About 12 months ago we founded a bed company called Tuft & Needle. The HN community has been a great source of inspiration/education and we're proud to share our progress. We recently reached the #1 "Top Rated" rank in Mattresses and #2 in Furniture on Amazon.com.
Website: https://www.tuftandneedle.com/
Amazon.com: http://www.amazon.com/gp/top-rated/home-garden/3732961/
Problem: Painful shopping experience and extremely high margins in the mattress industry.
Solution: We make a good bed without any gimmicks. It is comfortable, safe and attractive without falsely advertised features or fraudulent discounts.
Business: We launched with a MVP and a simple landing page to test our ideas. Then about 4 months ago, we listed on Amazon and it's caught up to be a significant sales channel on its own. In the last quarter we've had 100% month-over-month growth. We don't spend on advertising, and more than half our sales are from word-of-mouth referrals and social media.
Technical: We take a pragmatic approach with everything including the storefront, sales tools, inventory tracking and fulfillment processes. We use 3rd-party services for payments (Stripe), bitcoin (Coinbase), shipping labels (EasyPost), CRM (Intercom), etc. Stack: Rails+AngularJS+Heroku.
Lesson Learned: Our primary success factor was starting with a rough draft. We didn't like our v1 much—an all cotton tufted mattress—but that didn't keep us from launching with it. This gave us a chance to experiment with problem/solution and to start collecting feedback right away. We had to do quite a few returns at first but we iterated constantly until our customer satisfaction was high enough for us to start getting referrals.
We would really value the community's opinion. We want to get as much feedback as possible to make sure we're going in the right direction.
JT & Daehee at T&N
The website is really beautiful. Well done. It almost makes you feel I have to buy this!!! I think that's the key point.
Because apart from that... well... there's a rule in business that is you get what you pay for. Even if mattress retailers are making a fortune on margins, well you guys also have margins too. And a retail price of $299..to..$499-king tells me that your mattresses are very low end.
So the website is beautiful but very misleading. Like the infographic about the cost of making a mattress. It probably should title it "Here is how a cheap mattress is marked up". Because there is mattresses and mattresses. Tons of variations, fabrics and qualities. And well.. you're not even selling mattresses or at least we don't call that a mattress here ( Spain ) but a mat instead. It is just too thin. Less than half the thickness of a regular mattress. Then of course, the fact that is made of foam only makes it worse as with that thickness it will unavoidable deform with usage. Who tells otherwise is lying or just very new to the business plainly because all foam mattresses deform to some degree.
Then there is the foam density, that I can't see anywhere in the specs. And as you can guess when you import materials the bigger the density the more expensive the foam sheets are. But hey, people today demand cheap prices. But anyways, mattresses these days tend to have lesser foam densities as people want cheaper prices. But of course that comes with the cost of deformability and that's why mattresses these days don't last that much as they used to in the past.
One thing that tells how good your marketing efforts are is that the mattress is foldable. Someone not used to mattress would think: AWESOME. Some used would think, oh no another crappy sofa-bed mat. I'd never recommend anyone to buy a foldable bed unless for an apartment with very low space and of course... for a sofa-bed!
So my summary would be: really well done making attractive a low-end product. The marketing is excellent and you definitely found a market out there. The website is beautiful but well.... you sell what you sell, tons of half-truths on it.