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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mattyice who wrote (48277)	6/7/2012 10:58:17 AM
From: Jurgis Bekepuris	1 Recommendation Read Replies (2) \| Respond to of 78437

I hope you know i am giving you a hard time about your moats. And I am giving you hard time about giving me hard time about the moats. :P TPX - well, on second thought it's not clear there is a lot of moat there. There is some brand recognition. But you go to a store and there are all these different mattresses there. The "store testing" IMHO is totally bogus. You can't decide which mattress is "good" for you by lying there for 3 minutes or less. So it's really sales pitch and that's it. So unless you come in with a decision to buy Tempurpedic and nothing else, the salespeople will try to push whatever they are paid to push. Of course, there are TV commercials and stuff, not sure how effective they are. Anecdotally, we bought a bed and mattress in December. We looked at Jordan's - Tempurpedic was not even in the running. I think it was ridiculously expensive. We looked at other memory foam brands. Ultimately, we bought mattress from IKEA, since we bought the bed there too. Have no clue how it compares to Tempurpedic or others in terms of quality. I believe there is a lot of placebo effects of people brainwashed that some brand/mattress is great saying that it's great. But perhaps there are some real quantitative differences. Without independent double blind study, I'd not take anyone's word for it. :) So overall if they have to slash prices to compete, the results may not be great. Again not a direct comparison, but I owned NTZ some time ago and they just could not get back the business. And they were a premium Italian leather sofa provider at some point with their own high-end shops, etc. I love how analysts reiterate buy while slashing the target from $89 to $30.