We create the products you use every day.
Who we are
We are independent artisans creating unique products. We work for passion not for money..
We design and manufacture leather products exactly to our customers’ needs.
We are not a factory where same product will be created every day. Our products are unique and made to order.
Our prices
This is our side hassle right now. This means all of our prices way lower than any business would demand.
Our final price will not contain markup and some another expenses a normal business will do.
So how to calculate product cost?
It is not as simple as it seems. Here is a simplified explanation of the topic.
The cost usually made up of:
- Production cost
- Overhead cost
- Profit
- Markup
The production cost will contain:
- Material cost – the leather itself, thread, glue, hardware
- Time spent to make the product – hourly wage
- Additional material costs – packaging, labelling
The overhead cost consist of:
- Time spent for creating advertiser materials – photographing, online page update/creation
- Advertiser/Listing site fees – Etsy, E-bay, Amazon
- Additional business material – business cards, labels
- Shipping materials – labels, bags, boxes
- Additional time required for packaging, e-mailing
- Tool and equipment maintenance time
- Rent, heating, electricity,water,…
Running a profitable business requires to add Profit and Markup. This extra will ensure the business will run and grow.
The profit is a small extra added to the whole cost, usually 10-20%. This amount ensure the growth of the business.
Wholesale price = Product cost + Overhead cost + Profit
The Markup usually 100% of the Wholesale price. The markup will cover the cost of the retailer.
Retail price = Wholesale price x 2
Depends on the retailer, the markup could be much much more.
How we calculate our prices then?
We cannot omit the production cost of course, but the hourly cost is close to 0.
The overhead cost however way lower then usually would be:
- We do not advertise ourselves widely, so this cost kept low
- No rent or utility costs involved
The more important thing is – and the reason all of the above explanation -: Our Markup is 0
Our prices at least half of what any store could offer.
We keep the right to change this business model in the future if circumstances change.