Per-month and per-night pricing: Too soft or savvy?
David Perry, Executive Editor -- Furniture Today, January 21, 2007
The problem: We're selling bedding for thousands of dollars, but we don't want to scare consumers off by touting four-figure prices in newspaper ads.
The solution: Find creative ways to break down those prices to more manageable levels.
Houston-based sleep shop Mattress Firm did just that in a recent finance-offer promotion with zero interest for up to three years, taking some high-end bedding prices and turning them into much more attractive prices.
How about $67 for a Simmons Beautyrest Allercare bed? Or $63 for a silk- and wool-cushioned Stearns & Foster model? Or $67 for a Tempur-Pedic sleep set?
Now those prices, touted in big, bold, red type in the Mattress Firm newspaper ad, are accompanied by an asterisk. Those are the prices per month for various periods of time. The Simmons price is per month for one year, the S&F price is per month for two years, and the Tempur-Pedic price is per month for three years.
When you do the math on those queen beds, they price out like this: The Simmons bed is $804, the S&F bed is $1,512, and the Tempur-Pedic bed is $2,412. Those happen to be prices that consumers are willing to pay for a new sleep set, but they also are prices, especially the higher ones, that don't lend themselves to big type in newspaper ads.
It's a smart move to show consumers that those prices aren't as out of reach as they might initially appear.
Mattress Firm's approach is an intriguing one, and we could be seeing more of that type of promoting in the months to come. Let's face it: $67 is a better number to trumpet than $2,412.
Another twist on this approach is the cost-per-night strategy. It's been around for a long time but continues to offer a compelling message to consumers.
A recent perusal of Sealy's Web site (www.sealy.com) turned up several examples of cost-per-night pricing. A $1,300 Posturepedic TrueForm is 35 cents per night based on 10 years use. A $1,600 Posturepedic sleep set is 44 cents per night, and a $1,700 Posturepedic SpringFree is 46 cents per night, both also based on 10 years use, the Sealy Web site says.
When you look at the cost of a bed in those terms, you see how affordable a high-end sleep set really is.
I've advocated touting per-night prices in newspaper ads, but I've been told by some retailers that such an approach is "too soft." Maybe so, but I have to wonder if we shouldn't try some different approaches in today's tough business climate.
What do you think?
Contact David Perry at dperry@reedbusiness.com
