Are you wondering how mattress stores stay in business? Every city in which you went, you see an open mattress shop.
The stores seem to be empty and abandoned, and yet there is a new opening.
They are everywhere, but according to statistics, average adults buy a mattress once every five to ten years.
This is a phenomenon that has confused us and asked us.
Why are there so many stores for mattresses?
The exhibition hall often seems to be empty – how do they retain and remain open?
With rare purchases and high general costs, do owners still generate profit? How can they survive?
They can be the questions in your head every time you spend a mattress store.
You could think by laughing that the main reason for their existence is that people just like to sleep. But there is an economic reason for that.
Your questions will be answered in a short time. Just keep scrolling.
Table of Contents
Reasons On How Mattress Stores Stay In Business
How do mattress stores stay in business?
It will surprise you that, according to the worldwide market studies of mattresses, it should increase at a speed of 6.8% in 2018-2023.
According to Ibis World, almost 16,000 mattress stores are open, with 175 online companies in bed in a box in the United States.
Among any other nation in the world, the United States spends the most about mattresses, which this year generates its market with more than $ 14.5 million with an annual growth of 0.9%.
Why so much? It may surprise you to know this data, especially today when the economic situation is alarming.
Keep leaving the answers.
Introduction of new technology
The introduction of new technologies in the mattress industry enabled consumers to have personalized mattresses according to their taste.
It is the desire to explore new and improved mattresses as high as what the industry wants to achieve.
This strategic action means that an average consumer replaces his mattress every eight (8) years.
Growing demand for mattresses in the hospitality industry
The other factor that has influenced the demand for different types of mattresses is the growth of the hotel industry.
International hotel chains are focused on the range of excellent comfort and solid sleep to attract more customers, which makes the mattress market.
High margins and low overhead
This step is the place where the economy comes into play. The demand for mattresses has the highest profitability in the field of retail.
In a report, although some retail chains can get the profitability of 5%, mattresses have a price margin of 40 to 50%.
A $ 3,000 mattress could cost that $ 300 in production, which gives a marketup of 900%.
According to a report, a mattress store in a shopping center is sufficient to sell 20 mattresses per month to pay rental costs.
Unlike McDonald’s, who has to sell half a million hamburgers to cover his rent.
The most important thing is that retailers don’t have to sell so many mattresses to cover operational costs and profit.
With lower items for sale, mattress stores do not require floor full of sellers, making them general costs lower than other companies.
In general, they don’t have many staff at the same time. The majority of staff work on the basis of committee, and often treat direct factory products.
It could respond to how mattress stores can keep these apparently empty exhibition spaces with a single employee who is behind a desk.
One of the few businesses where customers prefer to buy in-store versus online
He is considered a huge affair to buy a new mattress.
Before you buy one, you will probably use it for at least 8 to 10 years. Moreover, approximately 33% of your time has been slept.
For this reason, many people don’t want to buy a mattress blindly.
Since this is considered a large purchase (both in price and in interest), customers tend to buy mattresses personally instead of in the row, equivalent to the purchase of furniture or a car.
Before they place their order, even customers who are planning to buy an online mattress will always visit a store.
This means extra pedestrian traffic in stores and an opportunity for companies to give offers and discounts to consumers who only wanted to travel.
Lower product losses
If the owners cannot sell mattresses, they can always store them for a while.
People don’t buy many mattresses, but they can be sold for more than a thousand by a mattress manufacturer.
The non -dissatisfied mattresses also have their value very well. It is always possible to sell a mattress that nobody bought a few years at the same price.
And everyone would finally buy a mattress.
Final Words
How do mattress stores stay in business?
Although the theories about the conspiracy of the mattress are fun and entertaining, the truth comes down to a successful economy.
We all need a mattress to have a healthy and comfortable sleep.
Really, this type of company offers the required products, but the cheaper stores to use.
I hope that by arriving at this point, your requests will be answered in full.