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  3. 152342-20253

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
loomisjohnson
1,964 posts
 

i obsessively researched this very topic before buying my new mattress (dreamcloud premier--fantastic). i was informed by those in the biz that the typical profit margin (after delivery costs and overhead but before salesman's commission) for brick-and-mortar retailers is around 40% but  higher on pricier mattresses--there are also manufacturer rebates + alot of high-margin sales of gray market goods. for online retailers, the profit margin is more like 100%. so considerably richer than audio...

erik_squires OP
16,412 posts
 

I once was told that $2 toothbrushes often cost stores less than 10 cents. That's the business I should be in, setting up discount toothbrush stores at malls.  Have adorable models outside dressed all in black offering to brush your teeth for you, and then charge $30 per toothbrush....

noromance's avatar
noromance
9,988 posts
 

Bottled water. Now, that's markup. $3 a case of 24, sells in the airport for $4.75 per bottle.

I once was told that $2 toothbrushes often cost stores less than 10 cents.

agisthos
507 posts
 

Consider that you will spend almost a third of your life in bed. So paying decent coin on a good mattress that will last for 15-20 years is money well spent.

Sure there are a lot of overpriced mattresses, but I have never come across a cheap one (sub 1k) that could compete in comfort to the multi layer expensive ones.

erik_squires OP
16,412 posts
 

I agree that a good mattress is vital, but this discussion is about markups, not value. :)

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