How to Start Your Own Mattress Business: A Step-by-Step Guide

So you want to start your own mattress business? It may sound like an unusual venture, but the mattress industry is big business. Americans spend over $15 billion on mattresses each year, and the market continues to grow.

If you have an entrepreneurial spirit and want to tap into this lucrative market, here are some tips to get your mattress business up and running:

Understand the Mattress Market

The mattress industry targets a wide range of customers at varying price points. You'll need to determine if you want to focus on a local, luxury, or mass market. The local and luxury markets typically offer higher profit margins, while the mass market means higher volume. Your target audience could be families, students, athletes, the elderly, or all of the above. Analyze your local competition and see if there are any underserved segments you can target.

Develop Your Product

The most important part of a mattress business is, of course, the mattress. You'll need to determine what types of mattresses you want to sell - memory foam, latex, hybrid, spring, etc. Focus on high-quality, innovative mattresses that provide value to your target customers. For example, you could sell organic latex mattresses, customizable mattresses with different firmness levels for each side, or smart mattresses that track sleep data.

Think about how your mattresses will be delivered to customers. Will you sell mattresses on your own website with free shipping, in a retail showroom, or both? Make the purchasing and delivery process as seamless as possible for the best customer experience.

To develop your products, you'll need to find reputable manufacturers or suppliers to produce the mattresses to your specifications. Work with them to determine the best materials and latest technologies to incorporate into your designs. Your products should be durable yet comfortable, with a reasonable profit margin built in. With a unique, high-value product, your mattress business will be positioned for success.

Economics and Finances

To determine if a mattress business can be profitable, you need to understand the economics. The major costs will be materials and manufacturing. For a basic queen size mattress, the cost of goods sold is typically between $200 to $500. You'll need to factor in additional costs like shipping, marketing, and overhead.

For pricing, you'll want to aim for a 50-100% profit margin over your cost of goods sold. So if a mattress costs $300 to produce, selling it for $600 to $900 would be typical. Higher-end luxury mattresses may have even higher profit margins, up to 200-300%.

Some pricing strategies to consider:
•Premium pricing: Charge a high price to convey quality and luxury. This works well for high-end mattresses.
•Value pricing: Offer high value at a reasonable price. Focus on high quality at a lower profit margin to drive higher volume.
•Bundle pricing: Offer package deals to increase the average sales price. For example, include pillows, sheets, mattress protectors, bed frames, etc.
•Dynamic pricing: Frequently adjust prices based on demand and competitors. Use sales and promotions to keep customers engaged.
•Optional add-ons: Offer additional features or upgrades for an extra charge like mattress customization, extended warranties, white glove delivery, etc. This boosts your profit margin for each sale.

Marketing Your Mattress Business

To reach your target customers and build brand awareness, you'll want to employ several marketing strategies:

•Search Engine Optimization (SEO): Optimize your website to rank highly in search engines like Google for terms like "mattress store near me" or "best memory foam mattress." SEO is key for local search and driving organic traffic.

•Social media marketing: Create profiles on Facebook, Instagram, and YouTube to engage your audience. Post images and videos of your products, share mattress tips, and advertise sales and promotions. Respond to comments and reviews to provide good customer service.

•Content marketing: Develop a blog on your website to establish yourself as an authority in the mattress industry. Write posts about the latest mattress technologies, sleep health studies, and mattress buying guides. This content ranks well in search and builds trust in your brand.

•Email marketing: Start an email newsletter to stay in touch with customers. Send periodic emails with coupons, sales announcements, and company updates. Email marketing has a high ROI and keeps your business at the top of customers' minds.

•Direct mail: For a local mattress business, direct mailers in your neighborhood can be highly effective. Mail postcards or flyers advertising your latest mattress models and current deals. Include a coupon or promotion code to track the response.

•Advertising: Consider advertising on platforms like Facebook, Instagram, and Google to reach new potential customers. Run retargeting ads that follow people after they visit your website. Advertising, when done well, can significantly boost traffic and sales.

•Referral programs: Offer customers incentives to refer friends and family to your business. Referral programs are an easy way to get new customers at a low cost. Provide discounts, free accessories, or other perks for referrals that turn into sales.

