs:

Under no circumstances, will an employee assist, direct or coach a customer in the

fastening of any product to any type of vehicle.

Employees will not offer any rope or any other device to be used by the customer for
affixing the product to the vehicle.

Employees can supply a material (i.e. Rope) if specifically requested by the customer.

28
Any employee who chooses to assist a customer beyond these guidelines does so at their
own risk and personal liability.
STATEMENT OF PRIVACY AND PERSONAL INFORMATION POLICY
It is the intention of Royal Mattress to protect the privacy of any individual who may be an
employee, customer or supplier. Royal Mattress recognizes its role as a collector, user,
disclosure and destroyer of information and that this information is valuable and private.
Royal Mattress recognizes its duty to protect such information as a good citizen and to
fulfil responsibilities under the Personal Information and protection and electronic
Documents Act (PIPEDA) and the similarly intended Ontario act.
Accountability
The Privacy Officer and Royal Mattress is the Controller. Currently that person is Richard
J. Herrington and can be reached:
By mail:

5280 South Service Road, Burlington, Ontario, L7L 5H5

By Phone:

905-681-2023 ext. 223

By Fax:

905-681-2294

By e-mail:

richard@royalmattress.com

Purpose
Royal collects information from employees, customers and suppliers.
Employee information is used for: communication of routine employee/employer matters,
group insurance, emergency contact information and various statutory regulations.
Customer information is used for statutory requirements, delivery arrangements,
facilitation of payment, credit decision making, and for communicating Royals special
interest events.
Supplier information is used for payments, pick-up of goods and documentation back up
for various statutory requirements.
Consent
Royal asks for personal information at the start of a business relationship. The purpose of
that information is intuitively obvious to both parties at that time. Consent to give the
information is assumed as the information is freely given.
Limiting collection
Royal collects only information necessary for fulfilling the business purpose at hand.

29
Limiting use, disclosure and destruction
Royal does not disclose the information to any third parties; except, to the extent the third
parties are carrying out business on behalf of Royal and have agreed in writing to
safeguard that information as required by law. Royal retains personal information only for
as long as is necessary for the purpose and other statutory requirements.
When the purpose and/or statutory requirements have expired, the information is destroyed
by deleting, shredding or erasing as appropriate. Original transaction documents and
employee files are kept for the last 7 assessed taxation years, in order to comply with tax
regulations.
When documents are ready for shredding, management places them in boxes, taped closed,
and marked with a fluorescent stripe. These marked boxes are sent to a secure place in the
warehouse until there is sufficient number to warrant shredding services to come in.
Accuracy
Royal maintains personal information as accurately, completely and timely as necessary
for the purpose.
Safeguards
Royal collects, handles and stores personal information with care and diligence.
Authorized access safeguards personal information with passwords and/or lock and key as
required. Personal information is destroyed once its purpose is fulfilled.
Openness
Royals policy and practice relating to personal information is available to interested
parties by contacting the privacy officer identified above.
Individual access
Upon request, and individual will be given access to their personal information and
informed of the use and disclosure of that information.
Challenge compliance
An individual may address any concern with respect to Royals compliance to the privacy
of their personal information.

30
COMPUTER/NETWORK POLICY
Overall Objective
The Royal Mattress computer (see below for definition) is provided for the purpose of
Royals business. The data and programs on Royals computer contain irreplaceable and
enormously valuable information. This information is critical for the day to day operations
and long term strategic planning. Use of these facilities must be conducted in a business
like, professional and responsible manner.
Operational Objectives
The computer at Royal Mattress represents a large investment and provides critical data,
processing and communication tools. These tools are for the purpose of carrying on
business. Like all tools, the computer and network must be maintained and protected so
those users can rely on these resources. The objectives of this policy are to maintain and
protect the computer resources. These policies are to physically protect the system, allow
only authorized users (see definition below) access to it, and to maintain the programs and
data to function as designed. Damage to these files of data and programs would be
catastrophic. It would be equally devastating as a major fire. While there is provision for
backup and recovery, the implementation of the recovery plan is in itself a huge project.
Prevention is far better.
DEFINITIONS
Royal Mattress Computers
This includes all PCs, servers, network, routers, firewalls, switches, power supplies,
peripherals, printers, modems, keyboards, mice, monitors and any other device, whether
wired or wireless and all the programs and files, whether system or applications and all the
data stored on the hardware, tape, offsite or other medium.
Users
A user is anyone who is authorized and assigned a login ID/password by the administrator.
Administrator
The individual given responsibility and authority for computer resources. At the present
time this individual is the Controller.
Computer log
The log book errors, upgrades, modifications, crashes, and other significant computer
events maintained by the administrator.

