At first glance, the number of mattress stores in a given area might seem disproportionate to the assumed frequency of mattress purchases. Given that the average person replaces their mattress every 7 to 10 years, how do these stores sustain their operations and stay in business? The answer lies in understanding the unique strategies employed within the mattress industry.
Primarily, mattress stores thrive on the product’s high-profit margin. Despite the infrequent purchase rate, the markup on mattresses is often significant, allowing for a substantial profit on each sale. Furthermore, these stores regularly offer sales and discounts, giving the impression of a bargain while maintaining a profitable margin.
Mattress stores also capitalize on a consumer’s desire for comfort. Quality sleep is a crucial aspect of health, and individuals are often willing to invest significantly in products that promise enhanced comfort and better rest. Therefore, consumers are usually prepared to spend a fair amount on a product directly contributing to their well-being.
A critical factor in the success of mattress stores is the necessity for physical testing. Unlike many other products, a mattress is something most consumers prefer to try before purchase. The comfort of a mattress is highly subjective and can’t be accurately assessed online. This need for an in-person experience creates a consistent flow of potential customers into brick-and-mortar mattress stores.
Additionally, mattress stores often incorporate related products into their inventory, such as bed frames, pillows, bedding, and sleep technology gadgets. Although not as high-ticket as mattresses, these complementary items contribute to overall sales and help maintain consistent revenue.
Moreover, mattress stores strategically position themselves in highly visible locations, such as busy streets and shopping centers. This strategic positioning contributes to the impression that there’s a high demand for mattresses, attracting more customers. It also means that when the need for a new mattress does arise, these stores are at the forefront of consumers’ minds.
The business model also benefits from financing options and long–term warranties. Offering consumers the ability to finance their purchases can make high-quality mattresses more accessible. Meanwhile, long-term warranties provide security, enhancing the perceived value and tipping the scales toward a purchase decision.
In summary, mattress stores stay in business by leveraging several strategic approaches. They capitalize on the product’s high-profit margin, the necessity for physical testing, and consumers’ desire for comfort. Furthermore, adding related products, strategic store positioning, and appealing financing and warranty options all contribute to these stores’ sustained success. Therefore, despite the infrequency of mattress purchases, these businesses continue to thrive by aligning their strategies with consumer behavior and market demands.