How can a Nike HOH exclusive or QS be effective for Nike....???

[swerv1n]

I dont understand what Nike can possibly gain by doing HOH exclusives or a QS... I mean why?.....whats the point. Do they want to make less money or do theyjust not care about profit or what. I'm not talkin to u NY Chi LA etc heads i know u lovin it an i dont blame u. But for all u heads who live near a HOH ugotta admit u would be salty if u didnt. I just dont get what kinda business strategy that is.....someone please school me. I'm sure this aint the firsttopic on this.

I know it cost like...what maybe $5 to make a shoe....just seems like
$5 a peice to make 10,000 pairs = Nikes cost $50,000......sell 10,000 pairs for $150 = Nike Profit $1,450,000
$5 a peice to make 500 pairs = Nikes cost $2,500......sell 500 pairs for $150 = Nike Profit $72,500

i dont get it.......

.......but i dont like it.

 

[deewlay]

Originally Posted by Swerv1n

I dont understand what Nike can possibly gain by doing HOH exclusives or a QS... I mean why?.....whats the point. Do they want to make less money or do they just not care about profit or what. I'm not talkin to u NY Chi LA etc heads i know u lovin it an i dont blame u. But for all u heads who live near a HOH u gotta admit u would be salty if u didnt. I just dont get what kinda business strategy that is.....someone please school me. I'm sure this aint the first topic on this.

I know it cost like...what maybe $5 to make a shoe....just seems like
$5 a peice to make 10,000 pairs = Nikes cost $50,000......sell 10,000 pairs for $150 = Nike Profit $1,450,000
$5 a peice to make 500 pairs = Nikes cost $2,500......sell 500 pairs for $150 = Nike Profit $72,500

i dont get it.......

.......but i dont like it.

builds the brand. keeps it relevant...that people will talk about 'nike'.

just like how they won't allow retailers (i.e. kohl's, mervyns, etc.) feature the nike airmonarch in their ads for $39.99...

 

[255forlife]

it's called hype.


then people who already have the cash set aside settle for other nikes.. either a different c/w or a similar model.


if they simply mass produced shoes, they would end up sitting on shelves and going on sale.. there would be no incentive for people to hurry up and buy.

 

[scarru]

To build hype......and It costs a lot more than $5 so there profits are actually quite smaller than your calculations.

 

[the game is a foot]

Originally Posted by Swerv1n

[h3]How can a Nike HOH exclusive or QS be effective for Nike....???[/h3]

The same way giving a fiend a sample is effective to a drug dealer... It creates buyer interest amongst the rest of the crackheads sneakerheads.

 

[swerv1n]

255forLife wrote:

---

it's called hype.


then people who already have the cash set aside settle for other nikes.. either a different c/w or a similar model.


if they simply mass produced shoes, they would end up sitting on shelves and going on sale.. there would be no incentive for people to hurry up and buy.

i feel u but they mass produced eggplants and they sold out everywhere you'd think it would be the other way around, all the hot shoes they know will sellwill sell out (i.e eggplants CDP's 1/2 cents any foam 1, etc.) mass produce and the ones that end up going on sale like basic nikes like air max's,hyperdunks, AF1's they should make exclusive since they'll go on sale anyway. Like when the Spacejams drop if those were GR or exclusive they wouldsell out instantly. Its almost like every shoe exclusive or QS sells out. So would the Jordan 2009 have sold out if it was exclusive or QS...?

All Nike is doing is putting money in Ebay's pocket or any site that auctions/sells. Resellers make a mint of this crap.
DeewLay said " builds the brand. keeps it relevant...that people will talk about 'nike'
I mean it make sense but who really thinks Nike is in jeopardy of beingnon-relevant the #1 shoe co. on the planet.

 

[william rivera 3]

lemme think about this one for a second.
in the meanwhile, I will lurk like my corporate buddy on the other side of this screen.

 

[cjbruns1974]

Originally Posted by Swerv1n

255forLife wrote:

---

it's called hype.


then people who already have the cash set aside settle for other nikes.. either a different c/w or a similar model.


if they simply mass produced shoes, they would end up sitting on shelves and going on sale.. there would be no incentive for people to hurry up and buy.

i feel u but they mass produced eggplants and they sold out everywhere you'd think it would be the other way around, all the hot shoes they know will sell will sell out (i.e eggplants CDP's 1/2 cents any foam 1, etc.) mass produce and the ones that end up going on sale like basic nikes like air max's, hyperdunks, AF1's they should make exclusive since they'll go on sale anyway. Like when the Spacejams drop if those were GR or exclusive they would sell out instantly. Its almost like every shoe exclusive or QS sells out. So would the Jordan 2009 have sold out if it was exclusive or QS...?

All Nike is doing is putting money in Ebay's pocket or any site that auctions/sells. Resellers make a mint of this crap.
DeewLay said " builds the brand. keeps it relevant...that people will talk about 'nike'
I mean it make sense but who really thinks Nike is in jeopardy of being non-relevant the #1 shoe co. on the planet.

I think you answered part of your own question here. They certainly wouldn't put their garbage shoes to be featured in these stores. They want to have inthese stores what will generate a buzz and get people clamoring for their products. It is all about keeping the wheel moving and keeping people wanting to buyNike.

You're right that Nike is #1, but when you always have people shooting to get your spot, then you have to find ways to keep yourself always in people'sminds. Product does that to a degree, but the rest is from advertsiing, which one could say that this basically is.

