What are the main costs of providing this firm's main product(s)? How much higher are they for this company compare to its competitors? What's your conclusion?

Special note on cost analysis

The one piece of information that is typically difficult to gather is cost information, though sometimes revenue can be challenging to get too. If the question is whether or not the company is profitable or whether it is more profitable than the average industry competitor, then you clearly need to know the costs of production. If you cant find data on costs directly, then you need to think about the key sources of costs (investment in R&D, wages, capital costs, etc.) for the company and provide your best guess as to what the appropriate level of costs are. In some cases there may be high fixed costs of R&D, but low variable costs. In other cases, there may be few fixed costs and high variable costs. One approach that can be used is to triangulate on the key cost differentials between two companies who are doing largely the same thing. For example, its pretty straightforward to recognize that Dollar Shave Club is going to have lower costs than Gillette, since Gillette spends so much on R&D and Dollar Shave Club does not.

Company summary: T Tights is the future of performance sports by designing apparel for ALL skin tones. We have created a line of ice skating and dance tights of 10 distinct shades across the color spectrum and in four styles. By providing performance athletes the option to wear tights in their unique skin color, we are sending the message "You DO belong in this sport." Problem: Today, there are over 1.3 million performance athletes in the United States alone. Performance athletes, especially those of color, do not have the appropriate gear to fit their skin tones. Tight and sports apparel companies are not adjusting to the growth of diversity in this $3.78 billion market. T Tights is well aware of this growing market and is leaping at the opportunity to embrace the increase in diversity. Customers: Our customers are individual performers, team performers, and professional performers between the ages of 12-30 years old. More specifically; ice skaters and dancers, recreational performers and competitive performers, secondary school teams, university-level teams, professional and semi- professional cheerleading teams, band dancers, and professional musical performers. These performers all wear tights while practicing, competing, and performing. We know our customers because we are our customers. Business Model: We are focused on two types of product sales through team contracts and online orders. Because we are competing against larger companies, we are focusing on landing team contracts to build credibility, and simultaneously through reaching individual athletes and further build our presence through e-commerce. Our product and packaging manufacturer is located in Ellerbe, North Carolina. We have designed 10 distinct shades ranging from fair to deep tones in 4 styles. We began selling our first order of 3 shades in 2 styles in March 2019. After the tights are produced, online and eam orders are fulfilled by our Team with a 7 day turn around rate. T Tights does not have a time constraint on returns and promises a 48-hour reply to any customer service inquiries. sales and marketing strategy: T Tights is focused on three sales channels: team accounts, vending events, and online orders. We are using three methods of marketing: organic media, paid media, and influencers. Our brand has reached 148 thousand people, gathered 500 email subscribers, and signed influencers that extends our reach by 20,000 people. We also will be vending at 5 large upcoming competitions. competitors and competitive advantage: Our competitors, Mondor, Capezio, Chloe Noel, and Ballet Caf, have not embraced the diversifying performance industry. If an athlete of color visited Mondors site today, they would not find a pair of tights that would match their skin tone. In addition, our competitors do not sell apparel for multiple disciplines of performance sports. T Tights offers color variety, apparel for multiple sports, promotes body positivity. Most importantly, we know what our customers need to thrive in their passions because we are our customers, lifetime athletes of color. T Tights is created by athletes, for athletes Financial: Revenue: 2019 ($25,000); 2020($81,000),2021($114,000):2022($130,000):2023($210,000) COGS: 2019($3,800); 2020($13,000); 2021($19,000): 2022($22,000); 2023($33,000) Profit: 2019($22,000); 2020 ($69,000); 2021($95,000); 2022($110,000): 2023($180,000) Company summary: T Tights is the future of performance sports by designing apparel for ALL skin tones. We have created a line of ice skating and dance tights of 10 distinct shades across the color spectrum and in four styles. By providing performance athletes the option to wear tights in their unique skin color, we are sending the message "You DO belong in this sport." Problem: Today, there are over 1.3 million performance athletes in the United States alone. Performance athletes, especially those of color, do not have the appropriate gear to fit their skin tones. Tight and sports apparel companies are not adjusting to the growth of diversity in this $3.78 billion market. T Tights is well aware of this growing market and is leaping at the opportunity to embrace the increase in diversity. Customers: Our customers are individual performers, team performers, and professional performers between the ages of 12-30 years old. More specifically; ice skaters and dancers, recreational performers and competitive performers, secondary school teams, university-level teams, professional and semi- professional cheerleading teams, band dancers, and professional musical performers. These performers all wear tights while practicing, competing, and performing. We know our customers because we are our customers. Business Model: We are focused on two types of product sales through team contracts and online orders. Because we are competing against larger companies, we are focusing on landing team contracts to build credibility, and simultaneously through reaching individual athletes and further build our presence through e-commerce. Our product and packaging manufacturer is located in Ellerbe, North Carolina. We have designed 10 distinct shades ranging from fair to deep tones in 4 styles. We began selling our first order of 3 shades in 2 styles in March 2019. After the tights are produced, online and eam orders are fulfilled by our Team with a 7 day turn around rate. T Tights does not have a time constraint on returns and promises a 48-hour reply to any customer service inquiries. sales and marketing strategy: T Tights is focused on three sales channels: team accounts, vending events, and online orders. We are using three methods of marketing: organic media, paid media, and influencers. Our brand has reached 148 thousand people, gathered 500 email subscribers, and signed influencers that extends our reach by 20,000 people. We also will be vending at 5 large upcoming competitions. competitors and competitive advantage: Our competitors, Mondor, Capezio, Chloe Noel, and Ballet Caf, have not embraced the diversifying performance industry. If an athlete of color visited Mondors site today, they would not find a pair of tights that would match their skin tone. In addition, our competitors do not sell apparel for multiple disciplines of performance sports. T Tights offers color variety, apparel for multiple sports, promotes body positivity. Most importantly, we know what our customers need to thrive in their passions because we are our customers, lifetime athletes of color. T Tights is created by athletes, for athletes Financial: Revenue: 2019 ($25,000); 2020($81,000),2021($114,000):2022($130,000):2023($210,000) COGS: 2019($3,800); 2020($13,000); 2021($19,000): 2022($22,000); 2023($33,000) Profit: 2019($22,000); 2020 ($69,000); 2021($95,000); 2022($110,000): 2023($180,000)