Why can we offer our products for such reasonable prices?
Transparency
We determine our prices in a reasonable and fair way.
We are very transparent about our pricing policy. We aim to build trust with our customers and make them feel empowered by sharing information about our pricing policy with them. Trust is the foundation of any strong relationship and TRANSPARENCY helps build that trust. We’ve explained how we price our products in the pie chart above. We take various factors into account when calculating our prices, including: tax on profit, profit, rent and wages, marketing, transport and logistics, and manufacturing.
Reasonable Prices
Our systematic approach to pricing helps us offer products at a reasonable price. We don’t work with intermediaries and avoid unnecessary transport costs.
Our bags are manufactured in India by small family businesses or larger manufacturers. Our production materials are also sourced from local suppliers. This means our materials only need to be transported over short distances, which results in low transport costs.
The final leather products arrive in Europe without taking any detours and are ready to be shipped to you straight away.
Other Ways to Reduce Costs
We use different strategies to help us reduce costs when developing and manufacturing our products. One of the main ways we do this is by doing all of the work ourselves. This includes:
- Placing orders with our manufacturers
- Delivering products
- Inspecting and processing products (if needed)
- Dispatching products to our dispatch provider
In the leather industry, products are often purchased from manufacturers’ representatives at trade fairs or imported. We bypass this step and purchase our products directly from our manufacturers, creating a close business relationship. This means that we can regularly check our goods, as well as the on-site conditions at production facilities.
Competitive Differentiation
Unfortunately, lots of companies are using different methods to reduce their production costs. This leads to more manufacturers buying their leather and producing their goods in low-wage countries. This takes place in countries like Bangladesh, where animals are slaughtered inhumanely and adequate protective measures are not followed during the tanning process.
Gusti Leather stands firmly against this type of production and purposefully chooses other production methods.