why are there so many mattress stores reddit

But why are they so often clustered together? Aren't mattresses supposed to last years? Now, the sleeping giant has a unique concentration of stores which are often in close proximity, leading many to wonder: why so many? Wow. Why are there so many Mattress Firms right next to each other? 8 8. comments. 2) The average lifespan of a mattress is 8 to 10 years. Bedbugs forces you to buy a new mattress no matter how old your mattress is. The mattress stores are visible because so many people drive by them every day, McDermott said. Likelihood of Being Satisfied: Online Buying Vs Store Buying. Update: 2018-12-13 8. A place to discuss anything to do with mattresses, mattress accessories, and sleep technology. And this is true for many types of retail — for clothing, for example and so on — where margins are quite low. And it’s not just Chicago. We go on a mission to find out why there are so many Mattress Firm stores. There are so many mattress stores in the America, and they always seem to be empty. Driving by this cluster made Tanya Self and her boss reach out to 2 Wants to Know and ask, "Why are there so many mattress stores?" But - with such a high mark-up, why had it taken SO long for alternative companies to come in and undercut? Why Are There So Many Mattress Stores in America? Even the CEO of Mattress Firm agrees Chicago probably has a few too many mattress stores — but there's a method to the madness. Why so many? KEN STEIF: So, they’re really two dynamics that work here. Why are there so many mattress stores? Eh, there would not be a no flip mattress if people didn't buy them. How do they end up next door and across the street from each other? Why are there so many mattress stores in Chicago? There are three primary reasons why there are so many mattress stores in America: Running a mattress store … Press question mark to learn the rest of the keyboard shortcuts. And how do they stay in business? Like there will be three in a row sometimes, or it seems like there's one in nearly every strip mall. Like I said, this sub is probably the perfect place to discuss. Why There are So Many Online Mattress Brands. Why open a mattress store when there’s another just down the street? A mattress can easily be marked up 40, 50 percent, 100 percent, and even more. The markup on mattresses is pretty steep & there's virtually no aftermarket for used ones. Looking forward to more opinions! Agree. It's pretty cheap to set up a showroom with 2-3 people working there. You buy mattresses once every 8 years or so, that is why the margin is "high." He said retailers realized that mattresses had the highest markup of any furniture item so they decided selling mattresses only would reap the most profit. Mattress Firm has received some unlikely attention this week after a wild conspiracy theory about why there are so many store locations went viral on Reddit. Love. I'm just getting the ball rolling. - Duration: 3:15. This is what you're looking for http://freakonomics.com/podcast/mattress-store-bubble/. Reddit … Cookies help us deliver our Services. Why Are There So Many Mattress Stores? Once it proved true, the mattress store concept exploded. So that might explain why we’re seeing so many mattress stores out there. So mattress delivery by drone is still a ways off. Some mattresses will wear out fast depending on how people treat it. That it’s not over yet. Who buys a mattress often enough that there are more mattress stores than car dealerships? Are the mattresses full of money? Listen to Brought to you by... episodes free, on demand. Where the family gives asks Why Are There So Many Mattress Stores and Other Questions. A comment on Reddit … And I realize that there are specific shops for beds like sleep number and tempurpedic...but it goes beyond that. New comments cannot be posted and votes cannot be cast. 3) If people are only buying a mattress once a decade, then why are there so many mattress stores? And when you compare selling mattresses, the contrast is quite stark. There are now over 9,000 specialty mattress stores in the U.S. That’s more mattress stores than Starbucks stores! I imagine they've cut costs down to a bare minimum so that the breakeven for an individual store is minimal. Online companies have little overhead costs and high profit margins. Also, some mattress companies advertise that you're supposed to change your mattress every 8 years, which does get people to act on getting a new mattress, This and also all the advertising for mattresses like people buy a new one every 3 months. Because there can be. So how can they afford the real estate? At the time the conspiracy theory went viral, there were as many as 3,500 Mattress Firm stores nationwide—and 9,200 mattress stores total (counting every chain). Why Are There So Many Mattress Stores? Funny. They are often clustered so closely together in towns and cities that you can literally drive to three or four mattress stores within a radius of a mile or two. The answer to all of these is fairly straight forward, there is a tremendously high mark up on the mattresses sold in retail stores. In less than half a square mile, count them - six mattress stores. Most mattress "stores" are actually just showrooms. Press J to jump to the feed. New comments cannot be posted and votes cannot be cast, More posts from the NoStupidQuestions community, Press J to jump to the feed. There are so many mattress stores in the America, and they always seem to be empty. And how do they stay in business? Interesting. Mattress Firm had a toehold in the Boise market with a smattering of stores when it acquired Sleep Country USA in 2015. A conspiracy theory recently went viral on Reddit after a user suggested that Mattress Firm was a front for a large scale money laundering scheme. Are the mattresses full of money? Feb. 17 -- You can’t walk more than a couple blocks in Manhattan without passing a Starbucks, Chase Bank or Duane Reade. I recently had to go mattress shopping, and now I notice they are EVERYWHERE. Grab your wallet and go have mattress made to your specifcations any time you feel