Don't get robbed by COVID-19 price gougers: what is the "Transparency Program"?

Don't get robbed by COVID-19 price gougers: what is the

We've all seen big headlines recently talking about the price gouging going on among masks, hand sanitizers and other essential products in need to face the COVID-19 outbreak:

Some companies engaged in these despicable practices have been exploiting the current high market demand to charge up to 10X normal prices!

NOT ON OUR WATCH

At Airnex our mission is to help people breath clean by making premium masks and filters designed to protect users from potentially harmful airborne particles. We aim to become your best source of information and products on all things air quality and protection from air contaminants.

Given the current Corona virus outbreak, we want to support even more people by offering a 15% discount on all products.

But that's not all.

We want to do more.

In a market where majority of people have lost trust because of price gougers, we created something called the "Transparency Program", a self imposed internal policy where we'll disclose the method we used to set prices in our store, together with our average costs per order so that all our customers can feel reassured of the price they are paying.

Before to dive into the details of our new policy, please note the following when reading each element that will be listed below:
- Due to the recent high demand of masks and related products, there's been a raw materials shortage that caused a general increase on factory prices, together with several other reasons (write in the comments if interested to know more details about this)
- The outbreak is currently causing also an increase in prices in international transportation making all products more expensive to be delivered in other countries.

The Transparency Program

Here we go with the fun part (at least for those passionate about numbers and business). This is something we've never seen any other company doing before, we're going to disclose exactly how we came up with the prices advertised in our store and the exact composition of our costs! 

Here the exact breakdown of our cost per order!

The typical elements composing our cost for each order placed by our customers are (numbers based on an average among different products and orders we put for sale in the USA):

- Cost of the product: variable depending on each product
- Cost of packaging: 0.10$/pack
- Cost of shipment (from factory to the US): 0.75$/unit (by air freight, see above on current logistics inflation)
- Cost of warehousing and order fulfillment: 2.9$/order
- Credit card and payment processing fees: 0.97$/order
- Cost of shipment (from warehouse to final customer): 6.55$/order (again this is an average as shipping costs depends on order weight, distance and speed of the courier - we use the fastest but most costly solution, express 2-3 days delivery)

So how did we come up with the final product price?

Like most companies offering consumer products, we simply add our margin (a reasonable one) on top of all costs mentioned above. The margin is then used to pay for other companies expenses such as employees salaries, office rent, administrative costs and other.
Our industry average margin per order is about 35-40% (which guarantees the company to stay healthy, pay all expenses and grow the business), but due to the current situation we want to keep it at 20% in order to make our products affordable to as many people as possible (thus the 15% discount on all products).

Let's see an actual example of a product we are selling in our store right now, the "Black Pollution mask without valves" (read the FAQ for more details about masks with and without valves)

Our factory cost is: 1.97$ (yes we are disclosing our real cost!)

Now let's sum up all costs we mentioned above (packaging, shipment, fulfillment, etc): 11.27$

Therefore our total order cost for us to make the product, package and ship it out is: 13.24$ (remember it's still an average estimation)

Adding a 20% margin the result is: 16.55$

Lastly, we are proud to be partners of One Tree Planted, an amazing organization that help us plant one tree for each product sold by donating just 1$ (which we count after adding our margin otherwise the final price to our customers would be unfairly increased with an additional margin). 

We are currently supporting a reforestation project in California to restore forests damaged by the recent wildfires.
We aim to plant 1 million trees in the next 3 years.
Watch here the video presentation of our partnership with One Tree Planted.

As a result, the final advertised price is 17.55$, clean and simple, affordable by anyone (and it's shipping included if you order 2!)

Let's repeat for a moment what's included in that price.
In the case showed, with 17.55$ you will get:
- One reusable and washable protective mask
- 2 activated carbon filters
- Shipping costs included for orders above 25$
- You plant 1 tree in California!

Helping your self breathing safe while making the world a place with better air!

If that's not a great deal, we don't know really how else to surprise you! :)

If you found interesting this little dive into our company economics, please leave a comment below with your thoughts!

Also please help us spread this message of transparency and honesty in business, hoping that the "Transparency Program" could inspire other companies to become more socially responsible in this time where unity and support is more important than ever!

 

PS. All costs claimed above are 100% verifiable and we stand by our words. Contact us if you would like to see actual proof of the costs mentioned.


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