On November 1st 2021 we will be increasing the price of our mattresses. The increase will average 5.5% across our mattress range.
At Winkl we are all about being a transparent brand. So we have chosen to provide plenty of notice and explain the reasons behind our decision.
When we started Winkl, we started with one thing in mind: Bringing Kiwi’s great sleep at more affordable prices. This remains at the heart of what we do and the center of every decision we make for our Winkl community. Setting prices is an important part of this philosophy and follows one simple rule: We charge only what we need, not what we can. It’s a really straight forward process. We start with what it costs to make a quality product. Then we consider the costs associated with selling that product (customer service, distribution, etc…). Finally, we consider a fair profit to make on a sale. A profit that enables us to grow our business and most importantly offer affordable prices.
The recent spread of COVID-19 has changed the world we live in and presented many challenges for New Zealand companies. These challenges have substantially increased our costs over the last 12 months which we have absorbed for as long as possible. These costs include:
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Increased manufacturing costs from a COVID-19 induced raw material shortage. The shortage has particularly impacted the cost to make our exclusive Winkl-flex comfort foam. The foam that makes Winkl mattresses more comfortable for more people. Winkl-flex is now 30% more expensive to make than a year ago. Removing this from our mattresses crossed our minds, but given it’s rave reviews, we opted to avoid a public lynching and keep it at the heart of our comfort technology 😊. We think it’s money well spent and your feedback supports this.
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A 400% increase in global sea freight costs since the onset of COVID-19.
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Increased inefficiency and COVID-19 related congestion around New Zealand ports leading to shipping companies imposing hefty congestion surcharges.
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Increased distribution costs driven by local delivery companies lifting prices during COVID-19.
This series of increases have remained out of our control and left us with little choice other than to lift our prices.
Some people may argue we should have pushed harder against increases from our suppliers and partners. Believe us when we say, we tried. And in some cases succeeded! But only for a short time. The sad reality is, they are also feeling the pain. They too have put off price hikes over the last 12-18 months but, like us, have reached a tipping point.
In short, we held off as long as we could but can no longer absorb rising costs. Damn you COVID!
While the rest of the retail market has increased prices by between 7.5% and 10%, we will continue to share the burden with our customers and limit our increase to an average of 5.5% across our mattress range.
The positive news is Winkl mattresses will still be unbelievably affordable. Especially when compared to similar products sold in traditional mattress stores. Slightly increased prices also mean we can avoid compromising on quality and continue making mattresses easy as to buy and try.
When putting ourselves in your shoes we appreciate the increase will be a surprise to some, but hope this update provides clarity around our decision.
Sincerely,
The Winkl Team
