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Marketplace did a story on exactly this phenomenon: http://www.marketplace.org/2016/05/02/world/why-are-there-so-many-mattress-stores http://www.marketplace.org
by RankingMember 10y ago
Marketplace did a story on exactly this phenomenon:
http://www.marketplace.org/2016/05/02/world/why-are-there-so-many-mattress-stores http://www.marketplace.org/2016/05/02/world/why-are-there-so...
To sum it up:
"Mattress stores have low overhead, low labor costs and higher-than-usual profit margins, Sam Woods said, Senior Vice President of Sales and Operations for Mattress Firm.
“If you sold three or four beds a day, and your average ticket is $1,000, that’s a $4,000 day, times 365. All of a sudden you’ve got more than a million-dollar business there,” he said."
- gozur88 10y agoFurniture items of all types have a large markup. It's because volume is so low and as a shop owner you have a lot of money tied up in inventory.