Most of the debate seems to have centered on perception vs. price, with some very amusing points.
It seems clear that by vertically integrating they have cut out a huge chunk of price to the end-consumer. This point in particular has zero to do with mattress quality.
This also happened a few years ago in the diamond industry. Online retailers cut out the expensive jewelry chains with their 1000% markups and sold directly online at cost + 20%. As diamonds can all be graded and compared accurately we can see how for exactly the same quality you can get something for much less.
New models can maintain quality and reduce cost. It happens all the time. The main proponents of the price = quality concept are marketers who are really hoping you will pay up.
I also find it interesting that one the main critics on this thread happens to be a middle-man who stands to lose his shirt because of T&Ns business model. I feel for you, man.
Lastly, I just wanted to congratulate the T&N team on a great success in a crowded space. Great example of the lean startup. Very impressed also that advertising is $0. Wish you all the best in the future!
It seems clear that by vertically integrating they have cut out a huge chunk of price to the end-consumer. This point in particular has zero to do with mattress quality.
This also happened a few years ago in the diamond industry. Online retailers cut out the expensive jewelry chains with their 1000% markups and sold directly online at cost + 20%. As diamonds can all be graded and compared accurately we can see how for exactly the same quality you can get something for much less.
New models can maintain quality and reduce cost. It happens all the time. The main proponents of the price = quality concept are marketers who are really hoping you will pay up.
I also find it interesting that one the main critics on this thread happens to be a middle-man who stands to lose his shirt because of T&Ns business model. I feel for you, man.
Lastly, I just wanted to congratulate the T&N team on a great success in a crowded space. Great example of the lean startup. Very impressed also that advertising is $0. Wish you all the best in the future!