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Under Armour Wounded Warrior Project

Skingraft

By Skingraft
in The Trough

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DELdaBull Toro Magnifico

DELdaBull

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Posted

Yes. UA is a FOR Profit. 

The American Red Cross is a NOT for Profit company. 8 to 23% of ARC income goes to helping someone.

If 10% of the income UA makes on the WWP helps someone they are in line with OTHER NON Profit companies.

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Skingraft Toro Magnifico

Skingraft

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Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

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Brad Toro Magnifico

Brad

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Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

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Skingraft Toro Magnifico

Skingraft

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Posted

Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

90% cost-wow, love to see that business plan

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Brad Toro Magnifico

Brad

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Posted

Alright, good luck working this one out.

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DELdaBull Toro Magnifico

DELdaBull

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Posted

Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

90% cost-wow, love to see that business plan

Per finapps.forbes.com, over the last 5 years UA has averaged a Pre-Tax Profit margin of 11.1%. Post tax that has been 6.7%. Doesn't looking like the company is "profiting" off this project.

FYI, most manufacturing business has about a 10% profit margin.

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chrisdashley Mentor

chrisdashley

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Posted

Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

Let's do some math!  YAY!

First let's define "proceeds"....  Merriam-Webster says:  PROCEEDS: the total amount brought in (the proceeds of a sale).

-  I am assuming the retailer's profit margin is 30%, which is not atypical for stores that sell this type of merchandise (from a known commodity such as UA).

-  If the retail price of a hat is $25, the wholesale price would be approximately $19.25 for the same hat.

-  Based upon a standard wholesale profit margin of 50%, the price to the wholesaler would be $12.83 per hat.

-  Typically, companies would like to sell their product to the wholesaler for between 33% to 100%, so taking a number in the middle, it costs UA $7.68 to make each hat. Most likely, they are buying it from someone else who is making it.

- So to summarize, assuming the 10% donation is based upon the $25 sales price, they are donating $2.50 for each hat sold.  Based upon my crude calculations above, the "profit" to UA on a per hat basis is $5.15. Which means, they are keeping $2.65 per hat to cover the cost of management, insurance, utilities and other costs associated with the company.  

If you asked me, that doesn't sound too bad to me.  They are basically, giving up 50% of their profit on each item and most likely have guaranteed a minimum contribution regardless of the amount of merchandise sold.  Most companies will say "10% of all sales will go to the WWP with a minimum contribution of $500,000."  

Now, if they are basing the 10% off their profit and not the final sales price... the time you just spent reading this post was a waste and you will never get it back.

:Duh

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Triple B Toro Magnifico

Triple B

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It can be done....UA could operate the program at a break even point

Or they could not operate it all ... Screw the wounded Vets.

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Triple B Toro Magnifico

Triple B

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Posted

Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

90% cost-wow, love to see that business plan

You don't really have lot of real world business experience, do you?

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Who'sYourData? Toro Magnifico

Who'sYourData?

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Posted

Google: 100% proceeds to wounded warrior

It can be done....UA could operate the program at a break even point

They may well be (as I have said before).  You started this thread by citing the % they get from a shirt or hat - that obviously is not all UA does for WWP.

:Bang

90% cost-wow, love to see that business plan

You don't really have lot of real world business experience, do you?

UA had $1billion in sales last year.  I think they would be exceedingly happy if 10% of that was profit for the year.  ($100mil)

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