Chipkos announced their latest pair of flip-flops. They will be the world’s most expensive, a jaw-dropping $18,000 for the pair.
No doubt ecology is a big issue, and no doubt businesses will hype their ecology concern in an effort to increase sales. However, one company takes it to the extreme and hopefully it will benefit Costa Rica.
Last week, designer sandal’s guru, Chipkos announced their latest pair of flip-flops. They will be the world’s most expensive, jaw-dropping $18,000 for a pair.
WOW!!! – H.Stern’s $17,000 diamond-flecked sandals previously held that title.
Hand-painted by Los Angeles contemporary artist David Palmer, the one-of-a-kind, ashram-inspired sandals features the Chipkos emblem gilded in six grams of 18-carat recycled gold by Readers Fine Jewelers in Santa Monica. Although they are pretty funky, the pair is not emblazoned with diamonds, or even Swarovski crystals or any other precious jewels for that matter.
So how can they justify the price?
Here is the “justify price” or eco-hype: For each pair sold, Chipkos will adopt 100,000 square feet of endangered rainforest in Costa Rica and guarantees, the protection and preservation of land, species and natural resources. But it’s all for a good cause or least that’s what we’ll be telling our accountant, but the IRS may be a different story, unless this is a certified “donation.” But if you are a billionaire, $18,000 is a drop in a 50 gallon drum.
Now, if you are a deep pocket, eco-concern billionaire, you will also receive a two-night stay at the LEED-certified Montage Hotel in Beverly Hills, a display case made from reclaimed mahogany and glass, a certificate of authenticity, along with a meet-and-greet with Palmer himself. And, if you dare to take your $18,000 investment traveling, Chipkos’ will also included a cool shoe-carrying bag.
Now here is the bummer, these sandals are only in men’s size 8-9 and the average men’s size is 10-12. It’s obvious these sandals are not for wearing, but going to be display on some mansion wall like a Vincent Van Gogh painting.
But Chipkos does not stop there; they have also targeted the common person. Chipkos will also introduce their newest line of Indian-inspired, eco-friendly sandals. For each pair of these sandals purchased, Chipkos will protect one hundred square feet of the rain forest.
Or more specifically, each sandal purchase expands a Costa Rican national park.
All and all, this is a very good thing – but it will be interesting to Costa Ricans and expates, of, How many will be sold? What national parks is the money being donated to? And the big question (that all in Costa Rica are skittish on), who is in charge of handling the money?
About Chipkos
Chipkos is an eco-friendly sandal company, whose sandals are a throwback to the Osho slippers from the Sixties ashram scene of India. Unconventionally “square”, the sandal design boldly breaks the norms, challenging the standard round-shaped flop and serving as a reminder of the company’s square feet protection campaign and mantra, “Stand For Square Feet”. Various colors and prints for men and women are available through the Chipkos online store.
Sounds like Chipkos and this Palmer guy want to take my money under the guise of ECO-Conservation.
I’m no billionaire, nor am I the brightest star on the planet, but I smell something rotten and Chipkos is trying to grease my palm with it. Tell me again what I get for my $18k pair of brightly colored reclaimed gold impregnated sandals? Let’s see: “For each pair sold, Chipkos will adopt 100,000 square feet of endangered rainforest in Costa Rica and guarantees the protection and preservation of land, species and natural resources… you will also receive a two-night stay at the LEED-certified Montage Hotel in Beverly Hills, a display case made from reclaimed mahogany and glass, a certificate of authenticity, along with a meet-and-greet with Palmer himself. And, if you dare to take your $18,000 investment traveling, Chipkos’ will also included a cool shoe-carrying bag.”
Let’s get to the nitty gritty: What I smell is a plan for Chipkos and their friends to invest in the Costa Rican hardwood market. Because Teak has been farmed on plantations for hundreds of years, there is a large body of statistical data available on forecast growth rates, yields, and market values. Under the umbrella of ‘our concern for the environment’, these are guys would love no more than to shake your hand, take your money, then give you the ol’ ‘Don’t let the door hit in you in the ass’ rountine.
It’s my understanding that the price for an undeveloped acre of real estate in Costa Rica would fetch $1800 ~ $2400 USD (1,200,000.00 Colones at the top). 100,000 ft² is approximately 2.3 acres of land (or .93 hectares). This, of course, is land outside the areas of prime interest. The price of Mahogany is $6.20 BF (board foot) USD, so the framed slap on the back might set them back $40.00 USD. Let’s say the bag is made of 1200 thread count Egyptian cotton that might fetch $50.00 USD, and THESE ARE BRAND NEW. The stay at the posh Beverly Hills hotel might go for $5,000 USD. What are we talking here? A little over $9800 spent on product, and an extremely nice return on investment for our friends at Chipkos. Just how much of the profits does Chipkos intend to set aside for the cost of the guaranteed protection and preservation of land? Probably not much.
I will say this: Given the current market and trends, Chipkos and their friends stand to make a great profit if their marketing people get this right; In the neighborhood of 10~12% over the life of their investment. And believe me, it ain’t gonna be a mere 2.3 acres.
$18,000.00 pair of shoes I can’t wear – Worthless
Chipkos guarantee – Worthless
A stay in Beverly Hills – Worthless
Meeting David Palmer – ABSOLUTELY WORTHLESS
100,000 ft² of Rain Forest Preserved by the Costa Rican Government – Rockin’.