How do they end up next door and across the street from each other? By using our Services or clicking I agree, you agree to our use of cookies. This is what you're looking for http://freakonomics.com/podcast/mattress-store-bubble/. “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. 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). Reddit … So how can they afford the real estate? 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. Press question mark to learn the rest of the keyboard shortcuts. So that might explain why we’re seeing so many mattress stores out there. Most mattress "stores" are actually just showrooms. The answer to all of these is fairly straight forward, there is a tremendously high mark up on the mattresses sold in retail stores. 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. It's pretty cheap to set up a showroom with 2-3 people working there. 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. So why are there so many Mattress Firms? 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. Sales people basically work on commission. 3) If people are only buying a mattress once a decade, then why are there so many mattress stores? America doesn’t have too many mattress stores; it has too many stores. Right across the street are two more mattress stores. How did they end up catty-corner across intersections and in the same shopping centers? Where the family gives asks Why Are There So Many Mattress Stores and Other Questions. Why Are There So Many Mattress Stores? So how can they afford the real estate? Who buys a mattress often enough that there are more mattress stores than car dealerships? 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. One thing I truly hate is the inventor of the "no-flip" mattress. Edit: I did a Google search and saw mattresses are supposed to last 10 years. Are the mattresses full of money? Bloomberg QuickTake Originals 29,004 views. So I would expect across the whole U.S. that we probably will see net growth of mattress stores. Wow. The online only mattress retailers actually have a higher average margin than a brick and mortar retailer (even though they claim the opposite). Why are there so many Mattress Firm stores? And this is true for many types of retail — for clothing, for example and so on — where margins are quite low. Listen to Brought to you by... episodes free, on demand. The reasons are similar to why there are so many physical stores. Agree. Funny. Feb. 17 -- You can’t walk more than a couple blocks in Manhattan without passing a Starbucks, Chase Bank or Duane Reade. Also, some mattress companies advertise that you're supposed to change your mattress every 8 years, which does get people to act on getting a new mattress, This and also all the advertising for mattresses like people buy a new one every 3 months. There are three primary reasons why there are so many mattress stores in America: Running a mattress store … Why open a mattress store when there’s another just down the street? You buy mattresses once every 8 years or so, that is why the margin is "high." ...but things happen. The mattress stores are visible because so many people drive by them every day, McDermott said. Along with Starbucks, drug stores and cellphone carriers, mattress retailers gobble up prime real estate. 2) The average lifespan of a mattress is 8 to 10 years. Are they money laundering fronts? I don't live in a crummy area; but seriously, wtf? Cookies help us deliver our Services. So, are you sure your not pissed that folks bought the less expensive option. How many mattresses can you sell in a day to make a store like that profitable? And it’s not just Chicago. Our Services or clicking I agree, you agree to our use of cookies these standalone mattress?. 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