The Scarlet Thread Business Model
How to Establish a Fair-Trade Business in Developing Nations
- Identify handicrafts made by local artisans that are indigenous to their country/region.
- Determine the "salability" of these items on the global retail market.
- Identify exact items to be made by the artisans and the quality standard for each item.
- Agree upon a fair, ethical price to be paid by the business to the artisan for their handicraft. Verify that all working environments are safe and free of slave or child labor.
- Front the materials for the items to be made (on an account) to the artisans.
- Set an agreed-upon, reasonable time frame for production of items.
- Approve the quality of each product brought for sale by the artisans.
- Purchase the handmade item from the artisan and settle their account. ie:deduct the cost of materials and pay the artisan immediately upon receipt of their handicraft.
- Re-sell the handmade products to the Scarlet Thread at a wholesale cost.
- The Scarlet Thread will market and sell approved global artisans' products on the U. S. retail market.