31
Passwords, Logins, IDs
Passwords, logins and ID are assigned and maintained by the system administrator. Their
purpose is to limit access to authorized users. Users are to keep passwords, logins, and
IDs confidential. If there is a confidentiality leak, the administrator is to be informed
immediately. Logins, passwords, and IDs are only to be created or changed with approval
by the administrator. The administrator must always be able to access any computer at any
time. If there is a confidentiality concern, discuss it with the administrator.
Software
All software is supplied by the company. No additions, modifications or deletions are to
be made by anyone without prior written authorization of the administrator. This includes
downloads from the Internet, screen savers, custom mouse pointers, personal programs etc.
However, the personalization of a users PC is encouraged. Accordingly, any request for
screen savers and mice pointers should be in writing to the administrator. Approved
requests will be posted to the computer log.
Hardware
All software is supplied by the company. No additions, modifications or deletions are to be
made by anyone without prior written authorization of the administrator. This includes
downloads from the Internet, screen savers, custom mouse pointers, personal programs etc.
However, the personalization of a user's PC is encouraged. Accordingly, any request for
screen savers and mice pointers should be in writing to the administrator. Approved
requests will be posted to the computer log.
Internet
The Internet is a business tool. It is to be used for business purposes only. Everyone
should be familiar with the Royal Mattress website. Personal use of the Internet is not
permitted.
Internal E-Mail
Internal e-mail is for regular, routine communication for everyone in the address book. It
is efficient and fast. All e-mail must comply with the Human Rights Code, which Royal
Mattress supports and enforces.
Internet E-Mail
Personal Internet mail is not permitted on Royal Mattress computers. Incoming Internet email for business purposes is received at rovmat@rovalmattress.com where it will be virus
and spam checked and forwarded to the proper recipient.
Virus Protection
All computers at Royal are on our LAN (local area network). A virtual private network
connects the computers in the stores to our LAN as if they were all in the same building.
The entire LAN is virus protected, automatically, from the Internet and drives on all the
computers. From time to time you may see screen pop ups informing you of virus
protection updates. That is normal. Even thought there is virus protection, we are stHl
concerned that new viruses may be sophisticated enough to get through. Accordingly, no
program or file may be loaded on any computer from any source, unless approved in
writing by the administrator.

32
Back Up
The entire server, programs and data files are backed up nightly and stored in fireproof
cabinets. Test restores are done from time to time, to ensure that the back up procedures is
reliable. Note that it is the "sambaroymat server" that is backed up. Anything saved to a
client (local PC) is not backed up. If a client's hard drive should fail, all data and programs
on that particular PC will be lost. Hard drives are mechanical devices with moving parts:
they will fail eventually. It is a question of "when", not a question of "if". Therefore, do
not store important files on local hard drives.
Programs can be re-installed by the administrator. However, data files may be gone
forever. If a user finds a program lost or corrupted, the user should contact the
administrator. If it was stored on Sambaroymat, the administrator will attempt to restore
the file.
Intellectual Rights:
Royal respects and is committed to the preservation of intellectual rights. Royal is
committed to the law. Therefore, Royal will not tolerate the presence of stolen or pirated
software. Royal will not tolerate the downloading of any files, included but not limited to
lists, pictures, data, programs, music, videos, or any other copyrighted file.
Non-business Use of Royal's Computer
Royal's computer must always be available with capacity to accomplish its business
objectives. No person may directly or indirectly restrict, or interfere with the computer and
network functionality, or in any way inhibit its ability to meet the business objectives of
Royal. Accordingly, personal use is strictly forbidden. No user may copy a file (including
but not limited programs, data, systems files) or any information on the computer system
or its network for personal use. Any copies of files or data for business use must first be
approved in writing by the administrator.
Illegal use of Royal's computer
No person may use Royal's computer for any purpose that a court of law would find
inappropriate. That would include, without limiting the generality of the foregoing,
purposely using the computer to: attack other computers (bombing), store illegal files,
store pornography, create viruses, launch viruses, interfere with any network, gain
unauthorized access into any computer (hacking), download, store or distribute
copyrighted files, launch spam, disseminate harassing, abusive, slanderous or
pornographic content, provide storage for (harbour) files of non-Royal Mattress content.

Computer errors, and crashes

All computers and program errors can crash from time to time. A user who has this
happen should inform the administrator. The administrator keeps a log of errors and
crashes for the purpose of maintenance and warranty. If the administrator is not available,
the user should resolve the issue as best as possible and send the administrator a note for
the log.

33

Powered Up
All users will be responsible for powering off/on their PC at the end/beginning of
each day. The main server and mail servers are running 24/7 and will be powered
on/off by the administrator as service is required.
Breaches of Policy:
Any person who breaches the Royal Mattress Computer & Network Policy will be
disciplined according to Royal's policies.
Other Policies:
Royal Mattress maintains other office policies regarding purchasing, recycling and other
workplace issues. Some of these policies are written and some are not. Employees are
responsible for becoming informed of all company policies and supervisors are charged
with making employees aware of new or revised policies.

