LOP

LOP or Labor Overhead and Profit:
LOP is a critical part of the shoe factories price for a shoe.  The factory will add up all the material costs then add the Labor Rate , Overhead and Profit required.   The LOP for a shoe can be 30% of the total cost of a shoe.  Just a few dollars for a simple skate shoe up to $10 or $15 for a snowboarding boot. Some factories will add a percentage on to the material cost to account for the LOP.  Other factories carefully calculate each component.

 

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