The Cost of Clothes

So you just paid 40 euro for a T-shirt.

Did that seem a lot?
Have you received it yet?
How did the quality feel?

In the effort of ‘practicing what we preach’, we broke down the cost of your Tee so that you can understand why we price things as we do.

Before we start, here’s a short description of how we have defined each section.

Cost Price

Cost of the materials and labour involved.

Full Circle Margin 

The cut taken by Full Circle for business costs and profits.

Wholesale Price

How much the T-shirt is sold to our retail partners.

Wholesale Margin

The cut taken by our retail partners for business costs and profits.

VAT

Value added Tax applied to goods purchased within the EU.

Retail

How much the T-shirt costs to purchase.

Transparency

Transparency

Transparency

Did you notice how our cost breakdown of the T-shirt differs from the ‘Cost Price’ listed on the previous graph? This is due to fluctuations in the price of Organic Cotton.

At this time, it’s fuelled by factors such as the global pandemic and an increased demand for Organic Cotton. This expense is eaten by the Full Circle margin and is only deemed to be a temporary change. An important point to consider is that only 1% of the world’s cotton supply is currently organic.

So there you have it, our facts and figures.

Equally important though is why we decided to take this step. One of our main goals is to help redefine the relationship people have with their clothes. Being transparent about each step of our supply chain and the costs involved plays a big part in how the value of a garment is perceived.

We think it’s time that brands took a more accountable approach.

As always, we are open for discussion.

 

Love,

Team Full Circle