Businesses are always in competition with each other and strive to take the top spot to stay relevant in the market. When looking to purchase something, people visit various stores and choose the one that gives the highest quality. You must undoubtedly outlast the competition in the industry to establish yourself as a top business that draws a lot of clients.
But have you noticed that there are so many mattress shops present? The main question is how do mattress stores stay in business in such a competitive market.
Not everyone is buying mattresses all the time, so what is their secret to staying pertinent in the industry for a long time? Many people don’t know the answer to this question, but things are about to change. Stay with us as we are going to tell you everything you need to crack the code. Let’s get started.
Is Owning a Mattress Shop Profitable?
Having a mattress company is all about expanding your market share. It is the only way to remain competitive in the market. On the other hand, it is difficult to survive in the mattress business without a limited market proportion. Survival may become tricky, and you may be forced to close your business. This is why you’ll notice mattress store chains all over the country fighting for a bigger piece of this profitable industrial segment.
Now, here’s the catch: assume that a mattress is replaced every ten years on average. In that condition, a 33.5 million mattress industry across the country is a lucrative industry that can attract many people who want to start their potential business. The plus point is that the industry is set to grow further with time, and you can expect more positive changes in it in the future.
Now, business owners have to become accessible to the public to obtain a share of the market, which is why so many mattress stores are scattered around the country. It is their principal means of marketing. These businesses are in regions where there is a high probability of foot traffic.
This is why when you enter a mattress shop, you know that they are in the business for quite some time. They have built their brand and gained the trust needed to stay relevant in the industry. It is indeed a profitable business if you know how to use its potential and throw the right cards at the right time.
How Do Mattress Stores Stay In Business? Top 5 Reasons!
Now that we have discussed the profitability of the mattress business, your mind might be buzzing with the question, ‘How do mattress stores stay in business?’ We are going to touch on the top reasons why they prevail and thrive in the industry. So, without any wait, let’s dive in.
1. Low Overheard
The mattress business may seem like a good business model, but the tricky part is that people only buy mattresses after 5 to 10 years. It makes it extremely competitive to survive. There is no speck of doubt that many businesses are called off due to this reason. On the other hand, they are also in fierce competition with online retailers. So, does this business have any benefits? Do people still prefer to visit the stores physically?
All hope is not lost. We have some disadvantages, but there is always a bright side. Mattress stores, unlike other businesses, do not keep huge inventories on board. Rather, the mattresses are delivered directly from the manufacturer.
Another significant advantage is that mattress stores do not hire a huge staff because they do not compensate their personnel unless they generate sales. This enables them to work many hours, even in less lucrative markets. The payment is also based on the mattress the workers will sell. As a result, there is room to save a lot of costs and put them somewhere useful.
Mattress stores have cheap advertising costs alongside low overhead. Because individuals buy mattresses for eight to ten years, they are more inclined to visit a physical store before purchasing one online.
They want to see for themselves the quality and merchandise that physical stores provide. They cannot do this in the case of online stores. This implies more foot traffic and the ability to offer special offers. So, you still have plenty of opportunities to stay ahead of your game and utilize the chances.
2. Quality Products
Mattress stores have one more reason up their sleeves to stay relevant in the business. While it is a time when online stores thrive, ninety percent of transactions occur in physical stores. People have to take a look at the extra padding and layers that are included in the mattress. This can only be achieved if you have seen the stuff yourself and are happy with the material.
Another thing why people approach physical stores is they can strike a deal with the salesperson and still get their hands on a quality product. We all look for little discounts and deals that help us stay within budget. Mattress stores often provide you with custom options as well to accommodate your needs and give you some exclusive stuff to lock your attention.
3. No Loss
If the owners are unable to sell the mattresses, they might store them for a period of time. As a result, it is not a business loss. It is a win-win situation for you.
Although people do not buy mattresses in large quantities, a mattress producer can sell them for thousands of dollars each.
Unsold mattresses retain their worth extremely well as well. They do not wear out easily and retain their quality. It is still doable to sell a mattress that has not been purchased in a few years for a similar price. All you have to do is devise successful strategies for competing.
4. High-Profit Margin
At this point, economics enters the picture. When it comes to retail, the mattress business falls among the most profitable. You must sell at least 20 mattresses in order to pay the rental cost, and then you can save money, unlike a restaurant, which must sell a large number of meals to earn a profit.
The result is that shops do not need to sell that many mattresses to cover their operating costs and generate a profit. Mattress stores don’t need a floor full of salesmen because they offer fewer things, giving them a cheaper overhead than other firms.
The key reason is that they don’t normally have a large number of employees working at the same time. Most of the employees are paid on a commission basis after the mattress is sold.
It could explain how mattress businesses can keep those possibly vacant showrooms running with only one worker standing behind the counter. This is how they stay in business.
5. New Mattress Technology
New mattress technology has changed the game for these stores. There is always something new to look for, and customers get curious to get their hands on the latest product on the market. Many business owners use it to their own advantage and keep the clients coming for more. Some of the mattress technologies that are popular nowadays are:
- Gel-infused memory foam provides you with more support and better heat. It is on the expensive side, but when customers look at the advantages it offers, they invest in it. It is a hot product at the moment that compels customers to come back.
- Hybrid mattresses mix various materials, such as memory foam and coils, that give you better sleep. People who suffer from irregular sleep get a lot of benefits from it, and that’s why it has been the most selling mattress for quite some time.
- Air beds are becoming more popular primarily due to their capacity to be customized to each individual’s demands. You get to sleep, and you can fold them in the evening for more space. Sounds like an ideal scenario.
How Much It Costs to Start a Mattress Shop?
The first thing is to be open-minded and diligent. Is your location a great place to kick-start this business? Is it a place where you can find a lot of people and traffic? If the answer is no, then change the location before moving on with the plan.
Many shops are located in shopping malls, and it is by no accident. However, you will have to pay a high rent for this. On the other hand, there are increased chances of succeeding at an active place. If we talk about high-class places in LA, Chicago, and California, you can set up a store for $ 50,000. You will need to establish your mattress business in a huge city. The more prosperous the city, the greater the chances of attracting customers.
Moving to places other than that, the cost can come down to $40,000. On the other hand, the competition will be low in these areas. But it is advised not to view competition negatively. You can thrive and make your name if you know how to execute a plan.
You will also need some budget for marketing. In this world, social media is dominating everything. Things will turn out bad if you don’t know how to utilize this power. Run targeted ads to attract customers. Invest in this step, and you will have high returns in a matter of days.
If you are wondering how do mattress stores stay in business, read the article above. We thoroughly discussed it in detail, and if you have any confusion, feel free to drop a comment below. These stores are profitable and have a solid strategy in place to ensure their survival in this competitive market. When you drive by, it may appear like the store is vacant, but that’s not the case. They have high-profit margins and only need to sell a few.
Frequently Asked Questions (FAQs)
Q: What is the average life cycle of a mattress?
A: Whatever mattress you pick has an organic life cycle if used every day, and the typical life of any mattress is approximately 8 years. They are changed on average every 10 years. But if the quality is not good, then the cycle can be reduced to 5 years.
Q: How much money can you make with this business?
A: You can earn a good amount from this business if you know how to scale it. Businesses are making from $30,000 to $70,000 yearly on average. Now the figures are totally subjective as there are companies who are making more than this. So make a good plan and dive into it, as there is a lot of potential.
Q: Is it difficult to manage this business?A: No, it’s not difficult to manage this business. However, you need to know the fundamentals of business and how to generate profit. If you have no strategy and only rely on outside factors, then things might not turn out to be good.