We have been quite transparent when it comes to our supply chain. We disclose where we source our fibers from and who knit/weave our products. We want to offer similar transparency when it comes to our pricing strategy. So why does a Kalilo product cost as much as it does?
We believe that our customers have every right to know about our pricing strategy. We price our products 4x cost and we believe this pricing model is fair and captures everything our products represent.
We do not inflate prices
We neither want to inflate prices to a point that it is still profitable to offer aggressive discounts, 70% or even 80%, nor sell our products for less than what they cost to remain competitive which is frankly unfair on everyone involved in bringing these beautiful products to life. This is completely against our values and only promotes senseless consumerism.
Why would you as a customer buy a product for full price when you know that the this price is highly inflated and there is some offer around the corner?
Small batch production
We only produce in small batches. This is a conscious choice we have made as a brand. We are fully aware that this increases production and shipping costs significantly, but the impact of producing in large batches is much higher on the planet and people.
Because of inflated pricing, brands are able to make profit even without selling their full inventory and their inventory is huge, so what happens to the excess inventory? Landfill? Burn them?
We want to ensure that everybody involved in bringing our products to life are paid fairly and treated with respect. So, we only work with suppliers that have high ethics and value people and community they work with.
Natural fibers, high quality and longevity
Each and every Kalilo product embodies these three principles and we are willing to pay higher price for this and we fully trust that our customers are willing to do the same. We always prioritize quality over quantity and focus on longevity - timeless, classic and thoughtful designs that will surpass trends.
Climate neutral shipping
We offer DHL GOGREEN service at flat and reasonable rates (we cover most of the cost ourselves) to provide climate neutral home delivery. This is another conscious choice we have made as a brand. We are fully aware that this increases shipping costs, but shipping and logistics industry has a huge environmental impact and we want to do what we can to make greener choices.
Even if you choose our standard delivery option (PostNord) we ensure that we compensate carbon emission by planting trees.
Quality packaging and labelling
We believe that packaging and labelling are as important as product themselves and we treat them the same as products - afterall details matter. Our trims are made from OEKO-TEX 100 certified recycled polyester in European Union. Our dustbags are made from GOTS certified fairtrade 100% organic cotton. Our shipping boxes are recyclable and made from FSC certified and responsibly sourced material.
Pricing manifesto clarifies why our products cost as much as they do, but what about a price breakdown on a real product? To that we say why not, we have nothing to hide. You can see price breakdown on sweater Mimi below.