Build a cheaper luxury mattress and the world may beat a path to your door.
Tempur-Pedic CEO Mark Sarvary told CNBC Tuesday he believes the new Simplicity line will double the mattress company’s sales by bringing in a “completely different set of users” eager spend $1,000 to $2,000 for a mattress with a "slightly different" version of its Tempur material.
That potential is already helping drive Tempur-Pedic’s shares higher. The Simplicity line will come out in April.
“These are all premium products. These are very important products to us,” Sarvary said.
The company’s mattresses are typically priced from $2,000 to $6,000, and Sarvary said there are six million people sleeping on them thanks to the money spent on advertising, and promoting word of mouth through social media.