To all current and prospective Tuft & Needle customers,
On June 1st, 2017, we will increase the price of our mattress.
At Tuft & Needle, we insist on doing things differently and have always aimed to be an outlier in the mattress industry. This is especially true when it comes to prices. Since 2014, we have offered the same fair price to all customers, refusing to rely on sales and marketing gimmicks to incentivize purchase decisions. We charge what we need, not what we can.®
Because we value the honest relationship that we have with our customers, we want to share what led us to this decision.
Our Production Costs Have Increased
Over the last two and a half years, we have seen considerable increases in our costs. This is in large part because the raw materials used to make our foam have become more expensive.
As a bootstrapped company that has never accepted money from Wall Street or venture capitalists, we have not been immune to the changes that have been hitting our industry and the costs associated with them. For a while, we were able to absorb these higher costs and avoid passing them on to our customers, but we are no longer able to do this.
Because of this, many companies might consider moving manufacturing to cheaper locations overseas. Ultimately, we pride ourselves on manufacturing our mattress in the USA. This ensures we support local economies, have more control over product development and quality, and create a better overall experience for our customers.
In addition, during this time, we’ve made many incremental improvements to both the mattress and our customers’ experience.
For example, we developed a proprietary foam that didn’t exist before, T&N Adaptive® Foam. We launched same-day shipping in three cities: Phoenix, San Francisco and New York. Lastly, we have worked very hard to obtain the highest safety certifications such as CertiPUR-US, OEKO-TEX® and GREENGUARD Gold. Although these are expensive and time-consuming to achieve, our customers’ peace of mind is of utmost importance to us.
Our Operating Costs Have Increased
Since pioneering one universally-comfortable mattress online in 2012, our industry has grown. Over 100 companies have copied our approach, including two of the biggest mattress companies in the world. In general, this is a great thing for everyone. More companies copying our approach means more options available for consumers and shows that we are truly disrupting the industry.
The result for us is that we now have to spend more money to reach new customers. The industry we pioneered has grown far more crowded, which makes our story more expensive to tell. Word-of-mouth advertising has helped us build a strong customer base and limit the amount of money we need to spend on our marketing efforts. Still, most people have never heard of Tuft & Needle. We want to change that because no one should pay $3,000 for a mattress. Period.
“Alright, So What’s The New Price?”
Our prices are increasing from $600 to $675 for a Queen. The other sizes are affected proportionately. For our customers, this price includes our award-winning customer experience team, risk-free 100-Night Sleep Trial and honest 10-Year Warranty. For us, it covers the cost of manufacturing, shipping, paying our employees well and allowing our company to grow.
To add some context, most of our e-commerce competitors charge between $900-$1100 for their Queen mattress. Most traditional mattress stores charge anywhere between $1500-$3000 for theirs. We bring this up to again assure you that, while we are raising the price of our product, this change is related to our company needs and not done in support of high markups or the limited customer experience we see so often in this industry.
We Want to Make The Best Decision Every Step Of The Way
We’ve changed our prices a few times since starting our company, but it’s been awhile since we last wrote a note like this. In November 2014, we announced a price increase to our mattress because of a major breakthrough: T&N Adaptive® Foam. This new foam was more expensive to make, but offered the support, pressure relief, and cool sleeping experience we knew our customers wanted.
About a month ago, we lowered the price of our pillow and sheets. We also took the initiative to refund the difference between the new price and the old price to the customers who bought the products before the announcement. After we began increasing the production of both of these products, our manufacturers began to lower the price they charged us. So we lowered the price, emailed our customers, and sent the refunds back to their credit cards.
These past two decisions, and the one we are announcing today, come directly from our core values: we want to be honest with ourselves; we want to be transparent with our customers; and we want to continue to charge what we need, not what we can.®
When we set out to disrupt the mattress industry in 2012, we knew the greatest challenge we faced was eliminating information asymmetry: mattress companies knew everything and consumers knew nothing.
We understand that not everyone will agree with our approach and reasoning behind this price increase, but we share it so you know the truth. We hope that taking time to announce and explain this decision will lead to better understanding.
At Tuft & Needle, we have always looked to our customers first when making changes to our product. We continue to ask for your feedback and input as we grow and evolve. If you have any questions about our price increase or anything at all, please reach out to us at email@example.com.