We have spent 4 years testing all different models to understand what KAOS’s business model should be. While keeping our webshop the main focus we have tried selling through dealers such as Babyshop, Illums Bolighus, and several international shops. It was really flattering to be on the shelves of these great, great players, but it was not very profitable for us. We tested working with agents in Norway, Denmark, and Benelux to increase the volume. We even tried to employ an internal resource to work exclusively with the dealers and agents to get it off our workload but we couldn’t make a profit out of that either. We tested dealers on commission. And drop shipment. But it still costs more than it tasted.
In 2019 we were forced to make a decision. We wanted to change the entire textile collection from cotton to recycled PET. This was important in order to increase the quality and produce with a lower environmental footprint, but it meant significantly increasing production costs as the materials were far more expensive. Simply put, by increasing the quality of the product we had to increase the retail price quite radically, and we felt it was unfortunate from the customer’s perspective.
If Ransel was to be available through dealers, you would have to pay 250 EUR instead of 159 EUR.
An alternative was not to increase the quality but to continue with what we had. To us, that was not an option. The last alternative, was to remove the dealers so we could cut costs at that end. It would allow us to spend more money and increase the quality of the product itself without changing the end price for the customer.
The next day we cut 70 dealers in order to increase the quality of our products.
We are completely open and transparent about everything we do, including the pricing off our products.
Here’s an example of how we price KAOS Ransel. You can see how much it costs to produce, what the various costs need to cover and finally the price we sell for from our webshop. You pay for nothing extra, we believe this is reasonable.
If Ransel was to be available through dealers, you would have to pay for additional markups to serve the dealer. That means you would have to pay EUR 250 instead of EUR 159 for the same product. To us, that’s not reasonable at all.
Buying directly from KAOS is your insurance to feel safe and satisfied. We want to be the best online brand for parents, delivering orders faster than anyone else. As our customers, you get the best quality at the best price. The products we design should make your life easier and the service we provide to our customers should be exceptional. You always deal directly with us. No middlemen, no monkey business.