How Sock Start-Up Bombas Brings In $100 Million A Year
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- čas přidán 29. 06. 2024
- Founded in 2013, Bombas has improved upon the regular old sock, and for every pair it sells, it donates a pair to a homeless shelter.
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For many, socks may seem like an insignificant wardrobe staple. But for David Heath and Randy Goldberg, founders of buzzy sock start-up Bombas, socks are not only big business, they are helping make people's lives a little bit better.
Founded in 2013 and backed by "Shark Tank" star Daymond John ("I'm really happy to be part of what they're doing," John tells CNBC Make It), Bombas is often referred to as the "Toms" or "Warby Parker" of socks for its socially conscious business model: For every pair of socks sold, Bombas donates a pair to the homeless.
In fact, the charitable aspect of the business isn't just an afterthought, it's what sparked the idea for the company in the first place. In 2011, Heath stumbled upon a Facebook post that said socks were the most requested clothing item at homeless shelters. The statistic gnawed at him.
"I thought, 'How sad is it that - something I've never spent more than a couple of seconds thinking about [how to pay for] could be seen as a true luxury for somebody else,'" Heath, now 36 and CEO of Bombas, tells CNBC Make It.
At the time, Heath was working with Goldberg at a media start-up, so he told his friend what he'd learned. Inspired by the boom of other buy-one, give-one companies, they thought maybe they could replicate a similar business with socks.
"We didn't grow up dreaming of starting a sock company. I'm not sure anybody ever has. But we got obsessed with socks," says Goldberg, now 40 and Bombas' chief brand officer.
"We looked at every pair of socks in the market [and] we realized that what most people were wearing just weren't that comfortable. And there were ideas and features that we started to notice that we could improve upon, and we just set out on a ... journey to create one, amazing pair of socks."
To begin constructing the perfect pair of socks, the duo worked with manufacturers around the world, testing existing socks then sampling their own versions and giving them to friends to test. It was a challenging time, since they were still working their full-time jobs while hustling on Bombas at night and on weekends from home and at coffee shops.
Friends and family were interested in giving them seed money, but Heath says they chose to bootstrap the research. They believed if they could just get the product out there, it would be a hit.
After all the testing, Heath says they decided to make seven material improvements with Bombas socks for better comfort, including using high-quality cotton and merino wool, reengineering the toe seam, creating a "honeycomb" arch support to hug the middle of the foot and using an improved stitching technique on the heel to grip the foot. Additionally, Bombas calf socks were created so they don't slide down or leave marks on the leg, and for its ankle socks, there's a cloth blister tab to avoid rubbing.
The toe seam improvement was actually inspired by Heath's own embattled history with socks. He has ADHD and as a kid, suffered from hyper-sensitivity issues, so finding a comfortable pair of socks was something he struggled with.
"I tried pretty much everything on the market," he says. "I ultimately resorted to turning my socks inside out, because the toe seam over the front would always irritate me. Whether I was in class or playing sports, I just couldn't let it go. So, in a weird way, starting this company kind of fulfilled somewhat of a childhood problem that I solved."
In 2013, the co-founders quit their day jobs and launched a crowdfunding campaign on IndieGoGo that spring and summer. Originally, they set a goal of raising $15,000 in 30 days, but within the first 24 hours, Heath recalls, they had raised over $25,000. In total, Bombas crowdfunded just over $140,000. With the capital, they officially launched the business that October.
In 2014, Heath and Goldberg raised a $1 million seed round from friends and family. The entrepreneurs also went on ABC's "Shark Tank" and scored a deal with Fubu founder John.
In the two months after their episode aired, the company did $1.2 million in sales and sold out of its inventory.
John says Bombas is one of his top three most successful "Shark Tank" investments.
Read more about Bombas here: cnb.cx/2ZbG5lD
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Daymond John-backed start-up Bombas is reinventing the sock-and it's bringing in $100 million a year | CNBC Make It. - Zábava
Homeless people are wearing better socks than I am
Is the company giving out the EXACT same pair of $18 socks to the homeless??? Nope. They are not.
@@JJ-yu6og probably the manufacturing defects.
same, i dont wear socks.
