Producing 100 pairs of shoes per 8 hour day, is the goal. Once we set a value on the shoes that we are going to produce, we can begin to figure out what the costs is, to produce them and the profit we will realize from each pair.
If we set $70.00 as the retail for a pair of shoes – Now you have $700 per day in potential sales – So now you figure your costs:
Rental – 400.00 per month for a large 20×20 building.
Labor – 2,016.00 per person per month (hourly wage 10.50) X 48 hours per week – x at least 2 people – $4,032.00
Materials – 2,640 per month to make 2640 pairs of shoes. (estimated and based on international data)
Utilities (phone,electric,gas,water) 125.00 per month
(1) The machinery to make the shoes averaged out could cost roughly $50,000.+
(2) Insurance – business, fire, other. 150.00 per month
(3) Advertising – Media 100.00 per month
(4)Transportation (panel truck to pick up supplies, and deliver shoes to ABAFA/AAPAD outlets. (Used $15,000)
[ increase black employment, using outlets instead of mail order]
(5) Card Board boxes with logo to accommodate 2640 pairs per month @ .25 cents each = 686.50 per month.
Total Sales of all your shoes for one month – 2640 x $70.00 each equals $184,800.00
Total cost the first month to produce 2640 pair of shoes is;
$400.00 + $4,032.00 + $2,640.00 + 125.00 + $50,000.00 + $150.00 + $100.00 + $15,000.00 + $686.50
$73,133.50 base cost
1st Months profits pay for all our equipment and expenses. ABAFA or an ABAFA member will need at least $75,000 in cash and credit to start
$184,800.00 minus $73,133.50 = $111,666.50 profit 1st month
$50,000+15,000 and the 2nd month=$176,666.50 in profit.
We have 46 million people in the US, 10% participation equals four million six hundred thousand people (4,600,000). Consider the US census’s definition of a household at 2.68 people. 4,600,000 / 2.68 = 1,716, 418 households.
One pair of shoes by each of the 10% of households, of our people alone, would generate, One Hundred Twenty Million, One Hundred Forty Nine Thousand Two Hundred and Sixty Dollars ($120,149,260.00)
in Profits Alone.