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