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