Price Raises On Upcoming Jordans

[nikemax]

I don't understand why people think that sneakers shouldn't go up in prices like everything else.

As the cost of materials, transportation, and labor increase (which all three have done, and yes the cost of labor has increased in China) so do the cost of goods. Just cause they retail for more, doesn't mean that Nike is making a higher profit.

 

[shoefly216]

People have shown Nike that they are willing to pay over 200+ to a reseller to get a Sneaker that they want. So sadly they will probably keep increasing the prices. 

couldn't have said it better myself

 

[anthracite8s]

I want to be done with them but they will probably start retroing the higher models like 18s after the prices reach 200  and are still selling out solidly.

 the cdp's were only 155 but I bet they will have the higher models crazy priced and lower numbers or something stupid. and ofc no briefcase with the 17s

 

[futuredhughes]

This increasing the price every year is getting old.

JB thinks they're slick.

'Bout time my grails come out (Carmine 6s, Hare 7s, Columbia 11s) retail gonna be $200 BEFORE tax.

|I

 

[kidkain]

I don't understand why people think that sneakers shouldn't go up in prices like everything else.

As the cost of materials, transportation, and labor increase (which all three have done, and yes the cost of labor has increased in China) so do the cost of goods. Just cause they retail for more, doesn't mean that Nike is making a higher profit.

I hear all that but the profit margins on retro Jordans is insane there using mostly 20 year old tech with retail higher than most current Sig lines besides LeBron

 

[nikemax]

I hear all that but the profit margins on retro Jordans is insane there using mostly 20 year old tech with retail higher than most current Sig lines besides LeBron

You're right that profit margins are crazy high on retro's, but for sure aren't as good on everything else they put out (team styles, fusions, 2012s, Vis Air's, all that stuff nobody wants or pays retail for). Most Jordan stuff I see both A) costs the most to create and B) usually winds up marked down at the outlet stores. At the end of the day, they still need to make money and retro's are their only guaranteed income every quarter. As everything else gets worse, the sales and margin from the retro's pay the bills.

Regardless, there's no reason that inflation wouldn't hit the sneaker game. If people don't want to pay $180-$200+ for Jordan's, that's a good idea. But if you aren't going to pay that much cause you want to make some sort of statement, you better start boycotting food, gasoline, and a college education as well because those have gone up in price at a much higher rate than sneakers.

I'm not happy about the higher prices either, but I'm not at all surprised by it. Just my 2 cents

 

[blackanese32]

Nike is smart.  They raised the prices this year on the 13s to see how they will sell and look what happens.  People still bought them so they will now sell Jordans for that price for now on.  Not only the Jordans are raising in price, Lebron XI will be $200 this fall also. smh

 

[isniker]

You're right that profit margins are crazy high on retro's, but for sure aren't as good on everything else they put out (team styles, fusions, 2012s, Vis Air's, all that stuff nobody wants or pays retail for). Most Jordan stuff I see both A) costs the most to create and B) usually winds up marked down at the outlet stores. At the end of the day, they still need to make money and retro's are their only guaranteed income every quarter. As everything else gets worse, the sales and margin from the retro's pay the bills.

Regardless, there's no reason that inflation wouldn't hit the sneaker game. If people don't want to pay $180-$200+ for Jordan's, that's a good idea. But if you aren't going to pay that much cause you want to make some sort of statement, you better start boycotting food, gasoline, and a college education as well because those have gone up in price at a much higher rate than sneakers.

I'm not happy about the higher prices either, but I'm not at all surprised by it. Just my 2 cents

quality issues aside & i know nike finds ways to make these cheaper to produce every time also .. but yeah to your point

xi's in 1995 is $125, today $185

how does a gallon of gas costs in 1995, & how does a gallon of gas costs today?