34

SECTION 3: STORE ADMINISTRATION

FLOW OF INFORMATION - AN OVERVIEW
Communication is the single most important factor in determining the success of Royal
Mattress. Without first quality communication we would be unable to achieve any of the
company's goals. At Royal Mattress we serve our customers directly, without any
middleman steps, therefore efficient communication is vital to our survival.
The communication process in sales begins when a customer enters a Royal Mattress
showroom and is greeted by a salesperson. The communication process ends when this
customer receives the product they have purchased. All communications between these
two points will determine whether or not this customer receives the right product, at the
right price, at the right time and in the proper manner. The people who will assure this all
happens depend upon clear, concise written communications from the sales people to
accomplish their goal of making the customer happy.
There are many pieces of paper you will write throughout the communication process.
They will include order forms, order change forms, receipts, credit memos, instant memos
and more. If we look at only one of them to see how many people will handle it and must
react to it you will understand why the writing must be so clear.
Your order form will be processed through the following stages:
First the order sorter will examine your order to look for the following
information before deciding who gets it next and where it is to be filed:

Is custom work to be done?

Is there merchandise that must be ordered?
Is the merchandise to be delivered? If so, when?
Are the prices accurate?
Has the order been properly entered on the Daily Order Report?

Second the order entry person will examine your order and must be able to
interpret the following before turning it into an invoice:
Are the name, address, postal code, telephone number and instructions for
delivery complete and legible?
Are the product codes correct?
Does the description of the product agree with the code?
Are all the parts listed?
Is the product properly priced?
Is the order properly totaled?
Are the payment terms correct?
Third the production foreman will examine your order to determine the following;
Is there any special production requirements?
Is there any production materials that must be ordered?

Fourth the warehouse manager will examine your order. Some of the items he will
be looking for are:
Do we have this merchandise in stock?
Is the merchandise located some place other than in the warehouse?
Can we meet the delivery requirements?
CUSTOMER TRANSACTION FORMS
Every transaction involving cash, cheque, credit card or debit card for every customer
is recorded on one of the five original transaction documents designed for this purpose.
The five original transaction documents are:
1. order form
2. receipt
3. change form (and/or adjustment form)
4. credit form (and/or adjustment form)
5. service order
These documents must be used in numerical sequence with none skipped over, destroyed
or omitted. Each of these documents is a multi part form with the last part being the
"numeric" copy. The numeric copy is kept at the store for future reference and for audit
purposes and must not be disposed of except upon written instructions from head office.
Since maintaining the numeric sequence is required, special care must be taken when
opening a new package of forms to ensure the numbering remains consecutive.
VOIDS AND REVERSALS
Sometimes a customer changes their mind. A "void" is a document with two
basic characteristics:
1. It cannot be used.
2. All of its copies are still intact and present.
When these two conditions have been met, the document may be voided by writing
"VOID" in large, bold letters across the entire document and through all it's copies. Then,
the numeric copy is filed in the numeric file and all the other copies are forwarded to
head office. Note all copies are still in the possession of Royal Mattress.
If the customer has left the store with his copy, the document cannot be voided. Instead,
it must be reversed using the appropriate paperwork to do so.
Example:
1: A customer enters your store and orders a sleep set to be delivered tomorrow. He pays
in full for the purchase on his credit card. An hour later, the customer calls on the phone to
cancel his order. This order cannot be voided because the customer still has the white
copy of the order. Accordingly you would process an order change to reverse the
transaction.

2: A customer comes into your store and makes a payment on account by cheque. Later
the customer calls from home and asks you to destroy the cheque as it was written on the
wrong account. They promise to be in the next day with the proper cheque. This receipt
cannot be voided because the customer still has his copy. In this situation a second receipt
must be written in reverse to show a refund for the original cheque.
ORDER PROCESSING
A transaction is the exchange of money, credit, merchandise or anything of value. A
transaction does not have to be two-way. It can be all one sided (such as giving a
customer a free pillow, or offering a customer a free delivery).
All transactions must be recorded on the appropriate form. Failure to record a transaction
or part of a transaction constitutes fraud. Fraud can result in termination of employment
without notice or pay in lieu of notice and/or criminal proceedings.
FILING BY DATE
Most customer orders flow through the Royal Mattress system invisibly. They are
written, processed and delivered without a hitch or quirk of any kind. We do not need to
look twice at these orders. The customer is happy, the company is happy, everybody is
happy.
However, many orders are not so easy. Customers can change their minds, encounter
unforeseen problems or have last minute complications. Many customers have special
needs and they come to Royal Mattress because of our reputation for flexibility. Royal
Mattress excels at handling the special needs of our customers. We believe our job is not
done until the customer is satisfied.
At the store the filing system is very simply based on the ORDER NUMBER. Numerical
sequence of the order is maintained so the order may be easily located by looking up the
number. All details and information related to the order which happen after the order has
been written are attached to the original order so the complete story on a transaction can
be told by a glance.
To cope with occasions when an inquiry is required but an order number is not available;
each store maintains an alphabetical cross-reference list (customer reference book).
AT HEAD OFFICE the filing system is based upon the DELIVERY DATE. Orders are filed
by delivery date so production, delivery and invoicing can be planned and coordinated,
resulting in the right customer receiving the right goods at the right price on the right
day. The sates person writes the delivery date on the order. If a specific date isn't known
at the time the order is being written then the sales person chooses a special category
and fills in the information.
The categories that may be chosen are:
DATE OF ORDER
This is the date the order is actually written on.

