Clothing pricing (Hellu hoodie)

This article has already been published in our old online store on June 4, 2020. We are republishing it slightly updated for this store side now.

Every now and then we have to justify the prices of our clothes. Discussions have been held over the years in both good and a little more rigid spirit, but as a rule they have ended in at least some sort of agreement. We want to make product pricing as transparent as possible for you too, because we think customers really have the right to know what they are paying for.

For example, we chose our long Hellu hoodie, which is a new and quite popular product. It costs the consumer customer 149 euros. That's quite a lot of money, but let's go over how that money is distributed.

Selling price: €149
This is how much you pay for the product in our online store and at our retailer.

Value added tax: €28.85

Retailer: €51.15
Includes all dealer costs. We sell products both through retailers and our own online store. If the product has been sold in our own online store, this amount will of course also remain with us, i.e. the brand.

Brand: €22.50
Includes selling expenses, rent, salaries, marketing, planning, zoning, etc. - all other expenses of our company except sewing the product.

Sewing in Finland: €25

Material costs: €21.50
Includes fabric, elastics, brand name, size label, artificial leather label, zipper, hood ribbon, sewing threads.

So when you hear someone say that the prices of clothes sewn in Finland are inflated, dare to correct this misconception. This is also the reason why we try not to give discounts unless it is, for example, a product that is going out of the range or a model piece, etc. Every euro has a purpose.

The purpose of the company is also to make a profit, because a loss-making company will not go far. Because of this and the pricing, it is also necessary to understand that quite a lot of products have to be sold in the clothing industry in order for the operation to be profitable. This is also the reason why producing individual pieces is not reasonable and profitable when, as a rule, clothes are produced in series production.

Most of the price of this product stays in Finland, we only get supplies from abroad. All work steps are done in Finland: design, planning, cutting, sewing, finishing, photography, marketing, packaging, storage, shipping and everything else.