Price Raises On Upcoming Jordans

[jordan23dotcom]

^^ yeah it's true, but what you're not throwing into your equation is that the shoes cost to buy is not proportional to the amount inflation raised. It's like saying the shoe used to cost 20 bucks to make so we'll charge 100 but now it costs us 30 bucks so now we'll charge 250. Nike makes money off the shoes if they sell out on Rd or if they sell on clearance. Face it, the prices are raised just because they know people will buy them.


One more example, why do 13's cost as much as 4's now? If you want to throw that math into it shouldn't the 4's still cost less due to the difference of OG retail price?

 

[jordanhead718212]

 

[nikemax]

^^ yeah it's true, but what you're not throwing into your equation is that the shoes cost to buy is not proportional to the amount inflation raised. It's like saying the shoe used to cost 20 bucks to make so we'll charge 100 but now it costs us 30 bucks so now we'll charge 250. Nike makes money off the shoes if they sell out on Rd or if they sell on clearance. Face it, the prices are raised just because they know people will buy them.

Yes you are right. They wouldn't raise the price if they couldn't sell them (which is why the Crazy 8s are still $100). But it's not as simple as "Jordan is greedy and wants to make more money". There are a lot of complexities behind the scenes that influence things like the costs of producing styles and the retail price.

We think of JB has only retro's selling out everywhere and raising prices, but I have a really hard time believing they are making money anywhere else (I just bought a pair of 2012s for $42 at an outlet, retail being $223). If I was running JB, I'd do the same thing since (like you said) people will still buy them. This lowers the risk of your bottom line so that when things like 2012s, Fusions, or whatever else flops with your consumers, you still hit your numbers. It sucks for us, but it's the reality of the situation.

 

[nikemax]

One more example, why do 13's cost as much as 4's now? If you want to throw that math into it shouldn't the 4's still cost less due to the difference of OG retail price?

I've thought about that too but it make sense that they'd be the same price now.

I just found this site, and it can take the spending power of the US dollar and adjust for a specific year.

http://www.measuringworth.com/ppowerus/

Here's a couple things I played with:
-In 1998, the relative value of $100.00 from 1989 ranges from $123.00 to $160.00.
Relative value is $131.00. This answer is obtained by multiplying $100 by the percentage increase in the CPI from 1989 to 1998.
-In 2011, the relative value of $100.00 from 1989 ranges from $163.00 to $275.00.
Relative value is $181.00. This answer is obtained by multiplying $100 by the percentage increase in the CPI from 1989 to 2011.

Basically, $100 in 1989, would have the spending power of about $131 in 1998, and $181 in 2011. Jordans in 1989 were $100 (push), $150 in 1998 (+$19), and $181 in 2011 (-$21 assuming a $160 price).

That means, giving the difference of spending power between these 3 years, we actually paid the most in 1998, and paid about $20 less in 2011 than we did in 1989. It doesn't let me calculate for 2013, but if we said that purchasing power has gone up 5%, that would make $100 in 1989 about $190 in 2013. So for $180 we are paying $10 less, and for $200 we are paying $10 more. Not that crazy

 

[9000 watts]

Nike is on some field of dreams logic here..."if we sell it, they will buy". Comes as no surprise that prices will raise. Once I seen the 88 WC3s retailing for $200 I knew that price raising would become a trend.

Bad news is theres nothing we can really do about it, other than stop buying because as long as JB/Nike can post good sales numbers they have no reason to up the quality control or lower the price. It is what it is.

 

[willyburgkid]

Nike is on some field of dreams logic here..."if we sell it, they will buy". Comes as no surprise that prices will raise. Once I seen the 88 WC3s retailing for $200 I knew that price raising would become a trend.

Bad news is theres nothing we can really do about it, other than stop buying because as long as JB/Nike can post good sales numbers they have no reason to up the quality control or lower the price. It is what it is.

100% correct. No one should be surprised at more price hikes after the $200 retail price 88 WC3s. Things will only get worse, and I wouldn't be shocked at a $200 price tag on this holidays Jordan XI release.

