Beds

[sprayer]

How much profit is there to be made on a new bed? the reason I ask this is because i have just noticed that *Dreams* bed company sponsor all programs on ITV1 ITV2, and ITV3 from 6am until 6pm that's all day every week day on 3 channels now that cant be cheap!! so where does the money come from.

[tonymclark]

I have to admit that I have never been to a Dreams store, but do they sell only beds, or other things for the bedroom too (lighting, wardrobe, that sort of thing)?

Obviously any company that advertises has to put a mark-up on their items to cover the advertising costs, but I guess if they are competing with the likes of MFI and others, the aim is to sell you the idea that if you are going to buy a bed, you will buy it from Dreams rather than elsewhere.

[Andyvon]

Hi sprayer,

It obviously depends on the price and quality of the mattress and bed. You can buy a cheapy, in which the company make little mark-up, or pay more in which case they make more accordingly.

Several years ago (to my shame) I worked as a salesman for an American bed company called Craftmatic. They specialise in adjustable beds and their most expensive model retailed at �9500! Some people do spend that sort of money on a bed, although most sold for �3000 - �4000. There's quite a good mark-up on those prices.

[nothingnet]

It's worth adding that the company are advertising in order to make a profit, not making a profit in order to advertise. So they might pay hundreds of thousands for TV advertising in the hope of recouping that sum by attracting new customers.

The likelihood is that they're in a situation where they have so few customers that they HAVE to take a massive gamble on advertising. MFI went out of business last year.