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Old 07-24-2012, 08:28 PM   #70
Join Date: Jun 2012
Location: Canada
Posts: 460

Originally Posted by BreakPoint View Post
Don't forget all the development, engineering, transportation, marketing, sales, advertising, and overhead costs that need to be included into the cost of a pair of shoes. The cost of materials for a shoe may be $7, but add in labor costs, equipment costs, factory overhead, and profit for the factory that Nike contracts to make the shoes. Add in all of these costs and I'd be surprised if Nike makes more than $15 in profit on a pair of shoes after accounting for returns, seconds, discounting after season, etc.

There's like $2.50 worth of cheap plastic and foam in that shoe. Local retail price: $129.98
Hearing how Nike only makes $15/ pair of shoes breaks my heart. Pretty soon I will start a charity for them.
Wilson BLX ProStaff 90: 368g, 7pHL, SW=352. (Wilson NXT 49lb / Lux AluPower 45lb).
Vlad_C is offline   Reply With Quote