DELIVERY DATE
This is the precise day the delivery is to be made from our factory to the customer's
home. The format includes both the 'name' of the day as well as the 'date'. This is a selfchecking mechanism to ensure the date has been properly identified. The date would look
like
this ... "Thurs 1 Sept 2002"
The only exception to using a precise date in this area of the order form is if the term
"ASAP" is more appropriate. For example, the customer may be ordering merchandise,
which is temporarily out of stock. They want the delivery made as soon as the stock
arrives, but you don't know what that date will be. Another example may be the customer
lives out of town. They want their delivery to be made as soon as possible, but you are
unsure exactly what date that will be.
TO ADVISE DATE
Also known as a "lay-a-way", this is an approximate date indicating a point in time the
customer will advise a more precise date.
PICKUP DATE
This is the precise date the customer is expected back to pick up their merchandise
from the store.
The only exception to using a precise date in this area of the order form is if the term
"ASAP" is more appropriate. For example, the customer may be ordering merchandise,
which is temporarily out of stock. They want the delivery made as soon as the stock
arrives, but you don't know what that date will be.

TRANSHIP DATE
This is the precise date the merchandise must be on hand at the store in order to be
redelivered by a third party cartage or freight service.
DATE TAKEN
This is the precise date the merchandise has actually been taken out of the store by
the customer.
One Order Per Customer Per Delivery
The order form is central to customer service. The sales person must use the order form
to communicate all the information necessary to head office in order to satisfy the
customer.
The order form may be changed and amended any number of times by using change
forms, credit forms, receipts and memos which must be attached to the order form. Once
attached, these other forms are considered to be part of the order form. Once the
merchandise is in the customer's hands, the order is considered complete.

That order will only be looked at again if there is service work or an adjustment on
that merchandise.
Orders Before DeliveryInvoice After Delivery
We frequently speak of orders, invoices and sales as if they are the same, regardless
of whether the goods have been delivered or not. While this terminology usually
conveys adequate meaning, there are times when more precision is required. To put
orders and sales in perspective, here is an overview of the Royal Mattress sales
system:
Customer transactions start with an order. Even though an order is a legal contract,
binding Royal Mattress and the customer in a transaction, no sale is recorded at this time.
("Takens" are an exception. See below.) Accordingly, no sale is credited to the store, no
commission is recorded, and no tax is recorded. In the accounting sense, the order is only
a memo for factory and delivery planning that record money received from the customer.
There are too many uncertainties to justify recording the sale until after delivery is made.
The day before the delivery date, the order is pulled from its file and invoiced so the
goods can be loaded on the truck and delivered to the customer the following day. The
primary purpose of the invoice is to authorize and instruct the delivery of the goods to
the customer. Invoicing is also important because it pulls all the relevant delivery
information together so the driver has clear concise information to get the right goods to
the right customer on the right day for the right price. The secondary purpose of the
invoice is to credit the store with the sale, to credit commissions, to record the sales tax
and to finalize the customer's account. At this point, the "order" has become an invoice.

Order Form Versus Invoice

The distinction between an order and an invoice is important so the customer's account
can be updated properly. It is one thing to make a change to the COD balance (the
payment due on delivery) of a customer's order and a totally different thing to make a
change to their Royal Mattress Charge Account. For one thing many of these changes
affect commissions. Therefore different types of adjustments require different forms, the
main distinction being; is the adjustment being made before or after the delivery of the
merchandise.
''Takens'' are handled a bit differently; they become invoices shortly after our office
receives the orders.
Tagging Goods For Customers
It is often necessary to reserve a particular item for a particular customer. This will happen
when stock is low, or the customer is buying a specific floor model. You must fill out a
"sold" ticket, which must be attached to the merchandise in question. If the merchandise is
located off your premises, the sold ticket may be attached to the accounting copy of the
order form and sent to head office.

