How Do Mattress Stores Stay In Business? 5 Best Reasons Why!

Are you wondering how do mattress stores stay in business? Any city you’ve been to, you see a mattress store open.

The stores appear to be empty and deserted, and yet there’s still a new one opening.

how do mattress stores stay in business

They’re found all over, but according to statistics, the average adults buys a mattress are once every five to ten years.

It’s a phenomenon that left us confused and wondering.

Why are there so many stores for mattresses?

The display room appears to be frequently empty- how do they keep up and stay open?

With infrequent purchases and high overhead, are the owners still generating profit? How do they manage to survive?

These might be the questions running in your head every time you pass a mattress store.

You might laughingly think that the main reason for their existence is that humans just love sleeping. But there’s an economic reason for that.

In a short moment, your queries will be answered. Just keep scrolling.


Reasons On How Mattress Stores Stay In Business

How do mattress stores stay in business?

You’ll be surprised that according to Global Market research for mattresses, it is projected to grow at the rate of 6.8% during 2018-2023.

In fact, according to IBIS World, nearly 16,000 mattress stores are open, with 175 online bed-in-a-box companies in the United States only.

Among any other nation globally, the U.S. spends most on mattresses, making its market generate revenue of over $14.5 million this year with an annual growth of 0.9 percent.

Why so many? You might be surprised upon knowing those data, especially today where the economic situation is alarming.

Just keep on scrolling to know the answers.


#1. Introduction of new technology

Introducing new technology in the mattress industry has made it easier for consumers to have customized mattresses according to their liking.

Its the willingness to explore new and improved mattresses as high as what the industry is aiming to achieve.

This strategic action makes an average consumer replace their mattress every eight (8) years.


#2. Growing demand for mattresses in the hospitality industry

The other factor that influenced the demand for various types of mattresses is the hospitality industry’s growth.

International hotel chains focus on providing excellent comfort and sound sleep to attract more customers making the mattress market boost.


#3. High-margins and low overhead

This stage is where economics comes into play. The demand for mattresses has the highest profitability when it comes to retail.

In a report, although some store chains could gain profitability of 5 percent, mattresses have a 40 to 50 percent price margin.

A $3,000 mattress might only cost $300 to manufacture, which gives a 900 percent markup.

Furthermore, according to a report, a mall-located mattress store may only need to sell 20 mattresses a month to pay a rental fee.

Unlike McDonald’s, which has to sell a half-million burgers to cover its rent.

The bottom line is that retailers are not required to sell that many mattresses to cover operational costs and profit.

With lesser items to sell, mattress stores don’t require a floor full of salespeople, giving them a lower overhead than other businesses.

They don’t typically have a lot of staff working at a time. Most of the staff work on a commission basis, often dealing with factory-direct products.

It might answer how mattress stores can sustain those seemingly empty showrooms with only one employee sitting behind a desk.


#4. One of the few businesses where customers prefer to buy in-store versus online

It is considered a huge deal to buy a new mattress.

Before you buy another one, you’ll probably be using it for at least 8 to 10 years. Plus, about 33 percent of your time is spent sleeping.

Because of this, a lot of people do not want to buy a mattress blindly.

Since this is considered a major purchase (both in price and importance), clients tend to purchase mattresses in person rather than online, equivalent to buying furniture or a car.

Before making their order, even clients who plan to buy a mattress online will always visit a retail store.

It means extra foot traffic in shops and a chance for businesses to give deals and discounts to consumers who were only looking to browse.


#5. Lower product losses

If the owners cannot sell mattresses, they can still store them for a while.

People do not purchase mattresses very much, but they can be sold for over a thousand each by a mattress manufacturer.

Unsold mattresses also hold their value very well. It is still possible to sell a mattress that no one has bought for a few years at the same price.

And all of them would finally buy a mattress or two.


Final Words

How do mattress stores stay in business?

While theories of mattress conspiracy are fun and entertaining, the truth boils down to successful economics.

We all need a mattress to have a sound and comfortable sleep.

Truly this type of business offers necessary products but the least costly retail stores to operate.

I hope upon reaching this point, your queries are thoroughly answered.

Your time and effort are greatly appreciated.