There can be a certain degree of wallet shock looking at the price of handmade nappies over those who are produced offshore and there are a number of reasons for the difference.
When commercial manufacturing factories purchase supplies for production they have the capital to invest in buying hundreds, or thousands of meters of fabric. This attracts a considerably more favourable rate and greatly reduces production overhead. More often than not, domestic nappy manufacturers are buying their fabric supplies from other work at home mothers who own their own business as well. Supporting handmade means that there is a trickle effect for economic growth domestically, however it also means that production costs per item are higher.
Hey Penny nappies are produced domestically in Australia, our team currently comprises myself as the business owner as well as 3 paid on the books employees, who are paid award rate including income tax on their behalf as well as super contributions.
We also have 3 rep team members, and family members contributing to work flow.
Overseas manufacturing companies pay their employees a fraction of our statutory minimum wage with no super, meaning you can buy wholesale nappies (for domestic reselling) from China at as little as $3 per piece. Often these wages to not even constitute an effective living wage, and many factory workers end up in indentured work. Even 'ethically manufactured nappies' have their workers paid a few dollars as opposed to mere cents per piece.
Operating as as domestic manufacturer (especially if out of a domestic residence) presents some difficulties in obtaining public and product liability, as well as insurance covering an extension of coverage on home policies. It is also often exorbitantly expensive. Being properly covered in the event of a work premises incident (say fire for example) means that specific insurance must be taken out, or you risk no insurance policy payout at all as it was undeclared activity.
Employing staff domestically also requires Worker's Compensation Insurance, which is mandatory in the ACT even for persons engaging in work activities on an unpaid, volunteer basis.
The totals of these insurances are several thousand dollars per annum.
Here at Hey Penny we appreciate your understanding and thank you for supporting small!