In addition to filling out a "sold" ticket, you must make reference on the order form to
confirm the ticket has been completed. This is done by writing the word "tagged" with a
circle around it next to the item it makes reference to on the order form. In this manner, if
a customer changes their mind after the merchandise has been tagged, we are alerted to
the fact a tag has been attached thereby reserving the merchandise and we have an
opportunity then to remove it thereby making it available for sale once again.
WHERE ARE THE GOODS BEING SHIPPED FROM and TO?
If Royal Mattress did business from only one huge location, it would be a simple matter
to deliver the right goods to the right customer. The shipper would have only one place to
look for the goods he must ship. Our shipper however has many locations from which he
may be shipping, often depending on availability and the customer's needs.
When an order is being written, the sales rep must think about the logic of getting the
right goods to the right customer on the right day. A mental checklist may look like this:

Is this item in stock at the warehouse?

If not. Is it in stock at one of the stores?
If yes. Is it practical for the truck to pick it up at that store on its way to the customer?
If not. Is it practical to transfer the goods to the warehouse in time to honor
the promised delivery date for the customer.

If using a transfer to send goods back to the warehouse for shipment, include in the body
of the order the Transfer Form Numerical Number and date to be shipped, in order to
insure tracking of the goods.
Each item listed on the order form has a field called "Tag". The purpose of this field is to
inform our shipper and invoice department the location of the merchandise at the time of
billing and loading the truck. With this information our shipper knows where to physically
look for the merchandise and our billing department knows which inventory to update.
This field must ALWAYS be filled in, even though for the vast majority of cases the
tag location is usually "WH". A two-digit code representing either the warehouse
(WH) or the store location is used.

CANCEL ENTIRE ORDER AND KEEP DEPOSIT AS RESTOCKING FEE

When an order is canceled because the customer no longer wants the goods and we are
going to keep the deposit as a re-stocking fee, there are several points to make the
cancellation easy.
1.
2.
3.
4.

Use an order change because this is before delivery.

Identify the delivery date as on the original order.
Cancel the original amount in brackets.
Add the restocking charge. Note that the restocking charge is equal to the
deposit before tax.
5. Calculate the net change.
6. Calculate the taxes.
Calculate the balance. Note the balance of the order change is equal to the balance of the
original order, except that it is negative. That is your built in checking mechanism. That
is, the balance of the order plus the balance of the change should net out to zero.

CANCELLATION OR EXCHANGE OF ORDER

PRIOR TO DELIVERY If the customer wishes to cancel or exchange all or part of their
order may do so if the merchandise they are canceling or exchanging was neither
custom made nor custom ordered and according to the following condition:
If the merchandise was one of a kind, a floor sample or reduced to clear
and the order is more than 5 days old it can not be canceled or exchanged
and if the customer refuses to accept delivery, all monies paid against the
order will be forfeited.
To process the cancellation complete an ORDER CHANGE FORM. Be sure to include an
explanation for the cancellation, as we use these remarks as signals to recurring problems.
AFTER DELIVERY if the customer wishes to cancel all or part of their order they
may do so according to the following conditions:
a. If the merchandise was custom made or custom ordered it couldn't be canceled,
without Sales Manager's approval.
b. If the merchandise has been in the customer's possession for more than two weeks, it
may not be canceled.
c. If the merchandise is not in the original wrapping or is not in its original condition, a
charge to be determined by the store manager must be levied. This charge will be
calculated according to an estimated amount of what it will cost to restock and/or resell
the merchandise. All expenses incurred by the company (including delivery costs) in its
effort to complete the customer's order will also be charged to the customer.
d, If the merchandise is in its original wrapping and original condition a restocking charge
to be determined by the store manager must be levied. This charge wiU be calculated
according to an estimated amount of all costs incurred by the company (including
delivery costs) in its effort to complete the customer's order.
If all conditions have been met completing a CREDIT FORM may process the
cancellation. Once again, be sure to include an explanation for the cancellation.
ADJUSTMENT FORMS are a compilation of a CREDIT FORM and an ORDER
CHANGE FORM that replaces both of these forms.
CANCELLATION DUE TO BEREAVEMENT
Cancellation requests due to family tragedy or bereavement will be dealt with on a case
by case basis at the discretion of the Sales Manager.
Adjustable beds above the quality of our promotional model being returned for credit or
refund after use because of bereavement will also be dealt with on a case by case basis
by the Sales Manager. For those instances where we choose to accept the return of the
bed, the store the bed was purchased from will write a credit memo according to the
terms the sales manager dictates. The customer may be charged a 25% restocking fee,
again at the discretion of the sales manager. Store Commissions will not be affected.

