Most Presidents’ Day sales just wrapped across the industry. While there may be a few still hanging on to entice stingy consumers to part with some presidential portraits — a.k.a. cash — in exchange for a new mattress and adjustable bed base, most have closed the door on the holiday sale.
I’ve heard mixed results, but most have chimed in that the sales period was less than stellar. That was feedback from an industry in need of juice, by most accounts. It’s hard to pinpoint the why after coming off the appearance of a strong winter market in Las Vegas and upbeat attitudes across the board.
The other common refrain: The industry has fallen back into its reliance on key selling periods tied to holidays. Presidents’ Day kicked off the year, and now, most sleep retailers are anxiously looking forward to Memorial Day to launch into summer with another three-day weekend to help swing doors and log sales.
The months between those key selling holidays are quiet. I don’t think consumers are being difficult. Instead, I think the industry has trained them to be on alert for sales and deals.
Consumer confidence has dropped again, housing starts are in a slump, and interest rates and inflation are still up. Parting with money on deferrable purchases doesn’t make sense for most consumers right now.
Instead, they’ve been conditioned, like Pavlov’s dogs, to be on the lookout for the next greatest deal.
In my market, furniture and mattress commercials and ads pick up momentum leading into the holiday period. The same phenomenon happens online where the ups and downs of furniture and sales events promise slashed prices, giveaways and more.
Presidents Day. Memorial Day. Fourth of July. Labor Day. Black Friday. They have all become key marketing and promotional holidays for the industry with the “best sale ever” tags highlighted in red.
The unintended consequence is that we now have generations of consumers trained to believe that paying full price is foolish. Have we created a monster of our own making? Have we led consumers to only buy when dramatic sale prices are in play?
Our industry isn’t alone in this discounting cadence. In fact, a recent Capital One survey of shoppers indicated that 89% of U.S. shoppers say price is a key factor influencing their purchases, and 63% of shoppers say they feel smarter when they secure a discount. Highlighting the omnichannel approach to shopping, the survey said 80% of consumers would explore and be open to buying from a brand for the first time if offered a discount.
Holiday promotions have become the go-to easy button to help spur traffic in down times. Breaking consumer habits isn’t easy. A century of yelling “sale” and “best prices ever” has left a mark on the consumers.
Perhaps the most promising approach comes from retailers that have shifted the conversation from price to value. They sell sleep, not mattresses. They sell family gathering spaces, not sectionals. They sell lifestyle, not furniture.
Is it possible to untrain what we’ve spent decades teaching consumers? After all, the true value of what we sell — comfort, rest, gathering spaces for life’s precious moments — has never been about the discount.
What do you think? Have you found ways to break free from the discount cycle? I’d love to hear your stories of success, or cautionary tales. After all, we’re all in this together, and idea sharing is caring.
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