We all know that Nike reigns supreme in the footwear industry. With so many shoes sold, how much profit do you think Nike makes?
Let’s just break it down with the Air Jordan 1 shall we? It’s said that the total cost to make an Air Jordan 1 sneaker is $16.25!!
It costs $10.75 for materials, $2.43 for labor, overhead is $2.10, and factory profit is at $0.97. Today’s retail price for the Air Jordan 1 is around $125-$140, so that leaves a profit margin around $108.75 to $123.75!
After looking at these numbers, does it change your perspective on buying expensive sneakers? Feel free to leave your thoughts in the comment section below.