REFUNDS
The store manager must approve all refunds. In the majority of cases the refund will be
given to the customer in the same manner in which the customer paid it originally.
Therefore, if the amount was paid by Visa, the refund will be given by Visa etc. There are
some guidelines to follow when issuing refunds.
If the amount was paid in cash, the refund can be given to the customer from the till so
long as the till will not be left in a cash short position. If it is not possible to pay the
refund with cash from the till, a cheque can be requested from head office. Please allow
seven days for the processing of cheques.
If the amount was paid by cheque and the customer's cheque is still at the store it may be
returned directly to the customer. If the cheque has already been deposited the customer
must wait two weeks before we will process a company cheque for their refund. This
period of time ensures Royal Mattress that the customer's cheque has cleared their
account.
WHAT FORM TO USE WHEN
WRITE AN ORDER FOR A NEW CUSTOMER:
Use an order form.
CHANGE AN ORDER BEFORE DELIVERY:
1.

For any change to name, address, delivery date, telephone, method of payment,
tag location or special instructions use an instant memo.

2. For any change to merchandise or price use an adjustment form.

CHANGE AN ORDER AFTER DELIVERY:

1. For any change to merchandise or price use an adjustment form.
2. For any change to terms of payment use an adjustment form.
CANCEL AN ORDER:
Use an adjustment form.

CANCEL AN ORDER AND HOLD DEPOSIT FOR FUTURE USE:

1.

Use an adjustment form.

2.

Write a new order form to record the amount of money the customer has to spend
at a future time.

NOTE: this transaction will have two entries on your daily cash report. The amount of
deposit on the order change form you have allowed the customer as a credit AND the
same amount of deposit you have indicated for future use on the new order form.
MISSING DOCUMENTS
Although very rare, sometimes a document number will be missing straight from the
printer. When this happens, void the next sequential document and write a note on it
explaining you discovered the proceeding document missing. Also, head office must be
informed as soon as possible.
DAILY CASH REPORT
The daily cash report is the cash register. Every transaction involving cash, cheque, credit
card or debit card is recorded here, as are all customer transaction forms. Every order
form, receipt, order change, credits and service order used is recorded here in numerical
sequence with absolutely no exceptions or omissions.
The daily cash report also records data such as the date, net sale before tax, customer
name, customer account number, method of payment, amount of payment, time of day
and totals for the amount columns.
COMPLETING THE DAILY CASH REPORT
The daily cash report is completed every business day in duplicate. The original is
sent to head office for further processing and the copy is kept at the store for future
reference.
Please note the date on the daily cash report includes the day spelled out both in words
and in numbers. (e.g. Monday, August 7,1995)
The amount received from the customer is recorded. Refunds to the customer are handled
in a similar manner but have brackets around the amount to indicate it is money out, not
money m.
For all order forms, change forms, credit forms and service orders, the payment amount is
always in the "before delivery" column. This is because these forms will be invoiced later
and the payment will be reflected on that invoice.
Receipts on the other hand never generate a further invoice. Therefore the payment
amount may be recorded in either the before delivery or the after delivery column,
depending on whether or not the customer has already taken possession of his
merchandise. In all cases, when a customer comes into the store to make a payment, the
original order must be looked up. In this manner you can see if the customer has received
his merchandise or not, and you then know which column to make the entry in. Also you
can check to make sure the payment is the correct amount. Never rely on the customer's
copy for this information, as there may have been many changes made to the order since
it was originally placed. Your copy will reflect these changes, his copy may not.

Another way of thinking about these columns are whether or not the customer's purchased
has been invoiced or not. If the purchase has been invoiced it is considered to be "after the
delivery", If the purchase has not been invoiced it is considered to be "before the
delivery",
Please note repayments for NSF cheques are always entered in the "after delivery"
column.
CHECKING THE DAILY CASH REPORT
The manager of the store is personally responsible for the accuracy of the daily cash
report and will usually be the person to prepare it. There are circumstances when the
manager will direct this duty to another employee, in all cases however; the person who
prepares the report will indicate so by applying their initials to the appropriate area.
It is recommended the daily cash report is added twice and all entries be double checked,
as experience has dictated this process makes the act of end of day balancing much
simpler and quicker.
DAILY BANK REPORT
The daily bank report has two main purposes:
1. It balances the float and carry-forward
2. It summarizes the stores' banking transaction
Each daily bank report links to the prior and subsequent day's balances by the "forward
from yesterday" and the "forward to tomorrow" balances. These amounts must always
agree.
The daily bank report is completed in duplicate every business day along with the daily
cash report.
The original is sent to head office with all the back up documents attached to the back.
These back up documents include the deposit slip, the credit card batch total and any
other disbursement vouchers. Please staple these to the back neatly, right side up,
frontward and reading the same way as the daily bank report itself, using the staple target
box at the top of the form.
The carbon copy is kept on file at the store with the duplicate deposit slip, credit card
sales drafts and credit batch totals attached. The credit card sales draft with the customer's
signature must be kept available for audit by the bank. The daily bank report is a
convenient place to keep them since their request is always referenced by date.

