Liquidating a non profit
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.