I would respectfully disagree that the cost to mfg. a mattress is drastically different.
Your pricing is completely off. You can buy organic cotton fabric for as low as $6 that is 100% organic cotton certified by GOTS and you buy can knit fabrics for $12. It isn't that simple of a comparison. If you were in manufacturing, you would know, but it is easier to come up with a marketing gimmick. Tuft and Needle buys from a manufacturer and resells it just like Sit 'n Sleep, Mattress Firm, Sleepy's, etc.
Why do you say “about 2 pounds” as the density? This sounds like cop out. You are probably using 1.8 and some 2 pound. Be open and honest so people can make an educated buying decision.
You don't agree that those are good comps. How about these?
A queen Ikea is $329 for 2.2 pound foam and a ½” thicker. (http://www.ikea.com/us/en/catalog/products/00139813/) Where Tuft and Needle is $399 for a supposedly 2 pound foam. Surprisingly, most IKEA mattresses are made in the US so don’t give the made in China routine on this.
Serta at Sleepy's is $299.99 (http://www.sleepys.com/en/Sertapedic-Caine-Firm-Mattress_109...). Even if they were using a lower density, how could they be marking this 1,000% as Tuft and Needle states. Sealy has one that is 5 ¾” thick for $299.99 at Sleepy’s (http://www.sleepys.com/en/Sealy-Austin-Creek-Plush-Mattress_...).
Why is Tuft and Needle $100 more than the name brands which are made in the USA, too? Don’t give me the density because like Sealy and Serta, Tuft and Needle won’t disclose density. For sake of argument, let’s say Sealy uses a 1.2 pound and Tuft and Needle uses 2 pound foam. There is 200 board feet in a queen mattress and the cost per board foot between 1.2 and 2 pound is 25 cents. The added cost would be $50 in raw material.
This is untrue; “Tuft & Needle was founded to offer boutique-quality beds at a fraction of the cost. You shouldn't have to overpay for a good night's sleep.” Tuft and Needle is nowhere close to a boutique bed.
Finally, prove to me that mattress stores markup the mattresses 500%. If you look at Mattress Firm's 10K Report, you will see that there GM is nowhere near that. In 2012, they had sales of $1,007,337,000 with a COGS of 614,572,000. That is a 64% markup. No, sales and marketing are not included in this. They spent 245,555,000 on sales and marketing. Tuft and Needle needs to get the facts straight.
Your pricing is completely off. You can buy organic cotton fabric for as low as $6 that is 100% organic cotton certified by GOTS and you buy can knit fabrics for $12. It isn't that simple of a comparison. If you were in manufacturing, you would know, but it is easier to come up with a marketing gimmick. Tuft and Needle buys from a manufacturer and resells it just like Sit 'n Sleep, Mattress Firm, Sleepy's, etc.
Why do you say “about 2 pounds” as the density? This sounds like cop out. You are probably using 1.8 and some 2 pound. Be open and honest so people can make an educated buying decision.
You don't agree that those are good comps. How about these? A queen Ikea is $329 for 2.2 pound foam and a ½” thicker. (http://www.ikea.com/us/en/catalog/products/00139813/) Where Tuft and Needle is $399 for a supposedly 2 pound foam. Surprisingly, most IKEA mattresses are made in the US so don’t give the made in China routine on this.
Serta at Sleepy's is $299.99 (http://www.sleepys.com/en/Sertapedic-Caine-Firm-Mattress_109...). Even if they were using a lower density, how could they be marking this 1,000% as Tuft and Needle states. Sealy has one that is 5 ¾” thick for $299.99 at Sleepy’s (http://www.sleepys.com/en/Sealy-Austin-Creek-Plush-Mattress_...).
Why is Tuft and Needle $100 more than the name brands which are made in the USA, too? Don’t give me the density because like Sealy and Serta, Tuft and Needle won’t disclose density. For sake of argument, let’s say Sealy uses a 1.2 pound and Tuft and Needle uses 2 pound foam. There is 200 board feet in a queen mattress and the cost per board foot between 1.2 and 2 pound is 25 cents. The added cost would be $50 in raw material.
This is untrue; “Tuft & Needle was founded to offer boutique-quality beds at a fraction of the cost. You shouldn't have to overpay for a good night's sleep.” Tuft and Needle is nowhere close to a boutique bed.
Finally, prove to me that mattress stores markup the mattresses 500%. If you look at Mattress Firm's 10K Report, you will see that there GM is nowhere near that. In 2012, they had sales of $1,007,337,000 with a COGS of 614,572,000. That is a 64% markup. No, sales and marketing are not included in this. They spent 245,555,000 on sales and marketing. Tuft and Needle needs to get the facts straight.