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Interesting story about pricing of mattress and what Sleep Train actually pays for their mattress. I shopped at a local Sleep Train in the I managed to negotiate the prices down to about $800 before taxes. Then I sat there, and watched the guy go to work. At some point, they made a mistake, and managed to put in $732 on the computer, since the guy thought the manager said $800 out the door. Then the person asked a question to the manager, as I happen to glance over. The computer had displayed the following message, "Priced at below 45% margin. Proceed (Y/N)?" That background kind of gave a reference on what Sleep Train and their pals at Mattress Discounters were paying for their mattresses, margins are typically calculated this way: Margin is calculated as: (price – cost) /price = margin. My price was $732, if I assume to margin is 45%, the computer said less, but let’s make the 45% assumption. You can come up with a cost of $402 for the mattress, at least that’s what Sleep Train and Mattress Discounters has paid for it. So, their list price of $1440 is about 3.5 times what Sleep Train actually pays for the beds. For everyone who shops there, remember, the cost to Sleep Train and Mattress Discounters for a Sealy Posteurpedic Reserve Plush model beds (Glen Marie for Sleep Train) is around: $400 for mattress, box, and frame (plus delivery) I ultimately decided not to buy the bed, but hope this information is helpful to other people out there. At least those in the SF Bay area. |
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Mattress retailers typically operate at about 45-50% margin. That's just what the industry is. It's neither right nor wrong it simply is. Not to come off as confrontational but if the message said "Below 45%" it could have been anywhere from 44.9% to 0%. There's no real way to tell simply from that information. -Alex |