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...
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.
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.