We have affiliate relationships where we are paid a commission on sales through some of our links. See our disclosures.

why so many mattress firms and how do they stay in business

Why So Many Mattress Firms And How do They Stay in Business

The mattress industry, though seemingly niche, is a vast and diverse market. With a profusion of mattress firms and storefronts, one can’t help but wonder: why are there so many mattress firms, and how do they manage to stay profitable? In this comprehensive analysis, we take a deep dive into the dynamics of the mattress industry to answer these burning questions.

Business Strategy of Mattress Firms

Mattress firms operate on a two-fold strategy: ensuring wide accessibility and offering a broad range of choices. With a high number of stores, they reduce the effort for the customer, while the diverse product lineup caters to various sleep preferences and budgets. It’s a win-win approach that helps these firms thrive.

Why Are There So Many Mattress Firms?

The reason why there are so many mattress firms can be attributed to several key factors.

Firstly, the exponential growth of the mattress industry is a result of consumers prioritizing the significance of quality sleep for their overall well-being. This burgeoning demand has enticed more businesses to enter the market and address the sleep needs of customers.

Additionally, the mattress market experiences fierce competition, compelling mattress manufacturers to search for innovative ways to set themselves apart and expand their market presence across different locations. As a result, numerous mattress firms have established multiple stores across various regions, strategically aiming to make their products more readily available to a diverse customer base.

Furthermore, the diverse preferences among consumers regarding mattress types, materials, and firmness options have stimulated the expansion of mattress companies. They strive to offer an extensive variety of products to cater to various sleep requirements and individual preferences, enhancing their appeal to a wide-ranging clientele.

Lastly, some mattress firms have adopted strategic expansion plans, encompassing acquisitions of smaller retailers, to consolidate their market position and capitalize on economies of scale.

Financial Aspects of the Mattress Industry

Revenue of Mattress Firms

Despite a highly competitive market, mattress firms generate substantial revenue. The considerable markups, often reaching 40-50%, enable these firms to make good money and maintain healthy profits. This strategic pricing approach enables them to maintain a profitable position in the industry.

Profit Margin of Mattress Stores

The profit margins of mattress stores are typically high, ranging from 15% to 50%. The sizable margins come from markups and the fact that mattresses are a long-term investment for consumers. This favorable profit margin allows mattress retailers to sustain their business and invest in enhancing customer experiences.

Overhead Cost for Mattress Stores

While profit margins are high, so are overhead costs. However, mattress stores manage these costs by keeping inventory lean and often drop-shipping products directly from manufacturers. This way, they help them optimize operational efficiency and mitigate excessive expenditures, contributing to overall profitability.

Cost Structure of a Mattress Firm

The cost structure of a mattress firm involves manufacturing costs, overheads, marketing and distribution expenses. By carefully managing these cost components, mattress firms can ensure a streamlined and financially sustainable business operation.

High Markups in the Mattress Industry

The high markups in the mattress industry can be attributed to the value-added services provided, such as free delivery, trial periods, and warranties, which justify the premium pricing. These additional services contribute to fostering customer trust and loyalty, enabling mattress firms to remain competitive in the market.

Consumer-driven Innovation

Another thing that makes mattress stores profitable is the ability to stay ahead through constant consumer-driven innovation. Companies invest in research and development to introduce new materials, technologies, and sleep-enhancing features. This way, they are providing unique selling points that attract discerning customers willing to pay a premium for superior products.

The Profitability of Mattress Stores

Are Mattress Stores Profitable?

Yes, they typically are. Thanks to the combination of high markups and consumer willingness to invest in quality sleep products, mattress stores usually enjoy good profits.

are mattress stores profitable

Mattress Store Franchise Profitability

Operating on a similar model as independent stores, franchise-based mattress outlets also tend to be profitable despite the initial franchise fees. The brand recognition and established business practices offered by the franchisor support the potential for sustained profitability.

Sales Volume in Mattress Stores

While individual mattress sales may yield significant profits, maintaining a steady and consistent sales volume is crucial for offsetting operational costs and ensuring long-term profitability. Stores that can effectively attract and retain customers through marketing, customer service, and product variety can achieve the desired sales volume to support their financial success.

Diversification and Upselling Strategies

Mattress stores often employ diversification and upselling strategies to maximize revenue per customer, and make more money. By offering a range of sleep-related products, such as pillows, bedding, and accessories, they can increase the average transaction value and maximize revenue per customer, thereby strengthening their bottom line.

