The financials of Step3
Recently I've been getting a lot of questions about the financial aspect of Step3 and the allocation of profits from the apparel sales, so I thought I would be completely transparent and address this for everyone!
First and foremost I would like to clarify that I myself am not personally profiting from Step3project, I am not pulling a salary nor am I taking royalties off of the sales. I am running Step3 because of my passion for renewable energy, the outdoors, and my belief that I can create a platform to make it more accessible to those who feel similar.
Now, let's take a look at what happens when you buy a shirt/hat/sweater!
First things first is paying off the cost of having the shirt made. This is where the largest percentage of the money goes.
Next, we have to put aside your investment in sustainable infrastructure - love this part!
The remaining money goes towards covering the costs of running and growing the business. This might seem like small potatoes on the surface, but these costs can add up and become quite extensive.
For example, the website has a yearly fee, promotional material like stickers and lanyards needs to be purchased regularly, we need to cover shipping and we need to continue to order more merch ourselves in order to supply you!
I know you're thinking - oh I paid shipping! But unfortunately in Canada, shipping is just extraordinarily expensive for small operations. So the shipping you pay does not cover the entire cost to get it to you. Which means we have to price up our apparel a little bit in order to cover the back end.
In terms of merch orders- these are a significant investment. We order in bulk meaning the initial cost is high at the beginning and then is recouped as we make sales. In order for us to expand our selection and keep up with demand, we have to continually be ordering more which means we have to continue to grow capital through the sales we have already made.
I hope this gives you some insight into where your money goes when you make your next purchase.
Thank you for all your continued support, can't wait to see you all #repthstep!