The world of retail mattresses is full of ads promoting queen-size sets for as little as $199. These are usually found in so-called outlet stores, but are still sometimes found in department stores. Another similar ad might offer “all sizes starting at $99 each.” These ads are perfect examples of “loss leaders.” I say it’s time for mattress retailers to douse the dying embers of ridiculous mattress “loss leaders.” Today’s consumer is well beyond the level of intelligence that retailers are aiming for with those types of ads. Everyone knows you’re not going to get a good night’s sleep on a $199, $299, or $399 queen mattress set. Mattress retailers are doing themselves a disservice by continuing to use this supermarket technique to try to attract customers who buy to “sleep.”
Wikipedia defines “loss leader” as “a product that is sold at a low price (at or below cost) to stimulate other profitable sales. It is a kind of sales promotion, in other words, marketing that focuses on a pricing strategy. Price can even be so low that the product is sold at a loss. A loss leader is often a popular item.” Pop (soda for Midwesterners) is a prime example. Supermarkets often offer six packs of popular soda brands for $1.99. Sugar and milk are often sold at or below cost to attract shoppers to their stores with their colorful advertisements and full-page newspaper advertisements. Razor handles are another great example. They are often given away or sold at a loss, knowing that the replacement blades will later be sold at large profit margins. The loss leader technique for supermarkets and pharmacies works well and for them I see no integrity issues and therefore no issues. They are using the technique to lure customers into the store where they will buy other products that will be sold at higher profit margins that will compensate the “loss leader”.
Mattress retail stores are selling “sleeping.” “Quality” sleep can be achieved if the mattress is comfortable and supports your back. Having sold mattresses for almost twenty years, I can tell you that there are no $199 to $399 mattress sets that will adequately support two adults. Most cannot adequately support a single mature adult unless it weighs 100 pounds or less. Comfort in that price range is impossible to achieve unless add-ons like feather beds or expensive foam pads are placed on top of the mattress. The shelf life of such an inexpensive product will be one to three years maximum. The tossing and turning in response to the pressure of the coils in these mattresses will be intolerable and sleep will be short-term and ineffective, rather than quality deep sleep.
Mattress retailers that continue to engage in the loss leader practice today are damaging their reputations, destroying their integrity and instilling a lack of consumer confidence that they have come to fear throughout the buying process. Retailers who engage in this practice are viewed with the same level of disdain as car dealers who advertise a vehicle below cost and then tell consumers they sold it a few minutes ago. It’s “bait and switch” in disguise. These low-end “loss leader” mattresses will invariably be placed in an inconvenient back corner of the store. They can be on a shelf instead of a frame and base. They may need to be thrown on the floor for the customer to try. They are probably not in stock and will have to be ordered a week or two later. They can even show body prints after just a few days on the floor, and yet they are left there to show off. Sales staff are told not to disparage the product. The staff is supposed to say “this is a great product for the price”. In effect, the salesperson is told to wait for the customer to request an upgrade to a better product, relieving the retailer of the “bait and switch” accusation. As long as the client requests the step forward, it is not “bait and switch”. I guess it all depends on the definition of “is”. The undercover technique is easily recognized by the customer and the retailer has lost his customer’s trust.
The other negative effect of low-end “loss leader” advertising is the fact that you’re telling your customers up front that they may only have to spend $199-$399 for a decent mattress set. They have the money and they come expecting to ease the discomfort they experience in their current bed. Sleep-deprived customers walk in, look at the product and find they need to finance or come back months later having saved more money. The disappointment and embarrassment they feel will likely drive them to another retailer the next time.
All the retailers blame each other for the continual “loss leader” announcements. “We have to do it, or we lose business,” they say. “If everyone else is jumping off the bridge, do you need to follow them?” The other excuse that is often heard is that there are many customers who can only pay that price. Those customers will keep coming back for you. They will ask for it, even if they don’t see it in the ads.
It’s time for mattress retailers to wake up. Today’s consumers are shopping for a good night’s rest. They are more sleep deprived than ever. Sleep deprivation and “loss leader” hype in the mattress world breeds frustration, disappointment and anger. Late fixes for the sleep deprived are dangerous for all of us.
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