- Sep 19, 2002
- 4,830
- 5,939
What is funny to me is that how come nobody thinks of where our purchase dollars go? Ok so Nike produces said shoe for it's minimal production costs, once a store purchases inventory, Nike gets paid. FTL or whoever can sell at retail, below retail, whatever they want to do in order to move units. They lose profit not Nike.
So now if these shoes also hit outlets...they are Nike OWNED outlets, so while they are still selling below retail, chances are pairs are moving very well. So now Nike is blowing through sales numbers under MSRP, but obviously well above production or wholesale costs to retailers, but now Nike is making ALL that money back, not just a portion of it.
So while the community might say the 13's are whack, Nike is always going to be making money. Sure we win with lower prices, outlet releases, etc...but don't kid yourselves...Nike is hardly flopping with anything. Less promo/marketing on a Bron model...less money SPENT on marketing...still winning for Nike.
"Flame suit on"
So now if these shoes also hit outlets...they are Nike OWNED outlets, so while they are still selling below retail, chances are pairs are moving very well. So now Nike is blowing through sales numbers under MSRP, but obviously well above production or wholesale costs to retailers, but now Nike is making ALL that money back, not just a portion of it.
So while the community might say the 13's are whack, Nike is always going to be making money. Sure we win with lower prices, outlet releases, etc...but don't kid yourselves...Nike is hardly flopping with anything. Less promo/marketing on a Bron model...less money SPENT on marketing...still winning for Nike.
"Flame suit on"
Last edited: