How do we set the price of our products?
Honesty and transparency are two key pillars of any sustainable business, and the same goes for ours. From that point, a business can become sustainable in several other ways: packaging, ingredients, worker’s rights, and a host of other important actions.
However, without a desire to be transparent and open to new ways of working, we believe that true sustainability cannot be achieved in a business, which is why we aim to practise radical transparency in the way we work. In this spirit, we want to talk about how we set our prices for each product and answer any questions about our members club.
Leo’s Box, as a proud B Corp, revolves around three principles: people, planet and profit. We believe all businesses should focus on these principles, whether they view themselves as sustainable or not. We aim to be transparent to the people, about our role in protecting the planet, and how we can viably run as a company.
Here’s how it works:
We buy and sell at wholesale prices across the whole range. On average this is a reduction of 40%, but can be as high as 70% below the recommended retail price (RRP). No gimmicks, no pricing tricks, just great savings on sustainable staples every day.
However, to survive as a business, we need to be economically sustainable, as well as ecologically sustainable. To do this, the majority of our profit each month comes from our members club fee. Being able to rely on a regular income means we can buy more products upfront, with a bigger saving each time.
All of our products and members club prices are around the cost that we buy them for. This is what dictates the prices we set and the savings we deliver.
How are we able to get such cheap prices?
Leo’s Box is based on a simple idea: by using the collective buying power of our customers, we can reduce the length of the supply chain, and thus cost. No middleman, no brick and mortar overheads, just the cost of the item and postage.
We cut down the supply chain and the margin that retailers charge in order to cover their overheads (shops, staff, advertising etc.) and to make a profit. This means we can reduce the price of our products by up to 70%.
It's a simple idea that means more people can afford to buy more plastic free, sustainable, and ethical products. And we think that's great!
17 Feb 2022