TOMS Shoes Business Model

[blackson]

TOMS Shoes (for those who don't know) is a shoe company that abides by the following rule: "For every pair purchased, TOMS will give a pair of shoes to a child in need". This business model has been extremely successful; TOMS Shoes is a very popular company on the internet and it's reach is growing. However, I think that TOMS shoes isn't here to help kids in need, but to make profit.

Once you get past the pretentious business slogan, what do you have? A man selling overpriced shoes. The shoes (which look more like slippers) run for about 50 dollars each. Why this expensive? Because "your purchase also is funding another pair of shoes towards a child in need". TOMS openly admits to overseas labor (there is not a single TOMS Shoes manufacturing plant in the United States) for the sake of less pay towards workers. TOMS Shoes could probably be made for less than 5 dollars (considering the cost of overseas labor). This being said, your 50 dollar purchase buys two pairs of shoes; one for you and one for the child. This means TOMS is pocketing 40 dollars of your payment. The mindset that you're paying extra for shoes because they go to kids is wrong. I find it wrong that TOMS is taking advantadge of the false pretense to make a profit (a pretty large one at that).

Thoughts and opinions?

[Tanner]

I'm a huge proponent of globalization. I find it to be an almost entirely beneficial system for everyone involved. I get cheap stuff, third world labourers get money and a better life than they could otherwise hope for and the corporate suitmonkeys get lower overheads. Everyone's happy! Now, you won't find me paying fifty dollars for a pair of cheap shoes but aside from that, super fine with this.

[Jumpset]

This stuff happens alot. People say they're doing things for environmental or child saving purposes when they're only making profit. It's because a lot of people fall for it, and they know. Don't think you can do anything about it. o.o At least they're giving shoes to children though. If they are.

[T3chno]

I'm pretty sure self-growth, aka profits, is the motive for every business. I don't see how this is really a surprise.

[blackson]

I'm pretty sure self-growth, aka profits, is the motive for every business. I don't see how this is really a surprise.

Oh of course, I just think the route he took is a bit immoral. He's not selling shoes he's selling the idea that you as a buyer are making a difference.

[Tanner]

I'm pretty sure self-growth, aka profits, is the motive for every business. I don't see how this is really a surprise.

Oh of course, I just think the route he took is a bit immoral. He's not selling shoes he's selling the idea that you as a buyer are making a difference.

But that's true; you are making a difference. I don't see how it's immoral.

[OneSevenNine]

I'm pretty sure self-growth, aka profits, is the motive for every business. I don't see how this is really a surprise.

Oh of course, I just think the route he took is a bit immoral. He's not selling shoes he's selling the idea that you as a buyer are making a difference.

But that's true; you are making a difference. I don't see how it's immoral.

Considering he's probably definitely making more money by giving away the shoes and using that as advertising, it's really quite obnoxious of him to pretend that he's doing this out of the good of his heart. He's doing it for money. Whether or not he gives a crap about the kids that he professes he gives a crap about is open for debate.

[rocket_thumped]

TOMS Shoes (for those who don't know) is a shoe company that abides by the following rule: "For every pair purchased, TOMS will give a pair of shoes to a child in need". This business model has been extremely successful; TOMS Shoes is a very popular company on the internet and it's reach is growing. However, I think that TOMS shoes isn't here to help kids in need, but to make profit.

Once you get past the pretentious business slogan, what do you have? A man selling overpriced shoes. The shoes (which look more like slippers) run for about 50 dollars each. Why this expensive? Because "your purchase also is funding another pair of shoes towards a child in need". TOMS openly admits to overseas labor (there is not a single TOMS Shoes manufacturing plant in the United States) for the sake of less pay towards workers. TOMS Shoes could probably be made for less than 5 dollars (considering the cost of overseas labor). This being said, your 50 dollar purchase buys two pairs of shoes; one for you and one for the child. This means TOMS is pocketing 40 dollars of your payment. The mindset that you're paying extra for shoes because they go to kids is wrong. I find it wrong that TOMS is taking advantadge of the false pretense to make a profit (a pretty large one at that).

Thoughts and opinions?

You know, I saw a few of his commercials and was like, damn, cool. looked the shit up. And you are right, while the shoes may be stylish you can tell they are very cheaply made. The price is more than twice as much I'd like to pay for a pair.

[Tanner]

Considering he's probably definitely making more money by giving away the shoes and using that as advertising, it's really quite obnoxious of him to pretend that he's doing this out of the good of his heart. He's doing it for money. Whether or not he gives a crap about the kids that he professes he gives a crap about is open for debate.

So you're bothered by the question of whether his motives are entirely altruistic? Let's face it: they're not. Dude wants his business to be successful. But there's absolutely nothing wrong with that. It certainly doesn't change the fact that these kids are getting free shoes.

[Tunco]

Considering he's probably definitely making more money by giving away the shoes and using that as advertising, it's really quite obnoxious of him to pretend that he's doing this out of the good of his heart. He's doing it for money. Whether or not he gives a crap about the kids that he professes he gives a crap about is open for debate.

So you're bothered by the question of whether his motives are entirely altruistic? Let's face it: they're not. Dude wants his business to be successful. But there's absolutely nothing wrong with that. It certainly doesn't change the fact that these kids are getting free shoes.

Those kids are not getting free shoes, you know.

[Aldaric]

They are getting shoes free or no. That is a good thing. The people buying these shoes obviously don't need the money.