![]() ![]() So I don’t know if I’d consider it greed as much in this particular case. ![]() And yet they still managed to purchase Intellibed. And every company needs to make profits to stay in business- especially a publicly traded one.īut as I mentioned with Purple- despite their costs and unknown profit margins they were still losing money for years - until just the last few months they finally finished a quarter in the green/ positive earnings. Meaning if it costs 1200 to make the mattress in materials, then they need to mark it up to pay for rent, other resources, shipping, etc and pay employees and for the company to put a little aside for future projects (profits). I don’t know if that’s baked into that figure you mentioned though, but I would guess no. Hmmm I don’t know the actual “at cost” for that item- that may be correct and that might be what they buy it at from Intellibed (I’d kinda be surprised) but if they do though, they still have to make profits to pay for overhead and pay out wages. Then again there are different ways to look at “worth”.Įdit: forgot to mention purple was largely unprofitable for years and only managed profits for their most recent quarter - have to see how that plays out. Hopefully in time their prices will eventually start to come down. Not to mention risking patent infringement like what was happening between these two companies. The Purple Mattress, or simply The Purple, is an all-foam mattresswith no springs, that uses Purple’s exclusive grid layer that uses a hyper-elastic polymer. So it’s probably very hard to make a cheaper priced product especially without a large investment to make similar machines. Purple was making the grid mattress far cheaper than Intellibed- but for one, by eliminating layers of grid. It’s also another reason why no one else has really tried to make a product in direct competition. I’m not quite sure how they were manufacturing Intellibed before the acquisition but I’ve read that purple spent many millions developing their own unique machines capable of making their mattresses ( and they built a few - as well as spent more building a new Max version).Ĭombined with cost of patents, all American production and labor costs, the cost of shipping and eating the cost of returned mattresses and growing pains with warranty claims, a few settlement claims ( couple injuries and one death) resulting from their machines, they are considerably more expensive than other products on the market. I think most people don’t realize exactly how much it costs to make a mattress like this. ![]()
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