All for One, and One for One

The “one for one” business model can be an extremely effective way to help people in need if it’s done correctly.  However, many companies are missing the mark on providing efficient and useful “one for one” services.

For example, Toms Shoes is a brand that embraces the “one for one” model, but isn’t making an efficient or useful solution to poverty-stricken families.  Yes, by giving away shoes to people who can’t afford to buy their own, Toms is succeeding.  However, the health benefits these people receive from wearing shoes can be provided through cheaper medical vaccinations, as well as health education to the poor.  Along with the inefficient health benefit, Toms shoes are poorly constructed for the environment these people are living in.  Toms are not the most durable footwear option, and paying $50 for ONE pair to be given away to a person in need is immensely inefficient. There is no way Toms cost even a quarter of the retail price to produce, and the money spent on shipping free shoes to developing countries could be spent elsewhere.

Companies like 2 Degrees that give meals to the poor are doing it right.  These companies provide a service that actively solves a problem for those in need, and do it efficiently.  I think companies like Toms should look at these companies that are doing it right, and adapt to a similar business model.

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