Mattress Firm had a toehold in the Boise market with a smattering of stores when it acquired Sleep Country USA in 2015. And it’s not just Chicago. Share. 3) If people are only buying a mattress once a decade, then why are there so many mattress stores? You buy mattresses once every 8 years or so, that is why the margin is "high." 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. Mattress Firm is the largest specialty mattress retailer in the US. 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 I realize that there are specific shops for beds like sleep number and tempurpedic...but it goes beyond that. Press J to jump to the feed. http://freakonomics.com/podcast/mattress-store-bubble/. The answer to all of these is fairly straight forward, there is a tremendously high mark up on the mattresses sold in retail stores. Why Are There So Many Sleepy's Mattress Stores? Why Are There So Many Mattress Stores In Austin? I mean damn that is one high mark up!!! Because there can be. There are so many mattress stores in the America, and they always seem to be empty. Why There are So Many Online Mattress Brands. How do they end up next door and across the street from each other? Once it proved true, the mattress store concept exploded. I've seen the mattress store conspiracy on reddit and it made international news. 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.” Most mattress "stores" are actually just showrooms. This is what you're looking for http://freakonomics.com/podcast/mattress-store-bubble/. Wow. How many mattresses can you sell in a day to make a store like that profitable? Aren't mattresses supposed to last years? and pick the featured episodes for your show. When people move, it's sometimes easier to buy a new mattress than move it. Likelihood of Being Satisfied: Online Buying Vs Store Buying. 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. But why are they so often clustered together? So I would expect across the whole U.S. that we probably will see net growth of mattress stores. Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. I recently had to go mattress shopping, and now I notice they are EVERYWHERE. And how do they stay in business? Which seems crazy – people buy coffee quite often whereas mattresses are purchased on average every decade – how is this possible? A mattress can easily be marked up 40, 50 percent, 100 percent, and even more. 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. By using our Services or clicking I agree, you agree to our use of cookies. 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?" Actually, furniture carries a higher average margin than mattresses. How could a company with such a slow-moving product manage to keep so many stores open, many Reddit … Listen to Brought to you by... episodes free, on demand. I don't live in a crummy area; but seriously, wtf? - Duration: 3:15. Eh, there would not be a no flip mattress if people didn't buy them. share. 3:15. The online only mattress retailers actually have a higher average margin than a brick and mortar retailer (even though they claim the opposite). ? Why are there so many mattress stores in Chicago? Why open a mattress store when there’s another just down the street? Why so many? 2) The average lifespan of a mattress is 8 to 10 years. ...but things happen. Are the mattresses full of money? New comments cannot be posted and votes cannot be cast, More posts from the NoStupidQuestions community, Press J to jump to the feed. Why are there so many mattress stores? Love. Reddit … There are about 175 online bed-in-a-box companies in business. Why else are there so many mattress stores? Online companies have little overhead costs and high profit margins. Some mattresses will wear out fast depending on how people treat it. America doesn’t have too many mattress stores; it has too many stores. So how can they afford the real estate? 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. So why are there so many Mattress Firms? Turns out the economics make perfect sense: Running a mattress store doesn’t cost much. In less than half a square mile, count them - six mattress stores. It's pretty cheap to set up a showroom with 2-3 people working there. Consider a mattress that a store sells for $1,000. There are so many mattress stores in the America, and they always seem to be empty. I imagine they've cut costs down to a bare minimum so that the breakeven for an individual store is minimal. New comments cannot be posted and votes cannot be cast. 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. But again, these stores aren’t just surviving, they’re flourishing — that market share has more than doubled in the last 20 years. There are three primary reasons why there are so many mattress stores in America: Running a mattress store … 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). Right across the street are two more mattress stores. Where the family gives asks Why Are There So Many Mattress Stores and Other Questions. 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 Are There So Many Mattress Stores? That it’s not over yet. I recently had to go mattress shopping, and now I notice they are EVERYWHERE. The actual mattresses are kept in single local/regional warehouse for delivery. 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. Grab your wallet and go have mattress made to your specifcations any time you feel the need. You used to just buy mattresses in furniture stores. Now, the sleeping giant has a unique concentration of stores which are often in close proximity, leading many to wonder: why so many? I'm just getting the ball rolling. Who buys a mattress often enough that there are more mattress stores than car dealerships? 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. Feb. 17 -- You can’t walk more than a couple blocks in Manhattan without passing a Starbucks, Chase Bank or Duane Reade. 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. So that might explain why we’re seeing so many mattress stores out there. Interesting. The reasons are similar to why there are so many physical stores. Press question mark to learn the rest of the keyboard shortcuts. Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. One thing I truly hate is the inventor of the "no-flip" mattress. Bedbugs forces you to buy a new mattress no matter how old your mattress is. The stores appear to be deserted yet there is a new one opening almost every week. Why Are There So Many Mattress Stores and Other Questions. Everywhere you look — you can’t escape them. So, are you sure your not pissed that folks bought the less expensive option. Listened to this and it makes more sense now. Why Are There So Many Mattress Stores in America? Looking forward to more opinions! Like I said, this sub is probably the perfect place to discuss. Educational. Bloomberg QuickTake Originals 29,004 views. Why are there so many Mattress Firm stores? But - with such a high mark-up, why had it taken SO long for alternative companies to come in and undercut? Are you the creator of this podcast? Sales people basically work on commission. There's more I can add to this list, but I'm sure you get the point. Why are there so many Mattress Firms right next to each other? You used to just buy mattresses in furniture stores. "I think retail is noticed by people because they tend to be the highest visible locations," he said. Are the mattresses full of money? “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 markup on mattresses is pretty steep & there's virtually no aftermarket for used ones. Dream Bed Mattress Review the Mattress in a box from MATTRESS FIRM! Every three months? Would love to hear other opinions (several in this sub have owned stores). KEN STEIF: So, they’re really two dynamics that work here. Like there will be three in a row sometimes, or it seems like there's one in nearly every strip mall. Press question mark to learn the rest of the keyboard shortcuts. Edit: I did a Google search and saw mattresses are supposed to last 10 years. The mark up on a typical mattress sold in stores can be anywhere from 100-500%, and even more in some cases. The mattress stores are visible because so many people drive by them every day, McDermott said. Honestly, I have bought one mattress in my adult life and I cannot conceive how a city can sustain so many mattress stores. Agree. Are they money laundering fronts? Description. 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). How did they end up catty-corner across intersections and in the same shopping centers? Clothes have a higher margin than mattresses and countless other items that you purchase on a much more regular basis. Update: 2018-12-13 8. Verify your account. Planned obsolescence at it's finest! We go on a mission to find out why there are so many Mattress Firm stores. So … So mattress delivery by drone is still a ways off. 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. : Planet Money There are so many mattress stores in America, and they always seem to be empty. You’re standing in a mattress store. Cookies help us deliver our Services. So how can they afford the real estate? Along with Starbucks, drug stores and cellphone carriers, mattress retailers gobble up prime real estate. A comment on Reddit … And when you compare selling mattresses, the contrast is quite stark. Why Are There So Many Mattress Stores? And how do they stay in business? 8 8. comments. 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