We believe sustainability goes hand-in-hand with transparency — supply chain transparency as well as transparent pricing. You should know what you’re paying for so you can better understand the value of the products you buy.
There for on this page we break down the true cost of our products, materials, labour, shipping etc. Additionally we explain the margins which we take as a company. These margins are how we pay our company expenses (employees, insurance rent, product development). We endeavor to be as transparent in all these processes to hold ourselves accountable and inspire others to do the same.
Hemptex was developed as the world's only bio-based textile that is developed to be strong enough to stand the heavy circumstances that flags have to go through. Hemptex serves wider uses beyond flag-making.
The textile price formula is: m2price*(((length + stitching space)/100)*((width + stitching space)/100)).
Currently, we base our pricing on ordering textile of 147 cm width.
This pricing is derived from the latest invoice dated 20/01/2024.
Shipping costs from Hemp Foundation in India to EarthFlags are currently set at 350 EU for air shipment of 100m (147m2) of raw hemp textile.
During our scaling phase, the small quantity necessitates air transport. However, from July 01, 2024, as we import larger quantities of textile, we'll switch to freight shipping, significantly cutting costs and reducing the ecological impact of each flag.
This information is based on the latest invoice dated 20/01/2024.
Also known as a customs brokerage this is a cost that is incurred by all parcels arriving internationally. This fee covers the process of preparing and submitting Customs Entry documents to the CBP.
Based on 9% of the invoiced amount, which is the calculated percentage from the last invoices
The printing costs are currently calculated based on pricing at Hollander Printing Solutions (HPS).
The current price is 7,5 euro per m2.
As we expand, we'll transition from printing flags at HPS to having our production partners acquire the same environmentally efficient full-color printer. This printer, known for its superior quality on 100% hemp textiles, minimizes waste and energy use. Ownership by our partners will reduce printing costs and, consequently, the overall cost of our flags.
We anticipate completing this shift by July 01, 2024, factoring in a 10% margin to cover textile losses due to printing errors and fabric wastage.
Our stitching cost estimate is derived from the expenses of our partners and comparable companies, as stitching is an operation we have not undertaken directly. This approach ensures our pricing reflects industry standards for similar services.
Several resources are used to estimate a 0,28 euro per package.
Delivery is paid for by the customer and this price fluctuates based on the quantity of flags orders. The price shown on the pricing sheet is based on 1000pcx. We took an average of 0,85 euro as handling fee as estimate based on prices from several distribution centres.
For the textile alone, we apply a 50% margin, which supports the sales of the textile itself.
This margin covers:
- Team salaries
- Daily operational costs
- Office expenses
- Hemptex brand development and sales activities
- Product innovation related to Hemptex
For Hemptex full color double-sided printing, we calculate a 50% margin solely on the printing process, covering:
- Team salaries
- Daily operational costs
- Office expenses
This margin will be adjusted as of July 01, 2024, due to changes in our production processes, with updated pricing to reflect these changes.
For the final product, our margins range from 30-50%, based on an average from our partners or comparable companies. These premium flags, sold in smaller quantities, necessitate a higher margin to:
- Pay team salaries
- Cover day-to-day and office expenses
- Support innovation, brand building, and sales processes
The total is the final amount calculated including all theabove costs and excluding tax.
