The answer is simple - Apart from the fact that we are a web retailer, we spend where it matters and cut the wastage.
Raw Materials - This is one of the two places where we spend more than the competition. We import most of our raw materials because we are not able to find suppliers in India who meet such high-quality standards.
Middlemen - The biggest chunk of what you normally pay for a mattress, goes towards margins. In the case of mattresses, it is at least 50-60%. In our case, as we sell directly to the customer, this entire amount is saved and passed on to our end customer.
Design & Manufacturing - We spent a lot of time designing a great mattress keeping in mind the complexity of manufacturing a great product. We went through several iterations as a part of our design process and developed several optimised manufacturing techniques that would cut costs and improve quality at the same time.
Logistics - We follow a model where we are sourcing and manufacturing end products just in time. This helps us further cut down on costs. In addition, we use our own fleet for delivering mattresses in Bangalore, and our logistics partners for delivering to other cities. This helps us save costs further.
Customer care - This is the other place we will spend more than our competitors. We recruit the best people in our service team and we are actually available when you call or email us. At the same time, we exploit technology to the maximum so that our overheads are in control.
The end results are that we have a superior product range at a great price and backed up unparalleled service.
So, in one sentence, we cut costs but not corners.