Take a look at what is going on here. These guys are blowing a hole in the side of a high margin industry with a stick of dynamite and cleaning it up with their money catching machine Tuft & Needle.
The "you get what you pay for" point underscores the brilliance of Tuft and Needle's entrance into the market.
You must understand that there are industries, like mattress retailer, that have operated on artificially high margins for generations.
If you look at The company's competitive positioning you will see that they are vertically integrated, lean, and willing to blow apart the competition.
When 2 individual walk into the car dealership and separately buy an identical car. one pays full sticker, markup and a warranty. The other pays $100 over invoice. They both got the identical car; did they both get what they paid for?
I am impressed with the company's story and model. They are going to do well in the mattress business for a long time to come.
I bought a california king tempurpedic mattress from sharper image in 2003. It set me back about 1500 and at that time the other mattress manufacturers were not in the memory foam market. Today, the mattress performs impecibally.
The 5" is suitable because of their foam construction layering and density.
The real deal will be the price point on the 10" model
Sorry but what you are saying does not make any sense at all.
When you are buying mattresses from different brands, it's not the same product but with different label. There is thousands of variations. So basically it's like if your individual were looking to buy two different cars. And I don't think you believe a $10.000 car is the same as a $60.000 car even though the 60K one has way more margin for every stakeholder in the product chain.
And in this case I'm sorry to tell but it is even worse as it is like if they were selling a no-license car vs. a regular car.
The "you get what you pay for" point underscores the brilliance of Tuft and Needle's entrance into the market.
You must understand that there are industries, like mattress retailer, that have operated on artificially high margins for generations.
If you look at The company's competitive positioning you will see that they are vertically integrated, lean, and willing to blow apart the competition.
When 2 individual walk into the car dealership and separately buy an identical car. one pays full sticker, markup and a warranty. The other pays $100 over invoice. They both got the identical car; did they both get what they paid for?
I am impressed with the company's story and model. They are going to do well in the mattress business for a long time to come.
I bought a california king tempurpedic mattress from sharper image in 2003. It set me back about 1500 and at that time the other mattress manufacturers were not in the memory foam market. Today, the mattress performs impecibally.
The 5" is suitable because of their foam construction layering and density.
The real deal will be the price point on the 10" model