Shout out to Rahul Cee from Solereview for letting us turn his article into a video! You can check out the full article with more in-depth insights here: www.solereview.com/what-does-it-cost-to-make-a-running-shoe/
Can you make a video about Putian fake chinese sports shoe or expose the counterfeit industry. How the employees of Nike, Adidas etc. themselves leak the design and shoe to the counterfeit manufacturers even before the come out of the factory. Exposing them will be a good idea, and most E-Commerce sells those counterfeit shoes even in Amazon. People should buy from a trusted seller or from original brand store or website. And those replicas are so much similar to the original one specifically Adidas Yeezy, Nike's LeBron and Jordan. 90% people can't even find the difference, this is a serious issue. Also some high end replicas even have the same quality as the original one, thus making it even more tougher to guess the original one.
Still doesn't mean I should pay £120. I've had a £40 pair for years now and don't plan to spend that much on shoes when I'm a student in tens of thousands of pounds in debt and still don't have any accomadation outside parents house so add £350k-£550k for mortgage. Wow thanks government I'm so glad we live in a capitalist society that benefits the rich beourgeoisie into getting better jobs as they can afford colledge whilst otheres cannot creating a cycle of deprivation throughout generations that very rarely is broken and when is is only due to luck and not skill. It's not like there's better things than capitalism like socialism or communism.
I like how people are hating on shoe company about prices when people litterly go on stock x and sell a pair of shoes like double how much they got them for
I do, the main reason is because I have pretty big feet (size 14 UK which is 15 US I believe) and most shops don’t stock that size, atleast in the UK. So ordering stuff online from online shoe stores and amazon I can get the shoes in the size I want!
we usually make about 50%. 100%+ would be on a super rare drop. For examples aj1s release for $170 and resell for $250-280 on average. Also, it aint easy, it takes alot of investment and patience to grow your inventory as a reseller, just like starting any other business. I do see where all the hate we get is coming from, but honestly we're just trying to make a living. I love sneakers, too.
Finally, a clear cut explanation... Im in the textile business myself and most people grossly underestimate the costs (import duties take 12% sometimes!). Its a good business, but not a money making machine.
I think standard shoes are pretty reasonably priced. "Luxury" shoes, like those from Versace, Louis Vuitton, Gucci, aren't that reasonably priced. Gucci Ace Sneakers rip pretty easily (if you're like me and run alot with every shoe). And that shouldn't be that easily, if their competitor, the Stan Smith, costs like 450€ less.
Absolutely brilliant explanation: whether you are an MBA student, an accountant, a supply chain manager, a retail manager or someone who just wants to understand, this is an absolutely superb introduction to a key part of the business of athletic shoes. Well done...and to anyone running an MBA course, this is how you teach people.
@@jenningsmills5398 Did you even watch the video? A big part of the price comes from retail margin. And if the retailer has to sell the shoe at a lower price because of lower demand, they'll have lower margins but not directly losses
@@jenningsmills5398 you are being stupid here. You don't want to buy $100+ shoes? Then buy cheaper shoes, it's not like shoes can only be sold for more than 100 dollars
Actually gave a very good perspective on the value of shoes and products as a whole. Always thought companies such as Nike and Adidas had at least a 75% profit on each pair
@@cold485 shoes like that are definitely priced at bs ranges, but as a whole regular shoes that might cost 100-200 to buy aren’t really up priced from what this video said
@@leanderseiler Some people are born dumb really. In France, we also pronounce adidas in a way that is not german. You want to send us to the gas chamber for that ? I will bet the Japanese, the Koreans, the chinese etc...pronounce adidas in a way that is NOT german too. In your little world, do they even have that right ?
Finde deine klare Aussprache und den leichten deutschen Akzent zusammen mit deiner Stimme unfassbar angenehm zum zuhören. Ich bekomme immer fürchterliche Kopfschmerzen wenn andere Deutsche versuchen künstlich american english zu sprechen. Außerdem natürlich auch inhaltlich ein tolles, super recherchiertes Video! Ich hoffe du gehörst mit dieser Qualität bald zu den ganz großen auf RU-vid!
I seldom take the time to comment. But some videos are worth the exception! Thank you for the exemplary work! Content is king and your explanation is easy to grasp!
about a month ago this channel was at about 10k subscribers. I subscribed because literally the first video was of ridiculously high quality but the channel didn't have many subscribers. But now you've passed a 100k and you're on the road to 1 million. Good job!
The sad truth is that detailed videos like this always have less views, I mean this video is so important for everyone even if someone is not a Sneakerhead, it should have 20 or 30 million views at least, keep up the great work man 👍👍👍
MWilly exactly. Also Nike & Adidas pays millions to dozens of athletes & sponsors competitions. While small companies that doesn’t have major endorsements or athletes well they save millions
This video convinced me that shoe prices are fair. Although I think it could be just a few dollars less, because the brands sell so much that they would still make profit in the end if they only made 3 dollars per shoe for example.
