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these>>>>>>>>>>flyknit 1s
My newest addition to the family.
Well people never look at the actual reality of the angle nike plays...
So shoes are made by Nike
Any pairs sold directly via Nike online in store etc...
Is a big profit for them
If I recall the breakdown properly a Jordan 1 costs about $23 dollars to produce this is cost of materials labor and freight shipping broken down per pair for an allocation
So the Nike retail of $170 which is like well over a 700% mark up
Now even if a Jordan 1 is a brick and hits outlets for even $100 still over 400% mark up so nike wins regardless
Now here is where Nike really gets their hustle on...
Licensed nike retailers
Footlocker wholesale for Jordan's average like $85 per pair which of course varies per model but since most models run $190 box wholesale is usually 80-85 dollars For men's pairs
Now if a retailer can't sell the shoe
Nike got paid regardless because even at the wholesale price it's still a minimum 3-400% mark up from cost to produce
It sitting or selling is not nike problem any longer they technically already sold it to retailers
So they are good
This is why when I see "oh Nike is hurting everything sitting on shelves" I kinda laugh as even at their own branded stores on a deep discount Nike still turns a profit lol
Now for those wondering if Nike does anything to make up for some bricks
The answer is ehhh not really
Nike hustle in regards to this is "we will allocate more holiday 11 pairs to you" since those are always a big seller or any shoe that may be a big sell out seller
Well people never look at the actual reality of the angle nike plays...
So shoes are made by Nike
Any pairs sold directly via Nike online in store etc...
Is a big profit for them
If I recall the breakdown properly a Jordan 1 costs about $23 dollars to produce this is cost of materials labor and freight shipping broken down per pair for an allocation
So the Nike retail of $170 which is like well over a 700% mark up
Now even if a Jordan 1 is a brick and hits outlets for even $100 still over 400% mark up so nike wins regardless
Now here is where Nike really gets their hustle on...
Licensed nike retailers
Footlocker wholesale for Jordan's average like $85 per pair which of course varies per model but since most models run $190 box wholesale is usually 80-85 dollars For men's pairs
Now if a retailer can't sell the shoe
Nike got paid regardless because even at the wholesale price it's still a minimum 3-400% mark up from cost to produce
It sitting or selling is not nike problem any longer they technically already sold it to retailers
So they are good
This is why when I see "oh Nike is hurting everything sitting on shelves" I kinda laugh as even at their own branded stores on a deep discount Nike still turns a profit lol
Now for those wondering if Nike does anything to make up for some bricks
The answer is ehhh not really
Nike hustle in regards to this is "we will allocate more holiday 11 pairs to you" since those are always a big seller or any shoe that may be a big sell out seller
So clean. Wayyy better than ones dropping on 9/2.
My newest addition to the family.
Yes by a long shot
Why the heck would retailers keep buying the same quantity of $85 retros from Nike/JB if they are having trouble selling them? Also, doesn't Nike require they buy other shoes (Roshes, etc.) to get a retro account as well? They could use the shelf space for other products that are selling better, couldn't they?
That's what I was thinking, if their product isn't selling then it hurts the company regardless of where it is being sold. While we benefit from the increase in production/discounts, long term nike doesn't if they have to sell bricks to other retailers (especially because brick and mortal is struggling as is). I don't think it's a coincidence we've seen a bunch OG 1s release in similar form over the past year, as well as BC3 and Concords in the next year. They need to re-establish themselves in the market of "cool", since sneakers like that definitely have a trickle down effect on the rest of the brand (see adidas with gazelles and stan smiths making a comeback in the past couple years.
I do think people like Drake and Travis Scott are the right people to bank on long term in regards to getting that brand appeal back though. And as much as I am on the fence, the off-white collab's hype is what they need as well.
Where did you here this information, I definitely want to know
Do you have any conclusive proof of this or is this just your theory?
dj folk was on here like a week ago saying they were coming,
Why the heck would retailers keep buying the same quantity of $85 retros from Nike/JB if they are having trouble selling them? Also, doesn't Nike require they buy other shoes (Roshes, etc.) to get a retro account as well? They could use the shelf space for other products that are selling better, couldn't they?
Do you have any conclusive proof of this or is this just your theory?
Yes by a long shot
I thought some stores are able to return to nike if not sold.
Doubled Up On Royals and They Are Still A Grail To Me
That's what I was thinking, if their product isn't selling then it hurts the company regardless of where it is being sold. While we benefit from the increase in production/discounts, long term nike doesn't if they have to sell bricks to other retailers (especially because brick and mortal is struggling as is). I don't think it's a coincidence we've seen a bunch OG 1s release in similar form over the past year, as well as BC3 and Concords in the next year. They need to re-establish themselves in the market of "cool", since sneakers like that definitely have a trickle down effect on the rest of the brand (see adidas with gazelles and stan smiths making a comeback in the past couple years.
I do think people like Drake and Travis Scott are the right people to bank on long term in regards to getting that brand appeal back though. And as much as I am on the fence, the off-white collab's hype is what they need as well.