Before I finish that story, though, here’s one about my mom. My mother worked many years in a factory that made men’s clothing, sewing labels into men’s dress slacks. She would start the day with a pile of 700 labels and a pile of 700 pairs of pants, identical except for sizes. There would be 50 labels of some top designer brand sold exclusively in high-end men’s stores. There would be 50 labels each for the most expensive house brands sold at stores like Macy’s and Nordstrom and Bloomingdale’s. There would be 200 labels for the top brands at Sears and JC Penney. The rest were for pants sold at Walmart and Kmart.
Different labels, same pants. Same pants, different labels. See where I’m going with this?
Our daughter paid less than $20 for her generic shoes, which means that the manufacturer and the store are both making money at less than $10 per shoe. So how much is TOMS making, even after giving a pair away?
It appears TOMS spends around $2 to have a shoe made, so do the math. The Classic sells for $54, other styles for $74. If they are spending $4 for the pair you buy and $4 for the pair they give away, that leaves $46 for TOMS. They’ve given away 1M pairs, so that mean’s they’ve made $50,000,000 or so doing it.Give away $4 M, keep $50M? That isn’t especially noble. It's a pitch.
Why not buy a $20 pair of shoes for yourself, and a decent $20 pair for a child in a shelter near where you live. You just saved $14, and that ought to buy you some legitimate self-esteem.
Read Part 1.
Read When Only A Name Brand Will Do.