In this current economy, the dog supplies business is showing less signs of a slowdown than most other sectors, but businesses that can cut costs & pass the savings onto dog owners will be more attractive to cost-conscious consumers.

Dog beds are a category where many middle class shoppers like to go "upscale" and spend more money to get a premium class product. A furniture-grade dog bed (made from the same materials as human furniture, and often manufactured by subsidiaries of large furniture companies) usually cost between $80-$200, depending on the size of the bed and type of fill (for example, orthopedic foam is more expensive than poly-fill).

However, the hidden cost of a dog bed is usually the shipping price. These can be big, heavy items. The larger sizes usually ship in what UPS deems to be an "oversized" box, which adds a heavy premium to the shipping cost. The average price to ship a dog bed across the country can be from $30-50.

Most online retailers don't charge a stated shipping rate that high, and usually take a smaller margin to build some of that cost into the price. But make no mistake about it, when shipping prices go up, the price of dog beds go up.

One new solution is to use special vacuum-packing technology to shrink wrap the bed in plastic before putting it into the box. While this doesn't change the weight of the package, it does eliminate the additional fees for the "oversized" boxes, which can easily save $20 or more on the shipping bill.

Examples of beds shipped this way are the Microvelvet Doggy Lounger and the Duke Dog Bed.

The only downside to the vacuum packing process is that, when the bed is unwrapped, the fabric cover will usually have some wrinkles. But this is easily fixed by putting the cover in the dryer.

As of today, this technology isn't used often, because the machines required are very expensive, and out of the price range of most of the upscale dog bed makers (which are usually very small companies).