Interesting to see the average manufacturer selling price.

[phoenix]

I was doing my “usual” today and scouring the internet looking for interesting information about mattresses and came across this article http://www.furnituretoday.com/article/278053-Mattress_sales_down_9_1_in_2008_ISPA_reports.php

The part that really caught my attention was this paragraph:

Despite those declines, the industry was able to achieve a 2.1% increase in its average unit selling price, which stood at $174.16 last year (including mattresses and foundations). That gain was achieved largely on the strength of a 3.1% gain in the average unit selling price of innerspring mattresses, which was $209.86. The average unit selling price of a specialty sleep mattress was $572.08, a 0.2% decline.

These numbers of course reflect wholesale selling prices of the the major manufacturers (top 15 or so) who dominate the industry and represent the majority of its yearly numbers. If their average wholesale selling price for an innerspring unit is about $210 … and consumers average purchase price is about $800 it doesn’t take much math to realize the benefits of buying from a smaller local manufacturer with a shorter supply chain who can put much more in terms of quality materials into the mattresses they manufacture.

Even the average specialty sleep wholesale selling price is reflecting the wholesale price of mattresses that will often sell for thousands of dollars by the time we end up buying them.

When you realize how little the majors actually put into their mattresses in terms of material cost, it makes much more sense how the large chain stores can perpetually advertise “hurry hurry … 50% off” and still be selling overpriced mattresses that just can’t compete in terms of quality and price with the local manufacturers who rarely have sales at all and whose “regular” price represents much greater value.

Phoenix

[Maverick]

Even though this is an older thread, i think it is just as true today as ever.

As long as majors neglect to be transparent about what they are actually filling their mattress with, and the public continues to buy with their eyes and and not with their brain, unfortunately the average person will never really know or understand where the value really is.

Independents need to continually point it out.

Image going to 2 restaurants. Restaurant A (chain big box) offers a 22 oz sirloin steak, two large scoops of powdered mashed potatoes (or even a half pound of boxed pasta) , and some grouping of green vegetables. $50.00. Smaller restaurant B offers an 8oz Filet minon, 1 scoop of risotto, and a small grouping of green vegetables. $50. The folks who buy with their eyes, buy the perceived value from the big box, rather than the actual higher quality and ultimately just as “hunger satisfying” value of the little guy, who’s costs are much higher and margins lower. The average person wont finish either meal, but will still believe restaurant A is the better value.

The better example of this is McDonald’s. In my neck of the woods, a quarter pounder meal is $16 and change.
My local diner and even a small local restaurant charges 13.95 for an 8oz, real beef burger, real fries (not one with 19 ingredients) and a diet coke.

How the hell is McDonald’s not out of business?

We have training the public for years to look at the perceived value vs actual value.

Syms a local chain of clothing stores, in the 70’s had a slogan back in the day. “An educated consumer, is our best customer.”

I beginning to feel that the big box mattress companies slogan is, ‘an indoctrinated consumer, is our best customer’

Folks get hypnotized by that jet black sleek color or some carefully chosen and marketing tested design,fabric feel and cover. That seemingly ultra thick and often faux tufted mattress that looks, oh so cushy and inviting. Specially crafted for the showroom floor to have a extra firm reinforced perimeter edge, thicker more durable cover fabric, only to discover that when it arrives at your home, it feels nothing like that “specifically designed showroom model of the same name.” All behind some slick advertising and marketing buzz words.

There in lies the problem. Of course, sites like TMU are breaking down some of those barriers, unfortunately only one brick at a time.

While I believe (unfortunately due the widening income and class disparity, the wealthier group want that personal service and can afford it) the the age of the independent was making its way back into the mainstream, the internet is making that recovery a bit slower as these big boxes have the edge on marketing, digital marketing, and deep pockets by utilizing internet awareness.

What needs to happen is, there has to be a meeting of the minds of these small independents and independent regionals to pool their resources and fight back through a comprehensive, media, marketing and digital marketing awareness compaign. A campaign to drive the point home of actual value.

Continuing to place a major focus on materials, specifications, information of whats in the products they are presenting, and continuing to put it out there front and center to make consumers not only aware, but wonder why it’s being talked about so much.

With deflation just around the corner, there just may be another brick in the economic roadblock.

My motto for this this is:

A successful person is one who can lay a firm foundation with the bricks that others throw at him.

If the independents are going to compete at a higher level, this is how they have to approach it.

Just my two cents.