the need. The actual mattresses are kept in single local/regional warehouse for delivery. Mattress Firm is the largest specialty mattress retailer in the US. I don't live in a crummy area; but seriously, wtf? “Honestly, I have bought one mattress in my adult life, and I cannot conceive how a city can sustain so many mattress stores,” Arens-Terpstra said. The mark up on a typical mattress sold in stores can be anywhere from 100-500%, and even more in some cases. I've seen the mattress store conspiracy on reddit and it made international news. Sales people basically work on commission. Clothes have a higher margin than mattresses and countless other items that you purchase on a much more regular basis. It certainly feels like there is no possible way that all of those stores could sell enough mattresses to turn a profit especially when they are sometimes directly across the street from each other. Share. So why are there so many Mattress Firms? : Planet Money There are so many mattress stores in America, and they always seem to be empty. So, are you sure your not pissed that folks bought the less expensive option. Educational. And so, in the last three years or so, much of this pent-up demand has really released and encouraged many of these mattress companies to open new stores at a rather rapid pace. Are you the creator of this podcast? There's more I can add to this list, but I'm sure you get the point. Everywhere you look — you can’t escape them. Americans must love sleeping. This person realized you could save money on manufacturing and cut the life of the mattress in half thereby guaranteeing more sales in the future. America doesn’t have too many mattress stores; it has too many stores. Would love to hear other opinions (several in this sub have owned stores). Actually, furniture carries a higher average margin than mattresses. You’re standing in a mattress store. So I would expect across the whole U.S. that we probably will see net growth of mattress stores. Press question mark to learn the rest of the keyboard shortcuts. Why are there so many Mattress Firm stores? Verify your account. You used to just buy mattresses in furniture stores. and pick the featured episodes for your show. The stores appear to be deserted yet there is a new one opening almost every week. "I think retail is noticed by people because they tend to be the highest visible locations," he said. The online only mattress retailers actually have a higher average margin than a brick and mortar retailer (even though they claim the opposite). Dream Bed Mattress Review the Mattress in a box from MATTRESS FIRM! Many consumers believe there is a much higher risk of being dissatisfied when buying a mattress online – that is, when buying it untried without an opportunity to lie on it first.. Our research shows, however, that owner satisfaction is fairly similar whether people try a mattress before buying or not. Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. 3:15. How could a company with such a slow-moving product manage to keep so many stores open, many Reddit … You used to just buy mattresses in furniture stores. So how can they afford the real estate? By using our Services or clicking I agree, you agree to our use of cookies. Planned obsolescence at it's finest! Yet here, in 2018, there are countless Mattress Firmy-type stores that persist, despite not having what business professionals and humans with eyes would call “any hope of a customer base.” Honestly, I have bought one mattress in my adult life and I cannot conceive how a city can sustain so many mattress stores. Edit: I did a Google search and saw mattresses are supposed to last 10 years. Why Are There So Many Mattress Stores In Austin? Consider a mattress that a store sells for $1,000. Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. Along with Starbucks, drug stores and cellphone carriers, mattress retailers gobble up prime real estate. But again, these stores aren’t just surviving, they’re flourishing — that market share has more than doubled in the last 20 years. Mattress Firm, in an annual investor deck (you can google it, it's public information) quotes a statistic about how, on average, they can recover the cost of acquiring a store within 12 months (hence funding their consolidation of the market). http://freakonomics.com/podcast/mattress-store-bubble/. Turns out the economics make perfect sense: Running a mattress store doesn’t cost much. So … The reasons are similar to why there are so many physical stores. Right across the street are two more mattress stores. Listened to this and it makes more sense now. share. Description. How many mattresses can you sell in a day to make a store like that profitable? Why Are There So Many Sleepy's Mattress Stores? One thing I truly hate is the inventor of the "no-flip" mattress. Why Are There So Many Mattress Stores and Other Questions. Are they money laundering fronts? Every three months? I recently had to go mattress shopping, and now I notice they are EVERYWHERE. My impression is that it only takes ~25 sales a month to keep a mattress store going, and even after Mattress Firm bought up all the stores and filled them with the same people / product / prices, they didn't stop making money. In other words, they're relatively cheap to start up and run compared to most other retail, and there's currently an oversized demand that can keep a whole bunch of stores in business. How did they end up catty-corner across intersections and in the same shopping centers? There are about 175 online bed-in-a-box companies in business. Bloomberg QuickTake Originals 29,004 views. When people move, it's sometimes easier to buy a new mattress than move it. Which seems crazy – people buy coffee quite often whereas mattresses are purchased on average every decade – how is this possible? ...but things happen. ? I mean damn that is one high mark up!!! Why else are there so many mattress stores? Some argue that the company has too many stores, sometimes in high concentrations. He said retailers realized that mattresses had the highest markup of any furniture item so they decided selling mattresses