Hidden Costs

Hidden costs are when the full cost of ownership is not included in the purchase price, because of additional expenses, opportunity costs, unseen problems or unintended consequences.

Hidden costs can make products appear lower priced, easy to obtain or a good value. However, the long term cost to the individual or society from buying them can be expensive or quite harmful.

Here are some examples of hidden costs:

• Introductory “teaser” rates for loans and mortgages
• Government subsidies to produce foods that lead to obesity or illness
• Insufficient quality control from auto makers that result in recalls
• Inferior products that need expensive repairs or maintenance
• Weak enforcement of environmental laws which create pollution or health hazards
• Cheap labor that exploits children, the poor and harms Third World societies.

Everyone wears a T-shirt. But… cotton T-shirt production has many hidden costs including:

• Enormous amounts of fresh water to grow the cotton
• Draining of lakes, rivers and other fresh water sources
• Textile industry waste which pollutes water, land and air
• Substandard wages for workers in developing countries
• Rampant child labor, which harms families, prevents education and reinforces the poverty cycle
• Hazardous working conditions for laborers in the fields and fatories
• Poor quality or planned obsolescence so shirts are continually bought and discarded.

Benefits Demonstrated by e360t shirts!

• e360t shirts are socially responsible apparel with obvious and straightforward benefits
• e360t shirts have no hidden costs to consumers, manufacturers, workers or suppliers
• e360t shirts have no hidden costs to the environment
• e360t shirts have no hidden costs to human rights