The Mattress Racket

Oct 1 2012 @ 9:28am

Rohin Dhar exposes it:

The mattress industry is rotten. It’s controlled by a handful of players that make Google-esque margins for no intrinsic reason. Through a combination of an oligopolistic market structure, heavy-handed sales techniques and opaque product naming conventions, mattress manufacturers profit far in excess of the value they provide consumers.

Just a couple of years ago, the founders of Warby Parker set their eyes on disrupting a similarly rotten industry – eyewear. They found an industry where prices and margins were unrelated to the the value the companies were delivering to consumers; just like in the $11.6 BN mattress industry. … The top four companies (Sealy, Serta, Simmons, and Tempur-Pedic) make up 59% of the industry revenue. The top fifteen mattress companies make up a whopping 81% of the market. Low levels of competition lead to consumers paying obscenely high prices for mattresses.