Kreosote Boots

[Biff42]

I don’t see it either.

I'm not a business man myself... but the 90K is more like revenue rather than gross profit (nothing has been expensed out yet). I don't know enough about manufacturing heritage boots to know the costs involved - but unless it's a brand that operates at scale like Red Wings, I doubt niche operators like Kreosote are able to get enough of a margin where they can go full-time.

I don't get the impression that he's making serious $$$$ and intends to scam his customers/followers. There’s much easier ways to do that like coming up with a catch phrase (*cough* Hawk Tuah *cough*) and launching your own crypto

Strikes me more as someone who is passionate about making boots, has gotten in over his head and unable to run an efficient business, is struggling to keep the lights on and is desperately accepting more and more orders and collabs for down the line to fund his current operating expenses. That's probably why he can't even refund anybody... the money's gone.

That's just my opinion - and that's without factoring any personal struggles he may have which we all go through sometimes.

Well said. Also, I cannot imagine the stress of having a backlog of paid orders going 4-5 years in the future. For example, what if inflation keeps getting worse over the next few years? The cost of your inputs would go up and you cannot raise the price for orders already paid.

It makes no sense.

 

[Biff42]

I don’t see it either.

I'm not a business man myself... but the 90K is more like revenue rather than gross profit (nothing has been expensed out yet). I don't know enough about manufacturing heritage boots to know the costs involved - but unless it's a brand that operates at scale like Red Wings, I doubt niche operators like Kreosote are able to get enough of a margin where they can go full-time.

I don't get the impression that he's making serious $$$$ and intends to scam his customers/followers. There’s much easier ways to do that like coming up with a catch phrase (*cough* Hawk Tuah *cough*) and launching your own crypto

Strikes me more as someone who is passionate about making boots, has gotten in over his head and unable to run an efficient business, is struggling to keep the lights on and is desperately accepting more and more orders and collabs for down the line to fund his current operating expenses. That's probably why he can't even refund anybody... the money's gone.

That's just my opinion - and that's without factoring any personal struggles he may have which we all go through sometimes.

He also mentions on his site that each pair takes 70 hours if we take 70X35=2,450 hours in a year. As someone else mentioned, if he's netting a 50% profit margin (which I highly doubt), he's only making about $18-19/hour. This doesn't account for taxes, health insurance, retirement, etc. Amazon DSP drivers make about that with benefits including health insurance and time off.

I wouldn't give this guy any of my money and would get an attorney to write a demand letter for my money back.

 

[bigmanbigtruck]

He also mentions on his site that each pair takes 70 hours if we take 70X35=2,450 hours in a year. As someone else mentioned, if he's netting a 50% profit margin (which I highly doubt), he's only making about $18-19/hour. This doesn't account for taxes, health insurance, retirement, etc. Amazon DSP drivers make about that with benefits including health insurance and time off.

I wouldn't give this guy any of my money and would get an attorney to write a demand letter for my money back.

Exactly, it makes no sense.

Hate to see someone talented, who wants to pursue their passion and craft, struggling to make ends meet - but taking on 4-5 years worth of orders to fund the current round is just not sustainable. I wouldn't give him any of my money either.

 

[MrProper]

That's why I wrote about a pyramid system a few pages earlier. Certainly not an intended one, but probably one born out of necessity. Perhaps not even consciously, but in the end it will come down to that.