Pricing Transparency
In a world where surplus leads to a surplus of waste, we choose to tread a different path. We reject the churn of disposable trends, of items predestined for the landfill. Instead, we stand firm in our commitment to fair pricing, always. This commitment is not seasonal, it's perennial. Our ethical production ensures an unwavering focus on quality and value - it is part of our sophisticated approach to a sustainable future, our refined response to a disposable culture. We are fully invested in your experience and well-being, and offer transparency and intentionality in every product we design.
Sustainability is inextricably linked to transparency. This includes both transparency in our supply chain and in our pricing strategies. We believe it is vital for you to be comprehensively informed about your purchases to truly appreciate the worth of the garment you acquire.
Therefore, we've chosen to embrace the path paved by our pioneering counterparts, infusing an elevated level of transparency into various facets of our brand. We envision this as the future standard and urge fellow brands to adopt a similar approach.
What is the true cost of our garments?
Our garments' true cost includes material and manufacturing costs, logistics, and packaging. To cover essential expenses such as employee compensation, future product investment, website maintenance an infrastructure, transaction fees, and marketing, we add a measured markup. This markup ultimately shapes the final retail price
Sustainable and ethical production is costly, often even higher than the final retail price of fast fashion items. To maintain a reasonable retail price and uphold our commitment to sustainability, we opt for a markup that is modest compared to industry norms.
If fair fashion brands have a lower markup, why are they still more expensive?
To grasp the significance of this matter, let's examine a hypothetical scenario: a fast-fashion brand is selling a baby romper for AED 100. Given that these companies typically operate on margins four to five times the production cost, we can infer that the actual cost is roughly AED 25, likely even less. This suggests that there are parties in the supply chain being undercompensated, most plausibly the garment workers or artisans at the end of the line. If we consider our own luxuriously soft, ethically produced TENCEL romper, the comparative production cost is startlingly low. . Swimwear is another example – often advertised as sustainable due to recycled / sustainable materials and yet made in China or Bali with no visibility into the production partner practices.
We consciously pay more for both production and materials.
However, these are merely illustrative cases. The true issue lies in the opaque pricing and complex supply chains that leave consumers oblivious to how much of their money is actually going towards the makers. Even for fair fashion brands, bringing clarity to this murky realm is challenging, due to the antiquated and opaque structures of supply chains. Nevertheless, through open communication and relentless pursuit of improvement, we aim to bring transparency to the fashion industry.
Understanding Your Investment
We invite you to explore the meticulous composition of our pricing structure. For detailed insights, kindly select any BABICLO items on our site.
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FABRICS & MANUFACTURING |
This cost includes the purchase of fabrics and trims. Most items have a high material cost, which is due to expensive fabrics. This is the price we pay the factory to produce one garment. It does not include the costs for developing the garment, like pattern-making and sampling. The cost covers the purchase of fabrics and trims. Many items come with a significant expense, primarily due to the use of costly fabrics. This amount reflects what we pay the factory to manufacture a single garment. |
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OTHER PRODUCTION COSTS |
These include fabrics development & dying, garment design and sampling |
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HARDWARE & ACCESSORIES |
Includes sustainable buttons such as coconut or corozo, FSC certified hang-tags and other accessories. |
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LOGISTICS & HANDLING |
Logistics include the transportation of goods, customs, and various warehouse and handling fees |
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ZERO WASTE PACKAGING |
Packaging includes home-compostable mailer bags made of biodegradable starch and vegetable oil, reusable recycled cardboard gift boxes. |
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MARGIN / COMPANY COSTS |
Our markup ensures the sustainability of our operations and the development of future offerings. It encompasses the various facets of our operations, from remuneration for both our employees and freelance contributors, to the upkeep of our technological infrastructure, research and development, website maintenance, transaction fees, and marketing & communication. Our markup not only ensures fairness in our compensation system — extending to our models, consultants, photographers, and manufacturing partners — but also paves the way for future collections. This is crucial as, unless pre-sold, the majority of production costs are incurred well before these collections make their way to our customers. This approach to pricing embodies our commitment to transparency and intentionality, underlining our promise to deliver timelessly functional products in the most environmentally responsible manner. Furthermore, it underscores our dedication to providing a stylish, elegant, and refined brand experience, whilst ensuring that you feel supported and accommodated every step of the way. |
BABICLO True Cost
Our pricing mirrors the authentic costs and values embedded in our creations, ensuring their accessibility. We diligently trim unnecessary expenditures, redirecting the saved resources to enhance our garment quality. The result? Timeless pieces, crafted under equitable conditions.
Our prices reflect the real value of the products and the work behind them, enhancing all the people involved in the supply chain. The percentages of the cost elements are average costs of the current product lineup.
Here are some of the factors that influence our prices:
- Cost of highest quality materials with sustainability in mind
For the swimwear capsule, contrary to popular belief, regenerated materials cost more than virgin ones, give the fact that the complex recycling process is an additional process, which involves additional industrial costs. Other semi-manmade materials are closed loop, and as such also come with the price tag.
Finally, when using virgin, natural materials we opt for organic certified ones, and pay additional charges for ensuring the traceability.
- Responsible Production in the EU
Producing in Portugal, respecting workers' rights and protections, means incurring higher labor costs than those in non-EU countries such as China, Bangladesh, Vietnam, Turkey and India. For instance, the hourly wage of a textile worker in Portugal can be around €10, while in Bangladesh it is less than $1. This reflects our social responsibility.
Economy of scale lowers unit costs of goods by mass producing large batches. This mechanism, however, leads to producing more than necessary and having to dispose of the unsold through discounts or, in some cases, destroying it. We have chosen to produce only what is needed to value the work and materials of each BABICLO garment.
Our ultimate goal is to supply the real market demands to the highest possible extent. This is our future commitment to responsible production.
- No seasonal sales
In a world of buying today and to receive tomorrow we want to make a small revolution
Pre-order your garment in advance to fight the overproduction of clothing. A responsible and revolutionary purchasing model, which offers a discount not to clear out excess inventory, but to produce only what is needed.
- Presale - We apply the discount upfront
Our presale system is not merely an innovation, but a testament to our commitment towards sustainable fashion. It's our conscious effort to herald a change in the fashion industry. In our continuous commitment to sustainability and mindfulness, we gather orders in advance, ensuring a conscious inventory.The earlier you order, the more you save. Help us produce only what is needed.
The only structural discount we offer is the presale discount. By purchasing our garments before they are produced, you help us avoid waste and produce only what is needed. Our circular fashion is designed to reduce environmental impact.