@@JJ-yu6og They're probably matching socks though, more than can be said about mine
@@JJ-yu6og why they should? Homeless people have DIFFERENT necessities than normal people 🤦🤦🤦 always seeking the negative part
I have some of their socks 🧦 high and low socks. I do construction In Florida and my high socks I wear with my work boots especially during the hot summer's they are my go to socks every time I'm getting ready for work in the morning when I open my drawer boom I'm wearing them bad boy's they are perfect for work boots is really what I'm trying to say! Stay Blessed everyone...
Very smart that they basically charged two socks in one. because they know that people will not just give money in like that. They made it such a smooth way that people who don't care about the homeless started to care.
Wicked smart guys. They hooked me. I'm very finicky about my socks, typical Jew, tried Bombas and I'll never wear another sock. Not only do they not bother me like most socks do, they make my feet feel better than barefoot. And they last.
On the point of "you're just buying two pairs and they're shipping the second to a shelter".... okay, I'm buying someone in need a pair of high quality socks. I feel good about that. I've been homeless before. Gotta take care of your feet.
You really want them but don't want to pay for them? Act homeless.
hows about I buy a pair and you just donate money so they can buy food. people who cant buy socks are in more need of food. though glad you're making an effort to do some charity work.
I heard they need socks more. They can’t take showers or wash laundry so their socks get crusty and tear their feet up until they have sores and can’t walk etc.
Using starbucks as a example of high quality coffe is a insult to coffe.
@@riley1636 Sure just as a US prison is a heck of a lot of a better place to live then a soviet gulag....
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*Supreme socks :-)*
Anything can become a premium brand with a good story.
Some homeless people in NY are not wearing better socks. We can be happy about that !
It's easy to donate a pair of socks when you sell them with a 200 percent markup.
They say one purchased one donated. They are not donating anything
For $17 a pair.YOU are paying for 2 pairs and they are just shipping the 2nd pair to the shelter instead of your house.
@@mariai9549 exactly
Not 200% mark-up, think more like 500%
It’s not that easy, because you can come up with a price, but people still need to buy it, for them to be able to donate any socks. Apparently people are buying.
C Will Exactly
How about thanking Daymond John and Shark Tank for helping them make $100 million.
did they make a deal on shark tank?
@@JusdoinstuF Yes with Daymond. That's why I said they should have thanked him.
Lord Ba'al Daymond John is a legend that guy is on a whole different level 💘
he's making a lot of money off them too , so im sure they're thanking each other.
Exactly
0:27 lol a light bulb went off?
Amazing!! Thanks gentlemen
This is identical to the CollegeHumor start up sketch
$10-$30 for 1 sock, and almost $40 for 1 t-shirt? Hell no.
Kenn lmao do it 😂. Just remember to donate to the homeless 😂
I’m starting a sock business too. It’ll also be for a good cause.
@Kenn You probably verse engineer quality, but only with significant investment in engineering. You will never be able to break their brand.
@Kenn You remember the people the people who copied Facebook? That's right you dont.
@Kenn Who are you again?
"unlimited vacation" Yeah I'm sure no one goes on vacation there
loll... its true, my daughter works for them, she's the curly haired girl in the first row on their grouop pic, and they're awesome. They even have unlimited PTO, that nobody takes advantage of lolll.. They're Awesome !
so amazing
I'm homeless in NYC. I'll take a pair.
that's called social entrepreneurship. love it.
*starbucks sells 0.99c coffee for $4...so does bambas*
How about helping the everyday people with a great sock at an affordable price
BINGO
It is just for rich to feel better about themselves by "donating".
Jeez sorry donating is so hard
I don't know how ethical is to use charity as brand emotional benefit or value proposition.
How do you suppose they should frame this business venture?
lol stay mad
It sounds to me like you can donate 5 pairs of socks for every pair bought
I gotta swipe some bombas from the homeless shelter!
I’m wearing Kirkland socks that are $5/six pack while homeless people are wearing $14 socks
Good man
I had received two pairs of this sock company and both pairs I wore holes in the heals. I'm 76 years old and retired. Not for us old timers, I guess.
That's it! I'm staring a sock company & hopefully it strives
sock companies are popping up everywhere.you'll be surprised at how saturated the premium sock market is.
