Zeero Confusion | 100% Transparency ➞ Price Structure of our Sneaker

   

Production & Materials: this position takes the largest share of 26%. occupy. The sneaker as a whole consists of the upper, the lining, the sole outside, the insole, the laces, the thread, the glue. All these materials are fairly produced and acquired. We continue to have the Zeero manufactured in Portugal. Our manufactory pays the employees more than the minimum wage. This is lower in Portugal than in Germany - but at the same time the cost of living is less. So a fair relationship is important here.

VAT: there is not much to say. We as a company also have to pay VAT, bang, 19% gone.

Marketing costs: this item takes up a good 16% of the price for us. This may sound totally incomprehensible at first - but a product can be as beautiful as it is... if no one knows it in the end, it just gathers dust in the warehouse. We only market the sneakers online. This is where we spend money on social media ads and collaborations. To reach you at all, we have to pay a lot.

Logistics: our sneakers are shipped from our warehouse on the outskirts of Berlin. Here we work with an external partner who helps us. So there are costs for (in)storage, for shipping costs, for IT, for cardboard, for employees*. Within Germany, shipping and return (and potentially reshipment) is free of charge - that adds up to quite a bit. In all other countries, the customers pay part of the shipping costs - but we also pay the largest part. That's why about 13% of the total costs go to shipping costs.

Rent & Wages: the value seems to be quite small at first with 7% - it is! Our sister company Paprcuts has been around much longer. So these costs are split in proportion. So it comes that we can use capacities & have a strong team behind us.

Environmental tax & CO2 compensation: We have decided that we want to save 1% of our sales to support projects that do something good for our environment. To compensate for CO2, we plant a mangrove tree in Bangladesh for every order. Do you want to know more? Then click here along.

Margin: we come out with a bottom line margin of around 16%. That's our profit and our buffer. If we reduce our sneaker, the value is of course completely different. We decided a while ago that we don't want to work with investors. So we kind of live from hand to mouth. If we want to bring a new product or project forward, we have to put the money up front & hope that people like it. This often works, but of course always involves risks. So our profit is reinvested.