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Old 01-08-2013, 12:11 AM   #33
BreakPoint
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Join Date: Feb 2004
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Quote:
Originally Posted by Babolast View Post
Nike makes money from tennis...

It would cost $5 - $10 to make a tennis crew and they bump the price to $80.

The amount of profit is insane.
The total cost of a product is not just what it costs to make. You have to add in so many other costs into it (e.g., marketing, distribution, R&D, admin, taxes, etc.). Then you also have to add in the costs of all the products that don't sell and have to be liquidated before the next season's products arrive. Besides, Nike doesn't sell their products to the consumer for retail price. They sell their products for wholesale price to retailers, which is approximately half of retail price.
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