Mattresses, not stereos is where the money is


On my way to Macy’s, to buy a bed, which is about 6 blocks from my office, I passed by literally 6 different mattress stores. 3 of them practically on the same block.

The competition is fierce, and it seems almost all of them were selling Tempurpedic and Sealy (which I think are owned by the same company.) They even had at least one paid sign holder with a sign directing you 1 block away to another store.

Think of that. 6 stores selling $500-$4500 goods, in a Los Angeles suburb. They are all paying rent, and staying open.

I know the average retail markup for stereo gear is around 45%. What must the mark up be for mattress stores to stay open with this much competition? 90%?

I still went to Macy’s. :) Two simultaneous discounts + a modular bed system with replaceable coils sang to my geek heart.

By comparison, the nearest high end audio store is about 30 minutes away.
erik_squires
What a colossal waste of time. This thread is a better sleep aid than most overpriced mattresses.
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Mark up and margin are different calculations, but I’ve never heard them described as including overhead/expenses or not. 

Sounds like you’re describing gross margin vs net margin??
One of my first jobs was that of a tool & die maker for mattress spring manufacturer. You're welcome.  
Great thread, with some clever responses.  I am gonna check out the Nectar mattress myself.

I have Spatial Audio speakers and a bespoke Don Sachs preamp and amp in my system.  I suspect they'd be 2X the price if sold through dealer channels.