Halfway into our campaign for BAG2WORK we got a lot of questions about the price for the bag. To some people the bag seemed expensive.
We can imagine why people think this, especially after Al Jazeera and Trouw claimed that it costs less than 3 dollars to make a bag. But this cost is for making a bag on the spot in Greece, once all research is done, tools are provided for and everyone works for free. It doesn’t take into account any of the costs we’ll make once we start producing and selling bags on a larger scale: taxes, transportation, wages, you name it.
That’s why we’ve made a cost estimation for 500 bags and baked you a homemade pie chart out of it. If there are any leftovers because more money is pledged, the benefit goes right back into our NGO whose core goal it is to empower refugees through up-cycling workshops.
- 21% Sales Tax (VAT / BTW): Goes to the Dutch government
- 2,8% Credit Card Fees: This money is for Mastercard and VISA.
- 5% Kickstarter fee: This is what Kickstarter takes off the pie.
- 9,6% Campaign: For campaign movie editors, product photographers, crowdfunding campaign wizards, packaging, etc.
- 26,5% Production: Goes to Makers Unite to give jobs to the refugees and make the bags.
- 13,2% Materials: Money to get the used boats from Greece, plus rivets and rings.
- 4,5% Tools: We’ll get a pneumatic rivet gun, proper scissors and pliers.
- 13% Research & Design: Goes to the No Mad Makers for their ongoing research into how to make this production happen.
- 4% Unforeseen: We’ve learned that changes is the only constant in this refugee crisis, so we’ve reserved a budget for unforeseen costs.
The pie chart shows that almost 30% of all pledged funds are never even ours to spend on the bag production, because they go to the government (sales tax) or to big companies (Kickstarter fee and credit card fees).
Now you know that we’ll try to spend the rest as wisely as possible. And we hope that we will get the chance to start up this production, and start up a more sustainable effort to help refugees and clean the beaches. You can still support us, here.