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689 points taubek | 1 comments | | HN request time: 0s | source
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hx8 ◴[] No.43633780[source]
> But if we bump the cost of freight, insurance, and customs from $5 to, say, $28, then they wholesale the shoes to Footlocker for about $75. And if Footlocker purchases Nike shoes for $75, then they retail them for $150. Everyone needs to fixed percentages to avoid losses.

I don't understand this paragraph. If Footlocker was okay with $50 profit/shoe, why do they need to claim $75 profit/shoe in their costs per shoe go up? The costs of handling the shoes, retail space, advertising, and labor are all fixed.

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NegativeLatency ◴[] No.43634256[source]
They'll sell fewer $150 shoes than $100 shoes?
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1. ◴[] No.43634345[source]