these are why the shoe that costs 19 dollars are costing you 100 dollars in stores
Based on some other info I’ve found, it seems that a huge chunk of that $100 retail goes to the retailer. So that $19 shoe gets sold to the retailer for maybe $45 and then retails for $100. A story about Nike mentioned that they operate on a 1-2-4 scheme, where actual production cost is doubled for the wholesale cost, and then the retailer doubles that for the retail cost. This correlates well with Nike’s 40-45% reported margins on all of their products.
Thanks a lot for the info, by the way. I dig the cool dialogue here between experienced people/professionals and the students running around on here.