Over and Short

Balancing the float and carry-forward will sometimes result in an over or short
position. These amounts are not to be "plugged". It is a serious breach of Royal
Mattress accounting policy to be in possession of a "slush fund" for forcing a balance.
Being over and short is part of day to day business and is usually evidence of a paper
error. These errors must be found and corrected so the customer accounts are processed
accurately as the customer expects. Errors in customer accounts can undermine all of the
good will and credibility we have tried so hard to establish in every other way. It is Royal
Mattress policy to find over and shorts, by re-tracing all of the day's transactions, if
necessary.
If the over/short can be isolated to a particular customer and it is greater than one
dollar, the sales rep must make every effort possible to correct the error with the
customer.
Small over/shorts are an expected part of handling cash. These amounts will be recorded
on the daily bank report and written off. Large amounts of over and short will be
considered in the circumstances with which they fall and will be investigated by the
auditor.

DEPOSIT SLIPS AND CASH CONTROL PROCEDURES

Deposits must be made when the following occur(s):
Cash on hand is equal or greater than $1000.00
7 business days since last deposit
It's the last business day of the month
The Royal Bank of Canada is the company bank. Royal Mattress uses the "National Direct
Deposit Slip - Method 1" for making deposits, The "NDDS - Method 1" slip is a four part
form which must accompany every deposit. The fourth part is retained in the store and is
attached to the daily bank report, which is sent to head office. This is not proof of deposit.
The third part is stamped by the teller and returned to Royal Mattress. Deposits made
in person have the advantage that the receipted deposit slip is returned to the store
immediately as proof of deposit.
A list of cheques must accompany the deposit slip to the bank. It is preferable for the list
to be on the face of the deposit slip however if space does not permit, an adding machine
tape can be used. For operational convenience it is useful for the store to keep a duplicate
copy of the tape.
Daily bank deposits are to be made at a teller, during bank hours.
Completed deposits, which are waiting for transport to the bank must be kept under lock
and key.
The drawer with the float is to be kept locked during the day, to prevent a 'grab and run'.

METHOD OF PAYMENT

Royal Mattress accepts Visa, Master Card, American Express, Direct Payment Cards,
Cash, Cheques and Money orders as methods of payment for merchandise. Customers
wishing to pay by cheque for orders greater than $2,500.00 must have the cheque certified
or the store manager must certify the cheque at the customer's bank prior to the day of
delivery.
Cheques for amounts less than $2,500.00 must be micro encoded, supported by two
pieces of major ID on the back (one of which must be photo ID), as well as the order
number and a telephone number other than the residence (usually a work number) where
the customer can be reached.
If a customer's cheque is returned to us by the bank, our office will deal with the
collection process as far as they can. If they have difficulty contacting the customer the
store will be required to attempt contact during evening and/or weekend hours.
We also offer our customers a variety of financing options. Finance Company options
change with the times depending on which company we are dealing with. They usually
offer a variety of plans and terms, which mayor may not include interest fees.
City Financial
City Financial Credit requires the completion of two forms.
The first is a City Financial Application form for the purpose of supplying City
Financial with enough information on the applicant to allow them to obtain a credit
rating, and therefore make a credit lending decision.
The second is a City Financial sales slip for the purposes of supplying City Financial
with the amount of transaction, and the customers signature which authorizes the
transaction and the terms of the transaction.
The first form needs to be filled out once by any customer.
The second form needs to be filled out every time the customer purchases something.
Payments cannot be taken from a Royal Mattress Location. Payments must be made to
City Financial.
The following are the terms offered to our customers:
Three Months Same as Cash - Code (0403)
Means the customer has 90 days from the date of delivery with no interest and no
payments until the due date.

Six Months Same as Cash - Code (0306)

