Business and COVID-19 - Thoughts? (1 Viewer)

[Joe Bryant]

I had a discussion about this today and wanted to get your thoughts.

Hadley & Bennett is a cool company in Los Angeles that makes Kitchen Aprons. I like them a lot.

They're the big player in the relatively small pond of the high end kitchen apron market. They do a collaboration with Vans shoes. They get lots of love from the celebrity chef world and such. They're definitely the cool company in this space.

Like lots of companies, they're doing the cotton non surgical masks now.

The price is $22 per mask but they're doing the TOM's shoes model where you buy one and they'll donate one. 

Of course, there are tons of masks on Etsy and such. Some are in that $20-25 range but lots are similar and in the $5 per mask range. Noted Venture Capitalist (And Etsy Chairman) Fred Wilson wrote about them today. 

Bottom line, for Hadley & Bennett to be selling these at effectively $11 per mask, seems about right for normal pricing. They should be easily able to be profitable at that price point. 

I've seen a range of responses to them doing this. My question for you guys is what do you think of this from them? 

 

[Stompin' Tom Connors]

Love that they are pitching in and helping at a time like this, and the donation is a nice touch.

At the end of the day, even at an $11 effective sales price, this doesn't change their underlying cost structure. If they have some degree of economy of scale, their actual cost is likely $0.50 or less, even with overhead and below top line costs factored in. 

So it's still going to make them profitable at that margin, and maybe even helps shore up impact on loss of sales from their apron lines and any pause in joint ventures during COVID disruption.

So while I applaud any company pitching in on the effort, and I don't think any company should have to or be required to take a loss just to contribute or be seen as helping out in times of crisis, it would be a lot cooler of them and more meaningful (or "great" to stick to the poll parlance) if they did.

 

[Ron Swanson]

I just bought several hundred masks for our field guys from a sports jersey manufacturer who is doing the same thing. About the same net price. I'm glad they're doing it because otherwise I wouldn't have a way to get masks for my guys.

 

[Bull Dozier]

I had a discussion about this today and wanted to get your thoughts.

Hadley & Bennett is a cool company in Los Angeles that makes Kitchen Aprons. I like them a lot.

They're the big player in the relatively small pond of the high end kitchen apron market. They do a collaboration with Vans shoes. They get lots of love from the celebrity chef world and such. They're definitely the cool company in this space.

Like lots of companies, they're doing the cotton non surgical masks now.

The price is $22 per mask but they're doing the TOM's shoes model where you buy one and they'll donate one. 

Of course, there are tons of masks on Etsy and such. Some are in that $20-25 range but lots are similar and in the $5 per mask range. Noted Venture Capitalist (And Etsy Chairman) Fred Wilson wrote about them today. 

Bottom line, for Hadley & Bennett to be selling these at effectively $11 per mask, seems about right for normal pricing. They should be easily able to be profitable at that price point. 

I've seen a range of responses to them doing this. My question for you guys is what do you think of this from them? 

Not a huge deal to me.  As Stomping Tom already said, their cost is no where near retail, so the $11 per mask comment is giving them far too much credit.  When you think about it more along the lines of "if you buy a mask at $21.50 markup, they will donate 50 cents worth of masks to those in need.  Is that as impressive?

I agree that companies still need to make money in these times, and I don't criticize anyone for doing so.  I just wouldn't go out of my way to recognize the generosity of the above (if it is what it appears to be).

I'd more like to recognize the private citizens making masks in their free time and donating them as you occasionally hear stories of.

 

[E Street Brat]

I just bought several hundred masks for our field guys from a sports jersey manufacturer who is doing the same thing. About the same net price. I'm glad they're doing it because otherwise I wouldn't have a way to get masks for my guys.

I'll take a pm.  Our guys need them also,

TIA

 

[Joe Bryant]

I'll take a pm.  Our guys need them also,

TIA

You're welcome to post the link for everyone @Ron Swanson

 

[SouthJersey]

I assume this is being marketed to the same folks who would purchase a $90 apron.  

I voted neutral.

 

[Joe Bryant]

I assume this is being marketed to the same folks who would purchase a $90 apron.  

I voted neutral.

It's marketed to everyone. But yes, their normal audience is the high end apron buyers. 

 

[IvanKaramazov]

I voted neutral, because it seems like the price system is working the way it's supposed to.  There is currently a massive shortage of cloth masks.  High prices (well above marginal cost) should encourage firms to enter the market and increase total production.  This particular anecdote is exactly what you would expect to see.

 

[Grace Under Pressure]

It's a win-win IMO. Every business has to do what they can to stay in business. They have employees, that have families, etc. These aren't meant for healthcare workers I assume. I root for every business to stay afloat now, including this one.

 

[eoMMan]

Meh.  I don't have a problem with it.  They are filling a current need, making some sort of profit, and helping out by donating one extra.  More power to them.

I have admit though, I thought the phrase "high end kitchen apron market" was funny.  Didn't know there was one.