 

[punisha15]

Originally Posted by Swerv1n

I know it cost like...what maybe $5 to make a shoe....just seems like
$5 a peice to make 10,000 pairs = Nikes cost $50,000......sell 10,000 pairs for $150 = Nike Profit $1,450,000
$5 a peice to make 500 pairs = Nikes cost $2,500......sell 500 pairs for $150 = Nike Profit $72,500

i dont get it.......

.......but i dont like it.

You forgot to add 10,000 pairs won't all sell for $150.

 

[micheal623]

All hype.

 

[ssgefiestoakagerger]

HoH is a prestigious brand and Nike experience.

Nike wants to position itself in fashion and basketball capital of the U.S.

If these products were found in any other footlockers and in countless quantities, they'd just be on clearance racks.

But along with what's being said in this thread, HoH is built on the hype and buzz of marketing. The margins don't amount to much but it buildstremendous amounts of awareness. People from other places outside of CHI, LA and NYC would want to go there and have that HoH experience even if itweren't for shopping PE's.

 

[sprigan82]

enuff with the hype now let us ALL buy the damn shoes ffs lol

 

[nikevandal]

Too see if it will sell

its just like a sample

They dont think itll do well as a GR so they make it a QS to see if there is a market for it

 

[macgyver35]

quote:

If these products were found in any other footlockers and in countless quantities, they'd just be on clearance racks.


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but nike would have A LOT MORE MONEY in their pockets. (the goal of a business, maximize profits)

 

[255forlife]

^


i understand what you're saying, but there's a point where the market gets saturated. when supply exceeds demand, prices go down.


there's a reason nike throws all the events and has special launches and stuff..


they want the cachet, they want the hype, they want the campouts/fights/people getting thrown through store windows on TV.


also, they have different tiers of releases.. nike does drop the GRs and the TBs and such.. but they also like to have the high-end too.

 

[macgyver35]

if the market gets saturated it's too late, nike already made all that money on the initial orders. only the retail stores will suffer. it's win winfor nike.

 

[sarteaga0408]

It's called an energy release. They are done simply in order to build as it has been mentioned hype for the upcoming shoe. Hence, you see many of thefuture GRs drop at HOH as HOH only releases first in special make ups. Nike knows they will not be making much of that particular release but they do it inhopes that it generates interest in the GR, which is where they will make their money. As they say, spend money to make money.

 

[shaqrules]

well said sarteaga. it has been explained thoroghly in the older HoH threads on how the pe cw work. the main reason why HoH was made was to be able to get pecw's out to the public at retail prices. how does it help ppl that don't have a HoH next to them you ask? it doesn't, but that's not reallytheir (nike) concern. like sarteaga said, they put out the pe cw's to help push the gr or tb's. an awesome example was the hyperdunk!!! w/ all thecountry cw's, frobe cw's, mcflys, etc that came out, ppl went crazy for tb's as well. not only that, the hd helped hype the now zkiv...not tomention those came out in a zillion cw's.

as for qs...well, those have been something that have been more readily available than before. but the qs was put there to keep customers on their toes; get acw that not everyone has a chance to own. same w/ hyper strikes...etc.

 

[macgyver35]

Quote:

an awesome example was the hyperdunk!!! w/ all the country cw's, frobe cw's, mcflys, etc that came out, ppl went crazy for tb's as well. not onlythat, the hd helped hype the now zkiv...not to mention those came out in a zillion cw's.

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aside from making a large profit in the college hoops sector, the hyperdunk was a lukewarm release for nike. They're on sale everywhere and and at variousoutlets. want to talk about flooding the market, theres a good example.

you can't always expect to make a huge profit on every release and i understand the importance of marketing(manufacturing hype) a shoe, but imagine howmuch more money nike would have made if they just looked to make the big bucks with the hyperdunk in the college/HS hoops sector and instead of releasing allthe good colorways in limited amounts, make a wider release and turn a profit there too. it doesn't make sense to release all the great colorways inlimited numbers and expect the masses to buy an uninspiring two tone colorway of the shoe which ultimately flooded the market. This isn't 2003, were nottalking about AF1s and dunks here, that strategy doesn't always apply to hoop shoes. The olympic team colorways of the hyperdunks sold and nike made moneythere, along with the lakers colorways, but why not make more money too on the mambas, mcflys, breast cancers(although this was a charitable release)etc. allof those would of sold without any manufactured hype.

if anything, the hype created by PEs leading to GR colorways was greater when you could only buy PEs on ebay or from an inside hookup. Prices fetched farhigher on ebay than they do now and created more anticipation and hype for more colorways that were more realistically attainable. Nike must of just taken itpersonal and decided to eliminate the profits these inside sources were making from reselling PEs and came up with this HOH plan as a way to move PEs and cutout the middle man. I have a feeling this is more of the reason why HOH was originally opened, and yes, now it's being used to hype product. it'sunderstandable, but having special mock-ups just for house of hoops that aren't even a true PE colorway doesnt make sense, especially if it's a popularcolorway which could easily be turned for a profit by a simple energy/urban/tier1/NT release. just my 2 cents

 

[rodrigo23]

Originally Posted by 255forLife

it's called hype.


then people who already have the cash set aside settle for other nikes.. either a different c/w or a similar model.


if they simply mass produced shoes, they would end up sitting on shelves and going on sale.. there would be no incentive for people to hurry up and buy.