
Originally Posted by
CuckoosNest;3909750; Russell (or a Russell-owned subsidiary) no doubt buys the shirts... but then he re-sells them to the American public, and donates 75% of the proceeds (also known as the profit margin) to charity.
Let me set up a hypothetical situation to make things clearer: Russell buys 1000 shirts at a cost of, say, $10 (which would include the shirt, packaging, shipping, marketing, employee costs, etc.) He sells them all on his website for $20. In that scenario, RH Enterprises had made $10,000 (i.e. 1000 shirts x $10 made on each).
There's three basic hypothetical ways that his "75%" donation could come into play:
1. He could be donating 75% of the sales price of each shirt sold, or, in this case, $15,000. This is best-case scenario for St, Jude's but it's highly unlikely he did this... this would mean he'd have to do some matching out of his own pocket. And it's Russell Hantz we're talking about here... if he were going to be that magnanimous, I'm sure we'd hear all about it. Over and over and over, in fact.
2. He could be donating 75% of the profits, or, in this case $7500. The other $2500 goes into Russell's pocket. Quite frankly, this is how most businesses would do it, and probably the way RH did it, if he made a donation at all. Unfortunately, he's an individual, not a business... if the gesture was truly as swell as he cracks it up to be, it would 100% of the profits (meaning that Russell would break even).
3. He could be donating 75% of the cost of each shirt sold, or, in this case, again, $7500. Which means the RH would, once again, net $2500.
In the end, yes... RH provides layout costs for this little endeavor. But by working in a 75% return to charity, there are lots and lots of ways to make money on the deal. And quite frankly, that's bad.
My hunch to what actually happened was that RH bought a huge quantity of shirts and then sold, like, three of them. Which means he got stung cost-wise, got stuck with a bunch of unsold t-shirts, and the donation was never made. It would make sense since we've heard nothing else about the donation.
In the end, it would just make a helluva lot more sense to just make a donation to St. Jude's directly, and scrub the whole shirt thing. But that's not the way Russell works. If it isn't benefiting him somehow - either making him money or promoting his ego - then he obviously isn't interested.