Liquidating a non profit

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Curbstoning is the repeated, unlicensed “flipping cars” for profit.

Curbstoners are people who buy and sell vehicles without a license.

The individual costs mentioned here are 95% accurate, and are factory or ‘ FOB’ costs.

FOB is short for ‘Free-on-board’ (also called freight-on-board at times), which is the cost of shoe when loaded on the vessel at the port of origin – usually in the country where the factory is located.

An apt analogy would be to equate your salary to the retail price of a shoe, and your minuscule savings to a brand’s net profit after tax.

Last year, adidas made a paltry 4.1% in net income (read footnote #1) after taxes, and Nike made 10.7%.

The final costing sheet also includes the labor and overhead (LOH) costs.

Because as you’ll soon discover, factory costs happen to be only a tiny part of the entire story.

Think of it as a list of ingredients in a cooking recipe, except that the list is marked with how much each ingredient cost you to purchase.

For a typical running shoe, the BOM will add the consumed cost of synthetic leather, mesh, threads, logos/inks, trims, midsole, outsole etc.

In the industry, this is known as the BOM – short for bill of materials.

This itemizes the cost of each and every component used in the shoes, based on their consumption in a single pair.

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