- Where Does the Money Go?
- Manufacturing cost as set by the maker
- Design fee for the designer
- Opendesk platform percentage fee
- The Sale Channel percentage fee
- Local Delivery service charge
- Additional Service Charges as chosen by the customer (such as on-site assembly)
- Local Sales Taxes
Opendesk is an online platform connecting customers, makers and designers. When customers buy an Opendesk product directly from a registered maker they pay:
- the manufacturing cost as set by the maker (this covers material and labour costs for the product to be manufactured and any extra assembly costs charged by the maker)
- a design fee for the designer (a design-fee that is paid to the designer every time their design is used)
- a percentage fee to the Opendesk platform (this supports the infrastructure and ongoing development of the platform that helps us build out our marketplace)
- a percentage fee to the channel through which the sale is made (at the moment this is Opendesk but in future we aim to open this up to third-party sellers who can sell Opendesk products through their own channels - this covers sales and marketing fees for the relevant channel)
- a local delivery service charge (the delivery is typically charged by the maker, but in some cases may be paid to a third party delivery partner)
- charges for any additional services the customer chooses, such as on-site assembly (additional services are discretionary - in many cases makers will be happy to quote for assembly on-site and designers may offer bespoke design options)
- local sales taxes (variable by customer and maker location)
Designers can also choose between making their designs free or paid to download for non-commercial use. When a customer buys a paid download, they pay a fixed-price set by the designer, plus an Opendesk platform fee.
When a customer wants to buy an Opendesk through our Marketplace model they are provided with a transparent breakdown of fees including the the manufacturing cost, design fee, Opendesk platform fee and channel fees. If a customer opts to buy by getting in touch directly with a registered local maker using a downloaded Opendesk file, the maker is responsible for ensuring the design fee, Opendesk platform fee and channel fees are included in any quote at time of sale. Percentage fees are always based on the underlying manufacturing cost and are typically apportioned as follows:
- manufacturing cost: fabrication, finishing and any other costs as set by the maker (excluding any services like delivery or on-site assembly)
- design fee: as 8% percent of the manufacturing cost
- platform fee: as 12% percent of the manufacturing cost
- channel fee: as 18% percent of the manufacturing cost
- sales tax: as applicable (depending on product and location)
So, for example, a desk costing £1,000 to manufacture with a design fee of 8%, a platform fee of 12% and a channel fee of 18% sold in the UK would work out as:
- £1,000 manufacturing cost
- £80 design fee
- £120 platform fee
- £180 channel fee
- => a pre-tax total of £1,380
- £276 sales tax (20% VAT in the UK)
- => total consumer cost of £1,656
Opendesk designs are available to download for non-commercial use. Designers can choose whether to make downloads available for free (which will increase distribution and uptake and is a nice way to provide value to individuals, charities, students and schools without impacting commercial revenue), or to charge for the download.
When a designer charges for a download they are free to set their own price. We then add an Opendesk platform fee as a percentage to their cost. So, for example, a download costing $5 with a platform fee of 12% would work out as a total cost of $5.60.