Patagonia is well-known for its high-quality outdoor apparel and gear, but its prices often cause consumers to ask, “Why is Patagonia so expensive?” While the brand’s prices may be higher than those of some competitors, several factors contribute to the cost of Patagonia products.
Read on to learn more about what makes Patagonia so costly and why it might be worth investing in this premium gear.
8 Reasons Why Patagonia Is So Expensive
Let’s look at how Patagonia makes its money and whether the things are worth the price.
1. Feasible Sourcing Of Patagonia
Patagonia’s high pricing is significant because it uses only environmentally responsible materials, making sourcing feasible. It’s only natural for Patagonia to want to help the environment since their clothing is designed for an outdoor audience.
Individuals would not wish to go outside if the climate is hazardous. As a consequence, they will not require to utilize outdoor clothing. To assist preserve the environment, Patagonia employs sustainable procurement methods.
Cotton grower cooperatives are essential for ensuring that cotton is harvested safely and sustainably. Those guidelines have a price tag associated with them. Ensure more expensive to ensure that you only gather the amount of product you require rather than destroying soil for future harvests by harvesting the entire crop.
Despite the extra expense, Patagonia remains steadfast in its efforts to source responsibly. As a result, apparel prices have gone up. The increased price compensates for the higher cost of sustainable sourcing.
Customers of Patagonia don’t only purchase high-quality clothing. Customers who support the company’s efforts to use sustainable production methods.
2. Patagonia Is Very Concern About The Hands That Manufactures Its Products
Patagonia is concerned about its employees’ pay. Although they are not technically Patagonia employees, they compensate manufacturing personnel well.
The company does not own any factories. Instead, they collaborate with a few carefully selected manufacturers that match their needs. One of their most important criteria is how much the factory pays its employees.
It’s not always simple to pressure manufacturers to pay their employees a fair wage. This is because the firm frequently works with several businesses simultaneously.
If one brand demands that the manufacturer pay its employees more, the cost of goods will have to be increased across the board. This may not be easy from a legal standpoint.
Price fixing is a formal legal phrase that refers to employers compelling factories to raise salaries. When businesses agree on a price, the market norm is established.
It is against the law in a market economy. On the other hand, Patagonia has little or no influence over factory pricing levels since it must pay its workers a living wage. They do, however, consider it very seriously.
They work with the Fair Labor Association to verify that factory employees are fairly compensated.
Every month, Patagonia updates the cost of living in all of the countries with which they have a factory collaboration. As a result of greater supervision, they lose money.
The costs of running a company are increased by being involved in labor and living wage debates. Patagonia’s goods have grown more expensive as industrial workers earned a decent wage. This is because their products are manufactured more expensively.
Customers will pay a greater price for their purchases due to this. Customers who acquire Patagonia items are also assisting in supporting the livelihoods of many employees across the world.
3. Their Collaboration With Bluesign Technologies
Patagonia is a member of the design family. It’s a company that conducts business studies and evaluates its environmental effect.
They use a color-coded scheme to rate different goods and procedures to make them simpler to comprehend. Chemicals that are deemed safe have a blue stamp on them. Chemicals that need special care get a grey mark.
Finally, hazardous chemicals that harm the environment and people are “black.” Patagonia tries to avoid using black chemicals whenever possible.
They’ve been pushing their corporate partners to use safe practices that are good for their employees and the environment.
In the early 2010s, several of Patagonia’s suppliers had already begun utilizing safer and more environmentally responsible procedures. By 2015, Patagonia expected the other parts of its relationships to do likewise.
While organizations must spend more time and money to reduce their carbon footprint, businesses are compelled to raise the cost of doing business with them. As a consequence, the goods they produce are more expensive.
Patagonia takes these expenses and offsets them by raising the prices of its items. Patagonia’s goods are more pricey since they use blue sign Technologies to guarantee that the environment is protected.
4. Patagonia Emphasize On Its United States Factories
Although the company has facilities worldwide, it tries to concentrate on those in the United States whenever feasible. The problem is that the US has just a few textile factories. Patagonia’s environmental and wage standards are satisfied by far smaller group.
The numerous trade pacts that have driven firms to leave the country in search of foreign workers have played a significant role in the decline of textile production in the United States.
As a result of the country’s trade agreements, in particular, the CAFTA, NAFTA, ATPA, and IFTA deals, textile production has dramatically decreased. Consequently, Patagonia makes an extra effort to discover new factories that meet their environmental and labor standards. They will both lose time and money as a consequence of this decision.
When they first contact, they send a representative to examine the factory as part of their onboarding process. They’ll examine whether they use environmentally responsible methods, have good workplace conditions, and pay their workers a decent wage.
In the United States, paying a decent wage may be pricey for businesses. It implies that manufacturing through them is more expensive. Not all firms are willing to lose money to cover these expenses.
