Mattress store epidemic

[kranky]

A chain store that sells mattresses opened up a location on the main drag a couple years ago. Last year they opened another one 1.2 miles away on the same road. Last month they opened a third store about 200 yards from the second one.

I don't think our area is a hotbed for people replacing mattresses all that often. What is really going on in there? When I happen to drive by there is rarely more than 1 car in the lot, and that is almost certainly because whoever is working drove to work.

There are 8 mattress stores (I mean mattresses only - not counting stores that sell mattresses + other stuff) within 15 minutes. But I never really paid attention until this chain put a third store in a 1.2 mile area on the same road.

 

[Ken g6]

You think maybe they're hiding money (laundering) in their mattresses?

 

[Red Squirrel]

I always found the concept of a dedicated mattress store kind of odd, like how do they stay in business, how often do people buy a new mattress? Then again those suckers arn't cheap.

 

[pete6032]

Freakonomics did a podcast on this and there are a lot of news articles about the duplicity of mattress stores.

http://freakonomics.com/podcast/mattress-store-bubble/

 

[Skunk-Works]

I always found the concept of a dedicated mattress store kind of odd, like how do they stay in business, how often do people buy a new mattress? Then again those suckers arn't cheap.

That's like the age old question: how do piano stores stay in business?

 

[Skunk-Works]

This is like Starbucks. There's a freaking Starbucks and right across the street in the grocery store is a Starbucks kiosk. This town has like 7 Starbucks. More stores than McDonalds and Burger King combined!

 

[Rumpltzer]

In my area, it's vape shops and massage places. I really can't explain mattress stores at all, and I'm assuming it's something underhanded in the same way that I'm fairly certain that the massage places in my area are not catering to a lot of chicks.

In Taiwan, there are an ungodly number of 7Elevens in the major cities, but in that case I understand it. Unlike the gross, murdery 7Elevens in my area (of Los Angeles), the 7Elevens in Taiwan are clean and bright and full of service. You can buy concert and train tickets there, ship stuff, pick up your packages, pay your bills, copy and fax stuff (is that still a thing?), get okay-ish espresso drinks made to order, there's free wifi, the prepared foods are pretty decent, you can buy underwear and Hello Kitty branded snacks, 7Eleven-branded products are known as high-quality stuff, they have hundreds of different drink varieties, and the workers are helpful and friendly.

Imagine my family's disappointment when they went into a Los Angeles 7Eleven for the first time.

 

[OutHouse]

the small town i live near by has 7 barber shops in a very tight square block. 2 of them are open 7 days a week and until 11pm. 100% money laundering.

 

[Newbian]

Maybe they rent them per hour for the ladies of the night?

 

[Carson Dyle]

That's a really good question. I've noticed it. A lot of people have been noticing it.

http://www.chicagotribune.com/business/ct-chicago-mattress-stores-0717-biz-20160715-story.html

http://freakonomics.com/podcast/mattress-store-bubble/

http://kfor.com/2016/03/16/why-are-there-so-many-mattress-stores-and-how-do-they-stay-in-business/

Oddly enough, my mattress set is now about 30 years old and could stand to be replaced. But it's not a priority. I sleep like a rock.

 

[Skunk-Works]

Oddly enough, my mattress set is now about 30 years old and could stand to be replaced. But it's not a priority. I sleep like a rock.

HAHA And I bet it weighs 3 more pounds from all the bed bugs.

 

[Exterous]

Freakonomics did a podcast on this and there are a lot of news articles about the duplicity of mattress stores.

http://freakonomics.com/podcast/mattress-store-bubble/

That was my first thought when I saw the OP

 

[IronWing]

In the '80s, it was shoe stores; the malls were filled with shoe stores. Sadly, as more stores came in, the quality of shoes kept going down. The stores eventually went away but the crappy quality remains.

I think it's a function of debt driven capitalism. It's easy to jump on a fad and expand wildly when you're spending other people's money. When the crash comes, take your LLC into bankruptcy, start a new one, and do it again with the next big thing.

 

[ultimatebob]

HAHA And I bet it weighs 3 more pounds from all the bed bugs.

Dust mites, sure. Bed bugs... hopefully not

 

[rh71]

I always found the concept of a dedicated mattress store kind of odd, like how do they stay in business, how often do people buy a new mattress? Then again those suckers arn't cheap.

