We feel happy whenever we buy footwear at a discounted price, thinking we have gained a good deal. The real deal is something you have never known. The shop owners selling footwear for 500 rupees is not the real cost. He is making almost 250 rupees profit from just 1 pair of footwear. Once you understand the real game and the cost of making it, then you will surely be shocked.
The footwear industry is all about volume and quantity. The more you sell, the better you gain. Actually, to prepare one quality footwear, it takes almost 20 to 25 rupees for only making charges. In the retail stores, they buy it for 50 to 60 rupees and eventually in the market it is sold for 150 rupees. The moment the shopkeeper reduces it, you buy it and quietly feel happy.
The real truth is the shop owner sells you at almost double the price of that amount.
When it comes to shoe making, it costs around 100 to 110 rupees and the shopkeeper receives it for 170 to 250 rupees and eventually sells for around 600 to 800 rupees. Look at the margin over 1 piece of material. This defines a regular systematic procedure, but during the festival season, the demand and sales increase twice than regular.
The real expenditures
The business specifically works on size and quality, but due to various seasons, the footwear would lose its strength within 4 to 5 months. Most of the sizes are around 7 to 9 in India and the rest of the other sizes are sold less comparatively. Almost 55% of money is spent only on buying materials and eventually, the cost of rent and electricity bills. If the location is located in the prime area approximately around 25,000 to 30,000 it would cost. Transport expenses along with 2 assistants are required for management. The footwear business is highly profitable based on size and volume. The more you sell in volume the business works according to it.
