Why People Tree have a Sale
Every now and again you ask us why People Tree has a Sale.
So we thought we’d tell you why...
Why does product get left over and go into the
Sale?
We have to place orders with Fair Trade groups really early to allow enough time for each
piece of clothing to be made by hand. The only drawback is that it’s too early for our very supportive
People Tree customers to place their orders. So we take a risk to ensure that our producers don’t
lose out on orders.
As a Fair Trade company, we also commit to certain standards. We make a 50% advance
payment to Fair Trade suppliers, so they can get materials and pay wages on time. Having a Sale
means we can turn clothes into cash which helps pay our suppliers on time and secure their nextorder.
Does the People Tree Sale mean the Fair Trade producers aren’t getting a fair price?
Of course not! We pay our suppliers between 30-50% more than what they would get paid locally and
provide technical training and pay for capacity building. By reducing the price People Tree makes less money.
If People Tree discounts products, does that mean you’re making a big profit on the clothes
you sell at full price?
We wish! It took us 10 years to break even in Japan and we plan to make a profit
this year for the first year in the UK to sustain and grow People Tree. This is because People Tree
pays more to ensure a fair price for producers as well as committing to environmentally friendly
production and the costs of working in small villages, not factories.