Bombas are my favorite socks 🧦 I always reach for them first
Absolutely love the socks!! But for the love of God, please lower the price. $70 for 6 pairs of socks????? No.
Nice
I love those 1-pair is free shams. Produce socks for 50 cents, sell them for 18$ and donate one. Thats a pretty good deal, for the company - but not for the homeless or the wallet of the consumers.
What EXACTLY do you mean? It's not a good & wonderful thing for the homeless. Perhaps your real problem is JEALOUSY. I say let the rich people in this country pay the higher price for a quality sock. And the homeless get a free pair. To me it's nothing but a win-win deal with no negatives to it.
This must have great marketing and it appears that women like the designs
I get Athletic Works at Walmart they're mostly Cotton nice and breathe-able and comfortable. Also they're like $10 for a 12 pack. Sorry but $18 for 1 pair no thanks.
Yeah the consumer just pays for the "donated" pair.
I bought a few pairs when they were $9. Not anymore...
these are the best socks in the entire world. i don't care that they're $12 a pair... i buy a whole bunch when there's a discount and use afterpay.... it's worth it. My feet never felt so good. the hiking socks are amazing.
they are amazing!!
So if u get them from charity they have to do it again and its a endless process
bumblebee in Latin isn't bombas and prices makes this seem like another TOM's type situation meaning cheap product using charity as an excuse to drastically inflate profit margins.
I like the idea. It's just super pricey for socks.
Used to be $9 when they started. Pretty soon they'll be over $20 for ONE pair. Just not worth it anymore.
It’s because they don’t actually donate sock. The consumer pays for that homeless person sock not them.
18 dollars for socks to have the staff unlimited holidays!
I need some docks
Keep on socking bros
I wish you guys could do your donations here in Africa.Cause some kids go to schools with socks.
How much did they pay CNBC for the advertisement? At $18 for a pair I guess a lot!
Hey, these people are giving something of value back to society so what exactly is your issue? I don't buy Starbucks coffee because it's a ripoff and what do they give back when you buy their overpriced coffee? Nothing great at all. Plus they trash lots of good food that could be given to homeless shelters rather than ending up in their dumpster. However, as a homeless advocate in Dallas i don't consider Bombas as a ripoff at all. If it was a shoddy product that they were selling then it would be a different story. They sell a quality product at a premium price and do some great good on the side. KUDOS to them!!!!
bombas also mean bombs in portuguese
They gonna make stink bombs 😤
Lol
Chip also in Spanish
Who said marketing is dead?
I'll stick to buying my socks at Sam's club at a dollar per pair.
Those are some high end socks lol
Bomabas in Spanish means bombs.
That's the way to sock it to him!
If they are making it in US then price is fair if importing from China 🇨🇳 then it's a sham
Tushar Ghorpade it’s from China lolll
Seriously, never heard of them
Interesting 🤔🤔🤔
I don't think they have to be in it for the money. I have always wanted to start a business that donates profits to those in need. I feel like it is the optimal way of doing charity because you only pay production costs. The problem is that people with chartable personalities don't do well in the aggressive field of business.
Socks are incredibly cheap to manufacture yet their prices are crazy, It's like TOM's where you buy an 80 dollar pair of uncomfortable shoes just because they donate to someone in need but you find out to manufacture the exact same pair we're talking a few dollars for both pairs on their end. Prices are way too crazy for something as cheap to make such as socks for it to be anything other than a grab for money.
ITS A TREND IN BUSINESS TO USE CHARITY AS A WAY TO WARM THE CONSUMERS HEART SO THEY FEEL A SENSE OF "CHARITY" THEMSELVES WHEN PURCHASING SUCH ITEMS.
THOSE SOCKS AREN'T ANY MORE ADVANCED/HI-TECH THAN USING A DISPOSABLE DIAPER AS A BARRIER BETWEEN UR FEET N SHOEZ.
Why get these socks over Darn Tough?
Are they still with Daymond?
I’m not sure how it makes money. Good quality for 70$ of underwear I bought didn’t fit. So with one click it was completely refunded no question and instantly without having to return ship it.
I was so impressed I actually picked the option to be refunded an additional ten dollars and I used this money to purchase my sons’ socks.
