Profit-Sharing, a Solution

The business structure of this venture is based on the two step strategy of sustainable growth through non-traditional exports and profit sharing.  Initially inspired by the idea of fair trade we looked into the standards of the Fair Trade Organization.  We discovered that many producers benefit as a result of the structure but some are stuck with status quo results due to a measure of subjectivity in the standards.  The FTO guarantees commodity prices on a graduated scale for affiliated producers and so if world commodity prices fall they are not affected.  But with products outside of this scope they simply demand a “fair” price is paid.  Fair according to whom??   

Unfortunately, many of the individual producers in developing countries lack economic leverage because of their size and dependence on underdeveloped local markets for sales.  Often, when producers contract with foreign companies they lack the leverage to negotiate a truly fair price and sometimes take on high risk positions because they are dependent on these companies to increase sales opportunities in foreign markets.  Really, if a fair structure is to be set up producers should profit directly from the end retail sale.  In other words producers should benefit from an increase in the price per unit and from an increase in units sold.                         

At Kasa Impressions we take the time to develop personal relationships with the artists we work with so we understand and appreciate the work involved in producing the art we purchase.  We involve ourselves from the bottom to the top of the production process so that we can lend support and expertise to create an ever-improving, value added supply chain.  

We pay a local retail price for each item upfront.  After the marketing and sale of these goods we share 15% of our profits with our associated artists, 5% of which is dedicated to environmental preservation and local trade development projects.  The remaining 10% goes directly into the pockets of the artists.