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Well now we know why there are so many mattress stores

4,035 Views | 17 Replies | Last: 6 yr ago by johnrth
Diggity
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AG
Major U.S. Retailer Files Suit Alleging Multi-State Real Estate Fraud, Bribery Scheme

Quote:

The country's largest mattress retailer is accusing a host of real estate companies and executives, including its nationwide real estate broker, of a multiyear scheme that involved inflated store rents, bribes, high-priced gifts and kickbacks from developers. The company claims the scheme may have affected more than 800 stores nationwide.
Quote:

The retailer also accused Deitch of supplying undefined kickbacks to Levy and Vinson to secure his deal with Mattress Firm as the master broker. In order to push store growth, the trio presented Mattress Firm's real estate committee with "falsely optimistic sales forecasts" and "misrepresented the projected per-store sales for leases," the lawsuit alleges.
The leadership of this company sounds really bright. I wouldn't be surprised if this is just the tip of the iceberg.

The whole company was bought at a 115% premium last year by some South African holding company. Doesn't sound shady at all.
Serotonin
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Lots of people on swamplot speculated that there was some shadiness involved. The whole "but it's low overhead and high markups!" didn't explain the whole picture.
IDaggie06
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I've never understood how there can be so many mattress stores. Do people buy that many mattresses? I guess one thing the industry has going for it is that most normal people do not want a used mattress unless it is from family.

The local stores should get a Harvey spike but it still seems weird to me there are so many.
Ducks4brkfast
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IDaggie06 said:

I've never understood how there can be so many mattress stores. Do people buy that many mattresses? I guess one thing the industry has going for it is that most normal people do not want a used mattress unless it is from family.

The local stores should get a Harvey spike but it still seems weird to me there are so many.
hey i really think youre onto something
07ag
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theory i heard that made sense to me, was that most people buy a mattress from the nearest store and do little shopping around. so, in competitive markets, have lots of little stores all over the place
E
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The markup on mattresses are ridiculous. You can sell just a few and be profitable.
TXAGFAN
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THere was a freakinomics podcast on this.
The Original AG 76
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E said:

The markup on mattresses are ridiculous. You can sell just a few and be profitable.
The mark up on furniture is unbelievable with mattresses leading the way. It actually is greater than jewelry. The boutique pillow industry is the newest member of the home goods stampede with mark ups that are stratospheric.
Aggie09Derek
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TXAGFAN said:

THere was a freakinomics podcast on this.


This. Worth listening to.
aggiebq03+
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Diggity said:

The whole company was bought at a 115% premium last year by some South African holding company. Doesn't sound shady at all.

Did they overpay with a money order, and then request some cash back when the deal closed?
Al Bula
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Got in on a Caspar before those blew up and couldn't be happier. Hell those are even marked up.
Aggie09Derek
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Just bought a Bear Mattress and I love it. Basically the same as Casper but a bit more firm.

PM me if interested and I think I can get people a referral code to use.
FtBendTxAg
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The Casper mattress is pretty dang firm as it is
Premium
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aggiebq03+ said:

Diggity said:

The whole company was bought at a 115% premium last year by some South African holding company. Doesn't sound shady at all.

Did they overpay with a money order, and then request some cash back when the deal closed?


Laughed. Out. Loud.
zap
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Keep overpaying for mattresses. Why waterbed is still holding up just fine.
88jrt06
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That's "ol Bear" (Barry)!
And a Superior Waterbed.
Ronnie Mund
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If one were to buy a Casper mattress, where could one dispose of a j*zz/pizz stained mattress? Asking for a friend.
YellAg2004
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Ronnie Mund said:

If one were to buy a Casper mattress, where could one dispose of a j*zz/pizz stained mattress? Asking for a friend.
I-45 in the middle of rush hour, duh.
johnrth
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I got in on the casper hype early too. Now there's a bunch of different bed in a box companies. I was looking at Casper's website the other week for a new mattress topper and noticed their beds went up in price. I paid $900 for my king and now they're alike $1,200.
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