First video I saw and already subscribed! Your quality of videos is far more superior than channels with millions. Stay persistent and you'll be at 100k subs soon :D
It makes sense until I think about the Dior Jordan 1. I’ll say it takes even $150 to make (prolly way over shot it but still has the same point) but retails for $2000 that doesn’t add up so obviously they make a lot of money
its an exclusive collab so they might as well sell them for 2000, and their gonna sell out no matter what the price is, so why bother making them cheap if you can make them expensive and still sell out
i think its because of the design, and the fact that those shoes are made to be expensive, after all, it wouldnt be a hype shoe if i was cheap and affordable to everyone, and i really think thats why people buy them
POWERSLAM FILMS he said 300$ Canadian dollars = CAD Canadian cash is less valuable then American cash so yeezys would retail at 220$ in America and in Canada 300$
750s were 350$ retail 350s v2s are 220$ (v1s were originally 200$ 380s are 230$ 700s v1s and v2s are 300$ (but only the v3 is marked to 200$) 500s are 200$ (220$ for the high models) Yeezy slides are 55$ retail Yeezy Foam Runners are 75$ retail Yeezy Powerphase are 120$ retail Yeezy Desert Boot are 200$ retail But of course since these are retail prices, there are places as such Stock X and GOAT where sellers can either mark up the prices or if the shoe isn't as popular it could drop below retail prices
Woooooooow man!!!😳😳 Very much information! Hats off to your homework!!🕵️ I got to know, how much informative your video will be in your second video!! Keep rocking man!! Very much appreciative to your dedication! All the best! 👍🏻😜🤟🏻
I was here before ur channel blew up! I kinda wish you'd never blow up cus then you can communicate with ur viewer less and less. But I thank you so very much for good content.
during a stretch between 2015 and 2017 I was buying gear thru alibaba directly from the manufacturers for a quarter to a tenth of the cost retail. I was Uber driving then and spreading the word, especially to kids. one day I picked up a guy and his two sons aged 8 and 10 who were going nuts over my genuine Chelsea jersey with name, number etc. I gave them the full lowdown. Pops was quiet. within a month’s time the game was over: no more access to the gear. I now realize I probably ran my mouth in front of a Nike attorney or something. it illustrated for me how much money is in this game and how little of it goes to the people making the stuff. it was a good run and I was able to spread a lot of joy with gifts of shoes and other gear that I was able to donate and enjoy my own swag as well.
I really liked this video, it was informative and seemed quite unbiased, but if all of these costs pile up for each pair of shoes to make them cost these companies around 120 dollars off the retail price, then how come target shoes cost around 10 - 20 bucks? I understand the retailers margin being removed because they are home brands, but that doesn't account for about 60 dollars of alleged costs. Even if we say the materials used in target shoes cost absolutely nothing, that only removes about 30 dollars of material, so you've got a 30 dollar shoe going for 10 dollars. I'd really like to see an indirect follow up video on how home brands sell for so much less, if these are the costs of these shoes from big brands.
Before a pair of sneakers are created, a lot of engineering and design plans are being made and prepared before it arrive to actual assembly line...just imagine the cost of that.
What people don’t tend to realise is that there are other factors of production which go into manufacturing like labour wages, rent, transport. All of this needs to be accommodated that’s why prices are high. High prices don’t necessarily mean high profit margins.
It was a very professional video and I enjoyed it as an industrial engineer. But just to give a constructive feedback, the last part sounded too rushy. I would expect you to go deeper into these other managerial expenses like you did with the landed cost. It would be great if we could see respective product development and marketing costs and have your comments for the outlook of the companies and I would appreciate it even more.
Using this logic shouldn’t shoes in Australia be cheaper than the US/Europe seeing the journey is shorter from the factories in Asia? Yet they are more expensive...
The much less population in Australia leads to much less number of sales which means much less revenue and profit in total, so they have to price higher for each pair of shoes.
So then how does Primark sell shoes for 10,- / 20,- dollars? I know the quality and marketing costs are lower. But they also need to pay shipping, taxes and everything else.
The actual shipping / logistics costs are a very small percentage of the overall cost of shoes. Primark also has marketing and salary costs a fraction of major brands. They may only make a $2-5 dollars per shoe, possibly less, but they rely on rapid movement of product to keep inventory carrying costs low (this includes warehousing and depreciation, which kill margins with time).
I love well researched videos that I can be confident the information is good. Because for some reason once this type of information goes in that's it, it stays in my head forever
I’m glad I never got bit by the shoe bug 👍🏾 I go to the Nike outlet and grab last years model for $45 and I’m good for the year😎 I do spend way too much on PC parts 🤣
It's difficult to digest that a brand this big is making just 4$ on a 100$ shoe, when the landing cost is close to about 50$. Which means that each shoe that goes unsold eats the profit of at least 12 shoes. My forecasting should be so accurate for this business to sustain or my projected sales need to be pessimistic. I think there's more to know of the individual company's revenue streams apart from just shoes.
