Adam Tishman, co-founder of Helix Sleep, breaks down the typical manufacturing costs and retail markups in the traditional mattress industry.
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“What you see in the traditional retail world is markups can range from multiple hundred percent markups. So what costs anywhere from two to four or 500 dollars to make could be sold at a retail store for 3000 dollars.”
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More from Adam Tishman
Opinion
Helix Sleep considers traditional physical retailers its primary competitors, not online brands
“Our biggest competitor are the people think it's the online players, but it's honestly the, it's sort of the traditional retailer. So sleepies mattress.”
Adam TishmanAug 27, 2016▶ 23:49EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
Insight
Audio advertising works well for non-impulse, long-lead mattress purchases
“I think when you think about our category, it's a longer term, longer lead purchase. So people, you know, it's not an impulse driven purchase and it's also something that you're not really buying unless you're in the market for it. And so we find audio to be a…”
Adam TishmanAug 27, 2016▶ 6:36EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
AssertionNot checkable as stated
Helix Sleep charges $900 for a mattress retailing up to $3,000
“And so whether you get a firmer mattress, a softer mattress, a more supportive one from us, We charge the same price to the consumer, which is for a queen size, 900 dollars. That product at a retail store would cost closer to two to 3000 dollars, so we're real…”
Adam TishmanAug 27, 2016▶ 2:40EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
AssertionNot checkable as stated
Helix Sleep has averaged double-digit month-over-month growth since its launch
“You know, we've averaged since launched well into the double digit growth month over month.”
Adam TishmanAug 27, 2016▶ 5:00EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
AssertionNot checkable as stated
Helix Sleep custom builds every mattress and holds virtually no inventory
“We actually custom build everything, and so we don't really hold any inventory.”
Adam TishmanAug 27, 2016▶ 9:05EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
AssertionSupported
Helix Sleep raised a seed round of just under $1 million
“The seed round was just sub a million dollars.”
Adam TishmanAug 27, 2016▶ 10:16EP 399: $1m+ Mattresses Sold using Toptal.com with Adam Tishman of HelixSleep
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