When a set of five hair scrunchies and one headband sells for over $200 — roughly ₱11,400 — while only a single dollar of that goes to a Siargao nonprofit, the reaction is predictable. The product, Bahay Kubo’s The Bahay Collection, became a flashpoint in a much broader conversation about how homegrown Filipino brands price their goods. A post on X listing what the user called “overpricing indicators” for local businesses accumulated millions of views and thousands of reactions, revealing how raw the tension between local brands and their potential customers has become.
The Philippines ranks 15th out of 63 countries in income inequality, according to a 2022 World Bank report, meaning price sensitivity varies enormously across consumer segments. When a local artisanal product costs as much as a month’s groceries for many families, the question is not simply “Is this overpriced?” but rather “For whom is this priced, and why?”
What Actually Goes Into the Price Tag of a Local Product
The gap between a ₱520 cologne and an ₱11,400 set of scrunchies is not random. It reflects three structural forces that shape pricing for homegrown brands — forces that mass-producers rarely contend with at the same scale.
These factors do not make high prices “right” or “wrong,” but they do explain why a local brand selling a handcrafted item and a multinational selling a factory-made equivalent are playing completely different cost games. As Lorraine A. Ngao-i, tourism officer of Kalinga province, notes, woven products vary in price depending on place of sale, cost of raw materials, labor time, packaging, and ordering process — and Kalinga weaving is handmade with cultural significance, not machine-produced at speed.
When “You’re Not the Target Market” Stops Being a Helpful Answer
The phrase “If you can’t afford it, you’re not the target market” has surfaced repeatedly in online debates about local pricing. On one level, it describes a real economic fact: products positioned at a premium are aimed at consumers who can bear that cost. But the slogan becomes problematic when applied broadly to homegrown brands that claim to champion local communities and inclusive growth.
Danao, a voice in the debate, puts it plainly: “We can’t expect our local brands to flourish if we target one percent of the population. Supporting local to us is about challenging the idea that good products are only for a select few.” This tension is not theoretical. In a country where income inequality ranks among the worst globally, a pricing strategy that serves only the top tier of earners may sustain a single brand but does little to build the broader “support local” movement that many consumers want to participate in.
The evidence from the source is mixed: some local brands clearly price based on real costs of materials, labor, and small-batch production. Others may inflate prices without corresponding quality. The buyer’s skepticism is not always misplaced, and the brand’s defense is not always valid. The honest answer lies somewhere between the two.
What Gets Overlooked in the Price Debate
Much of the public argument focuses on the final number, but the research points to several less visible factors that complicate any simple judgment.
The Psychology of Value vs. Price
Lejano, who works with a local brand, admits they struggled with defining price points and adjusted them several times after launch. Their final pricing decisions boiled down to three considerations: how much they value their product, how much they value their people, and how much they value themselves. These are subjective metrics that no spreadsheet can resolve. Two brands using identical raw materials and labor hours could arrive at very different price tags based on how they answer those three questions.
Consumer Skepticism Has Real Roots
Some buyers have encountered local products that charged premium prices while delivering substandard quality. These experiences create a generalized wariness that hits every small brand — including those whose prices are fully justified by their costs. The result is a market where a brand that prices fairly still must overcome suspicion that was earned by others.
Labor That Can’t Be Automated Away
Eddie San Andres, who has been making shoes for 40 years at Zapateria in Marikina, describes the process: “Merong madali na mga gawa ngayon, hindi katulad ng araw na puro hiwa ka ng hiwa. Pero ‘yung pagmamokmok, manual ‘yan. ‘Yan din ang pinakamahirap sa lahat.” Ester Sta. Ana, an upper maker at the same studio with more than 50 years of experience, adds: “Kasi, mahanap ‘yung ibang tao ng quality ng sapatos tsaka komportable sa paa. Ang Zapateria ay gumagawa ng ganun.” The point is that this work cannot be scaled down to a lower price without either cutting wages or sacrificing the quality that customers say they want.
→ Scroll right to see all columns
| Factor | Local Artisanal Brand | Mass-Produced Brand |
|---|---|---|
| Production volume | 50–500 units per batch | 50,000+ units per batch |
| Per-unit cost | Higher (fixed costs spread thin) | Lower (fixed costs spread wide) |
| Quality control | Hand-inspected, labor-intensive | Standardized, often automated |
| Labor model | Skilled workers, fair wages | Often outsourced or automated |
| Supply chain | Small suppliers, less negotiating power | Established networks, bulk discounts |
| Price to consumer | Higher | Lower |
Making Sense of Local Pricing — What Buyers and Brands Can Actually Do
Neither dismissing all high-priced local goods as overpriced nor accepting every premium price tag without question serves anyone well. The research points to practical steps for both sides.
For Brands: Show the Math
Lejano’s three factors — valuing the product, the people, and oneself — are a start, but consumers need more than a philosophy. Brands that explain their cost structure openly — what raw materials cost, how many hours of labor go into each piece, what packaging and logistics add — give buyers the information needed to decide whether the price is reasonable. Transparency does not guarantee sales, but it defuses the suspicion that the price is arbitrary.
Follow us on LinkedIn!
For Buyers: Look Beyond the Price Tag
Before dismissing a local product as overpriced, consider what is embedded in that number: material costs, fair labor, small-batch production, logistics, packaging, and the inevitable write-offs from damages and delays that mass-producers can absorb. The question is not just “Can I afford this?” but “Does the price reflect real value, and where does my money go?”
The Middle Ground
There is no single right price for a handmade local product. The solution, as the source material suggests, is neither eliminating higher-priced local goods nor accepting inflated costs without question. It is understanding the value behind both the brand and the buyer. For local brands, that means greater efforts toward transparency and fair pricing. For buyers, it means researching how products are made, where materials come from, and where the funds ultimately go.
Common Questions About Local Pricing
Why are local artisanal products often more expensive than mass-produced imports? ▾
Does a high price automatically mean better quality? ▾
How can I tell if a local product is fairly priced? ▾
What does “economies of scale” mean in the context of local brands? ▾
Is it fair to compare local handmade products to mass-produced imports? ▾
Should I stop buying local if I find the prices too high? ▾
Where the Pricing Conversation Goes From Here
The debate over overpriced local goods is not going to settle into a single answer. What matters is that both sides bring better information to the table. Brands that share what drives their prices give buyers a fair chance to evaluate them. Buyers who take the time to understand those costs can make more informed decisions about where their money goes. Neither side benefits from blanket judgments. If this was useful, you might also want to read how regulatory hurdles slow down Filipino businesses.
Sources
Philippines faces business hurdles from staffing shortages — Explores how labor constraints affect operational costs and pricing for local firms.
Philippine businesses lack data to tackle challenges — Looks at how limited data on costs and markets makes pricing decisions harder for small brands.
The real cost behind homegrown PH products. Inquirer, 2025.
World Bank Philippines Overview. World Bank, 2022.
