In a world where finance and pricing are obviously two erratic words today, bed manufacturer Five Star Mattress has followed a different route, trying to become consumer-friendly and cutting down on its retail prices. Just when most companies today are trying desperately to determine how to offset raw materials and operation costs, here is a company that is going the opposite direction.
A professional business expert would call it suicide or perhaps a product of inferior quality. But on a business strategy aspect, it is a brilliant move to capture a majority of the bedding market. Surely it will garner a large chunk of the pie but hopefully, it will not sink its teeth in the overall production cost and provide profits.
“This is not a temporary rollback, but new, more competitive pricing that will rock the industry, providing higher margins for dealers than was ever thought possible,” she said. “We are making a big push to gain additional business. We are the only producer in the industry that is lowering prices.”
(Source) Furniture Today