 

[Nujavez]

jordan and nike know they can get away with raising the price with 10-20+ year old tech shoes.

adidas and reebok still charging only a $100 for retro Adidas crazy 8's (released 1998, retro'd 2011 same price) and Reebok kamikaze II's (released 1996, retro'd 2013 same price) Don't believe all that inflation **** at all

 

[isniker]

jordan and nike know they can get away with raising the price with 10-20+ year old tech shoes.

adidas and reebok still charging only a $100 for retro Adidas crazy 8's (released 1998, retro'd 2011 same price) and Reebok kamikaze II's (released 1996, retro'd 2013 same price) Don't believe all that inflation **** at all

^^somewhat true but if they can sell crazy 8s for $200 they would too

crazy 8 = no player/name royalties, kamikazes = no player/name royalties

shaq attaq = w/ name/player royalties = $160 all of a sudden

maybe that has something to do with it also

talked to some shop owners they get theirs from Nike for $50-60.. lucky them... but they said not really.. they also get a load of crap shoes

 

[jordan23dotcom]

This is why I don't buy anything with a jumpman on it anymore. The prices are just down right laughable with the quality they are putting out. This generation of shoe buyers have truly ruined everything with camp outs and such. If and body throws out the idiotic idea that this is all caused by inflation please either show us that mathematics behind it or jump out your window.

 

[amen23]

I hope this is not true especially for the canadian market. We paying 199.99 on these joints already!

 

[isniker]

what's also crazy is I now see bootleg J's sell for $100-$200 smh

http://www.ebay.com/itm/Nike-Air-Jo...D&orig_cvip=true&rt=nc&_trksid=p2047675.l2557

http://www.ebay.com/itm/Air-Jordan-...D&orig_cvip=true&rt=nc&_trksid=p2047675.l2557

pink XIs for $100+

http://www.ebay.com/itm/NIke-Air-Jo...D&orig_cvip=true&rt=nc&_trksid=p2047675.l2557

even on CL people buy these... even though it says replica

http://losangeles.craigslist.org/lac/clo/3694524368.html

 

[nikemax]

This is why I don't buy anything with a jumpman on it anymore. The prices are just down right laughable with the quality they are putting out. This generation of shoe buyers have truly ruined everything with camp outs and such. If and body throws out the idiotic idea that this is all caused by inflation please either show us that mathematics behind it or jump out your window.

This is an exceptionally well done article on this very subject. No one should bother posting their opinion until they read it first.

http://www.sneakerfreaker.com/feature/why-the-iphone-is-killing-the-sneaker-industry/1/

Some bullet points
-That the world’s economy revolves around oil is hardly classified information, however it’s surprising to learn how much black gold there is in plastic, synthetics and God knows what else is required to build sneakers. So if the price of oil goes up, then so does the price of every pair of sneakers made, and that’s before you include the cost of freight from the factory to the warehouse to the door of your favorite store.

-As if that’s not bad enough, the price of silk, polyester, wool and leather has also busted a nut. Rubber prices have also exploded, reportedly due to the sheer volume of Goodyears required to service millions of new cars in China.

-there’s a huge investment in creating new shoes which can easily run north of $100,000. These initial set-up costs then have to be amortised across a shoe’s potential production run, meaning brands need to move substantial numbers to recoup their initial stake.Then there’s the back-end that brands are responsible for such as warehousing, office space, hiring designers, marketing gurus, sales guys, customer service and paying LeBron James his own weight in gold bullion every month. The list of expenses is a long one and the headaches merely multiply when little things go awry.

-Every single piece of the puzzle – from transport to materials to wages – has to be carefully hedged to cover the dozens of ‘what-if?’ scenarios that can occur. Think of it as a form of insurance, with businesses betting to find a middle ground on future prices. Since there’s bound to be losses, brands are definitely factoring in enough flab to cover unforeseen future dramas that always seem to pop up, right when you least expect them.

-China’s rapidly emerging middle class and their appetite for western-style luxury is also warping its traditional role as an exporter. Incentives for job hopping, therefore, are not hard to find. The neatest quick-step to worker-bee nirvana is to quit the shoe industry immediately and land a highly coveted job in electronics, where pay and conditions are appreciably better. (This is an epic story in itself.) Skilled staff, some with years of training in shoe production, are moving on to greener fields or demanding hefty pay rises. As noted, wages are up double digits, causing some factories to close, some to pack up for a more favorable location and others to simply cancel orders.

-Perhaps these dire conditions will prompt a renaisance in sneaker manufacturing in the US and Europe, but I wouldn’t count on this happening unless unemployment hits stratospheric heights, possibly higher than even Spain, where over 20% of adults are out of work. In the meantime, cash-strapped governments are imposing extra duties, especially when goods arrive stamped ‘Made in China’. In the United Kingdom, VAT also increased from 17.5% to 20% in January 2011, and it’s a sure bet that any nation with a consumption tax will be looking to increase revenue in a similar manner.


