Air Jordan 17+ Retro "Copper" - The Aftermath - NO BUYING/SELLING/TRADING

ducktales said:
In general I'd agree with you, however Nike's price increase is simply because they can and have for years controlled supply and demand. I'm interested to see if the last 4 releases sitting on shelves is a long term trend or temporary.

Jordan's cost under $40 landed to the U.S. For a pair of retros. USA Today posted on these years back. And while costs in China are escalating sneakers and Garmants have low labor content due to automation in factories. With all this said, Nike doesn't run a cost plus business. So if a sneaker costs $1 but everyone will pay $250 why lower your Price???

Newer sneaker technology may carry higher costs, but for most of these retros were talking +20 year old technology.
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Yeah there is no doubt that a good portion of the increase is just cause they can.
I actually work in the Garment industry and see some of the fees that we pay to have good shipped from China. There are FOB / brokerage / duty / ISF / drayage / freight. These things don't get cheaper. Then there is the cost of running a warehouse for picking and packing the goods to ship out.

I recall reading an article and it stated that for a $100 Nike shoe, Nike's profit is only 9% of that. They sell the $100 to wholesalers for $50 and after all the cost their profits are roughly 9% of the $50 shoe (before retail markup). I'm not saying that's the case for Jordans and I'm positive the profit margins for Jordans are much higher but it still gives you a better perspective of the industry.
 
KkennethJ said:
Yeah there is no doubt that a good portion of the increase is just cause they can.
I actually work in the Garment industry and see some of the fees that we pay to have good shipped from China. There are FOB / brokerage / duty / ISF / drayage / freight. These things don't get cheaper. Then there is the cost of running a warehouse for picking and packing the goods to ship out.

I recall reading an article and it stated that for a $100 Nike shoe, Nike's profit is only 9% of that. They sell the $100 to wholesalers for $50 and after all the cost their profits are roughly 9% of the $50 shoe (before retail markup). I'm not saying that's the case for Jordans and I'm positive the profit margins for Jordans are much higher but it still gives you a better perspective of the industry.
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The great thing about Nike is as a publically traded company their financials are available. See them here if interested start on page 18 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2014/docs/nike-2014-form-10K.pdf

The did $27 billion in 2014, have over 44% gross margins, 10% net operating profit. Needless to say they print money. Take into account roughly 80% of their sales are wholesale, so to the retailers we all know like footlocker, finishline, etc. these retailers make a healthy profit on these products. You're 9% number most likely refers to net profit, but that's a HUGe net number!

Sorry for all the data on the forum. I happen to be a guy who wore Jordan's as a kid for years, still collects them and has a bit of industry knowledge working for a garmant business myself. It also doesn't hurt to work in Eugene, OR with a few former and current Nike employees around here to pick their brains.

End of the day, I'm a huge supporter and collector.
 
Beelzebub45 said:
 
I knew XVIIs were coming. The GM pairs and the sudden popularity of the shoe was a dead give away. It's a shame, I'm going to have to wait for some hipster "rap icon" or a wave of teenies to decide that XVs are "cool" just for them to get a run.

We can't sh*t on hypebeast anymore. They decide what will get released due to popular demand. We'd better be nice to the kids. They're THE ONLY REASON we're getting XVIIs.
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They're also the reason we're paying ~$200 across the board
sick.gif
 
KkennethJ said:
Yeah there is no doubt that a good portion of the increase is just cause they can.
I actually work in the Garment industry and see some of the fees that we pay to have good shipped from China. There are FOB / brokerage / duty / ISF / drayage / freight. These things don't get cheaper. Then there is the cost of running a warehouse for picking and packing the goods to ship out.

I recall reading an article and it stated that for a $100 Nike shoe, Nike's profit is only 9% of that. They sell the $100 to wholesalers for $50 and after all the cost their profits are roughly 9% of the $50 shoe (before retail markup). I'm not saying that's the case for Jordans and I'm positive the profit margins for Jordans are much higher but it still gives you a better perspective of the industry.
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Sounds totally incorrect. I heard from my former footlocker manager that the footlocker purchases a pair of jordans like 100$ from nikeand sell them for 130 - 150$ for instance. Production costs without r&d and design are like 10% of most nike shoes unless they are using all state of the art materials.

The official retail ensures nike to make profit even if they have to replace/refund thar pair to the customer.
 
jumpman cbt2 said:
Sounds totally incorrect. I heard from my former footlocker manager that the footlocker purchases a pair of jordans like 100$ from nikeand sell them for 130 - 150$ for instance. Production costs without r&d and design are like 10% of most nike shoes unless they are using all state of the art materials.

The official retail ensures nike to make profit even if they have to replace/refund thar pair to the customer.
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That was the information I got from this article where it says retailers mark up shoes 100% coming from someone who has worked at Nike. I find it to be a similar case in my company, we sell to specific retailers for 1/2 the market price.

ducktales said:
The great thing about Nike is as a publically traded company their financials are available. See them here if interested start on page 18 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2014/docs/nike-2014-form-10K.pdf

The did $27 billion in 2014, have over 44% gross margins, 10% net operating profit. Needless to say they print money. Take into account roughly 80% of their sales are wholesale, so to the retailers we all know like footlocker, finishline, etc. these retailers make a healthy profit on these products. You're 9% number most likely refers to net profit, but that's a HUGe net number!

Sorry for all the data on the forum. I happen to be a guy who wore Jordan's as a kid for years, still collects them and has a bit of industry knowledge working for a garmant business myself. It also doesn't hurt to work in Eugene, OR with a few former and current Nike employees around here to pick their brains.

End of the day, I'm a huge supporter and collector.
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Yup you are correct the 9% is the net profit. See the link I posted in the above quote. I'm not gonna act like I have a full understanding and trust your data since I mainly deal with the EDI area in my company.

I've also been a Jordan collector since I was a kid but was never able to afford everything I wanted. Now that I'm older with a career I'm still a big fan and will try my best to get the copper 17s.... unless these become super hyped and the bots come for them. :smh:
 
ducktales said:
The great thing about Nike is as a publically traded company their financials are available. See them here if interested start on page 18 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2014/docs/nike-2014-form-10K.pdf

The did $27 billion in 2014, have over 44% gross margins, 10% net operating profit. Needless to say they print money. Take into account roughly 80% of their sales are wholesale, so to the retailers we all know like footlocker, finishline, etc. these retailers make a healthy profit on these products. You're 9% number most likely refers to net profit, but that's a HUGe net number!

Sorry for all the data on the forum. I happen to be a guy who wore Jordan's as a kid for years, still collects them and has a bit of industry knowledge working for a garmant business myself. It also doesn't hurt to work in Eugene, OR with a few former and current Nike employees around here to pick their brains.

End of the day, I'm a huge supporter and collector.
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Strong name to post ratio :lol:
JKJK

Or am I? :nerd:
 
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secretzofwar said:
RustyShackleford said:
Ehhhh, not really true

Depended on the release and your location
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RustyShackleford said:
Ehhhh, not really true

Depended on the release and your location
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These dropped in what, 02? I agree if you're talking retros. Most of those sold out on RD. New Js collected dust. The TMac II was 100x more popular than this shoe.
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I said it depended on a couple things

-Retros are one exception

-the a couple colorways of the 16s also sold in many areas

Was just trying to say that what dude said was not something universal
 
RustyShackleford said:
The 16s sold out in some areas doe

I know the blk/reds did in the DMV

Unless I was looking in the wrong places
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I'm also from the dmv. They did not sell out in Montgomery mall, lake forest, or tysons. I got my pair on clearance for 75 and a pair at the Hagerstown outlet for 50. No, they didn't sell out :lol:
 
FDUB said:
I'm from the DMV and the 16's def sold out the first day in 2/17/01 for $160..
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Maybe everyone is a bit right. The black and red 16 sold out on release day, the rest of them did not.
 
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jaylaw15 said:
why? You an old head/ Real MJ fan?
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im 33 and loved watching MJ play and i guess once he stopped playing and i was out of high school i never truly liked anything that released, maybe because he didnt wear them or they had not significance to my childhood anymore but either way if they released majority of shoes (nike, JB, Reebok, Fila) from the 90s i would probably cop assuming they do them correctly and not make them with plastic materials
 
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