It makes sense to have B&M stores because you absolutely have to try it out before you buy. We often see them empty too and it's quite depressing, but they serve their purpose and apparently they can afford to stay open. I think their margins are also quite high, judging by how much of a discount we were able to squeeze out of them after willfully walking out on negotiations.

 

[tynopik]

I think their margins are also quite high, judging by how much of a discount we were able to squeeze out of them after willfully walking out on negotiations.

don't kid yourself, you didn't 'squeeze' them at all, that's the standard discount they offer to everyone to make them feel like they got a really good deal

in reality it was still a 300% markup

 

[rh71]

don't kid yourself, you didn't 'squeeze' them at all, that's the standard discount they offer to everyone to make them feel like they got a really good deal

in reality it was still a 300% markup

Considering we left after negotiations and they had to call us days later asking if we're still interested at an even lower price, it was the most we could squeeze out of them regardless. If everyone leaves the store, then sure, go ahead and call that standard.

We're satisfied with what we paid. Couldn't do better online knowing the specific model we liked.

Like I said, I'm sure there's a high markup. Easily explains why they're still in business despite never seeing anyone in them.

 

[Herr Kutz]

I bought my last mattress from Amazon and it arrived, compressed, in a pretty small box.

 

[Rifter]

I bought my last mattress from Amazon and it arrived, compressed, in a pretty small box.

Me to, was great.

 

[Darwin333]

It makes sense to have B&M stores because you absolutely have to try it out before you buy. We often see them empty too and it's quite depressing, but they serve their purpose and apparently they can afford to stay open. I think their margins are also quite high, judging by how much of a discount we were able to squeeze out of them after willfully walking out on negotiations.

Their margins are absurdly high. We used to, and a lot still do, buy their mattresses in big box stores or all around furniture stores. There really is no need for specialty mattress stores but the margins are so absurdly high that not only can they get away with it but they can carpet bomb their stores across cities. You may have gotten a better deal than most but trust me they still hosed you.

 

[Ventanni]

A chain store that sells mattresses opened up a location on the main drag a couple years ago. Last year they opened another one 1.2 miles away on the same road. Last month they opened a third store about 200 yards from the second one.

I don't think our area is a hotbed for people replacing mattresses all that often. What is really going on in there? When I happen to drive by there is rarely more than 1 car in the lot, and that is almost certainly because whoever is working drove to work.

There are 8 mattress stores (I mean mattresses only - not counting stores that sell mattresses + other stuff) within 15 minutes. But I never really paid attention until this chain put a third store in a 1.2 mile area on the same road.

There's a scientific reason for this actually, and fast food chains often do the same thing as well. That's because once we are presented with a choice in a given market, it creates more of an incentive to purchase. You noticed that there are multiple mattress stores in your area, and because of that, you may have given the thought about potentially replacing your mattress. And maybe not in you specifically, but for others it has. In other words, but simply having multiple mattress stores in the same area, it creates more demand for their product than was originally there before. Another example; go into a local mall. Notice that there are dozens and dozens of clothing stores. They're all competing against one another, but yet, they're all still there. It's not just because there is naturally a large demand for clothing, but to have all those clothing options in a single place creates more demand for buying clothing as a whole than one you can generate with just a single, local store.

Car dealerships, same thing. It's like every city has that one street that's just car dealership after car dealership after car dealership. Wouldn't they want to be exclusive? Nope, they setup shop right next door to each other. It creates more demand.

Sorry for the long winded response, but yeah, that's what's going on.

 

[SKORPI0]

OMG you're right, there is an epidemic. 13 places near me selling mattresses within 3 miles.

 

[AznAnarchy99]

A family member of mine tried to open one up. There's money to be made but it's a hard sell if the economy sucks. People will deal with their shitty mattress nowadays even if it's crap.

Wholesale for a top of the line mattress is probably $400-500. MSRP/Retail is about $3500-5000 on those. So they "discount" to $2000-2500. Most people don't know that they can negotiate mattresses like cars so they'll just buy sticker.

 

[Thebobo]

Great place to launder money.

 

[OutHouse]

It makes sense to have B&M stores because you absolutely have to try it out before you buy.

3 years ago I took a chance and bought a Bed-in-a-box off their website, best damn mattress i have ever slept on.