What one bad run can cost
Purchase order exposed
$34k
This PO puts $10k at risk for 90 days. VIP = $1,490 per run. Pro = $199 per run.
Purchase order exposed
$34k
Factory PO while at least one required production proof remains open.
This PO puts $10k at risk for 90 days. VIP = $1,490 per run. Pro = $199 per run.
PO
Factory PO (FOB × units)
$34k
Deposit
Cash committed as deposit
$10k
Balance still on the PO: $24k
Landed
Landed per pair (est.)
$21
Landed run total (est.): $53k
Channel
Wholesale revenue dependent on acceptance
$75k
Gross margin dependent on acceptance: $22k
Separate failure scenarios by proof
- $5.2k
Sample
Sample risk = 0 (line cannot start without a golden baseline)
- $34k
BOM
At risk = PO units × FOB cost
- $8.9k
Ownership
At risk = tooling investment + 30-day delay penalty
- $17k
Pattern
At risk = 15% to 30% expected size/fit return rate in sell value
- $8.8k
Kit
At risk = PO units × 2 to 5 per unit re-label + re-box at 3PL
- $53k
Assembly
At risk = full landed cost (FOB + freight + duty) × PO units