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How much do you think it costs to make a pair of Nike shoes in Asia?

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689 points taubek | 1 comments | 09 Apr 25 12:58 UTC | HN request time: 0s | source
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hx8 ◴[09 Apr 25 16:16 UTC] 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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mclau156 ◴[09 Apr 25 17:55 UTC] No.43635127[source]▶
Every single person in the supply chain has a lever they can pull to change price, except the end consumer
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1. 9rx ◴[10 Apr 25 17:02 UTC] No.43645911[source]▶
Not at the bottom of the supply chain. As a farmer, we get told what the price is. Our only lever is to opt out of selling if we don't like the price. Which is ultimately the same as the consumer opting out of buying.