A simple idea.

A

arabianite3

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Apr 18, 2001
I am not an economics genius or anything however....
If every single Jordan re-release since and including the Concords has sold out and has an aftermarket value of anywhere from 50 over retail up to 3x retail, then well DOESN'T NIKE REALIZE THEY ARE LOSING MILLIONS BY NOT INCREASING PRODUCTION TO BE CLOSER TO DEMAND!!!!!!!! I MEAN ARE YOU ******ED NIKE/JB?!?!?!? YES IM YELLING, IN MY SAMUEL L JACKSON VOICE AS WELL. SIMPLE SUPPLY AND DEMAND! 

Just a rant, thank you all for listening. The same principal also applies to all the other limited releases of recent history. Just salty that I have yet to find my size in some Kobe Cloaks at a reasonable price, and I fear of the fiasco that will be the Retro XII Playoff release. Carry on.
 
Ain't gonna make a difference.
More product just means that instead of resellers scoring 10 pairs on RD they will score 20-30 pairs.
 
The more pairs made means more pairs that will end up sitting on the shelf Nike want they kicks to sellout not sit on display
 
StarTrekFacePalm.gif
 
It's been said many, many times. There will never be enough. They're not making less. It's the fact that more idiots are buying. It's the latest "hot" thing. And then the resellers have also tripled up.

This is evident even here on NT. A huge influx of new members. Some are just new to the sneaker "game" as they say. Others make meaningless posts all day long in a variety of sections, especially the legit check forum, to get their post count up so they can scam, er...I mean sell, their shoes in the BST for 10x the profit. Or so they think anyway...

If there were 10 million of each shoe produced, people would complain too many people have them.
 
Nike is going to make money no matter what the the number of production is or deman for a specific model is......Nike WINS no matter what!
 
I see both of your points however, resellers will get their 20-30 and sit on them when they can't turn a profit, which makes me happy.

And not increase production to the point that they will sit on shelves, just enough to take the edge off of the resell prices and make it not worth it for resellers- in turn giving more sneakerheads' a chance to get a pair.
 
That would suck terribly. Concord's wouldn't even be heat. You'd see more concords than chuck t's. Not trying to be a hypebeast, but who would want to rock a shoe, that you'll see ten people with your same fit everytime you step out of your house.
 
Resellers make Nike Way more money. Nike wants Resellers, so if they can make a shoe that can b "Re-sold" they will.
 
Originally Posted by airBOZretroIII

^^ Oh No
DHughes has learnt how to use gifs.
watch his post count baloon to 2000 by weeks end!!!
Click to expand...

roll.gif


I see that dude in every post

But as far as the shoe game being a simple supply/demand game OP it just isnt. It's often the supply that drives the demand upwards.
 
JB has created inelastic demand for it's product. Regardless of the price, materials, or quantity retros will sell out. It's as simple as that. They've certainly sat down somewhere and decided on an amount. If I had to guess a completely meaningless number I'd day they're making about 100 times more money with the cement 4s at 160 dollars at the quality that they were put out with than they did with the original cements 4s at 100 dollars. I think they know what they're doing.
 
there is a demand for nike and jordans now...if you release enough for everyone then there is no demand. then there is no want or need for the shoes they cant get
 
OP while your understanding of supply/demand is valid. There is an additional factor, variable "x" that Nike and all retail companies follow. Any item that they sell is about the potential ROI (return on investment). By over producing an item, the company may run the risk of providing too much inventory which can lead to a surplus of inventory which will cause retailers to lower purchasing unit prices. Ultimately while each shoe sold generates cash flow for the bottom line, Nike would much rather sell less units at a higher price than many units to satisfy the same requirement.

FYI I graduated with a degree in Econ and Sociology lol. Yes they are unrelated. Enough said. Hope it makes sense.
 
Yup like he said /\ basic economis they know their equilibrium why fix something thats not broke. By the way economics and sociology are related if you really think about it.
 
jb also want to hold onto an idea about their product being somehow exclusive or elite. even though it's actually nonsense, they keep telling themselves that it's true.
 
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