Means the customer has 180 days from the date of delivery with no interest and no
payments until the due date.
Twelve Months Same as Cash - Code (0312)
Means the customer has one year from the date of delivery with no interest and no
payments until the due date.
There is a $35.00 refundable administration fee with this option.
PHONE IN CREDIT CARD PURCHASE
In an effort to deter 'credit card fraud' if the customer is placing a purchase over the
phone and wishes in part or in full with a credit card please advise the customer that we
will need to see their card upon receipt of the goods.
In the instance of delivery our drivers will authenticate the card.
Lay a - Ways
Product may be laid away for a period of up to six months provided a suitable deposit
has been received. A suitable deposit is considered to be 15% of the orders total amount
or $50 which ever is greater. Deposits will be forfeited on orders laid away for greater
than six months without the customer making suitable alternative arrangements to take
possession of their merchandise.
If the customer has been in remiss at the completion of 6 months the store manager is
to follow up with a written 'Lay-a-way reminder' to the customer. After 30 days, there
is no response cancel the order and keep the deposit as a restocking fee.
CUSTOM ORDERS
Product not normally kept in stock has custom merchandise status and may be sold only if
a deposit of half the total purchase has been received. There are no exceptions to this rule.
Even if we advertise "No Deposit", you must still collect a deposit of 15% when a custom
order is involved.
In the event a 'custom order' is canceled with approval by the Sales Manager, and the
goods have been shipped from the supplier, the store responsible for the order will still
receive the shipment of product and be responsible for selling the merchandise.
COD ORDERS
A deposit equal to the cost of the delivery charge (if applicable) must be collected prior
to the order being delivered. COD orders cannot be paid at our warehouse upon pick up
of the goods. Noted orders must be paid in full prior to pick up.

WARRANTY
Many products sold by Royal Mattress are manufactured by third parties. For these
products the following conditions apply:
lf the manufacturer has supplied a written warranty, it takes
precedence over any other warranties implied or expressed.
If the manufacturer has not supplied a written warranty, Royal Mattress
WH warrant the product free of manufacturing defects for a period of
one year provided it has been used in accordance with all directions and
provided the manufacturer is able to supply us with replacement
products or parts.
If standard warranty coverage is not sufficient to resolve your customer's problem,
it is good practice to check with the Sales Manager to explore possible options
before disappointing your customer.
In all cases it is the customer's responsibility to maintain and present proof of purchase in
the form of an order form or invoice in order to be eligible for warranty service.
30 DAY COMFORT GUARANTEE
Royal Mattress offers a Comfort Guarantee that applies on the purchase of sleep sets of
Spine Support Deluxe quality or better.
The customer qualifying should receive a "Comfort Guarantee" card that reads:
"If after thirty days of accepting possession of your new sleep set you are not
satisfied with the comfort level you purchased, Royal Mattress will, FREE OF
CHARGE (excluding transportation costs) rebuild your mattress to make it
firmer if you feel it is too soft, or make it softer if you feel it is too firm.
This offer is valid for sixty days from taking possession of your sleep set and
may be acted upon one time only.
This offer applies only to sleep sets so indicated in the store and is void if
your mattress appears to have been abused, was not used in accordance
with the manufacturer's directions or is badly soiled."
The pick up and delivery charges for people exercising their Comfort Guarantee option is
$30 in each direction for local delivery areas. (See delivery schedule for out of town
charges.
Customers wishing to eliminate or reduce delivery costs for this option are invited to
provide their own transportation in either or both directions.
BUY BACK PROMISE
Specific sleep sets (as identified in the store) are sold with a "buy back promise". The
terms of the buy back promise are as follow:
Purchase a complete set (mattress and box spring).

 Use a new mattress pad.

Turn your mattress regularly as suggested on your warranty card.
After sleeping on your new sleep set for 30 to 60 days, if you are not satisfied with the
comfort of the set, return to the store you made your purchase from and select a new
set that you feel better fits your comfort needs. (Current prices of each set will apply.)
If after using this second set for an additional 30 to 60 days you are still not satisfied
with your purchase, you have 2 options;
1. Select another sleep set. (There will be a $150 service charge for this option plus
the charge of the difference in the cost of the set).
2. Arrange the return of your sleep set to the store it was purchased from and
requests a refund.
Any mattress set which may be included in this offer and is found to be abused,
misused or soiled in any way will not be exchanged or repurchased. All Buy Back and
return transportation charges are the responsibility of the purchaser. This offer expires
120 days from the date of delivery or pick up of the original sleep set.
PRICING
All merchandise is priced by the sales manager and is not to be further discounted
without his/her express permission.
It is Royal Mattress policy not to be undersold by its competitors and we do a lot of
comparison shopping to try and avoid these situations. Occasionally however, a customer
will be able to show you where another company is selling a product, which you are
selling, at a better price. On these occasions AFTER CONFIRMING YOU ARE
DEALING ON A PRODUCT FOR PRODUCT BASIS, you are authorized to meet the
competitor price if all other factors are equal. (For example, if a competitor has a product
priced $20 less than the identical product at Royal Mattress, but Royal Mattress offers free
delivery and the competitor charges $20 for delivery, then all factors are not equal.)
PRICE INTEGRITY
Price integrity is a cornerstone to the business principles of Royal Mattress. With this in
mind, there are to be no price discounts offered on any regularly priced merchandise.
Floor model mattress sets can be discounted 10% in order to clear when applicable. This
discount cannot be applied on top of any other discount or offer. Other floor model
merchandise that is damaged, outdated, or worn is to be priced by the sales manager and
shown as an 'in store special'.