How does TOMS shoe company work?



  1. 0 Votes

    There’s an economic principle called “markup” at play that allows companies like TOMS to donate a pair of shoes to the poor every time you buy one. If you’ve ever noticed that making food at home instead of eating out, or buying fabric instead of buying clothes is much cheaper, you’ve seen markup in action. The actual parts that go into making something cost far less than the final sales price, sometimes four or five times less. TOMS may be charging 3x what a shoe costs to make, which means they can give away one pair and still make a profit.

    I hope this helped!

Please signup or login to answer this question.

Sorry,At this time user registration is disabled. We will open registration soon!