Seasonal and Promotional Campaigns

Implementing well-planned seasonal and promotional campaigns can also boost mattress store profitability. Capitalizing on peak shopping periods, holidays, and special events allows stores to attract more customers and create a sense of urgency for making purchases, leading to increased sales and overall profitability.

Efficient Inventory Management

Effective inventory management is critical for mattress stores to maintain profitability. By closely monitoring sales trends and consumer preferences, they can optimize their inventory levels, reducing carrying costs and minimizing the risk of obsolete stock. This ultimately helps them save money and increase profitability.

mattress store

Industry Analysis

Mattress Industry Analysis

The mattress industry’s growth maintains a consistent and upward trajectory, bolstered by the increasing recognition of the importance of sleep health and the continuous introduction of innovative sleep products. This positive trend reflects consumers’ heightened emphasis on investing in their well-being and driving the demand for high-quality mattresses and sleep solutions.

Mattress Industry Growth Rate

Over the past decade, the mattress industry has experienced a consistently positive growth rate, albeit with slight variations across different periods. This growth can be attributed to the evolving consumer preferences, coupled with an increasing focus on holistic well-being, where consumers acknowledge the significance of investing in high-quality sleep products.

Role of the International Sleep Products Association (ISPA)

ISPA plays a vital role in the mattress industry by providing essential data, valuable resources, and dedicated support to companies within the sector. This active involvement facilitates the maintenance of industry standards and serves as a catalyst for promoting innovation throughout the mattress market.

Mattress Sales Statistics

The global mattress market boasts a substantial value of $30.81 billion, a figure set to surge to an impressive $64 billion by the year 2030, highlighting a robust growth trajectory. In the United States alone, an estimated 36 million mattress transactions occur annually, underscoring the significant demand.

While innerspring mattresses maintain their popularity as the most frequently purchased option, consumer preferences lean towards memory foam mattresses, with a remarkable 66% of individuals favoring this innovative foam type.

The mattress industry plays a vital role in the economy, providing livelihoods for over 75,000 American workers who contribute their skills and dedication. Reflecting the evolving retail landscape, a substantial 54% of consumers now opt for the convenience of online purchases rather than traditional in-store shopping experiences.

Alarming environmental concerns come to light as a staggering 50,000 mattresses are discarded daily in the United States, highlighting the need for sustainable solutions. The potential for positive change is significant, as more than 75% of mattresses are recyclable, yet only a mere 5% actually undergo the recycling process.

The Role of the Consumer

Pricing Strategies of Mattress Firms and the Consumer

Pricing strategies in the mattress industry are intricately tied to consumer behavior and their willingness to invest in quality sleep products. As consumers increasingly recognize the importance of a good night’s rest, mattress firms adapt their pricing to cater to this demand. This way, they are striking a delicate balance between affordability and the perceived value of their offerings.

Customer Preferences and Buying Behaviors

In the dynamic mattress market, customer preferences act as a guiding compass for product development and marketing efforts. With an increasing focus on health and sustainability, consumers show a strong inclination towards eco-friendly mattresses that promote overall well-being and environmental consciousness.

mattress firms

The Impact of Online Reviews

The pervasive influence of online reviews cannot be understated in shaping consumer choices within the mattress industry. As potential buyers increasingly rely on the experiences and opinions of fellow customers, mattress firms prioritize delivering exceptional products and services to garner positive reviews and maintain a favorable online reputation.


Despite the large number of players, the mattress industry remains profitable thanks to its unique business model, high markups, and the importance consumers place on sleep quality. As we look to the future, we can expect even more innovation and customization in the offerings from mattress firms.

Frequently Asked Questions (FAQ)

Why are there a lot of mattress stores?

There are a lot of mattress stores due to the significant demand for mattresses and sleep-related products as people prioritize better sleep and overall well-being, leading to a competitive market with many companies striving to cater to diverse consumer preferences.

How do mattress stores stay in business?

Mattress stores stay in business by offering a wide range of mattresses to cater to different customer needs, providing exceptional customer service, and adopting effective marketing strategies to attract and retain customers in a competitive industry.

Why is the mattress industry so shady?

The mattress industry has gained a reputation for being shady due to deceptive marketing practices, hidden fees, aggressive sales tactics, and a lack of transparent information on product materials, making it challenging for consumers to make informed choices.

What role does customer service play in the success of mattress stores?

Excellent customer service is crucial for mattress stores as it fosters customer loyalty, positive reviews, and word-of-mouth referrals, which can significantly impact their long-term profitability.

How do mattress firms stay relevant and adapt to changing consumer preferences?

Mattress firms stay relevant by conducting market research to understand shifting consumer preferences and continuously updating their product offerings to match the latest trends and innovations.