Why Are There So Many Mattress Stores? A comment on Reddit … Why Are There So Many Mattress Stores In Austin? Turns out the economics make perfect sense: Running a mattress store doesn’t cost much. There are three primary reasons why there are so many mattress stores in America: Running a mattress store … - Duration: 3:15. Edit: I did a Google search and saw mattresses are supposed to last 10 years. Looking forward to more opinions! So why are there so many Mattress Firms? Mattress Firm is the largest specialty mattress retailer in the US. Consider a mattress that a store sells for $1,000. Mattress Firm had a toehold in the Boise market with a smattering of stores when it acquired Sleep Country USA in 2015. Why are there so many Mattress Firm stores? 3) If people are only buying a mattress once a decade, then why are there so many mattress stores? Likelihood of Being Satisfied: Online Buying Vs Store Buying. Update: 2018-12-13 8. Why open a mattress store when there’s another just down the street? Why are there so many mattress stores? How many mattresses can you sell in a day to make a store like that profitable? Are you the creator of this podcast? There are so many mattress stores in the America, and they always seem to be empty. Bedbugs forces you to buy a new mattress no matter how old your mattress is. Everywhere you look — you can’t escape them. Planned obsolescence at it's finest! Like there will be three in a row sometimes, or it seems like there's one in nearly every strip mall. So, are you sure your not pissed that folks bought the less expensive option. Listen to Brought to you by... episodes free, on demand. Funny. Description. Some mattresses will wear out fast depending on how people treat it. There are so many mattress stores in the America, and they always seem to be empty. So how can they afford the real estate? Clothes have a higher margin than mattresses and countless other items that you purchase on a much more regular basis. Where the family gives asks Why Are There So Many Mattress Stores and Other Questions. So I would expect across the whole U.S. that we probably will see net growth of mattress stores. I imagine they've cut costs down to a bare minimum so that the breakeven for an individual store is minimal. Like I said, this sub is probably the perfect place to discuss. The online only mattress retailers actually have a higher average margin than a brick and mortar retailer (even though they claim the opposite). Share. And it’s not just Chicago. 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. The mark up on a typical mattress sold in stores can be anywhere from 100-500%, and even more in some cases. The stores appear to be deserted yet there is a new one opening almost every week. You used to just buy mattresses in furniture stores. Are the mattresses full of money? This is what you're looking for http://freakonomics.com/podcast/mattress-store-bubble/. And when you compare selling mattresses, the contrast is quite stark. And I realize that there are specific shops for beds like sleep number and tempurpedic...but it goes beyond that. 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.” 3:15. So that might explain why we’re seeing so many mattress stores out there. KEN STEIF: So, they’re really two dynamics that work here. Along with Starbucks, drug stores and cellphone carriers, mattress retailers gobble up prime real estate. Even the CEO of Mattress Firm agrees Chicago probably has a few too many mattress stores — but there's a method to the madness. Now, the sleeping giant has a unique concentration of stores which are often in close proximity, leading many to wonder: why so many? You used to just buy mattresses in furniture stores. You’re standing in a mattress store. Why else are there so many mattress stores? Why Are There So Many Mattress Stores? 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 Mattress Firms right next to each other? Would love to hear other opinions (several in this sub have owned stores). We go on a mission to find out why there are so many Mattress Firm stores. 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. The reasons are similar to why there are so many physical stores. Online companies have little overhead costs and high profit margins. The markup on mattresses is pretty steep & there's virtually no aftermarket for used ones. But why are they so often clustered together? Some argue that the company has too many stores, sometimes in high concentrations. Right across the street are two more mattress stores. In less than half a square mile, count them - six mattress stores. 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. America doesn’t have too many mattress stores; it has too many stores. Press question mark to learn the rest of the keyboard shortcuts. I recently had to go mattress shopping, and now I notice they are EVERYWHERE. So … Press J to jump to the feed. Why Are There So Many Mattress Stores and Other Questions. And how do they stay in business? It's pretty cheap to set up a showroom with 2-3 people working there. Sales people basically work on commission. 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. share. Reddit … 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. Bloomberg QuickTake Originals 29,004 views. Educational. Every three months? 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?" How did they end up catty-corner across intersections and in the same shopping centers? Actually, furniture carries a higher average margin than mattresses. Why There are So Many Online Mattress Brands. I've seen the mattress store conspiracy on reddit and it made international news. But - with such a high mark-up, why had it taken SO long for alternative companies to come in and undercut? 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. Grab your wallet and go have mattress made to your specifcations any time you feel the need. Interesting. Aren't mattresses supposed to last years? New comments cannot be posted and votes cannot be cast, More posts from the NoStupidQuestions community, Press J to jump to the feed. http://freakonomics.com/podcast/mattress-store-bubble/. Most mattress "stores" are actually just showrooms. Agree. There are now over 9,000 specialty mattress stores in the U.S. That’s more mattress stores than Starbucks stores! "I think retail is noticed by people because they tend to be the highest visible locations," he said. The actual mattresses are kept in single local/regional warehouse for delivery. 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. A place to discuss anything to do with mattresses, mattress accessories, and sleep technology. So how can they afford the real estate? Which seems crazy – people buy coffee quite often whereas mattresses are purchased on average every decade – how is this possible? How do they end up next door and across the street from each other? 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. 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. “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. Wow. Cookies help us deliver our Services. 2) The average lifespan of a mattress is 8 to 10 years. Americans must love sleeping. 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. There are about 175 online bed-in-a-box companies in business. Are they money laundering fronts? Dream Bed Mattress Review the Mattress in a box from MATTRESS FIRM! A mattress can easily be marked up 40, 50 percent, 100 percent, and even more. One thing I truly hate is the inventor of the "no-flip" mattress. Are the mattresses full of money? Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. Listened to this and it makes more sense now. and pick the featured episodes for your show. ? Why are there so many mattress stores in Chicago? 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. 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). I mean damn that is one high mark up!!! I'm just getting the ball rolling. Once it proved true, the mattress store concept exploded. Why Are There So Many Sleepy's Mattress Stores? I don't live in a crummy area; but seriously, wtf? Years ago I asked a friend who used to own a furniture store why suddenly there were all these standalone mattress stores everywhere. Eh, there would not be a no flip mattress if people didn't buy them. You buy mattresses once every 8 years or so, that is why the margin is "high." Verify your account. And this is true for many types of retail — for clothing, for example and so on — where margins are quite low. 8 8. comments. And how do they stay in business? New comments cannot be posted and votes cannot be cast. 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. Why Are There So Many Mattress Stores in America? I recently had to go mattress shopping, and now I notice they are EVERYWHERE. Press question mark to learn the rest of the keyboard shortcuts. The mattress stores are visible because so many people drive by them every day, McDermott said. Feb. 17 -- You can’t walk more than a couple blocks in Manhattan without passing a Starbucks, Chase Bank or Duane Reade. There's more I can add to this list, but I'm sure you get the point. So mattress delivery by drone is still a ways off. Why so many? Who buys a mattress often enough that there are more mattress stores than car dealerships? Love. How could a company with such a slow-moving product manage to keep so many stores open, many Reddit … That it’s not over yet. ...but things happen. : Planet Money There are so many mattress stores in America, and they always seem to be empty. Honestly, I have bought one mattress in my adult life and I cannot conceive how a city can sustain so many mattress stores. 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). But again, these stores aren’t just surviving, they’re flourishing — that market share has more than doubled in the last 20 years. Because there can be. When people move, it's sometimes easier to buy a new mattress than move it.