Pricing Fair Trade Products

The average consumer is often turned off from buying fair trade products upon learning that the prices are higher than commercial ones. The prices go higher still when the products are sold at specialty shops instead of regular stores. Just how is a product priced?

Fair Trade Certification

When a product obtains certification the minimum price is often set by certain standards. The minimum price of the product is the amount that a buyer, a wholesaler for example, has to pay the producers who made the product. Unlike other commercial items, the price of fair trade products is not fixed. Since it aims for producers to practice sustainable production the minimum is set at the cost that covers the production. This ensures that even if the market price for that product falls below the minimum set, the farmers will not be at a loss. Thus it plays the role of a safety net. However if the market price goes way above the minimum level then the buyer has to pay the producers the current market price. In addition both the wholesalers and producers can negotiate for a higher price if it is determined that the product is of high quality, among other requirements.

Fair Trade Products for sale

Because the idea of fair trade is to cut the distribution chain, it does not answer why some of the products remain to be sold at a higher price.  Thus aside from the price of the fair trade products, it is agreed upon by the producers and wholesalers, the agencies though the FLO Standards Unit puts an additional price on top of it. This may seem counterproductive since the price of the product will obviously be higher than the current market price.

Fair Trade adds improvement to communities

Pilgrim Imports Take Two Theater Fair Trade Ornament
Pilgrim Imports Take Two Theater Fair Trade Ornament

There is however a purpose why a premium is added. The income from the premium is used as investment capital in order to develop projects geared for the producers and workers economic, environmental and social improvement. For example, the amount can be invested to build schools and their communities in the area where the products are manufactured. It can also be used to build or improvement facilities that will help in increasing the yield or enhancing the quality. By focusing on improvements in the area it is envisioned that the income of the producers and the wholesalers increase.

So the next time you hesitate on buying fair trade products because of its price, give it a second thought. Buying Fair Trade products not only means that you help the environment but it also means that you are helping people lead better lives.

Fair Trade Logo
Fair Trade Logo

What is a Fair Trade Certification?

In order for a product to be considered as belonging by the fair trade definition, it has to have what is called a fair trade certification. If fair trade clothing and products have this certification then it tells consumers that the seller is committed to the concept of fairtrade. It also makes the consumers trust the product more and also increases the likelihood of the conscious consumer to purchase the items. There is no need therefore for consumers to have to do research regarding the product because they know that they can put trust in the act because of the Fair Trade Certification.

Fair Trade Certification

Aside from giving consumers trust, a certification allows products to be differentiated from others. This in turn gives them the much needed competitive advantage over other commercial products in the market. Competitive advantage because it gives everyone involved their own brand, so to speak. This means that from the producers and workers down to the wholesalers and the retailers, everyone gets to enjoy the benefits. Without this label, these groups would have to contend with multinational companies who spend a large amount of money just to create a brand that consumers will identify and buy.

A wide range of Fair Trade products
There is a wide range of FT products

Labeling or branding further helps in creating standards for the different products. Think of it as an ISO Certification but instead of companies it is put into products. One good thing about certification is that it is not rigid like the others. The standards set are flexible and can be changed when the need arises. Thus if there are changes in the market, the standards are revised in order to keep it updated and in line with the latest trends in fair trade.

TransFair USA

There is no one specific group or agency that hands out a fair trade certification. In the U.S., certification is given out by the group TransFair USA. Fair Trade organizations like TransFair USA is in fact the one in charge of certifying products in the North America region. The group certifies products such as chocolate, tea, coffee and other agricultural goods. The group even certifies processed food like canned juice, energy drinks, chocolate and ice cream, among others.

Sanyork Fair Trade Products
Sanyork Fair Trade Products

In Europe, the task of certifying products is done by FLO-CERT GmbH. Working hand in hand with FLO International the certifying group gives out certification to Fair Trade products in more than seventy nations worldwide.

Connecting Technology and Fair Trade

Technology and fair trade at first glance seems to be on opposite poles. Presently it has been largely associated with handicrafts, agricultural products and food items. There is, however, an industry that is just ripe for inclusion in this movement, this is the field of electronics.

Technology and Fair Trade

 

Can Technology and Fair Trade Happen?

Electronic items like microchips are by nature artificial materials, meaning they are made using a combination of other raw materials. People often relate electronics with gadgets like cellular phones, laptops and many others.

