How much are a pair of sneakers really worth? Many factors play a major role in the valuation, but in the end it all starts for sneakers in the factory. In order to get a good idea of the value of sneakers, we need to look at the production. What’s going on around the Nike factories?
The value of sneakers increases in the sales process and this depends on a number of different factors. The production costs of a Nike shoe is already a lower figure compared to the consumer price. The value of a pair of sneakers increases step by step in the process. For example, $ 100 sneakers cost around $ 22 to produce. Of course there are even more costs involved such as import costs, insurance, transport costs and tax.
The sneakers are transported in large numbers from the factory to the country of distribution, for example the United States. Nike has no fewer than 112 factories in twelve different countries for their shoe production. The three largest are located in Vietnam, China and Indonesia. The factory in Vietnam produces roughly 49% of all shoes for Nike.
Sneakers in stores
The sneakers are shipped from the factories to the country where they will be distributed. Different stores source the sneakers in varying quantities depending on the popularity of the particular pair. Solereview’s research indicates that retailer such as Footlocker will pay $ 50 for a sneaker that will retail for $ 100.
This involves other costs such as income tax and any discounts. The store will then end up with $ 6 in profit for a $ 100 sneaker. Of course there are price differences that depend on the type, brand and edition.