Price Transparency

At LOTTA LUDWIGSON, we believe in transparency and honesty when it comes to our pricing. As a brand, we anticipate that our customers value transparency and want to know the rationale behind our pricing.

To meet this need, we have developed a page that delves into our price philosophy and explains the factors that influence the prices of our products. To provide even greater transparency on pricing, we have also included a detailed breakdown of our costs on each product page.

An example for our price breakdown for our LOTTA blazer looks as followed:

Production Costs: 213,36€
Logistics: 43,22€
Company Costs: 255,42€
Tax: 121,60€
Social Responsibility: 6,40€

 

Production Costs:
Production costs include materials and labor. Material costs cover fabrics, sourcing, and sampling to ensure high-quality, sustainable materials. Labor costs reflect the skilled craftsmanship and fair wages involved in production and finishing.

Logistics: Include all costs for transportation along the supply chain, packaging and the final shipping fee to our customers

Tax: Includes the sales tax to the relevant authorities of the country where the product is being shipped to. For our cost breakdown, we calculate with a German tax rate of 19%.

Company Costs: By utilizing our markup, we are able to cover our business expenditures and allocate funds towards the development of upcoming products. Our company's costs compromise all costs for office rent, salaries, marketing, website and IT services, payment transactions, bank account, certification process, insurance, tax & legal advisor, photographers and models and a profit margin. The latter makes up around 1/3 of the total company costs, depending on the product, and is invested in upcoming products, as many of the production expenses need to be paid several months before the finished products are sold to customers. Instead of distributing profits to ourselves, we reinvest them entirely in developing products for a circular and sustainable future.

Social Responsibility: For every product purchased we donate money (around 1%) to different organizations fostering more equality, justice and opportunities for girls and women. Currently we support the Sparsa Project. However, as we want to donate to different charities in the futures, we are always on the hunt for charities that are in need of support. If you have any recommendations, feel free to reach out to us!