 Re: Continental apparel is going all Organic
We definitely should not expect a price decrease. If anything this sort of switch would normally lead to an increase. The only reason we are not getting a price increase on their garments is because the organic cotton they purchased is "organic cotton in conversion"
The "in conversion" part means that the land this cotton is being grown on has only recently converted to organic farming methods, and is not yet considered 100% organic because there may still be remnants of synthetic fertilizers or chemical pesticides in the soil.
The organic cotton "in conversion" costs considerably less than fully organic cotton. 100% organic cotton costs roughly 20-30% more than conventional cotton, while organic cotton "in conversion" costs nearly the same as conventional cotton.
If this switch were being made right away with fully organic cotton we would undoubtedly notice a price increase on all of Continental's cotton garments. |