We’ve Been Highlighting Supply Issues, But Price Hikes are Just as Big With No Relief in Sight
Mattress players say supply side ‘upside down’
Price increases inevitable as producers can no longer absorb costs
Sheila Long O’Mara • February 15, 2021
HIGH POINT — Like other categories in the home furnishings space, the cost of making a mattress continues to soar. Pricing on nearly every component that goes into making mattresses and foundations has increased, and when combined with climbing labor and freight costs, retailers are facing additional increases from manufacturers.
Price hikes on components like foam, steel, nonwovens, wood and cotton started in May 2020 with a continual drip through the end of the year, continuing into 2021. Additional increases are on the horizon, and mattress manufacturers that have not yet passed along increases to retailers say they can no longer absorb the cost. Others that have already shared increases are considering additional bumps.
Historically, price increases have always been a touchy subject, and despite today’s climate where few if any manufacturers are holding the line, companies are remain leery of sharing details. However, those executives who opted not to speak on the record, all mentioned impending increases for their partners.
Those increases mean retailers will likely need to pass those increases onto consumers.
Some key executives in the bedding segment say that this inflationary period ranks up there with the 1970s when the U.S. was hit with the oil embargo by OPEC countries.
Read more here:« Previous Post Next Post »