MEGA – Your prices are too damn high! (and why that is not entirely a bad thing)

We’ve been getting feedback: the prices of our new products are higher than before – and you’re absolutely right. Prices have gone up in several ways, and we’re not here to hide the reasons behind it. So here’s a breakdown of what you’re actually paying for.

What’s driving the price increase?

The biggest reason is our decision to move production from China to Europe as part of the MEGA project. This change brought with it a whole new set of production and logistics costs. On top of that, the products themselves have been improved (materials, design), and the overall cost level has gone up globally. What we haven’t done is slap on random “extra fees” for the fun of it.

Case study: Särmä Hardshell Jacket

The production cost of the jacket tripled when we moved manufacturing from China (€40) to Latvia (€120). That includes everything from materials and cutting to sewing, seam taping, packaging, and labeling.

Here’s why:

1. Labor and materials are more expensive. Chinese megafactories and low wages keep prices down. In Europe labor costs are higher.
2. Logistics are trickier. We still source the fabric from China, but now it has to be shipped to the Baltics, which costs a lot more.
3. The product itself is better. The new jacket has a doubled water column rating, better breathability (>8000 vs. >5000 g/m²/24h), and an extra sleeve pocket.

So where does the rest of the money go?

On top of production and logistics, we apply a Varusteleka markup. Nothing wild – in fact, the margin on the European version of the Särmä Hardshell is several percentage points lower than on the old Chinese one.

And where does that margin go? For sure, our margins are not there to pump up some billionaire’s dividends! Instead, our gross profit is split into three buckets:

1. Salaries. So we can keep knowledgeable, real people serving you in Konala and online – with big hearts and sharp minds.
2. Shipping costs. Getting your package to you isn’t free, even if it seems like magic sometimes.
3. Spaces and visibility. Rent for our store, office, and warehouse. Marketing to keep you informed and maybe even entertained once in a while.

So, does any of this make sense?

Was it worth moving production out of China if it raised prices and lowered margins? We think it was. And many customers have told us the same. If you’ve been following the MEGA project, you might remember the reasoning:

1. Security of supply. European production and logistics are way more predictable and reliable in today’s world of tariffs, trade wars, and bottlenecks: no surprise duties, no canal blockages, no factories seized by governments. Better supply chain control means faster lead times and better responsiveness to your needs. Smaller production batches also help us cut down on overstock.
2. Quality. Sure, Chinese factories can make great stuff nowadays – but making sure they actually do is a pain in the ass. Distance, local laws, and the culture of compliance make auditing way harder than, say, in the Baltics. We want our gear to last serious use, not be fast-fashion landfill fodder.
3. Sustainability. EU regulations are some of the toughest and fairest in the world: waste is recycled properly, workers are treated decently, corruption is kept in check, taxes get paid, and all that fuzzy stuff. Plus, value stays in Europe: people get jobs, subcontractors thrive, and regular folks benefit.

We at Varusteleka are still irresponsible in some ways, but we’re trying to be a little less so. At the very least, we’re being honest about what we do and why we do it.

This isn’t the easiest way to run a business, but we believe it’s the right one. So if you want to support Finnish and European well-being and a more sustainable society, choose quality, responsible gear – not cheap crap from China.