The price of our mattress is going up, and it’s not because we’ve decided to make more money. This is due to the current rise in raw material prices. In the unprecedented context of the COVID-19 pandemic, supply chains have been disrupted, and many sectors have been affected: According to the Food and Agriculture Organization of the United Nations (FAO) index, the price of grains, for example, has risen by 5.1% on the markets compared to August, and by 13.6% year-over-year! What about natural latex? Here’s an explanation.
The price of latex has skyrocketed, without warning
Not all of us are born traders, and we admit that these numbers can be intimidating at first glance. But if there’s one thing that’s clear, it’s this: the curve shown here is on the rise. It represents the price of latex. Today at Kipli, we use this raw material to manufacture two of our products: the mattress and the pillow. Our 100% natural latex mattress, made in Italy, is constructed as follows:
- 15 cm of 100% natural latex - density 85 kg/m³
- 5 cm of 100% natural latex - density 65 kg/m³
- 2 cm of organic cotton and Tencel cover
- wool filling
As you can see, 100% natural latex is the main component of our mattress, because Kipli offers products that are as natural as possible. This is both for health reasons—latex is free of toxic substances and endocrine disruptors—and for environmental reasons, as natural latex is 100% biodegradable and very durable (with a 15-year lifespan for a mattress). Therefore, whenever the price of latex rises, it inevitably has a direct impact on the overall cost of the mattress. Added to this is an exceptional 5% increase in shipping costs, also linked to the coronavirus pandemic… While we had seen a slight increase in the price of latex over the summer—which we were able to absorb ourselves—the price skyrocketed starting in October, rising by about 50%! Consequently, we had to make the decision to raise the price of our mattresses.
Specifically, a 140x200 Kipli mattress now costs €1,220 instead of €1,170. As for the Kipli pillow, it is also affected by the price increase, even though the percentage of the price attributable to the material is lower than for the mattress. This is a matter of the ratio between the price and the amount of latex in the product, which has implications for our pillow. Its price will therefore rise from €69 to €75.
As a reminder, to accommodate all budgets, Kipli offers the option to pay in 3 interest-free installments or in 10 installments.
At Kipli, our prices are fair and always will be
Why are we adjusting our prices in line with this increase in the price of latex?
We want to maintain a fair price for our mattress—that is, a price that is as close as possible to the cost of production. This cost of production includes the cost of raw materials and their processing, as well as the distributor’s margin, which we have already chosen to limit for ethical reasons. For your information, Kipli posted a 2% profit margin for its most recent fiscal year, 2019–2020. A fair price is not only a reasonable price that the customer pays relative to the product’s quality but also one that ensures fair compensation for the employees involved in the manufacturing process. At Kipli, we make every effort to offer our customers the best value for their money. The natural latex mattress is about half the price of a mattress of equivalent quality sold in stores. And it’s 30% cheaper than the average price of its online competitors. It is therefore priced as close as possible to the customer’s purchasing power.
In short, this is about a balance that we champion—and that this increase in the price of latex has disrupted. To restore it, we must get on the same page. Kipli firmly believes that every company, regardless of its size or line of business, has a social and environmental responsibility. So, even if you don’t impress anyone at a dinner party by discussing current trends in latex prices, at least you’ll know what’s behind this price increase. And to us, that matters a lot. We hope you enjoyed this article.Sincerely,The Kipli Team.