Tempur-Pedic’s (NYSE:TPX) new Simplicity product line, which debuts this month, is aimed at consumers who would like to buy a Tempur-Pedic mattress for less than $2,000. At first glance, this is a smart business move for Tempur-Pedic which, up to this point, sells their mattresses and bedding accessories at a much higher retail price that is often unattainable for most consumers. With this new line, Tempur-Pedic hopes to gain entry to a market that is currently occupied by strong online brands providing an alternative at a much lower cost.
Investors and consumers alike may be concerned with this change since it represents a dilution of the lofty Tempur-Pedic brand value. Specifically related to investors, it also illustrates how reputable online companies are the Achilles heel of Tempur-Pedic.
Tempur-pedic’s juiciest secret
You might be asking yourself how Tempur-Pedic is able justify the low price of the Simplicity Mattress line. Wondering the same thing ourselves, we’ve discovered the truth about the materials inside the mattress. It was no easy task either. Multiple calls to retailers and directly to Tempur-Pedic yielded no results. Representatives, notably from Tempur-Pedic, were at a loss for details. We were finally given an alternate number for “specialists” for the Simplicity line. Only after lengthy discussion did the Tempur-Pedic specialists reveal that the memory foam in the Tempur-Pedic Simplicity mattress has a density of 2.5lb.
Only after lengthy discussion did the Tempur-Pedic specialists reveal that the memory foam in the Tempur-Pedic Simplicity mattress has a density of 2.5lb.
This is a huge area of concern that Tempur-Pedic would use such quality in their mattresses after touting quality through higher density. What is also concerning is that they employee a team of “specialists” and would otherwise not inform the consumer of what they’re actually paying for.
How does the Simplicity mattress line compare with what is offered by reputable online companies?
With the new line, Tempur-Pedic aims to compete with the pricing of an online company. However, it’s important to note that the price is the only competing element. Reputable online companies, due to the reduction in overhead, are able to offer both a high quality product and a highly competitive price.
What does the Simplicity mattress line mean for Tempur-Pedic branding?
The Simplicity mattress line represents a detriment to the Tempur-Pedic brand. It’s a low density foam product being sold at sky-high margins to uninformed consumers. It would, in fact, be difficult to find a more damaging route for Tempur-Pedic to take in terms of reputation and branding.
In summary, Tempurpedic is doing their potential customers and investors alike a disservice by providing a substandard product with less-than-desirable materials while keeping them in the dark. Our aim is to inform unknowing customers that may otherwise see the price of the Tempurpedic Simplicity mattress as attractive then end up making a mistake about something as important as their sleep health.
Read our follow up article, The truth about memory foam mattress density, that discloses the truth about memory foam density and why it matters to you as a consumer.