Its day 2 of fashion revolution week and we want to help show what paying a fair price actually means and what better way of doing this than being transparent and breaking down the cost of one of our most popular products for you. Many people forget that its not just material costs that you need to think about when making products - there’s staff costs to ensure staff are being paid a living wage and there are all your overheads including rent and bills which surprising stack up quite quickly (especially with the rising costs of electricity ect).
So let us show you what our £11.50 Medium Malmö actually costs us to make for you.
Zip - 45p including VAT
Fusing - 37p including VAT
Lining - 20p including VAT
So in total materials for the make up bag cost £1.02. It has taken us a while to get our material costs down to this per product. We have always strived to use high quality materials so we have never compromised when it comes to our zips and use YKK, our lining is durable poly-cotton which is made to last and we have good quality fusible to make sure that your products are always of a high standard. fashion
(These costs have been worked out based on 1 staff member making 25 make up bags per day which is our current average.)
Overheads (per 1 make up bag) - £ 4.50 - this is due to our current staffing levels as we continue to employ more staff this overhead will hopefully go down per product.
Staff costs (per 1 make up bag) - £2.50 - this is based on the time it takes 1 staff member to produce a make up bag on their own. Our staff are currently paid the real living wage of £9.90 per hour.
So in total our overheads and staff costs are £7 per make up bag.
All together the make up bag costs us a total of £8.02 to make. Now you may still think this hasn’t fully added up to the £11.50 yet there’s still £3.40 left to account for, but as a social enterprise we still require to make a profit to continue to run, and also cover us for any delays or issues or staff illnesses ect. After taking off VAT from the total we have left we only make £2.78 profit of a make up bags which is less than 25% off the total price which you pay.
Overall we feel that £11.50 is a fair price for a make up bag… and after seeing this price breakdown we hope you agree!
Written by Kirsty Watson Production Coordinator