Any thoughts on where the money goes?

This particular company thought that there wasn't enough margin in shoes and diversified into specialty retail and eyeglasses... :-0 . IOW, they pissed the money away. When the company was bought out the first time, they spun off the successful eyewear company. The whole crew of CIEIO's took a total of about $100,000,000.00 in parachutes and the restructuring blew untold hundreds of millions... The operating expenses of domestic manufacturing (COGS) brought the total price of the domestically manufactured shoe to about $4.20 (yes, I know I misled, sue me). Again, their margin was ridiculous. The premise that there wasn't enough margin in shoes to sustain a 110 year old shoe company was laughable. This particular place was just another textbook example of Boomer's cashing out their chips. If you want to look for a silver lining, perhaps when all is said and done, the government can buy the one remaining company in the US (after all mergers have occurred) and we can become a communist state.

Post #135,879 by Another Scott 1/15/04 11:11:04 AM Reply	Any thoughts on where the money goes? It's my understanding that in retail prices roughly double from the store to the consumer. (There are exceptions, as I understand it, e.g. groceries.) The shoe company apparently isn't making a huge profit. Where's the money going? $2.50 -> $80 is 5 doublings. Does it really pass through 4-5 companies before reaching the consumer? Thanks. Cheers, Scott.
Post #135,884 by danreck 1/15/04 11:50:14 AM Reply	Re: Any thoughts on where the money goes? This particular company thought that there wasn't enough margin in shoes and diversified into specialty retail and eyeglasses... :-0 . IOW, they pissed the money away. When the company was bought out the first time, they spun off the successful eyewear company. The whole crew of CIEIO's took a total of about $100,000,000.00 in parachutes and the restructuring blew untold hundreds of millions... The operating expenses of domestic manufacturing (COGS) brought the total price of the domestically manufactured shoe to about $4.20 (yes, I know I misled, sue me). Again, their margin was ridiculous. The premise that there wasn't enough margin in shoes to sustain a 110 year old shoe company was laughable. This particular place was just another textbook example of Boomer's cashing out their chips. If you want to look for a silver lining, perhaps when all is said and done, the government can buy the one remaining company in the US (after all mergers have occurred) and we can become a communist state. Just a few thoughts, Danno
Post #135,893 by Another Scott 1/15/04 12:54:44 PM Reply	Ah, US Shoe....

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