JB Overpriced?

[bigboi6]

if you were the CEO of a company making a product that costs $1 and you could exploit the consumer to $100-$150 would you? the answer is yes, thats why there is JB. if you dont, someone else will. thats the goal of every company: maximize revenue and producer surplus. Economics brah.

 

[vahustler]

Originally Posted by ilikethemds

I mean marburry proved this with his starburry.com

 

[vahustler]

Originally Posted by ilikethemds

I mean marburry proved this with his starburry.com

 

[alittlebitcooler]

I think they're worth it because of the history behind the shoes. But what makes it REALLY worth it is the Air Jordan name and the greatness it's associated with along with Nike/Jordan's marketing. They do a good job of promoting their items and making people want them no matter how many times they've released. And also we have to remember this is still, at the most basic of levels, a business. Owners and managers want to make their money and they know what to do to get it.

 

[alittlebitcooler]

I think they're worth it because of the history behind the shoes. But what makes it REALLY worth it is the Air Jordan name and the greatness it's associated with along with Nike/Jordan's marketing. They do a good job of promoting their items and making people want them no matter how many times they've released. And also we have to remember this is still, at the most basic of levels, a business. Owners and managers want to make their money and they know what to do to get it.

 

[niccoweezy]

Yea nike is smart and knows the demand will always be high for jb shoes. Mind control over deebo

 

[niccoweezy]

Yea nike is smart and knows the demand will always be high for jb shoes. Mind control over deebo

 

[apthekid]

Honestly...I'm pretty sure that I've read something (I think it was here on NT, matter fact), that showed what the cost to nike was for a pair of Jordans. It wasn't 88cents - $3. It was more like $35 per pair...which are then sold to retailers for about $75 per pair, which are then sold to consumers for approx $150 per pair.

I could be wrong though...

But honestly, name one consumer product that doesn't have crazy markup?? I work in sales and I will be the first to tell you that if consumers knew what kinda margins are placed on common commodities (not food though), there would be riots.

Truth be told...I remember when HDMI cables first came out, they were selling for like $50-$100 with a 300% markup.

It's liek that sometimes, the $@*% ridiculous...

 

[apthekid]

Honestly...I'm pretty sure that I've read something (I think it was here on NT, matter fact), that showed what the cost to nike was for a pair of Jordans. It wasn't 88cents - $3. It was more like $35 per pair...which are then sold to retailers for about $75 per pair, which are then sold to consumers for approx $150 per pair.

I could be wrong though...

But honestly, name one consumer product that doesn't have crazy markup?? I work in sales and I will be the first to tell you that if consumers knew what kinda margins are placed on common commodities (not food though), there would be riots.

Truth be told...I remember when HDMI cables first came out, they were selling for like $50-$100 with a 300% markup.

It's liek that sometimes, the $@*% ridiculous...

 

[greatabyss43]

Originally Posted by fc1114

If you're asking the 'overpriced' question then clearly you have a lot to learn about the world of retail, and business in general.  

/thread

 

[greatabyss43]

Originally Posted by fc1114

If you're asking the 'overpriced' question then clearly you have a lot to learn about the world of retail, and business in general.  

/thread

 

[kickzb4hoz]

HDMI cables had a ridiculous mark up...especially Monster Cables.

 

[kickzb4hoz]

HDMI cables had a ridiculous mark up...especially Monster Cables.

 

[beerdrum108]

Of course their shoes are overpriced. But as long as people continue to beast and purchase them at exorbitant prices, JB will keep doing what it does. Just take a look around this forum and you'll see a bunch of threads with people clamoring for a shoe to be released and whatnot. Put yourself in JB execs' shoes for a second. Seeing all this hype, wouldn't you want to maximize profits by using crappy materials and raising the MSRP on a pair of shoes?

 

[beerdrum108]

Of course their shoes are overpriced. But as long as people continue to beast and purchase them at exorbitant prices, JB will keep doing what it does. Just take a look around this forum and you'll see a bunch of threads with people clamoring for a shoe to be released and whatnot. Put yourself in JB execs' shoes for a second. Seeing all this hype, wouldn't you want to maximize profits by using crappy materials and raising the MSRP on a pair of shoes?

 

[limonyfresh]

They could jack the price up more and people would still buy them.

 

[limonyfresh]

They could jack the price up more and people would still buy them.

 

[mrkane]

if everyone boycotted the Nike Brand then the price would fall, but until then prices will remain high.

 

[mrkane]

if everyone boycotted the Nike Brand then the price would fall, but until then prices will remain high.

 

[elcerrito91]

Doesn't JB only get a chunk of the 150 retail, meaning the stores themselves buy them wholesale (I don't know how much, but I know it is less than what they sell it for) and then they raise the price to give themselves a profit.?

How much do the shoes cost for the store itself (wholesale)? I know one of you guys works at FL hahaha


JB doesn't make 147 profit, I assume they only make 120 or something, since the store needs a profit too.

 

[elcerrito91]

Doesn't JB only get a chunk of the 150 retail, meaning the stores themselves buy them wholesale (I don't know how much, but I know it is less than what they sell it for) and then they raise the price to give themselves a profit.?

How much do the shoes cost for the store itself (wholesale)? I know one of you guys works at FL hahaha


JB doesn't make 147 profit, I assume they only make 120 or something, since the store needs a profit too.

 

[azngti]

as long as kids buy their shoes at any cost....the price will continue to rise...period

 

[azngti]

as long as kids buy their shoes at any cost....the price will continue to rise...period

 

[cornzilla]

Originally Posted by apthekid

Honestly...I'm pretty sure that I've read something (I think it was here on NT, matter fact), that showed what the cost to nike was for a pair of Jordans. It wasn't 88cents - $3. It was more like $35 per pair...which are then sold to retailers for about $75 per pair, which are then sold to consumers for approx $150 per pair.

I could be wrong though...

But honestly, name one consumer product that doesn't have crazy markup?? I work in sales and I will be the first to tell you that if consumers knew what kinda margins are placed on common commodities (not food though), there would be riots.

Truth be told...I remember when HDMI cables first came out, they were selling for like $50-$100 with a 300% markup.

It's liek that sometimes, the $@*% ridiculous...

So you're saying it cost Nike $35 to make a shoe then they only sell it to stores for $75-80. That would mean the store earns a higher profit on the product than Nike. But I guess that makes sense cause resellers buy the shoes for $175 and sell it for $400

 

[cornzilla]

Originally Posted by apthekid

Honestly...I'm pretty sure that I've read something (I think it was here on NT, matter fact), that showed what the cost to nike was for a pair of Jordans. It wasn't 88cents - $3. It was more like $35 per pair...which are then sold to retailers for about $75 per pair, which are then sold to consumers for approx $150 per pair.

I could be wrong though...

But honestly, name one consumer product that doesn't have crazy markup?? I work in sales and I will be the first to tell you that if consumers knew what kinda margins are placed on common commodities (not food though), there would be riots.

Truth be told...I remember when HDMI cables first came out, they were selling for like $50-$100 with a 300% markup.

It's liek that sometimes, the $@*% ridiculous...

So you're saying it cost Nike $35 to make a shoe then they only sell it to stores for $75-80. That would mean the store earns a higher profit on the product than Nike. But I guess that makes sense cause resellers buy the shoes for $175 and sell it for $400