How Profitable Is A Sleep Product? (Updated for 2024)
So you want to start a sleep product?
And the first question that came to your mind was, “well, are sleep products actually profitable?”
Especially considering:
- You could start a sleep product with as low as $1,000
- Based on our data, sleep products generate an average of $6.3M per year
- You could see gross margins as high as 15% with sleep products
There’s money to be made. Don’t worry.
But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a sleep product.
Let’s dive in!
Is a sleep product profitable?
Yes, a sleep product is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.
For instance, since average revenue is $6.3M per year with an estimated gross margin of 49%, you could expect to recover your investment within 11 months or even less.
But of course, it all comes down to how much you earn compared to the potential revenues of your sleep product.
To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.
Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your sleep product is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.
Is a sleep product worth it?
If you’re wondering if a sleep product is worth it, the answer is a big YES. With sleep products, you have the potential to earn $6.3M per year (this is based on data reported by real founders).
Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.
With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.
Of course, you must learn and understand every aspect of running a sleep product to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.
You might want to consider reading more specifics about successful sleep products case studies.
Examples Of Profitable Sleep Products
Here are a few examples of profitable sleep products, and a few more details about them:
1. Baloo Living ($4.99M/year)
Elizabeth, the founder of Baloo Living, had a life-changing experience after she quit her marketing job and traveled to Bali. Feeling unfulfilled and burned out, she discovered a sense of wholeness and happiness within herself. Inspired by her journey, she launched Baloo Living, a company that sells premium weighted blankets to help people improve their sleep and reduce anxiety. The business quickly took off, reaching six-figure and seven-figure revenues in just a few months. Today, Baloo Living stands for highest product quality, customer service, and thoughtful design.
Is it profitable? Yes
How much money it makes: $4.99M/year
How much did it cost to start: $20K
Baloo Living, a Bali-based wellness company founded in 2018, saw incredible success in its first year, reaching six and seven-figure sales figures within just three and 12 months respectively by offering a high-quality, thoughtfully-designed weighted blanket.
2. Turmerry ($1.8M/year)
Rumana Bai, founder of Turmerry, had a passion for healthy and non-toxic living. During a trip to India, she discovered an all-natural mattress made from latex, sparking the idea for her business. With a focus on sustainability and affordability, Turmerry now sells a range of organic and natural bedding products and has become profitable with a 50% COGS and 25% marketing budget.
Is it profitable? Yes
How much money it makes: $1.8M/year
How much did it cost to start: $1K
An aspiring founder shares how they started an online retail store providing natural and non-toxic bedding products, growing their YOY revenue by 6000%, and focusing on sustainability and community impact through partnerships with American Forests and introducing 100% Natural and Organic Hair Oil.
3. Tediber ($42M/year)
Tediber was founded by the founder and his two co-founders, Juan Pablo and Jean-Christophe, who previously worked on a humanitarian project manufacturing cardboard furniture. After gaining experience in the e-commerce industry, the founders decided to start a high-value product business. They were inspired by Tuft & Needle, an American bed-in-a-box company, and created Tediber, a leading bed-in-box company in France. From their extensive research and prototyping, they developed a mattress that fits the French market's expectation for firm bedding. Since their launch, Tediber has successfully attracted and retained customers through word-of-mouth and a low return rate of 4%.
Is it profitable? Yes
How much money it makes: $42M/year
How much did it cost to start: $100K
Tediber is France's leading Bed-in-box company, generating €15 million in revenue in 2018, and offering a range of bedding products sold online in France, Italy, and Spain, with quality products manufactured locally and sold at a good price.
Learn more about starting a sleep product:
Where to start?
-> How much does it cost to start a sleep product?
-> Pros and cons of a sleep product
Need inspiration?
-> Other sleep product success stories
-> Marketing ideas for a sleep product
-> Sleep product slogans
-> Sleep product names
Other resources
-> Sleep product tips
-> Blog post ideas for a sleep product
How much can you make with a sleep product?
With a sleep product, you can make an average of $6.3M revenue per year (based on data reported by real businesses).
You can start with an initial investment as low as $1,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 11 months.
How much does a sleep product make a week?
Based on our data, average weekly revenue for a sleep product ranges around $131K. As such, you could see monthly revenues of $525K.
To know if your sleep product achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.
Learning your weekly profit can also show whether you're hitting your target goal for your sleep product.
How much do sleep products owners make?
The income of a sleep product owner can vary depending on various factors such as location, size, competition, and the owner's business skills.
But to give you some idea, the weekly revenue of an established sleep product is about $131K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.
While the potential for earning a good income as a sleep product owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.
Sleep Product Profit Margins
Generally speaking, a sleep product can expect profit margin of around 49%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a sleep product, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.
However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, sleep product owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, sleep product owners can ensure long-term sustainability and profitability for their business.
Sleep product owner salary
The salary of a sleep product owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established sleep product, in a prime position, might see an average weekly salary around the ballpark of $64.3K.
But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.
Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.
Conclusion
In a nutshell, based on many of our examples, a sleep product may be a promising business to start - but the success of your sleep product mostly depends on your effort and your approach.
If you focus on these, you'll have a much higher chance of a profitable sleep product.
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