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What is a "Middleman Markup"?

May 31, 2017

What is a

Advertising that you have no Middleman Markup sounds like a very noble endeavor, but just what is a "Middleman Markup" and why is this important?

A "Middleman Markup" in the mattress industry simply means there is an extra step, and extra layer of expense between you and your mattress. For example, if you are a brand and you don't own a factory, and you sell beds in your store or online, and you have another company build your bed for you, that company is a Middleman. 

Another way to explain it is let's say you are a mattress factory, and you build beds for other companies. A brand approaches you and wants you to manufacturer their beds for them. They have employees, trucks, a factory and costs. They have to factor all those costs into the price they quote the brand to make their mattress. The brand then takes that cost and then has to figure in their profit, their expenses, when setting the price they sell it to you. That is a Middleman Markup. 

If you were to buy directly from the factory, taking the brand out of the equation, you would not be paying for that extra layer of costs. 

So, unless a brand has a factory of their own, they are a middleman and you are paying middleman markups.

Nest Bedding is a factory direct company. We manufacture the majority of our beds in our factory in Arizona. Why pay a middleman when you can get more value for your money?