I found this “buy a pair, give a pair” thing is mere a pathetic way to say to the customers look at how good we are, love us. they use your empathy to raise their prices double its original cost three times and use one dollar of that to donate, Huh ! That’s funny tbh
Ya the costumer is paying for the pair they “donate”....
Sometimes we need socks that come further up the leg. Man can't live with ankle-socks alone.
So do they saw the socks?
我很早就想卖袜子了，不知道哪里拿货。
It’s like weed, the first time is free
Rob Kardashian is soooo mad right now lol
they made that $100 mln with out me! ps: starbucks coffee sucks, they just monopolist on the market, west cost barely have DD
Also means bombs or pumps in Spanish and Portuguese.
Well I guess I'm not their market target
Cool idea but even Nike and Adidas socks aren't making 100 million a year in sales.
Hipster socks
hows about I buy a pair and you just donate money so they can buy food. people who cant buy socks are in more need of food. though glad you're making an effort to do some charity work.
What do you know? I was homeless for years and there was always somewhere in Dallas to get food. However, socks and underwear were not easy to come by. So, become homeless for a month and maybe you'll understand reality.
Another good sock brand is stance socks, just saying.
Not wanna hate but they probably don't do it for the homeless but as a marketing tactic. Otherwise they will lower the prices and act more like a non-profit. If they sell 1 pair for $18 they can probably donate 5 socks and still make some nice profits. But good business model tho.
hmmm advertising
I want to try them but their prices are bugged out.
They are quality and last 2-3 years before breaking down BUT they are not worth $18. I Used to buy 4to 5 pairs a year. But now only one pair every year.
Isn't this like the buy one, donate one shoes? Coz that org was basically a scam.
I don’t need Bombas. I buy HappySocks for $7 a pair and they are phenomenal.
Ugly AF socks. Cant do it
2:00
Got a pie of these socks for free. They’re nice and all but not worth the money lol
Bombas translates into bombs
they are here because of Shark Tank
So, congratulate all parties involved for coming up with a great concept.
Because it sounded like bangbus
The country of Malta is named after honey
Step 1: have money
DA LAST 4 PAIR(FOR 5$..NOT THE ONES BATMAN WEARS.. BUT THEY GET DA JOB DONE) OF SOCKS I BOUGHT WAS FROM A MAN SLINGING SOCKZ OUTTA OF A GYM BAG INSIDE A MOVING TRAIN.
Change the name to pompous
Just want to remind y’all that Nike sells elite socks for $25 bucks for 1 pair and donates socks to nobody
I never buy socks...im not saying that i go barefoot all the time...i just dont ---> BUY
wait if they donate one for every one sold...HOW ARE THEY MAKING MONEY LOL
Knock Hello they made 20 pairs for every 1 pair sold. So yes they can donate..
I’ll die before I spend $18 on (A SINGLE PAIR of) socks
Socks 🤔 🤔
One pairs sock is $10 😂 I am poor like homeless
Like if this reminded you of Mr Pitt. (If you know, you know)
My Gucci socks are better
There's a lot of startups in africa who would love to be in business but for these fools marketing at your altruism.
I bet they are made in China still
They Charge 2x what they should. Idgaf if they donate if they charge 2x what they should. Altruism on my dime.
So let me get this straight. I pay an outrageous mark up for 2 pairs of socks and I only recieve 1 pair. Then you donate, in your name, the 2nd pair getting the charitable tax write off for the donations I paid for. And Im supposed to feel good about overpaying for socks.
The buy one give away one sales model for startups are getting tired.
Dude you really don't appreciate the value of a nice clean pair of socks until your feet are soaked and you're wearing the same pair or socks for a week because you're lazy af and live in nyc and only do laundry once a month
Garbage. They've stretched and shrunk all wierd in the wash/dry, and they all have holes in the heels after a couple months.
This is a joke
It's obvious that you suffer from envy. And the best definition of envy: TEMPORARY INSANITY! I hope that you recover soon and volunteer some of your time at a nearby 501 non-profit.
Another stupid company. I know why don't people buy normal socks at normal price made in the USA by people paid fairly instead of using cheap labour in China. That would help the world, not over price shocks.