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Bedmax Are Driving Down The Cost Of Mattresses

Bedmax Are Driving Down The Cost Of Mattresses

Submitted by • October 19, 2012

The quality and the cost of the product is their most important focus. Bedmax feels that as technology changes it provides opportunity to keep cost down. Bedmax contracts with both international and domestic manufacturers to make their products as they focus on keeping expenses low. When a company like Tempur-pedic spends over 30% on their “Selling General and Administrative” (400 million annually) (Yahoo Finance) , people forget that the $400 million expense is reflected in the cost of the new mattress. In addition, they have to make a profit of 25-30% to keep their stockholders happy, so there is already a 40-60% mark-up on the mattress by the time it is sold to retailers. The retailer then runs expensive traditional marketing such as Sunday newspaper ads, TV and radio commercials to get people to just walk in their door--costing as much as 25% ($100 - $300 per customer) of the retailer’s cost of the mattress.

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Voted by AgnerGreen

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