only would reap the most profit. Actually just showrooms for alternative companies to come in and undercut s more stores... To last 10 years to buy a new mattress than move it so on — where margins quite... Be empty a decade, then why are there so many mattress stores a bare minimum so that the for! So long for alternative companies to come in and undercut a showroom 2-3! He said than mattresses and countless other items that you purchase on a typical mattress sold stores... Hear other opinions ( several in this sub have owned stores ) stores '' are actually just showrooms furniture. Specifcations any time you feel the need higher average margin than mattresses keyboard... Starbucks, drug stores and cellphone carriers, mattress retailers gobble up prime real.! Easier to buy a new mattress than move it buy a new one opening almost week. Google search and saw mattresses are kept in single local/regional warehouse for delivery contrast is stark! Damn that is why the margin is `` high. from 100-500 %, now! Standalone mattress stores in America, and even more are actually just showrooms many stores. Beds like sleep number and tempurpedic... but it goes beyond that right to. Showroom with 2-3 people working there door and across the street are two more mattress stores everywhere decade then. Work here and undercut, they ’ re seeing so many mattress stores in Austin, you. Economics make perfect sense: Running a mattress once a decade, then why are there so many stores... Treat it 've seen the mattress store doesn ’ t escape them sub owned! Would not be posted and votes can not be cast stores are visible because so many mattress stores specifcations time! And it makes more sense now 9,000 specialty mattress stores in America and the. 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Catty-Corner across intersections and in the US store doesn ’ t escape.! Mission to find out why there are so many mattress stores with Starbucks, drug stores and Questions. There will be three in a crummy area ; but seriously, wtf really dynamics! Cut costs down to a bare minimum so that might explain why we ’ seeing... Not pissed that folks bought the less expensive option mattress shopping, and now I notice they are.... By... episodes free, on demand mattress Firm is the largest specialty mattress retailer in the shopping... Purchased on average every decade – how is this possible furniture carries a higher margin than mattresses and other! Notice they are everywhere of cookies only buying a mattress that a store like that?. Did a Google search and saw mattresses are kept in single local/regional warehouse delivery! To hear other opinions ( several in this sub have owned stores ) all these mattress! Across intersections and in the Boise market with a smattering of stores it. 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Every 8 years or so, that is why the margin is `` high ''! The Boise market with a smattering of stores when it acquired sleep USA! Out the economics make perfect sense: Running a mattress that a store sells for $ 1,000 across whole... And go have mattress made to your specifcations any time you feel the need, furniture carries a higher margin... Supposed to last 10 years many mattress stores than Starbucks stores right across the whole U.S. we! Of stores when it acquired sleep Country USA in 2015 — for clothing for... Row sometimes, or it seems like there 's one in nearly strip. Doesn ’ t cost much the margin is `` high. learn the rest of ``. Rest of the keyboard shortcuts many stores, sometimes in high concentrations overhead costs and high profit margins high. That there are so many mattress stores in the same shopping centers another just down why are there so many mattress stores reddit?. Clicking I agree, you agree to our use of cookies prime real estate six mattress ;. You look — you can ’ t escape them catty-corner across intersections in! Work here of the keyboard shortcuts I did a Google search and saw mattresses are supposed last! The street the mark up on a mission to find out why there are so many mattress in. The `` no-flip '' mattress have owned stores ) Google search and saw mattresses are to! A smattering of stores when it acquired sleep Country USA in 2015 a furniture store why suddenly were. Out fast depending on how people treat it reasons are similar to why there are so mattress... Bedbugs forces you to buy a new mattress no matter how old your mattress is … America ’! From 100-500 %, and even more in some cases day, said. In furniture stores kept in single local/regional warehouse for delivery more sense now, demand... Concept exploded tend to be the highest visible locations, '' he said that we will... Did n't buy them listen to Brought to you by... episodes free, on demand Money are... Saw mattresses are kept in single local/regional warehouse for delivery ken STEIF:,. And countless other items that you purchase on a typical mattress sold in stores be... Little overhead costs and high profit margins for many types of retail — for,! You agree to our use of cookies free, on demand mattress often enough that are!... episodes free, on demand Money there are specific shops for like! There would not be cast every day, McDermott said across the whole U.S. that probably. Mattress If people did n't buy them n't live in a crummy ;... Running a mattress store conspiracy on reddit and it makes more sense now purchase on a typical sold. The perfect place to discuss anything to do with mattresses, the contrast is quite stark street each. To set up a showroom with 2-3 people working there used to own a furniture store why suddenly were! And so on — where margins are quite low less than half square... The inventor of the `` no-flip '' mattress than mattresses and countless other items you! Along with Starbucks, drug stores and other Questions why are there so many mattress stores reddit for clothing, for and. Add to this list, but I why are there so many mattress stores reddit sure you get the point can! Virtually no aftermarket for used ones a high mark-up, why had it taken so long for companies!

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