Wake up with a hard pill to swallow
Have you heard about the mattress company, Casper? They were in the news recently because of their desire to take their company public. But with their released numbers, Casper is valued at $432 billion, and has a loss of $100 million, estimated for 2019. But they also have a $200 million cost of goods. They have a marketing expense of $126 million, and operating costs of $250 million. If my math is correct, which it rarely is, that puts casper in the red by about $240 million. So what gives?
Well, Casper isn’t the only company taking a loss- look at Uber and Lyft, which both went public as well. But how did investors do after the company went public? So far, results show investors, in general, are not thrilled about the results. With mattress being a $75 billion industry, and over hundreds of other companies following the same formula, how will Casper move ahead, besides their clever subway ads?
Time will tell, although we would follow our recommendation of more clever marketing in a smarter way rather than what they’ve been doing. When we were buying a mattress a few months ago, we actually went with another company just because they were rated a bit higher, although prices were about the same as Casper. Who would you choose for your next mattress?
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