As you are surely aware, commodity pricing depends on the balance between supply and demand. Currently, the COVID-19 pandemic is disrupting these factors—and supply chains in particular. Many sectors are affected: According to the Food and Agriculture Organization of the United Nations (FAO) index, for example, grain prices on the markets have risen by 5.1% compared to August and by 13.6% over the past year! But what about natural latex?
Price of Natural Latex Rises Sharply
As you can see from the chart below, prices for natural latex have risen significantly. The graph shows the price of natural latex (or “rubber” in English), which is used to make the Kipli mattress and pillow.
Our Kipli mattress is made of:
- A 15-cm layer of 100% natural latex – Density: 85 kg/m³
- A 5-cm layer of 100% natural latex – Density: 65 kg/m³
- 2 cm cover made of organic cotton
As you can see, natural latex is the main component of our mattress. We use only natural latex, without mixing it with synthetic latex. This allows us to offer our customers a product that is as durable, healthy, and comfortable as possible. We do this both for health reasons—our natural latex is tested for toxic substances—and for environmental reasons. Natural latex is 100% biodegradable and has a very long lifespan of 15 years.
As soon as the price of latex rises, this has a direct impact on the manufacturing costs of the Kipli mattress. On top of that, there has been a sharp 5% increase in shipping costs, which is also attributable to the coronavirus pandemic …
We had already seen a slight increase in the price of natural latex as a raw material this summer. In October, however, prices really skyrocketed—rising by about 50%! As a result, we had to make the decision to raise the price of our mattress. A 140 × 200 Kipli mattress now costs €1,290 instead of €1,110.
To make it easier for you to purchase the Kipli mattress, we're offering a free payment plan in 3 installments. As for the Kipli pillow, it is also affected by the price increase. The price is going up from €77 to €79.
We offer fair prices and will continue to do so
We want to maintain a fair price for our mattress—that is, a price that is as close as possible to the cost price. The cost price includes the costs of raw materials and their processing, as well as the retailer’s margin, which we have already reduced to a fair level for ethical reasons. For your information: Kipli achieved a profit of 2% in its most recent fiscal year, 2019–2020.
A fair price is a reasonable price that the customer pays in relation to the quality of the product, while also taking into account fair compensation for the employees involved in the production chain.
At Kipli, we do our best to offer customers the best value for their money. A Kipli natural latex mattress costs about half as much as a mattress of the same quality in brick-and-mortar stores and is 30% cheaper than the average price among online competitors. It is therefore priced as close as possible to the customer’s purchasing power.
At Kipli, we believe that every company—regardless of its size or line of business—has a social and environmental responsibility, and we want to share important information with our customers in a transparent manner. And that means a great deal to us.
We hope you enjoyed this article.
Your Kipli Team