Dear NBDA Members,

Küat is well known for innovating products, but this time, they are setting out to innovate a
business model.

January 15, 2023 (Springfield, MO) – Küat, the designer of premium and lightweight bike, ski
and kayak racks, is now offering their products direct-to-consumers at kuat.com.

Küat is adding a direct-to-consumer sales channel, allowing customers to buy premium hitch
bike rack products and other outdoor products direct from kuat.com. A move that the brand has
resisted for the past 15 years.

Küat has grown to where they are today because of their relationships with IBDs and retailers
through a traditional business-to-business model and have hesitated adding the D2C channel
because of their strong commitment to protecting those relationships and the many local
economies those retailers support.

In a letter written to US dealers from the CEO and Co-Founder, Luke Kuschmeader, he says,
“Over the years, I have watched as hundreds of bicycle and accessory brands have adopted a
direct-to-consumer model. The way some brands have implemented D2C has never settled
well with me. At Küat, we believe in the power of brick-and-mortar and recognize that without
you we would not be where we are today. And, you are the cornerstone of our industry. In my
opinion, cycling would suffer greatly without you. You build community, grow critical cycling
infrastructure, and offer service and maintenance that would surely deter participation if not
provided. Part of the reason why we have held off on offering traditional D2C sales for years.”
He goes on to say that their current strategy is challenging. Customers are shifting the way they
want to order and receive products and Küat wants to be an option for that preference, while still
supporting their brick-and-mortar retailers.

That’s where the second and more notable part of this story comes in. Küat is adding a D2C
sales channel in a completely different way. Küat is revolutionizing the direct-to-consumer
model and are GIVING Premium Dealers a 20% cash incentive on direct-to-consumer orders
from kuat.com. Bottomline, If you’re a brick-and-mortar shop that’s behind Küat, you’ll directly
benefit from their added D2C channel.

“My sincere hope is that we establish a viable and dealer-inclusive way of operating D2C that
other brands might be inspired to adopt,” says Kuschmeader.

The key and notable difference between Küat’s D2C model and other traditional D2C models
which incorporate the shop is that any direct-to-consumer sale that is made at kuat.com is eligible
for a 20% commission. Qualifying brick-and-mortar IBDs within a 10 mile radius of a D2C sale
will be eligible to receive that commission. They will not need to handle the product, assemble it,
or educate the customer.

There are additional attainable criteria brick-and-mortar retailers must meet to qualify for the D2C
commission. Some of those include:

To earn commission on bike products your shop must:

• Have purchased $5k in bike products directly from Küat in the past 6 months
• Have a brick-and-mortar store and are eligible for our Dealer Locator
• Should have three core product families consistently stocked in-store over the past
  calendar year. (Product families include Piston®, NV 2.0, Sherpa 2.0, Transfer v2, Pivot
  v2)
• Submit a completed W-9 form

To earn commission on snow products your shop must:

• Have purchased $1k in ski and snowboarding products directly from Küat in the past year
• Have a brick-and-mortar store and are eligible for our Dealer Locator
• Submit a completed W-9 form

To earn commission on water products your shop must:

• Have purchased $750 in water products directly from Küat in the past year
• Have a brick-and-mortar store and are eligible for our Dealer Locator
• Submit a completed W-9 form

As we continue to grow and add new product categories, commission criteria could change.

About Küat Racks:
Küat Racks designs stylish and easy-to-use products that help cyclists and adventurers get out
and do more. What began as an idea for a better way to transport bikes in 2008 has evolved
into a thriving company that creates high-end, awesomely engineered hitch racks, roof racks
and accessories that push the envelope of innovation. Team Küat is comprised of avid cyclists,
outdoor enthusiasts and fine ale connoisseurs. This motley crew of dreamers and schemers
pool together their diverse talents and interests to bring you sharp design, quality products and
awesome customer service.