Why Cheaper Isn't Better
Yes, money is tight.
Unemployment is up, expenses have risen everywhere, companies large and small struggle to cut costs - and our business is no exception.
So what do we do, in the mattress industry? How do we react?
Don’t Go Too Far!
Our survey shows that most of you in direct sales talk about the foundation when selling a sleep set. You say a high value foundation is critical to the quality of a sleep set.
And more then two-thirds of you believe that foundations constructed of steel are superior to all wood foundations.
Switch to wood? Sure, you might gain low-end sales now. But at what long-term cost?
If you cheapen the product to hit a price point but you disappoint your customer, what has been gained?
REMEMBER THE CIMARRON?
In the early 1980's, with gas prices rising, Cadillac introduced the Cimarron. It was their version of an "economy car." You have to change with the times, right?
Well, maybe. Resistance started with the sales force, who felt this new "economy car" sullied the company's image of prestige. Dealers who tried to sell wholeheartedly lost core, premium-car market share to eager competitors. First-year sales totaled only 25,968, one-third of Cadillac’s projections.
Today, Cimarron is known NOT as the affordable Cadillac. It’s known as the single least distinguished Cadillac model ever produced. That’s why Cadillac’s current product director has a picture of the Cimarron on his wall captioned, "Lest we forget."
Moral of the Story:
Don't make a Cimarron out of a Cadillac. Stick with what sells, and with what your customers want. Saving a few bucks up front is not worth the money you'll lose if you find you’ve lost customers due to poor product performance.
As for you product managers, stick with steel foundations. Don’t forget the heritage of our industry, and the perception and place wood build-ups have in the market.
It is unanimous. Retail associates and consumers agree - It's steel over wood!
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