Why Does the Same Bag Have Such a Big Price Difference?

When customers inquire about custom bag manufacturing, a common question we hear is: "Why does the price vary so much for the same bag design?"

Let's break it down with a real case.

A client loved the design of a bag made with synthetic leather (PU material). The FOB price was $5 per piece. However, the client felt that synthetic leather did not match their high-end brand positioning because these bags were meant to be premium gifts for VIP customers. They requested genuine leather instead.

After recalculating the cost based on genuine leather, the new FOB price was $16 per piece.

The client was surprised: "Why is there such a big difference?"

Here's the professional explanation:

1. Material Waste Rate

1. Synthetic Leather (PU): About 5% waste rate. PU sheets are regular in shape, easy to cut, and efficient to use.
2. Genuine Leather: About 15% waste rate. Leather hides are natural and irregular, with scars, holes, and uneven edges. Many parts cannot be used, resulting in higher material loss.

2. Unit of Measurement

1. Synthetic Leather is purchased by the yard.
2. Genuine Leather is purchased by the square foot.

3. Cost per Area

1. Synthetic Leather: Market price is around $1.5 - $2.85 per yard.
2. Genuine Leather: Market price is around $1 - $2.5 per square foot.

4. Area Comparison

1. One yard of synthetic leather equals about 1944 square inches.
2. One square foot of leather equals only 144 square inches.

As you can see, not only is genuine leather more expensive per unit, but it also requires more material due to the waste rate. Plus, its irregular shape makes cutting and production more complex, increasing both material and labor costs.

At RANGE, we specialize in OEM and ODM services for custom bags, backpacks, handbags, and more. We always aim to provide clear, transparent communication about material options and cost implications so that you can make the best choice for your brand.

If you're looking for a reliable partner to create high-quality custom bags, contact us today!

Learn more at: https://www.rangebagssupply.com