The bad news is, all these things are true whether you believe them or not. Gas was $1.50 in 2000, that price has more than doubled since then. It requires oil to run the machines that create shoes, ship them overseas, and then transfer them to retail stores.If everything is getting more expensive to produce each year, it's smarter for Jordan to raise prices on retroe's and keep prices steady on the less desirable styles that hit outlets. This way, the increased prices of the retro's offset the margin losses of everything else.

 

[nikemax]

quality issues aside & i know nike finds ways to make these cheaper to produce every time also .. but yeah to your point
xi's in 1995 is $125, today $185
how does a gallon of gas costs in 1995, & how does a gallon of gas costs today?

According to this website, at the end of 1995 gas was $1.13 a gallon.
https://explore.data.gov/Energy-and-Utilities/gas-prices-for-1995-2012/6q2r-3kij

According to this, current avg is $3.61
http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp

So Jordan XIs have gone up by 48%, and gas has gone up 219%.

 

[jordan23dotcom]

^^ ok, so why were iii's 160 last year and 200 with a nike air on the back this year? Why are all Jordan's now under the same price point, but when they first dropped some were much cheaper? I'll wait......

Where in the article do they discuss jacking up prices for limited releases?

 

[beansietime]

^^ ok, so why were iii's 160 last year and 200 with a nike air on the back this year? Why are all Jordan's now under the same price point, but when they first dropped some were much cheaper? I'll wait......

my man,
3s were only $150 in 2011.

 

[nikemax]

^^ ok, so why were iii's 160 last year and 200 with a nike air on the back this year? I'll wait......

Did you even read the article?

There were an insane amount of 3s made last year. 5 colors, all of which were easy pickups.

However there was a fraction amount of 3s created with Nike Air on the back. Most people weren't even able to cop. The less amount that are created, the higher the costs associated.

 

[thatboydrew]

^^ ok, so why were iii's 160 last year and 200 with a nike air on the back this year? I'll wait......

because JB/Nike see the reseller market avg around 220+ for Js (and some nike bball) and all the cats willingly paying the crazy mark up in price!  

 

[jordan23dotcom]

my man,
3s were only $150 in 2011.

Even better

 

[jordan23dotcom]

Did you even read the article?

There were an insane amount of 3s made last year. 5 colors, all of which were easy pickups.

However there was a fraction amount of 3s created with Nike Air on the back. Most people weren't even able to cop. The less amount that are created, the higher the costs associated.

What does this explanation have to do with inflation?

 

[nikemax]

Where in the article do they discuss jacking up prices for limited releases?

Page 12
http://www.sneakerfreaker.com/feature/why-the-iphone-is-killing-the-sneaker-industry/12/

An unexpected by-product of an industry in tough times is that some things that were once entertained at factory level are suddenly no longer on the menu. One manifestation is pressure on minimum orders. Gone are the days apparently when the factory would happily produce 20 pairs for promo purposes. Perhaps this partly explains the slowdown in colab projects in the past 18 months, not to mention the fact that supplies of Quickstrikes and Tier Zero have practically dried up. This in turn has put huge pressure on boutique retailers, many of whom were reliant on these types of products being created specifically for them.

That means it is much more expensive to produce something limited than a basic, GR color.

 

[jordan23dotcom]

^^ wait, so throwing in nike air on the back is much more expensive than throwing on a jump man which is how it was in the first place? Naw

Is inflation real? Yes. Is it the reason JB is bending over its customers? No. They're using cheaper materials which if anything would off set inflation.

 

[nikemax]

What does this explanation have to do with inflation?

It all falls under the same umbrella.

Things cost more today than they did 10 years ago (or even 2 years ago). That's the inflation piece, and has increased 3-5% annually in recent years.

This is combined with a small amount of units being produced, which give a higher production cost.

Both pieces play a part in them costing $200.

 

[nikemax]

^^ wait, so throwing in nike air on the back is much more expensive than throwing on a jump man which is how it was in the first place? Naw

Producing 5,000 units of a White Cement 3 with Nike Air on the back is more expensive than making 500,000 White Cement 3s with a Jumpman on the back.

Even if you created the exact same shoe, THE EXACT SAME SHOE WITH NO DIFFERENCES, it'll cost more to make a small amount than to make a large amount. This isn't that hard of a concept to grasp.

Like I said, this is all true whether you believe them or not. I'll leave it at that.