Tempurpedic is selling mattresses for thousands of dollars, latex prices are still high.
Inspite of recession and deflation, why are prices of these mattreses still so high?
what is going on?
So many people are out of jobs and can't afford thing sthey used to be able to do, and still these mattress companies have not lowered their prices?
WHY? |
Mattresses are pretty much recession proof....there like coffins and tombstones, people will always need them. Especially with all the cheaply made stuff that is hocked these days that people need to replace more often then ever. |
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Budgy, it seems like there is not a lot of middle ground in the innerspring market. You have the S brands that all use PU foam, even in their expensive ones (from what I can tell). Then you have higher quality ones, Royal Pedic for example, but they seem to be out of most people's price range. Is there nothing in between that uses high quality materials, but costs around $1,500-$2,500 (except maybe local makers) ? Or is there no way to profitably make a quality name brand mattress at that price? |
I'm not Budgy, and I look forward to his answer, but I'm sure there is a way. Not a will, tho. If they cared in particular, they would have made a better mattress all along. They want them to fail prematurely so they can sell you another one. It isn't the components that are so expensive, it is the mulitple layers of people getting commissions on the sale of mattresses. They are made cheap, with cheap labor and cheap foam, then they have a series of middlemen who profit on the whole shebang. That's what is expensive. Kait |
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This is also a mattress that I do not happen to sell a whole lot of simply because it doesn't carry a big brand name cache, and its not special enough of a product (or good enough) to merit being more expensive ala something like a Royal Pedic. Thats more or less our challenge with this particular bed, but I do think we were successful in terms of what we have at the cost. The other challenge is just like anything else, the people with the knowledge and pockets deep enough to get into manufacturing really high quality goods probably don't want to get involved heavily in the retail market. They prefer people buying indirect in a way because it simplifies everything for them. There are a couple of exceptions I have seen like Gardner and this is probably the only reason their prices are so competitive for what you get, they sell direct. On the other hand, even though they make a good product they don't make anything truly comparable to a lot of the really high end brands either...so there is still that gap in the market place. |
Thanks budgy. I think an aditional issue is that a "good" mattress may not necessarily feel that much better than one with PU foam in a short test in a store. The consumer would have to be knowledgable enough to be willing to pay more for something that will be better over an 8 hour period and over many years. Most consumers would be probably be skeptical if the salesman tried to get them to pay double for something that he says will last longer (even if he is right). So, I guess the mass market will cater to the less informed public until there is a large enough revolt against their products. |
I think what you just said is pretty much on the mark as for why I can't seem to sell to many of them, even if its something I truly believe in :) |
For latexes, and other matress materials, there may be (for manufacturers of them) high fixed costs, and chemical feedstocks and energy prices usually don't go down much in price, and there are are environmental and health / safety costs to mmet USA regulations. The chemical industry is cylical, in terms of demand and salability of the products, but often times locked-in when it comes to costs to produce a chemical, at least in the USA. That's why much of the industry is going offshore: lower feedstock prices, slave and low-wage labor, no enviromental restrictions, little obligation to provide a safe and healthy workplace. This message was modified Sep 1, 2010 by TC2334
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real rubber is pretty expensive. one thing I don't understand is why synthetic latex is so expensive...actually I don't imagine it is, just that people are willing to pay for "latex" regardless of what its made from and its a big cash cow for manufacturers |