Freakonomics Radio

251. Are We in a Mattress-Store Bubble?

Jun 9, 2016
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ANECDOTE

Mattress Stores Clustered Close

  • In Sherrerville, Indiana, five Mattress Firm stores are within a mile of each other.
  • Producer Bill Heeley drove between two stores in just 22 seconds to capture this unusual clustering.
ANECDOTE

Testing Mattresses Thoroughly

  • Customers often don't lie down properly to test mattresses; staff encourage trying them fully.
  • Hayden Snodgrass preferred firm mattresses due to childhood experiences sleeping on floors at grandma's.
INSIGHT

Mattress Stores Have High Profits

  • Mattress stores have exceptionally high markups, often 40-100%, unlike most retail with single-digit margins.
  • Operating costs are relatively low, making mattress retail profitable and encouraging many stores.
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