Zeero Confusion | 100% Transparency ➞ Pricing Structure of Our Sneakers

   

Production & materials: this item accounts for the largest share of 26%. The sneaker consists overall of the upper material, the lining, the outer sole, the insole, the shoelaces, the thread, the glue. All these materials are produced and sourced fairly. We continue to have the Zeero produced 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 also lower. So a fair balance is important here.

Value-added tax: there isn't much to say. Even we as a company have to pay value-added tax, bam, 19% gone.

Marketing costs: this item accounts for a good 16% of the price for us. That might sound totally incomprehensible at first - but a product can be as beautiful as it wants.. if no one knows about it in the end, it just gathers dust in the warehouse. We only market the sneakers online. Here we spend money on ads in social media and for collaborations. To reach you at all, we have to shell out 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, shipping costs, IT, packaging, and employees. Within Germany, shipping and return shipping (and potentially reshipping) are free - which adds up to a good sum. In all other countries, customers pay part of the shipping costs - but we also cover the largest part here. This is why about 13% is spent just on this.

Rent & wages: the value seems initially quite small at 7% - and it is! Our sister company Paprcuts has existed much longer. These costs are therefore split proportionally. This is why we can utilize capacities & have a strong team behind us.

Environmental tax & CO2 compensation: We have decided to save 1% of our revenue and use it to support projects that do something good for our environment. For CO2 compensation, we plant a mangrove tree in Bangladesh for every order. Want to learn more? Then here along.

Margin: we end up with around 16% margin in the end. This is our profit and our buffer. If we reduce our sneaker price, the value naturally changes significantly. We decided a while ago that we do not want to work with investors. So we basically live hand to mouth. If we want to push a new product or project forward, we have to advance this money and hope it is liked. This often works but of course always carries risks. Our profit is therefore reinvested.