 

[el rey jr]

Jordan is making it easy for me to step away from collecting.

 

[capital sb]

Grapes and I'm done for the year

 

[ccastro02]

Only buying the grape v's. jb can have everything else.

 

[deltadogman1]

I stated this awhile back! I saw this coming when the AJ3 '88 came out and add to that the crazy prices resellers get and why wouldn;t they. But I guess people will get on my case again and defend resellers, saying that it's okay to sell to cover your pair or some other crazy mess but believe me the increases are far from over. In 3-4 years Retros will be 225-250, average. It's like when they shoot gas up a dollar, people get mad and complain then they drop it 40 cents and people say," glad this gas back down," not realizing it's still 60 cents more than what is was to start with.

Until we stop resellers, this trend will continue. And let me clarify. I don't mean the guy seilling some of his collection. I'm talking about the guy who goes into a store or hoards the latest release with the only intention of gouging prices and selling while the market is thirsty. JB/NIKE watches those prices and uses it to calculated future price points. This is another reason I continue to say that the Columbia 11's will be the let see how much these FOOLS will really pay shoes. 

 

[thatboydrew]

I stated this awhile back! I saw this coming when the AJ3 '88 came out and add to that the crazy prices resellers get and why wouldn;t they. But I guess people will get on my case again and defend resellers, saying that it's okay to sell to cover your pair or some other crazy mess but believe me the increases are far from over. In 3-4 years Retros will be 225-250, average. It's like when they shoot gas up a dollar, people get mad and complain then they drop it 40 cents and people say," glad this gas back down," not realizing it's still 60 cents more than what is was to start with.

Until we stop resellers, this trend will continue. And let me clarify. I don't mean the guy seilling some of his collection. I'm talking about the guy who goes into a store or hoards the latest release with the only intention of gouging prices and selling while the market is thirsty. JB/NIKE watches those prices and uses it to calculated future price points. This is another reason I continue to say that the Columbia 11's will be the let see how much these FOOLS will really pay shoes. 

resellers will never stop, it is the reality of the shoe game. They increased the XI by 5$ and it did not phase a single person while JB/Nike made mad bank!!

 

[deltadogman1]

resellers will never stop, it is the reality of the shoe game. They increased the XI by 5$ and it did not phase a single person while JB/Nike made mad bank!!

It's possible, the BRED's proved that! Those who were patient made out pretty good even if they had to go the resell route. Once we learn to be more patient, we will see a major difference.

 

[badboy0074]

The price is one of the reasons i'm selling my shoe collection and quitting, the other is the rsvp campout and raffle fiasco has gotten out of hand on what used to be just walk in and buy the shoes. The payton gloves will be my last purchases and those are the ones I will only keep along with the 9 Bentley ellis since i like those shoes, everything else will be sold and i will find another hobby to collect. I'm looking to see if i can find something out there as a new hobby. It has been fun being here on niketalk but it will end after i get all cw of the gloves.

 

[dondada]

This price increase is called inflation, what inflation is is when the dollar goes down and it takes more dollars to buy the same goods from last year. So example would be if you bought an Apple last year for dollar and this year it goes to two dollars what has change? It's still the same Apple from last year, it still taste great, still weighs the same, it still looks the same, but now it takes more dollars to buy the same apple from last year. So it makes the appearance like things are going up, but really your dollar is losing value. But in this case the air Jordans material is not same Quality of the past, & has lost value but the price is increasing so that shows me that it is a little bit of inflation and also a little bit of greed.

 

[deltadogman1]

This price increase is called inflation, what inflation is is when the dollar goes down and it takes more dollars to buy the same goods from last year. So example would be if you bought an Apple last year for dollar and this year it goes to two dollars what has change? It's still the same Apple from last year, it still taste great, still weighs the same, it still looks the same, but now it takes more dollars to buy the same apple from last year. So it makes the appearance like things are going up, but really your dollar is losing value. But in this case the air Jordans material is not same Quality of the past, & has lost value but the price is increasing so that shows me that it is a little bit of inflation and also a little bit of greed.