Few people know that the components for the gadgets they buy are in reality being manufactured in developing countries. In some cases even the assembly of the gadgets is done in the same countries. People who do this work are exposed to an environment that is not only stressful but even unhealthy. To add insult to injury the wages the workers receive are relatively low compared to the prices the gadgets are being sold.

By inculcating the concept of fair trade the electronics sector will not only benefit the companies in it but also the workers. Consider the fact that to make one electronic gadget, say a cell phone, a lot of companies are involved in the manufacturing process, from the LCD screen to the casing of the phone. If a company were to have this certification then it implies that everyone involved must also have certification. The result is a gadget that carries this certification, means that consumers will put their trust on the product and are more likely to buy it. This increases the profits of the company as well as the earnings of the workers. This is but one example of how technology and fair trade can work hand-in-hand.

A Competitive Advantage

Another advantage of having this certification is that this will differentiate the company from its competitors giving them a competitive advantage. Electronic companies nowadays are doing their best to tell consumers that their products are “Eco-friendly” or “environment-friendly.” What better way to boost that claim than by having a fair trade certification?

Don’t Limit Fair Trade Products

Eco-Bags Fair Trade Products
Eco-Bags Fair Trade Products

With the fast pace in the improvement of technology, people will have to decide sooner or later that indeed electronics can be part of the movement. Fair trade products need not be limited to agricultural or handicrafts, technology and fair trade is the next step and is waiting just around the corner.

Fair Trade Federation

Are you looking for a list of Fair Trade products? I just found this great resource for buying fair trade products and Fair Trade Clothing. Check it out for yourself and see if there are some products you would like to purchase local to you. Even if they aren’t local most companies will usually ship products to you very happily. The shipping may cost a little more but it will be worth it.

Fair Trade Official Stamp
Fair Trade Official Stamp

Fair Trade Products List

Fair Indigo Pima Organic Cotton U-neck Tank
Fair Trade Indigo Pima Organic Cotton U-neck Tank

There is a download list available for all sorts of products for sale from all over the world. The Fair Trade Federation (FTF) is the trade association that strengthens and promotes North American organizations that are fully committed to fair trade. If you know of other companies, I’d love to hear from you, so we can share the knowledge about Fair Trade clothing and products across the globe!
http://www.fairtradefederation.org

Funky Fair Trade Shoes

Have a look at this company, this company ETIKO Fair Trade Shoes has some really funky Fair Trade shoe designs.

Fair Trade changes lives

When Paballo was eleven years old in Grade 5 at school, his mother became mentally ill and had to give up her work in a bookshop. As a result, Paballo became very dependent on his father. In his second year at high school when he was fifteen, he was devastated when his father died. As there was now no means of raising the fees required for his schooling, Paballo dropped out of school.

Pabillo Fair Trade Jewellery maker
Fair Trade changed Pabillos life

How Fair Trade changed Paballos’ life

Three years later, a past school principal of his paid the fees to enable him to go back to school. It was at this time that the Christian Revival Church through the outreach ministry arm of the church called ‘Love in Action Lesotho’ and one of the projects under this umbrella ‘Jewels of Hope’ (JoH) became aware of his situation and he was invited to join the first group of JoH in 2005. With the financial assistance that he was given he was able to finish his high schooling and went on to college to study home economics. He also learnt the skills of Jewellery making.

Fair Trade Skills

During his schooling he worked in making Fair Trade jewellery in Lesotho. Paballo was mentored and taught many skills. He learnt a variety of jobs including renovating, and showed how to maintain,

Pabillo Fair Trade Jewellery makerhis house. At the age of twenty-one, Paballo was still sleeping in the same room as his mentally ill mother – two other rooms in the house where un-liveable. Paballo was also taught how to repair and restore these two rooms. He now has a bedroom of his own and is able to rent out the other room to bring in some income.

 

Fair Trade Jewellery maker Lesotho
Teaching Fair Trade Jewellery making in Lesotho

After completing the three-year  ‘Jewels of Hope’ (JoH) Fair Trade Jewellery program, he became a trainer and worked with a group of five children to disciple and mentor them as well as teaching them how to make jewellery. He has gone on to be a teacher’s aide at the American International School in Maseru, the capital city of Lesotho. Life would have been very different for Paballo if he had not had the opportunity to learn many skills including making Fair trade jewellery.

 

 

 

 

 

 

 

 

 

 

 

 

 

Buying Fair Trade Helps Fund Change

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