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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
erik_squires OP
16,268 posts
 
I've been thinking about the question, how is this really about stereo. While of course I meant to have some fun with my friends here, I also think there are some really good parallels:

1 - Ultimately the personal experience is the only thing that matters.

2 - Lots of different types of tech to solve the same problem.


audiobill1
51 posts
 
You want a mattress where you can easily replace the parts when they wear out. Replacing a few parts every few years is cheaper than a new mattress which leaves more money for audio. And if you move, a Sleep Number bed breaks down into manageable parts. 
ejr1953
918 posts
 
In my travels I met a guy who retired and missed being out and about with people and took a job selling mattresses.  He told me that the markup was 3 to 4 times their cost, but when the chain committed to a larger purchase, that went to 5 times...or to put it another way, the mattress store paid the distributor $200 for a mattress that retailed for $1000!
will3
57 posts
 

1 night stand.... I get it!! Aghh-hah-hah-hah!! ONE -night stand! too funny!

Oops, what year is it?

 

rocray's avatar
rocray
1,448 posts
 

I sold bedding and furniture many years ago.  One of the bedding lines we carried was Simmons. The top model we carried was around $1200.  Simmons offered the sales force that model for $250. I purchased a set for my folks,and a set for myself.  I ended up selling a ton of those mattresses.  Not to mention the $100 spiff they threw at each sale.  There is a TON of mark up. 

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