how much it costs them to produce shoes that sell for $ 100

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            The sale price in a local of a fashion running shoe model can even quadruple the production cost of the same
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                    <p>Sports shoes are a &quot;fetish&quot; of many people around the world, and you get to pay lump sums to have the latest model of fashion shoes. But many times the cost is excessive and in theory &quot;does not justify&quot; such a high price.

How much money does it really cost to make a pair of shoes? From the Solareview website they made an exhaustive analysis of why we paid $ 100 for a simple model of shoes that makes brands less money.

To this end, they have investigated the revenue, the difference between the initial and final price, the sale to retailers, including the extent to which advertising campaigns inflate the sale price, MdZ said.

This research takes as an example several models of shoes, such as successful Adidas Ultraboost, which have a sale price of 160 dollars and production costs are just 38 dollars.

Also the Nike Free RN Flyknit of 115 euros that has a cost that exceeds 23 dollars. As we can see the price from when they are manufactured until they arrive at the store and are sold, the price, at least, quadruples. In addition, if we consider the net profit after tax of Nike, it was 10.7%, while that of Adidas was just 4.1%.

Actually, the manufacture of running shoes, materials and workmanship, is a minimum part of that final price that we see in a place. After these expenses in production there are also those of the transfer from the country of origin, to which the insurance that these brands must contract must also be added so that they can be covered if in the course of the transfer to the country there is an accident.

After arriving at the ports, they must also pay the customs fees and special taxes, which are different in each country.

We must also bear in mind that many times we buy these shoes in large stores or in sports venues. Brands such as Adidas or Nike are sold at 50 dollars, a price that allows them to cover operating costs and thus obtain a profit margin.

But to that we also add the significant amounts of money invested in advertising and marketing, which according to Solareview, Nike spent around 10% of its net sales while Adidas reached up to 17 percent.

In addition to the money they have to invest to maintain their own premises, where they bear high costs of personnel, maintenance, infrastructure, etc.

As for the general situation it doesn't seem so rosy, right? In a pair of $ 100 shoes, Adidas only makes a profit of $ 2. Nike has much better rates, so they get $ 5 as a benefit on a pair of $ 100 tennis.

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https://www.iprofesional.com/marketing/299520-Nike-y-Adidas-cuanto-les-cuesta-producir-zapatillas-que-venden-a-100-dolares

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