Very flawed premise! But I get the point you were trying to make.

 

[sneakercreeper]

13s are 170, 1s for 140. The price jack is already in effect.

 

[anthracite8s]

I remember tinker saying something about seeing prices increase to around the numbers they are today, in exchange for better quality which for the most part is just slightly there. but now the further, rapid increases each year is just getting ridiculous. and paying 200+ for nike air is utter ********. wish there were more nice classic shoes that retro'd as often as jordans so I could stay further away from this **** of a brand

 

[9000 watts]

It's possible, the BRED's proved that! Those who were patient made out pretty good even if they had to go the resell route. Once we learn to be more patient, we will see a major difference.

HA! Patience? Seems to be a foreign concept to me 

Many collectors actually are pretty patient. Some things I don't actually mind waiting for but the hypebeasts negate any patience because their whole movement is defined by having the newest ish right when it drops. Where a collector sees a shoe as timeless, a hypebeast or celebrity imitator thinks "Oh hell naw, the He Got Game 13s came out last month! I aint wearing no old ****! Oh wait, what the hell is He Got Game anyway?"

 

[super23freak]

This increasing the price every year is getting old.

JB thinks they're slick.

'Bout time my grails come out (Carmine 6s, Hare 7s, Columbia 11s) retail gonna be $200 BEFORE tax.

|I

All of these have retroed already!

We are lucky the price tag hasn't been worse.

 

[al audi]

The price is one of the reasons i'm selling my shoe collection and quitting, the other is the rsvp campout and raffle fiasco has gotten out of hand on what used to be just walk in and buy the shoes. The payton gloves will be my last purchases and those are the ones I will only keep along with the 9 Bentley ellis since i like those shoes, everything else will be sold and i will find another hobby to collect. I'm looking to see if i can find something out there as a new hobby. It has been fun being here on niketalk but it will end after i get all cw of the gloves.

take up bodybuilding.

im still here for general really. i could care less bout all these kicks.

hell i only ventured in here just now cuz i seen the title of this thread on the front page of NT

 

[f-lace]

count your blessings , they're already $200 here in canada , $220 after taxes . Equivalent to $216 US

 

[two stacks]

13s were always more expensive. cats complain about jordan prices but buy cigarettes and gamble...smh

furthermore, what makes $225 for a foamposite acceptable but $200 for a jordan retro not. you STILL pay it. if you don't like it dont pay for it!

 

[joshheat23]

I'm still buying tho

 

[just nikes]

Im getting the 8s on the 20th.

Only coming back for these shoes after them:

Black/cement 3 w/ NA
Durabuck Metallic 5s
OG 6 colorways
Aquas because my pair is beat

Hate dealing with the expensive prices and hype for bad quality shoes. They already ruined the 5s for me this time around with the leather and shape of them.

 

[9000 watts]

13s were always more expensive. cats complain about jordan prices but buy cigarettes and gamble...smh

furthermore, what makes $225 for a foamposite acceptable but $200 for a jordan retro not. you STILL pay it. if you don't like it dont pay for it!

I for one agree that $225 on mediocre looking Foams is ridiculous...but I believe in relative value. TO A POINT, even if I know I am being robbed out the ***** by JB, I enjoy purchasing the kicks enough that I am OK with spending what they charge even if I wish the price was lower. Someone else may consider paying X amount for the shoes ridiculous because it has a different value to them. I emphasize TO A POINT for a reason. Once prices hit a certain level, then things change for me. I for one would be totally OK with price increases if they would produce more pairs and make it easier for the average dude to cop a pair without camping or e-camping.

I do believe that price increases will hurt re-sellers overall. People are only willing to spend so much for a shoe especially when it's over retail, and when you add in eBay fees, etc they can only work their prices so much and will lose profit margins. The guys who make up for it in volume will be faced with a higher initial investment. It won't end re-selling, but huge price increases will certainly take out some of the profit.