Dogs are very much like us...they want a comfortable place to rest their heads. This is their haven...it's their sanctuary...it's that one place they go to rest where they are comfortable and feel secure.
Whether you choose to buy a dog bed or make up one on your own, like we've done, make sure that your dogs understand that it's theirs.
As you can see from the picture, I bought some faux fur sheepskin rugs from Ikea, bought a body pillow (top back) from Costco for $12, and then the black mat is from a pet store. It has soft fake fur on the top and a rubber backing on the bottom and stays cool. In the winter they sleep on the black portion...in the summer they like to flip it around and sleep on the rubber portion. In any event, you can find the boys sprawled in many different ways in their sleeping "quarters". Sometimes they lie on their backs like humans with their bodies buried in the faux fur and their heads resting on the body cushion. Other times, they contort themselves among the different pieces and improvise. Sometimes, when they're in a snit, they like to tear their bed apart, beat up the cushions and then they sit and wait for me to put it all back to together.
I've also seen very creative ideas for dog beds. One idea was to take an old night table, put a cushion on the bottom shelf and create a drape that hangs from the "drawer" area so your dog has a little boudoir to sleep in. Other people just prefer to buy something ready made. In any event, make sure their bed is out of the way so when they're sleeping you're not going to step on them. Even a little corner in one of your rooms will suffice. Ours is in the family room as that's where we spend a lot of time and the boys are most comfortable with us in the same room. But use your imagination and don't be afraid to pick up different types of fabric and cushions to create a unique sleeping area for your dog.