•Partnerships: Team up with related local businesses like furniture stores, interior designers, chiropractors, and physical therapists. Cross-promote to each other's customers and co-host events. Partnerships expand your reach and open new opportunities.

Sales Strategies and Processes

To make sales and grow your revenue, focus on the following strategies:

•Educate your customers. Have your sales staff provide information about different mattress types, sleeping positions, and health benefits. Educating customers will make them more confident in their purchasing decision and less likely to comparison shop elsewhere.

•Focus on value, not price. While you need to be price competitive, emphasize the quality, comfort, and benefits of your mattresses. Customers will pay more for a mattress they believe will improve their sleep and health over the long run.

•Build trust. Operate with integrity, deliver what you promise, and provide great customer service. Trust is key to making a sale, especially for a larger purchase like a mattress.

•Close the sale. Train your sales staff in effective closing techniques to seal the deal. For example, ask open-ended questions to uncover any objections, then address them. Offer a special discount or financing for purchasing today. The more you practice closing, the better you'll get at it.

•Provide financing. Offering financing options like 0% APR for 12 months or longer allows customers to pay over time with no interest charges. This makes the mattress more affordable and easier to purchase on the spot. Check customers' credit to determine their eligibility for your financing programs.

•Upsell additional products. Sell related products like mattress protectors, sheets, pillows, and bed frames to increase the total sale price. Your sales staff should be knowledgeable about the benefits of each add-on item to effectively upsell customers.

•Follow up. Call or email customers a few days after their delivery to ensure they're happy with their new mattress. Let them know you're there to answer any other questions they may have. Follow up and providing great after-sales service will make them lifelong customers and advocates for your brand.

•Track key metrics. Closely monitor your sales numbers, traffic, conversion rate, average order value, and customer acquisition cost. Look for trends to determine what's working and not working, then optimize your sales processes for the best results. Sales metrics allow you to make data-driven decisions to improve your business.

Operations and Execution

To run your mattress business efficiently, focus on the following operational areas:

•Customer service. Provide exceptional customer service to keep clients happy and gain new ones through word-of-mouth. Respond to calls and emails promptly, address any complaints right away, and go above and beyond customer expectations. Your customer service team should be friendly, knowledgeable, and solution-focused.

•Inventory management. Carefully monitor your inventory to ensure you have enough stock to meet demand, but not too much that products become outdated. Track sales trends to anticipate how many mattresses you'll need to order from suppliers. Keep some extra inventory on hand for your most popular models.

•Delivery and logistics. Work with a delivery service to get mattresses to your customers on time and in perfect condition. Choose a company that is experienced in delivering large and heavy items. Make the delivery and set-up process as seamless as possible for the best customer experience. Your delivery team should provide white-glove service including removing the customer's old mattress.

•Staffing and training. Hire knowledgeable salespeople, customer service reps, and managers to run your day-to-day operations. Provide ongoing training about the latest mattress technologies, sales techniques, and customer service best practices. Motivate your staff with commissions, bonuses, and a positive work environment.

•Accounting and finance. Set up a system to properly manage cash flow, accounts payable and receivable, payroll, taxes, and other financial areas of your business. Work with an accountant to ensure you remain compliant and optimize your profits. Closely track key metrics like your profit and loss statement, balance sheet, and cash flow projections.

•Administration. Handle other administrative tasks such as maintaining business licenses and permits, insurance policies, vendor contracts, and an organized filing system. Set clear policies and procedures to improve productivity and efficiency. Provide resources for your staff to do their jobs properly. Strong administration and organization will set your mattress business up for success.

Legal Requirements

Be sure to research all legal aspects of starting and operating a mattress business. Requirements vary in different areas, so check with your local municipality and state. You will likely need certain business licenses and permits to manufacture, sell, and deliver mattresses. There are also regulations around properly disposing of used mattresses. Federal law requires mattress companies to meet flammability standards for fire safety. Consult a business attorney to ensure you meet all legal obligations before launching your mattress business.

In Summary

Starting a mattress business can be highly rewarding if you go in with a well-developed plan. Identify your target market, create innovative and high-quality products, and implement effective marketing and sales strategies to reach customers. Focus on providing an excellent customer experience through quality service and logistics. Manage costs, optimize profits, and meet all legal requirements to establish a successful mattress company. With hard work and persistence, you can build a thriving mattress business from the ground up.