Want to get into bed? (wink)
Mattress markets take it easy bud.
Love these margins: you give me $3k, I spend $300 to create, and pocket $2700.
A boring biz 🧵
Mattress markets take it easy bud.
Love these margins: you give me $3k, I spend $300 to create, and pocket $2700.
A boring biz 🧵
Bought a bunch of new beds for my house.
Got pissed at the difference in cost. $3k for Tempurpedic. $300 for in a box.
Went down to Amigos furniture to see what's up.
Got pissed at the difference in cost. $3k for Tempurpedic. $300 for in a box.
Went down to Amigos furniture to see what's up.
I mean why are mattress stores on every corner, they're like pawn shops.
And I KNOW those pay well.
So my homie at Amigos broke down the boring biz for me.
And I KNOW those pay well.
So my homie at Amigos broke down the boring biz for me.
First - Big fat juicy margins:
- $3,000 mattress might only cost $300 to manufacture — 900% markup
INTERESTING PART...
- 40-50% markup even for resellers
- especially on 2-3rd tier knock off brands
- $3,000 mattress might only cost $300 to manufacture — 900% markup
INTERESTING PART...
- 40-50% markup even for resellers
- especially on 2-3rd tier knock off brands
Problem in mattress land:
- it's all marketing
- R&D is largely rip off and duplicate
- no one knows what is in their mattress
- it's all marketing
- R&D is largely rip off and duplicate
- no one knows what is in their mattress
Opportunity:
- reselling locations surprisingly popular
- most of American doesn't buy beds in boxes
- biz model just like a car lot
- prices not fixed, everything is a negotiatoin
- reselling locations surprisingly popular
- most of American doesn't buy beds in boxes
- biz model just like a car lot
- prices not fixed, everything is a negotiatoin
So this little Amigo's pulls in $500k+ in profits selling 2nd tier beds.
To people like me, who like to try them IRL.
Why is money everywhere???
What else are we not thinking of on this model?
To people like me, who like to try them IRL.
Why is money everywhere???
What else are we not thinking of on this model?
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