Retail Observer

RETAILOBSERVER.COM JUNE 2015 60 M attress retail has long been the saving grace for independents seeking a product with a healthy profit margin. But things have become more complicated of late. When consumers open their local papers, turn on their televisions, or type "mattress" into their search engines, they are inundated with "save" offers and bargain-basement prices. While Big Box stores will sacrifice margin to drive volume, independents need to take the high road by positioning themselves as sleep specialists. Why? Because better sleep is the feature most desired by consumers in a mattress: 82 percent of consumers said that is important to them, according to a recent Furniture Today report. What's more, almost half of consumers polled in another Furniture Today survey said they planned to spend over $1,000 on a sleep set. So, there's definitely a market for what independent mattress retailers can – and should provide. Some tips to help you succeed in today's retail mattress reality: CARRY THE RIGHT PRODUCT MIX AT THE RIGHT PRICE POINTS The optimal product mix for a typical twenty-bed store looks something like this: • Three to four commodity beds featuring "firm" and "cushion firm" comfort. Market them at an everyday low price. Avoid the Big Box high-low strategy ($1,199, now $599). • Ten to eleven models with varying comfort priced from $999. Advertise them at deeper discounts to generate traffic. • At least three hybrid sleep sets. (These combine a traditional coil base with top layers of high-end foam.) Consumers will pay a higher price for this fast growing category. Except for such key sales dates as Black Friday and Boxing Day Week, maintain their perceived value by not discounting too heavily. • A minimum of three types of specialty mattresses: memory foam, gel- infused foam or latex foam. These are premium goods and should be priced accordingly. No deep discounts are necessary. • At least three – ideally more! – adjustable bases offering the main features customers expect: head adjustment, head and feet adjustment, massage, and/or music through Bluetooth ® speakers connected to a phone or media player. These bases are easy add-ons requiring no extra floor space. Simple head-adjustment bases can sell for a reasonable $999 at great margins. CAPITALIZE ON ACCESSORIES AND NICHE PRODUCTS TO BOOST MARGIN AND YOUR REPUTATION Washable wool comforters, specialty linens, heating and/or cooling mattress pads, and organic kid products such as crib mattresses, position your store as a complete sleep destination. Offer custom mattress sizes; for example, an RV queen. Obviously, you need a reliable supplier, but custom products are highly profitable – and prestige builders. Many consumers are unaware that the wrong pillow can ruin their sleep. As a sleep specialist, you need to help them correct the error of their ways. Carry a selection of high-end premium pillows with a range of fills, foams and feels – and price them identically. This makes the purchase decision solely about pillow comfort and avoids forcing customers to "settle" for the wrong pillow because of price. Don't shy away from niche pillows – water pillows, buckwheat-filled pillows, pillows with built-in speakers, etc. They are more expensive, higher margin, and position you as the "go-to" store for hard-to-find sleep accessories. Does your customer suffer from asthma or allergies? Is she concerned about mites or bed bugs? Mattress covers provide more than stain protection; they offer the reassurance of a healthy sleep environment. SELL BEST, BETTER, AND GOOD Reverse the traditional sales order of "Good, Better, Best." Showing a selection of "Best, Better and Good" beds subtly indicates that you make no assumptions about what a customer can afford – and will ultimately increase your average sale. It is always easier to step down in price when you start from the "Best" position. CREATE THE OPTIMAL SLEEP EXPERIENCE Does your customer sleep hot, cold? Improved bed technologies can help regulate body temperature using foams infused with gel, graphene, even diamonds. Suggest the right combination of linens and toppers, or pads that keep people cooler or hotter and even let couples adjust their individual zone to the right temperature without the risk of electric current flowing between them and their mattress. Do they read in bed? Snore? Does she have heartburn, acid reflux? Ensure that your selection of adjustable bases meets all these needs – and some "nice-to-haves", too! Mattresses are a commodity. Sleep is not. Everyone wants—and deserves—a good's night sleep. With the proper selection and well-trained staff focused on creating the ultimate sleep experience, you can maximize your aver- age sale, profitability, and customer satisfaction. Blair Macdonald Furniture Trends Blair Macdonald, Product Manager, Bedding Cantrex Nationwide ZZZZZ… IT'S ALL ABOUT A GOOD NIGHT'S SLEEP! RO

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