Two American entrepreneurs have come up with an interesting new formula. Everything in their web shop, called Brandless, is priced at three dollars. The price is that low because they have cut a lot of costs.
Up to 40 % cheaper
Tina Sharkey and Ido Leffler came up with Brandless, because they believe a good product should not cost mor than three dollars if other costs (like distribution, supplies, packaging and store space) can be reduced. They say the item can become fourty percent cheaper than the average price for a similar item.
The web shop’s product range consists of a sizeable collection of basic items for the kitchen, personal care and cleaning agents, all part of their own private label. There are only about several hundred essential products, which is necessary to keep the pricing low. If the company grows, its product range will also expand.
Most of Brandless’ products are organic, kosher, gluten-free and not genetically modified. It also collaborates with Feeding America, donating one meal per order.
The brand’s formula caught the attention of several investors, because spread across three investment rounds, it attracted 50 million dollars (43.4 million euro).