Being a responsible company owner is not an exception; we all want to contribute to protecting the environment. That implies they’ll have to increase their prices to earn money and stay in business.
5. Making Quality Clothes Is The Only Priority Of Patagonia
Patagonia’s dedication to quality sets it apart from other companies. Patagonia works with manufacturers that practice fair trade. They are highly concerned with the thread count of their clothing.
Stitch quality also necessitates a high level of competence and expertise. As a result, they look for factories that employ sewists who can produce high-quality items.
It’s not easy work, and the materials aren’t cheap. Cotton and other fibers are often produced from animals or crops. Animals and crops require a healthy diet and favorable living circumstances to deliver high-quality goods.
Many pollutants that include heavy metals, such as lead and mercury, can be found in their bodies. They may not grow properly if they do not have enough food or live in unhealthy conditions. As a result, low-quality materials are produced.
It costs money to give the greatest care possible for crops and animals. This raises the cost of the materials. Patagonia increases the price of its goods to pay for its substances. When you purchase Patagonia clothing, you can be confident that the highest quality stitching and materials are used.
6. Longevity Of Patagonia Products Is A Great PayBack
Consumers appreciate Patagonia gear since it is thought to have a long life. This is due to the high quality of their materials, which are well-known for their endurance. When you’re outside, durability is essential.
When you hike, the last thing you want is your jacket or coat to tear. It can make you ill by exposing you to the elements. It could even be deadly in sub-zero temperatures.
Patagonia is a producer of outdoor clothing and equipment that is both tough and comfortable. It’s designed to endure even if you’re pushing your way through trees and barbs or rubbing up against cliff sides. However, there’s a catch.
Manufacturers must use high-quality components and processes to create a long-lasting item. They invest money into those procedures to obtain a high-quality product. Investing in a product entails putting more money, time, and effort into it.
With all of these characteristics, though, comes a price. As a result, the cost of the items rises. Because Patagonia products are long-lasting, you’ll require less of them.
They stay in place, so you won’t have to replace them often. In the long run, while this saves money, Patagonia misses out on revenue possibilities. As a result, they must charge their items at a high enough price to make up for the missed earnings.
Like all its other products, Patagonia’s durable apparel also helps protect the environment. You’ll need to buy less Patagonia clothing since it lasts longer. As a consequence, they will have to create more miniature goods.
Customers are also seen wearing their clothes made from recycled materials. When their clients finish their clothing, they’re frequently asked to recycle them.
Garments that can be recycled are made of organic fibers, textiles, or man-made materials. If the materials can be processed and reused in another product, they may be reused. As a result, the environmental effect is lowered because less manufacturing is required. Patagonia is an expensive brand for outdoor wear and apparel. The disadvantage is that it will endure you a long time.
7. Their Budget For Research And Development (R&D)
Patagonia has a substantial Research & Development team. They are constantly trying to develop new ways to make their outdoor gear more accessible and valuable for their clients.
When consumers talk about their worries with outdoor clothing, Patagonia pays attention. They want to learn from their and other manufacturers’ mistakes to improve.
They invest a significant amount of money into their research and development employees to ensure they stay at the forefront of the industry. Their staff tests and experiments with various designs and prototypes to achieve their goals. Not all prototypes are successful.
The costs of investments are always factored into their price. Patagonia charges a high rate to cover the expenses and ensure they can continue making clothing. It ensures that they stay competitive with other apparel firms by providing that they are constantly pushing the envelope.
When you purchase Patagonia, you’re also helping to pay the salaries of their R&D employees, who are responsible for coming up with new and innovative items.
8. Shipping Costs Of Patagonia
Another cause of Patagonia’s high cost is its transportation fees. Patagonia has no factories or mills, so they must pay for transporting their goods from production to storefront. Many of their factories are located in other countries, which has an associated cost.
Imports are taxed when they enter the country. It’s a way for governments to profit from selling imported items. They can impose different tariff rates on various nations at any moment. When Patagonia imports items from a nation with an elevated duty, the profit margin on the goods is decreased when it’s sold.
They’ll have to raise their prices considerably enough to cover delivery costs to get around this. It’s also why, when Patagonia sells items in the United States, it works with factories based in the United States. It is both more cost-effective and environmentally beneficial.
Why Is Patagonia So Expensive? – Final Thoughts
So, we’ve looked at a few reasons why Patagonia is so expensive. While some factors are out of their control, like the cost of materials and shipping, others are within their power to change. For example, they could reduce the price of their products by selling them direct to consumers instead of through retailers.
They could also choose to manufacture their products in countries with lower labor costs. Ultimately, whether or not Patagonia is worth the price is up to the consumer. But if you’re looking for high-quality outdoor gear that will last for years, Patagonia is worth checking out.