Wow! As a reseller who makes insane profits I feel even more gratitude lol. Nike made 4$ off the Kyries I bought for $41 and then sell later that day for $100 locally or on StockX for $130.
The pricing makes sense and I think they sadly sell them at reasonable prices given the costs but I feel it wouldn’t hurt if they could somehow improve efficiency to reduce the cost by £10-£20 (which I know is asking a lot but still!)
I used to buy expensive Nike shoes (Air Max, etc.), but the quality does not reflect the price. I moved on to almost exclusively buying Puma shoes from their EU online store that are reduced in price. I have had around three pairs of Puma shoes for 30-40 EUR that lasted me years while being worn almost daily.
You made this video based from a business POV but people were more interested on the raw material and workmanship cost than what a big firm goes through with taxes and fees. Still pretty informative but not what most of us were looking for. Thanks.
I hate people that say its overpriced at the end of the day that "overpriced" shoe is only being looked at by you because of the marketing; if celebrities/icons were wearing filas more than nikes you wouldnt even have been looking at the nikes.
This was really good and you didn't even mention packaging/marketing unless I missed it. Also paying athletes/influencers. Seems to be priced fairly IMO. Thanks for doing the research and sharing this amazing synopsis!
Channel with a nice thumbnail and title and a nice talking and quality sounding voice over the video as well with nice editing and animations not to mention very informative I have to say this channel is going places keep up the amazing work 👍🏽
If the profit is so low and a lot of the cost comes from shipping , insurance and processing it once it arrives to the US bring their profits down to $4 or $5 a shoe. Why not make the sneakers in the US to cut your shipping cost, create jobs , raising your profits.
Rumbling End yup it’s true manufacturing is mainly in asia because labour is very cheap as compared to western continents so companies are actually kinda alr maxing their profits
Rumbling End articles im reading on this topic show that it would be about a 70 dollar increase on the price of the shoe in their example of a yeezy boost 350. I honestly wouldn’t have a problem paying the extra 70 dollars knowing that the shoe was giving an American worker a 17 dollar an hour job, and was shutting down a sweat shop in China.
$30 to make $5 to nike , cut travel insurance , cut 22% cost shipping cost , cut land cost video said. Something not adding up like , They are still running sweatshops nd not reporting it.
Nice analysis. The other cost left out of the video would be the design cost. How much time is put into researching and developing appealing and comfortable designs is a hard thing to estimate if you don’t have any numbers to base it off of. But over all i would guess it takes probably $1-2 off the profit of a pair of newly released shoes but that number gets smaller the longer a shoe silhouette i.e Air force ones have been around since they aren’t changing much. But it could be less or more than that I have no data to base my guess off of.
Amazing video!! Good quality all round, I personally think the prices of the shoes can be cheaper, but the shoes are "brand name" so they have the "right" to price the shoes accordingly, without the higher prices the shoes wouldn't have as much hype. For example, if the Jordan brand shoes cost 30$ nobody would be talking about them, and they might possibly sell less than they would if they priced them at their current prices. Just something weird to think about.
Local sneakers in Indonesia, you can get a great quality pair of sneakers for abt 10-15$, durable and hella good. Search up brands like ventela, patrobas ,910 etc. They're hella great
I am a sneakerhead and I still find it to be over priced, because in regards to Nike, they control much of their supply line and early production costs. Also, they charge the same price at their retail stores as they would at a 3rd party store. At the end of the day these sneaker companies are a business and business need to make money. Can you imagine the cost if they were made in the U.S.? NB is mainly made in the U.S. and have similar price points, so what are they doing differently?
A while ago I bought a no name shoe for 30 Euro and there are still good. According to his math the production cost for that shoe would have been 2 euros, which I don't believe.
So you make a video with an intro on "how much does it cost to produce a shoe" then you go on and talk about "profit margins" and you conclude with "profit margins" and then again you name the video "how much does it cost to produce a shoe". Very ....... professional.
top stuff!!! more and more like this please!! this channel is going to serve the best content for the sports enthusisats and for those who are looking for a career in sports!
So what your saying is profit for your Jordan’s or yeezys or adidas is more than 3x the material and shipping costs combined? Ridiculous! That’s insane!
This is so simple,a shirt from hanes and a shirt from champion are made out of the same material(100% cotton)hanes shirt costs 5 dollars and champion shirt costs 40 dollars,why....because of the name,thats it,simple.
In South Africa there was a time where you can buy clothes and shoes in factories where they are made even food this was a lot cheaper, then the government realized this and stopped it so that retail businesses can pay a lot of tax
