Four score and seven years ago, our fathers brought forth upon this continent a new discount, conceived in coziness, and dedicated to the proposition that all people need rest: the Presidents’ Day mattress sale. Ok, that didn’t happen, but who could fathom a reason for mattress sales to coincide with the day honoring past U.S. presidents? Perhaps it was a supply chain professional. While the theory may sound strange, let’s consider it.
Unlike other holidays associated with deep discounts, such as Christmas or even Memorial Day, there are no decorations, gift-giving, lavish displays of affection, feasting, parties, travel, or parades on Presidents’ Day. And the shopping that’s encouraged? It’s entirely practical and deeply un-exciting. No one looks forward to buying a large, white box even when it’s deeply discounted.
However, there are lots of things to celebrate from a supply chain perspective, especially when you consider some of the unique supply and demand challenges for consumer durable goods. With the right timing, businesses can seize on the opportunities initiated by temporary demand elasticity to generate efficiencies across the supply chain, such as:
Simplifying demand planning
Remember when it felt like a flood of new direct-to-consumer mattress companies appeared overnight in the 2010s? It wasn’t because there was suddenly a big boom in demand. In fact, it was the opposite. Growth in the mattress business was and is mostly stable, with the exception of that event.
This steadiness is largely because, as already indicated, mattresses are a durable good and a tough sell. They’re a big-ticket item minus the allure and status of items like a car or jewelry. They have a long lifespan and rarely break, meaning there’s no urgency to replace them when they become outdated. And, unlike appliances or technology, it’s difficult to see the bells and whistles that make one model better from the next. So, how do companies plan production around such an item? They create predictable demand by careful timing of discounts and events.
Presidents’ Day is an inspired moment for creating foreseeable, short-term deals that drive consumers to spend. There is no competition from other retail sectors⏤most are still recovering from Christmas and Boxing Day. It’s a recurring event and just odd enough to make it memorable in the months or weeks when shoppers begin researching a new mattress purchase. Plus, it lands in a season when shoppers are primed for a refresh. As springtime approaches, many of us purge our old, shabby things (like our seven-year-old mattress) while looking for ways to revitalize our homes (with a brand-new mattress).
Boosting cross-sells and upsells
When people are ready to spend on a mattress, they may also be open to a new set of mattress-adjacent items, like pillows, comforters, and bed frames. Many mattress companies manufacture these items and even offer combined discounts when you purchase them on Presidents’ Day. These cross-sells can boost the overall spend of each customer, making the holiday more lucrative.
Similarly, reduced prices may persuade customers to consider higher-priced models. Even after discounts, they may spend more than they otherwise would have, knowing they’ve gotten a better value for the overall price.
Clearing outdated inventory
Beyond creating demand, the Presidents’ Day sale is an opportunity to clear out inventory. Just like Baby New Year bids farewell to Father Time, Presidents’ Day signals the “final clearance” moment for the previous season’s mattresses. The past year’s models are given the steepest discounts, creating greater incentives for buyers to snatch them up, thereby reducing the need to write off obsolete inventory.
Enabling product innovation
Once the old models are gone, there’s more room on the floor for the latest and greatest. That makes it possible for manufacturers to focus on product innovation, developing merchandise to meet new customer interests while ensuring the brand maintains relevance.
Avoiding high freight and storage costs
Moving and storing large, unwieldy goods is never cheap, but companies can skip high freight rates that coincide with the Christmas holiday shopping season if they move items after that season peaks in November. The cold, snowy weather during the Presidents’ Day season is also beneficial. Retailers and warehouses can shorten customers’ delivery times since local trucks and laborers have greater availability in wintry seasons than they do during moving season, between May and October.
What is your company’s Presidents’ Day?
Presidents’ Day weekend may have a long tradition as an unusual time for a discount, but it’s not unique. In 2009, Alibaba famously seized on Singles Day, a day to recognize the uncoupled in China, to launch a discounted shopping cycle for consumer goods. In 2015, Amazon created a holiday aligned with its 20th anniversary, Prime Day, to boost sales during its slow season. The winning combination for all these merry markdowns is that they are marketable, memorable, and seize on unique supply chain opportunities.
What is your company’s “mattress”? And what holiday is perfectly timed to help you simplify demand, raise revenue, and save on costs? Perhaps your supply chain is ready with the answer.
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