How much does it cost for companies like Nike, Adidas, and Reebok to make a "top of the line" basketball shoe?
Stephon Marbury came out with a $15.00 shoe--proving that it doesn't cost $100 or more to make a professional basketball shoe. I'm wondering how much of the $175.00 pricetag for a pair of Air Jordans (or LeBron's $150.00 zoom shoe) consists of materials cost.
- 1 decade agoFavorite Answer
from .88cents to roughly $3 tops per pair plus shipping and taxes=about $4-6 total, and their retail price range from 40-185Source(s): we did a research in marketing class
- LindaLv 44 years ago
I'd give my rating in terms of basketball shoes. In terms of comfort and design -- it's Nike/Jordan Brand. In terms of durability - I'd say adidas. In terms of value for money - I'd say Reebok. Converse, though they were the bomb during the era of Dr.J, Magic, and Bird (remember the Cons Weapon??), they somewhat did a 360 and lost some momentum. And1 is a good shoe but the designs are not that great. Starbury??? Don't even mention. I have to say though that the Nikes don't last that long. Overall, I'd still go for Nikes. When adidas got a lot of athletes to endorse them and the deal to be the official outfitter of the nba, they are now trying to creep up on Nike's turf. It might be a different story when we view this question from the perspective of another sport (say soccer or football). I have observed a lot of soccer players playing in the World Cup wear adidas and a lot of NFL players don Reeboks. So it may be a case-to-case basis among different sports.
- 5 years ago
Everyone also needs to understand that Nike sells directly to consumers as well as retailers so they need to keep their prices at the retail level. A good rule of thumb for a retail markup is 100% so if you are buying a pair of nikes for $100, then that means that the retailer bought them for about $50. So Nike is not necessarily making all of the profit from most people think they are. That is not to say that Nike is not a very wealthy company. They make their best profit margins when they sell online or through one of their own store locations.
- 5 years ago
According to the breakdown in the slide; materials takes up most of the cost with a staggering $10.75. Add in labor ($2.43), overhead ($2.10), and factory profit ($0.97) and you get an estimated production cost of $16.25. Thats a far cry from the $160-$170 price range most Air Jordans retail for now. Makes you think!
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- 1 decade ago
I would say about $17 --- All the rest is mark up -- How do you think NIKE can sign LeBron to a 100 million dollar contract !!!
- 1 decade ago
ive heard that it only costs $3-5 for them to actually make the shoe, what we pay for is the brand name, the box, shipping and the marketing designed to get us to buy the shoe.
- Anonymous6 years ago
i like to buy fake jordan.