Summary
Mark and Mike discuss how holiday promos, like Black Friday and Cyber Monday, have significantly reshaped mattress retail, and how brands and retailers can use them to maximum effect. They explore value-building offers, financing, adjustable bases, creative marketing beyond discounts, and more.
Key Take-Aways
Black Friday and Cyber Monday have become major mattress-selling events. Online brands helped bring those promotions into the category and traditional retailers followed, making these two of the industry’s biggest promotional holidays.
The choice of whether to participate in holiday promotions resembles the prisoner’s dilemma. Collectively, the industry would be far better off if no one emphasized seasonal promotions —sales would be spread out more evenly through the year, and the reduced emphasis on promotion would allow retailers to focus their marketing on building value in their store, their products, and the category. But just like in the prisoner’s dilemma, for any given retailer the choice to abstain from holiday promotions only yields a positive outcome if their competitors (the “other prisoner”) choose the same path. This dilemma prevents both sides from making the choice that is in the collective best interest.
Holiday discounts often shift sales rather than create new demand. Retailers feel pressure to participate because competitors may capture the business otherwise, but these promos differ from advertising that gives consumers a new reason to consider a mattress.
Mattress retail is seasonal, especially around promotions. For many retailers, it has become more meaningful to compare sales by holiday periods rather than calendar months, since holidays such as Labor Day fall on different dates each year.
Promotions can build value without matching the discount dollar for dollar. Bundles, pillows, sheets, accessories, or store credit can make an offer feel worthwhile while costing the retailer less than an equivalent price reduction.
Financing can attract shoppers, but it comes at a cost. While it can be a powerful promotional hook, longer financing offers can eat into retailer profits, especially as interest rates rise.
Show Notes
Shout-outs (in no particular order): Chicago Cut Steakhouse, Ryan Bailey (VP Mattress World Northwest), Vernon “RJ” Williams (Jacksonville Bedding Mattresses & More)
Click here to check out the Imagine.io Mattress Builder mentioned in this episode!