Giving feels good on its own, says TOMS Shoes founder Blake Mycoskie, but it’s also a great business strategy. TOMS’ one-for-one philosophy (the company gives away a pair of shoes for every pair it sells) has led it to success, he says.
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Giving feels good on its own, says TOMS Shoes founder Blake Mycoskie, but it’s also a great business strategy. TOMS’ one-for-one philosophy (the company gives away a pair of shoes for every pair it sells) has led it to success, he says.
Mycoskie announced at the recent SHRM Annual Conference and Exhibition in Chicago that TOMS has recently sold its 10 millionth pair of shoes (and has given away an equal number).
Mycoskie offered the 15,000 HR managers in attendance three examples of ways in which giving can bring benefits right to the bottom line.
1. You Don’t Need Marketing
When you incorporate giving into your business strategy, says Mycoskie, your customers become your best marketers. He told the story of a woman he met in a line who was wearing TOMS shoes. Without revealing who he was, he asked her about her shoes. She launched into praising the company and revealed herself as an enthusiastic evangelist, said Mycoskie.
When he revealed himself to the lady, she said, “Why did you cut your hair?” She had been intrigued enough by TOMS’ approach to have gone online and viewed videos of Blake in action giving away shoes in Argentina.
That’s a great customer who’s going to bring more customers, says Mycoskie.
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2. Recruiting Is Easy
People come to work at TOMS because they want a job that counts, Mycoskie says. Working there makes them proud. After employees have been with us a year, he says, they go on one of the trips to give away shoes. They come back with a renewed spirit and enthusiasm.
If you give opportunities for team members to serve, you’ll find that petty office politics fall away, Mycoskie says. And the great thing about it, he adds, is that it is not expensive.
3. Great Partners Flock to You
People like Ralph Lauren, ATT, and Nordstrom were attracted to partner with TOMS early in the company’s existence because of the giving program. If you embrace giving, Mycoskie says, partners will come.
“Giving feels great, and it’s also a great business strategy,” he says. His story is told in his book, Start Something that Matters.
Anyone out there wearing TOMS shoes? What do you think of his business strategy?
It helps to have a consistently good quality product at a reasonable price. I think Toms is an example of a very good strategic idea that was well implemented.
It is a great business strategy, and I’m sure the founder has a good heart, but it’s one that isn’t hurting the business’s bottom line. TOMS shoes are inexpensively made, mostly canvas, thin soled shoes that sell for $40+. I’m sure if he wanted to, he could give away 2 or 3 pairs for every pair he sells and still make a significant profit on each pair. Some buyers of TOMS shoes buy them to feel good about someone in a 3rd world country getting a pair of shoes which is fine, however, wouldn’t they feel even better by giving the $40 to an aid agency who could deliver a more significant portion of that $40 to provide more than just shoes?
From the moment I first heard about TOMS shoes I have loved the company. The concept of giving one for one is amazing. Too tight for my wide feet, I told everyone I know about them and have even bought them as presents for others. The concept is wonderful. It is the kind of company you want to see succeed! It is exciting to watch them expand and broaden their line because you just feel that they deserve it! If their success puts free shoes on the feet of people needing shoes, then all the best to them! No further marketing needed!
I had heard of this company and its philosophy. I think it is a great approach, to selling and to engage its employees in the right way.
If you know that your efforts are linked to making the company successful and helping others, what a great feeling!