All the stats you look at vary on how much Nike actually spends to make each pair of tennis shoes but one thing is consistent they spend a lot less then the consumer. According to a study done by Duke,consumers pays over 70% more then Nike does for each pair of shoes. This study by Duke also reported that for a $70.00 pair of Nike shoes, Nike pays about $2.75 for production labor, $9.00 for the materials, $3.00 for the equipment, $1.75 for the supplier’s operating profit. $3.00 for duties, and $0.50 for shipping giving a grand total of about $20.00 spent on each pair of shoes made. The retailer also makes a nice profit off of these shoes, spending $0.25 on research and development, $4.00 on promotion and advertising, $5.00 on sales and distribution, and $6.25 on Nike’s operating profit, coming to a grand total of $35.50 spent by the retailer on each pair of shoes. The consumer then pays $70.00 on these sneakers. These stats are for relatively cheap shoes, according to a study done by Terry OKeefe Nike spends just over $16 to make a pair of “Jordan’s” which are some of their most expensive shoes and sell for $250 to $550 a pair on amazon.

Leave a Reply

Your email address will not be published. Required fields are marked *