French manufacturing is good, but it's too expensive. We hear this phrase every day, and it's undeniable that locally produced products are more expensive. Why does it cost more to manufacture in France? What's behind the price of a product made in France ? Two questions we'll try to answer today!
We've decided to share with you, in complete transparency, why the cost of local manufacturing is higher. Why we chose this business model and why we're trying to defend and promote it. Our playsuits are made in France and meet certain social and environmental requirements. These requirements come at a cost that we can't reduce unless we decide to lower our values , and that's not an option.
What are the criteria that impact the price of a garment?
There are four indicators that impact the price:
1. The qualitative criterion
To make a good garment, you need quality materials, and that inevitably requires a budget. The higher the quality of the materials, the higher the price of the garment; it's inevitable. A durable fabric necessarily has a higher price compared to a fabric that will tear at the first opportunity.
2. The social criterion
Then there's the labor force, which follows the same logic. If you choose to manufacture in a country with high social standards and strict compliance with working conditions, the price of your garment increases. A French clothing factory where workers are in good conditions necessarily costs more than a factory where working conditions are not the manager's priority.
3. The environmental criterion
Then there are environmental requirements, with standards that guarantee respect for the planet and that the material is healthy for us. The more robust the material's labeling, the higher the garment's price. A fabric manufactured without any consideration for the environment or the hazardous nature of certain substances will inevitably be less expensive than a fabric with the OEKO-TEX or GOTS label, which meets certain environmental requirements.
4. The emotional criterion
Finally, there is the attachment we feel for a brand or product. It is well known that we all have a favorite brand for a certain reason: originality, rarity, values defended by the brand in question, etc. The stronger this attachment, the more we are willing to pay to obtain a garment from this brand. For example, people who are willing to buy a certain pair of shoes much more expensive than its base price because they want it at all costs.
The important thing to remember is that qualitative criteria, social criteria, and environmental criteria impact price in a unique way. The more you pay for these requirements, the higher the quality of your garment. However, just because the garment is expensive doesn't mean these requirements are met. In fact, many brands rely on emotional criteria, which cannot be evaluated. People themselves assign the price they are willing to pay for a particular garment from a particular brand.
Finally, an abnormally low price doesn't meet any of the criteria mentioned above, that seems obvious. It should even alert us to the real values (particularly social and environmental) of the garment. Behind a €10 t-shirt, the manufacturing cost cannot exceed €2, which inevitably hides poor-quality materials, destructive to the environment, and questionable working conditions for its manufacture.
How is the price of a garment set?
At Ludis, our playsuits come at a price that we will take the time to explain to you below.
1. Costs directly related to the product:
- Design & Research : For all our clothing, we start by researching and testing as many fabrics as possible to find the one that meets our quality criteria and matches the design we want to give to the garment.
- The material: All our fabrics are OEKO-TEX standard 100 certified, guaranteeing that no products harmful to humans or the environment have been used in their manufacture.
- Manufacturing: Our partner workshop receives the fabric, cuts it to the shape of the garment and assembles the different parts using sewing machines.
- The labels: They are made in France, in a workshop with specific expertise.
- Supplies: For our closures, cords, and ribbons, we rely on French workshops as much as possible to ensure quality products. Only our closures are not yet manufactured in France; this is the next step in our development.
2. Costs indirectly related to the product:
- Marketing & Sales: In addition to being our distribution channel, our website is our showcase, and we're constantly improving it. We invest in showing you our clothing and their details through photos and videos, as well as explaining our approach.
- Packaging: All our orders are automatically sent in recycled, biodegradable and compostable cardboard.
- Structure costs: Office rent, mandatory insurance, and our accounting firm, which supports us and provides valuable support for all our legal and regulatory procedures.
All these costs represent 83.2% of the pre-tax price of our clothing, leaving us with a 16.8% operating margin. This margin allows us to ensure the company's profitability and invest in the development of our new clothing. We have no problem revealing the costs and prices of our clothing to you because it's part of our transparent approach. In fact, we'll discuss the usefulness of operating margin for Ludis in the next article.
Do not confuse usage price and purchase price
Now that we have demonstrated what lies behind the price of a garment made in France, we would like to answer the question: "Is a garment made in France more expensive?" and try to demonstrate that this is not necessarily true.
To do this, we will introduce the notion of purchase price and usage price:
The purchase price is the price displayed on the clothing label. It is the one we all look at before deciding whether or not to buy this item of clothing.
The cost of use is what this garment will actually cost us. To calculate it, we must try to project ourselves and imagine how many times we will wear the garment.
Let's take a concrete example: if you buy a shirt for €40 and you will only wear it for a wedding, then its purchase price is €40 and its usage price is also €40.
Now let's compare someone who thinks they're getting a great deal by buying a playsuit for €25 with someone who paid the right price for a playsuit, namely €85.
As we explained above, behind every price lie social and environmental requirements, quality criteria, and an emotional criterion. A playsuit with a retail price of €25 seems difficult to meet all these requirements. Let's assume the playsuit is worn three times, then the usual price is €8.33.
At Ludis, we work hard to offer you quality clothing that will last as long as possible. This pursuit of quality and durability aims to significantly increase the lifespan of our playsuits so that you can wear them as much as possible. Let's say our playsuit is worn 20 times, then the standard price is €4.25.
Ultimately, the difference in purchase price between €25 and €85 ends up fading and even reversing when we wear and keep our clothes longer. To this end, we advise you to think carefully about the real need for a garment before purchasing it, to check that the quality, social and environmental criteria are respected and to respect the care conditions of your clothes.
Conclusion
Now you know everything that lies behind the price of local manufacturing. At first glance, the price may seem high, but when you look closely, it represents requirements that will offer you a quality garment that will last over time. We could have chosen to manufacture our playsuits elsewhere in order to significantly increase our margin, but this does not correspond to our values, our approach, and our commitment to local, sustainable, and ethical fashion.
We're not the only ones following this path; brands like Hopaal and Coureur du Dimanche are also committed to great transparency. So before buying a new item of clothing, think about what it represents, ask yourself the right questions, and decide whether or not to support the brand's approach.
Thank you for taking the time to read this far! If you would like to comment on this article, please feel free to leave us a comment. 😉
See you soon
The Ludis team 🐍