FAIR PRICING, FAIR PRACTICES: THE COST OF ETHICAL MANUFACTURING
In our dedication to sustainability and ethical textiles manufacturing, we aim to shed light on the concept of paying a fair price for our products. Transparency is a fundamental aspect of our mission, and we believe there's no better way to exemplify this than by breaking down the cost of one of our most cherished products, the Medium sized Glasgow Bag. We recognise that crafting quality products involves more than just considering material expenses. There are other essential elements, such as staff costs, ensuring a living wage for our employees, and managing overheads, including rent and utilities, all of which can swiftly accumulate, especially amidst the challenges posed by rising energy costs and the current cost-of-living crisis.
So, let's take a closer look at what goes into creating the Medium sized Glasgow Bag, priced at £12.50 (excluding VAT).
Material Costs
Zip: 45p (including VAT)
Fusing: 37p (including VAT)
Lining: 20p (including VAT)
The total material cost for the Glasgow Bag is £1.02. We've dedicated significant effort to optimising material costs for each product, all while maintaining our commitment to high-quality materials. Our zippers, for instance, are sourced from reputable manufacturers like YKK. We use durable poly-cotton for the lining, ensuring longevity, and employ quality fusible materials to ensure that our products consistently meet high standards.
Other Costs
Overheads (per 1 bag): £4.50 - This is influenced by our current staffing levels, and we anticipate that these overheads will decrease per product as we continue to hire more staff.
Staff costs (per 1 bag): £3.22 - This figure is based on the time required for one staff member to craft a single Glasgow Bag. Our team members are currently compensated with the real living wage, set at £10.90 per hour.
Consequently, the total overheads and staff costs for each Glasgow Bag now amount to £7.72.
With these updated figures, the production cost of a Glasgow Bag is £8.74. After deducting VAT and factoring in a reasonable profit margin, the profit per Glasgow Bag is £3.76.
In conclusion, we firmly believe that £12.50 is a fair price for a Glasgow Bag, considering the updated production cost and the living wage of £10.90 per hour. If you are someone who believes in ethical, conscious, and sustainable manufacturing, it's imperative to understand the importance of not only using the correct materials but also recognising that manufacturing costs may seem higher because we are committed to paying our workers fairly and not resorting to the exploitation that often occurs in sweatshops abroad.
Our commitment to sustainability and ethical textiles manufacturing means that we prioritise the welfare of our workers and steadfastly reject any form of exploitation for personal gain. We are dedicated to maintaining a business model that upholds our values, delivers high-quality products, and ensures fair compensation for our employees. We hope that this transparent breakdown of costs and our commitment to ethical practices help you appreciate the true value of our Glasgow Bag and why we believe £12.50 is a fair price.