The Economics Behind Moroccan Beni Ourain Rugs

As we noted in a recent blog post, the Women’s Cooperative of Imelghaus became one of Anou’s top selling artisans. With more sales combined with encouragement from Anou’s community leaders, the women finally started to record all of the material costs and time spent on the rugs they make. The women were shocked at what they learned.

The first rug they began recording on was a beautiful, custom ordered 10’ x 8’ Beni Ourain style rug. The artisans listed the price on Anou for $380. Since the rug weighed over 21 kilograms, the cost to ship it to the US came to $260. Anou’s community fee, which is about 6% of final listed price, added $43 to the price.The credit card payment company we use to process credit cards added $21, or about 3% of the final price. All of this combined set the listed price on Anou for $712.

The Imelghaus Cooperative listed their Beni Ourain rug for $712 on Anou.

The Imelghaus Cooperative listed their Beni Ourain rug for $712 on Anou.

Providing this much detail in how prices are calculated is unprecedented in the fair-trade industry, but we can learn even more by breaking down the $388 the artisans earned using the material and labor information they shared with Anou. The cooperative recorded that they spent $125 for the wool to make the rug leaving them with a total of $236 for their labor. The women recorded that it took over 280 total hours of weaving. This puts the cooperative’s hourly wage at $.93 USD/hour, or $7.44 for an 8-hour work day. This wage is less than what a day laborer makes in the rural valley where the cooperative is based. It is also below the Moroccan minimum wage for agricultural workers, which is the equivalent of $7.50 per day (learn more about Moroccon minimum wage on Wikipedia or fairwageguide.org).

The women recorded that it took a total of 280 hours of weaving time to complete their Beni Ourain rug.

The women recorded that it took a total of 280 hours of weaving to complete their Beni Ourain rug.

The time spent creating the warp (pictured above) or preparing the wool was included in the 280 hours the cooperative recorded.

The time spent creating the warp (pictured above) or preparing the wool was NOT included in the 280 hours the cooperative recorded.

 

 

 

 

 

 

 

 

 

 

 

The numbers are surprising because they are incredibly low. So low, in fact, that you might think the wages couldn’t get any lower. However, cooperatives are regularly faced with buyers, both fair-trade and regular retailers alike, who request prices lower than what they list on Anou. Worse, it is not uncommon for women’s cooperatives to unknowingly sell their products at price that only meets a quarter of their material costs when selling to traditional middlemen. This is largely why it is not hard to find rugs for sale in the Marrakech medina for prices cheaper than what is listed on Anou.

Take a moment for that to sink in. 

With no other sales avenues other than local craft fairs, artisans, much like the Women’s Cooperative of Imelghaus prior to Anou, never have had the knowledge or incentive to push back when buyers want lower prices.

For the first time, the women met and decided that they wanted to increase their pay to $1.70 an hour, or $13.60 a day. This new rate would exceed the Moroccan minimum wage for industrial labor, a big deal in rural Morocco. As such, similarly sized rugs the cooperative produces in the future will now be listed on Anou for around $912 USD, an increase of $200 from their previous price.

The Cooperative's rug at its new home in Brooklyn, New York. Is there a need for high end boutiques to make these rugs look great?

The Cooperative’s Beni Ourain rug at its new home in Brooklyn, New York. Rugs purchased directly from artisans look just as great, if not better,  than the ones purchased from high end resellers.

Recently, Anou was featured in an Apartment Therapy blog post in which they discussed where to buy Beni Ourain rugs because their “popularity…shows no signs of flagging.” The average price of similarly sized rugs listed on their blog (minus the product listed from Anou) was $2,564 USD. This number serves as a good indicator of the average market value for these type of rugs. Imagine the impact a sale would make if the women of Imelghaus could sell their rugs at that price or even half that price. The only way this is even possible is if the artisans are able to sell directly to their customers and customers are knowledgeable about whom exactly they are buying from.

The cooperative’s new price is a lot higher than before but still much cheaper relative to the other products listed on Apartment Therapy. Time will tell whether the cooperative will be able to continue their recent pace of sales at their new price. If they’re not able to, you only have to scan to the bottom of the Apartment Therapy article to see what the future of artisan craft in Morocco looks like if artisans aren’t empowered to sell directly to their customers: 10ft x 8ft West Elm “Moroccan” rugs made in India. Perhaps the trend of Beni Ourain will never “flag”, but it is obvious that the culture and artisans behind this craft surely will if artisans remain dependent on others to sell their work for them.

6 thoughts on “The Economics Behind Moroccan Beni Ourain Rugs

  1. Women’s work is still undervalued the world over and it is wonderful that they have assessed their production costs and increased their prices. Whenever I get the opportunity to buy direct from women in Morocco (a rare event to be able to bypass the middle-MAN) I always pay more. But what a tragedy – made in India – Moussiba hadi!

    • Hi Rita, thanks for the thoughts. It is exciting that they’re thinking different about their products and how they price them. It just takes a lot of time, as it will for many other groups. The more they are able to bypass middlemen, the quicker their learning curve will be!

  2. These rugs are certainly works of art, the women who create them artists/artisans … their work deserves to be priced fairly. I appreciate that this cooperative is providing a platform for them to make a living and also to gain an understanding that their work is highly valued outside of their home community! Beautiful!

  3. when ordering a rug from the cooperative and having it shipped to the US, are there also customs fees or third party custom handling fees?

    • Hi Catherine,

      No, according to US customs, you will not have to pay customs fees for items below $2,000 USD. We have shipped items that are more expensive than $2,000 USD and no customs were involved either. This is only true for the US. Other countries, such as many countries in Europe, do require VAT and customs payment on arrival.

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