Costs of production decreasing again - How will Nike respond?

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Although it seems that lately Nike's prices have been rising pretty much across the board, it seems that according to this article, prices should again be on the decline. The question is, will they? I think most of us would guess prices will stay where they are, but it sure is a shame that prices probably won't go back to where they could be.
http://www.cnbc.com/id/45740235
 
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Originally Posted by XIIz89

There's no way in hell prices go back down.

I tend to agree. Hopefully this will keep further price increases at bay for a while, although Nike may end up getting greedy when they don't need to be. 
 
Remember when (at least in my area) $3.20 gas was expensive... well when it just reached this amount recently... people thought they were getting a deal...

We have been conditioned for it...as will Nike precondition us to higher prices... which will never go back down.
 
Good point Rock.




Just the way Nike shops around locations... I think they'll be on the prey for cheap materials so that they can use on their products.

one year it'll be Fuse material, the next year it'll be something different like mesh/cotton cardboard shoes... just a thought.
 
Put it like this...when I was kid you could grab a value meal at McD's for between $2.99 (two cheeseburger meal FTW) and $5.00....NOW...average value meal w/drink (cause depending on what you order is extra) is around $5.00 to (in some places) $8.00...and no one really ever bucks or complains...

My point is...why sell for a $1.00 what you can sell for $2.00???

The only problem Nike has is end users are starting to buck at higher prices (evident buy SOME colorways of Lebron 9's collecting dust along with countless colorways of Jr's and one or two colorways of the Rookies)...so Customers (FTL etc) are lowering prices soon rather then later to move stock...

You wont see prices drop BUT you will see LESS colorways in the future and more "premium" releases to justify the higher price points...
 
I don't possibly see how the price or production can be going down. Cost of fuel has gone up which has made the cost of raw material go up all across the board. You factor that with the US weak dollar and you see increase in prices. We do a lot of business with factories over seas and I have seen these cost increase first hand.
 
Originally Posted by soledout23

I don't possibly see how the price or production can be going down. Cost of fuel has gone up which has made the cost of raw material go up all across the board. You factor that with the US weak dollar and you see increase in prices. We do a lot of business with factories over seas and I have seen these cost increase first hand.
Gas prices right now are about the same as they were last march like this article states, and I really don't think MSNBC would write an entire article about this if they didn't check their numbers. Have costs gone up over the last three, four, five,... ten years? You bet. 
All this being said, I agree with everyone else that the prices will never come down, but may rather shift a change in how people buy their products to some extent in the long run.
 
It's never really been about true production costs. As long as they know kids and adults will spend $100 over MSRP or more, prices will rise steadily, and Nike will find another excuse as to why prices need to rise, other than the only proper explanation being "because we can".
 
Msn reported that prices on rubber has gone down. There are many other materials other than rubber that goes into making a shoe. The decrease in rubber dont offset the other increases for the other materials. Nike spends more money in R&D than anybody else in their industry and that costs money. There are many other factors that influence the increases in their prices. What I'm saying is that MSN is only taking a snap shot of what it is and not really showing you the whole picture or else they would have interviewed someone with Nike to hear their side of the story.
 
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