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Exactly - plus like you mentioned, the economies of scale are greater since they are producing more than back in 1997 - each pair now is relatively cheaper to make so the profit margins are bigger now - Nike profit margins have gone through the roof since they started using cheaper materials at cheaper labor costs, all while raising pricesSo what is your saying is, nearly everything costs more than it did in 1997, but making a shoe does not?
I would love to hear your explanation, with facts, of course.
Consider this dude:
-If it costed $100 to produce a single pair of Foams in 1997, it would cost around $140 to make that exact same shoe in 2012.
-That's with the same quality of materials, same labor, and within the same size production run
-Now Nike offsets that $40 increase from inflation with using cheaper materials, using a different mold, and moving the production to China. And making more shoes per production run
-So lets say these moves drop the cost of producing each shoe down to $100 per shoe (the same amount it cost in 1997) in 2012.
-In 1997 dollars that would be $71
See it now brah?
You're asuming the Foams releasing now and the exact same product as the ones released in the 90s. They are not