Pricing of our products
Pricing our products, one of the difficult things as a company. We want to make our sustainable products accessible to as many people as possible, but at the same time we have to ensure that we can survive as a company.
As a sustainable company, it is important that you have credibility and that you earn people's trust. Potential customers must have information to make a sustainable choice. That is why we would like to provide more insight into our cost structure and how our prices are determined.
We consciously opt for sustainable business operations. In our search for accessible prices, we do not want to rush for the cheapest possible price at the expense of the environment or people's working conditions.”
To arrive at our sales price and understand the pricing of our products, it is important to know what our major expenses are.
Our largest costs are our raw materials and our labor costs. In addition, 5% goes to the branding of our label. Administrative costs such as hosting the website account for 1% of our expenses.
With these elements we arrive at the wholesale price. Our sales partners pay this price to put our clothing in their stores. Our margin on this wholesale price is less than 1%. Two more elements are important to arrive at the sales price. First of all, retailers also have to pay for keeping their stores open. So we negotiate a margin that our partners can take on our products. Finally, there is VAT. In Belgium we pay 21% VAT on clothing, which means that an additional 21% is added to our price. This money goes to the government.
If you add everything up, this ultimately results in the retail price, our selling price.
We pay all our partners a fair price. This means that our products are of top quality and no compromises are made that could harm the environment or people.