Business Idea

Start A Sleep Products Business

About

Starting a sleep products business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell sleep products, or selling sleep products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a sleep products business ➜

Key stats

market size
$81.2B
revenue (monthly)
$130K
starting costs
$43.6K
gross margin
49%
avg product price
$700
time to build
11 months
growth
Direct sales
business model
E-Commerce
work from home?
Yes

About

Starting a sleep products business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell sleep products, or selling sleep products online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a sleep products business ➜

Key stats

market size
$81.2B
revenue (monthly)
$130K
starting costs
$43.6K
gross margin
49%
avg product price
$700

 

time to build
11 months
growth
Direct sales
business model
E-Commerce
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Software Expenses $150 $3,044
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300
Total Startup Costs $6,967 $80,180

Successful Businesses

Business URL Rank
CORSAIR corsair.com #4,862
Resurge resurge.com #18,810
HealthPartners healthpartners.com #25,070
Sleepm Global Inc sleepm.net #105,242
Better Sleep for Everyone hatch.co #121,697
Yogasleep yogasleep.com #132,860
Taking Cara Babies takingcarababies.com #143,510
American Sleep Association sleepassociation.org #204,514
The Sleep Shop Inc. thesleepshopinc.com #334,218
The Sleep Company thesleepcompany.in #405,215
Advanced Sleep Medicine Services, Inc. sleepdr.com #412,155

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services within your sleep products business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet or get to work with for your sleep products business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your sleep products business becomes an integral piece of their every day lives.
High margins The gross margins for your sleep products business are typically around 49%, which is considerably high and allows you to grow your business and manage costs easily.
Easy to encourage "impulse buy" In the sleep products business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
High employee turnover In the sleep products business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a sleep products business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a sleep products business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Customer churn With a sleep products business, people can cancel their subscription - which can make income unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Marketing Ideas

  • 1

    Affiliate program

    An affiliate program is a way to reward people outside your organization to share your product.

  • 2

    Word of mouth

    The most tried and true way to grow a sleep products business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to sleep products business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