What It Actually Costs To Make A Sneaker
Рет қаралды 1,507,163
Күн бұрынThe big brands like Nike and Adidas are very discreet when talking about their production. So we decided to make a video on the costs to make a running shoe, and what kind of profits can ultimately be made in this business.
This video is largely based on an article from solereview, you can check out the full version here:
www.solereview.com/what-does-...
Shout out to solereview and Rahul Cee for letting us use the article for our video!
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⏱ Timestamps
00:00 Introduction
01:09 Adidas & Nike's Profit Margin
03:58 What Are Landed Cost?
06:42 Cost of Running a Brand
🎬 About
Athletic Interest is a video essay series that investigates business stories from the world of sports.
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🎓 Sources
www.solereview.com/what-does-...
www.adidas-group.com/en/inves...
www.sec.gov/Archives/edgar/da...
#sneaker #nike #adidas
@AthleticInterest 3 жыл бұрын
Shout out to Rahul Cee from Solereview for letting us turn his article into a video! You can check out the full article with more in-depth insights here: www.solereview.com/what-does-it-cost-to-make-a-running-shoe/
@riktamsarkar7684 3 жыл бұрын
Can you make a video about Putian fake chinese sports shoe or expose the counterfeit industry. How the employees of Nike, Adidas etc. themselves leak the design and shoe to the counterfeit manufacturers even before the come out of the factory. Exposing them will be a good idea, and most E-Commerce sells those counterfeit shoes even in Amazon. People should buy from a trusted seller or from original brand store or website. And those replicas are so much similar to the original one specifically Adidas Yeezy, Nike's LeBron and Jordan. 90% people can't even find the difference, this is a serious issue. Also some high end replicas even have the same quality as the original one, thus making it even more tougher to guess the original one.
@user-hc9qv9yb9m 3 жыл бұрын
Why didn't you include Under Armour?
@torjusgolid6193 3 жыл бұрын
L have yezzy
@Khetamine 3 жыл бұрын
Still doesn't mean I should pay £120. I've had a £40 pair for years now and don't plan to spend that much on shoes when I'm a student in tens of thousands of pounds in debt and still don't have any accomadation outside parents house so add £350k-£550k for mortgage. Wow thanks government I'm so glad we live in a capitalist society that benefits the rich beourgeoisie into getting better jobs as they can afford colledge whilst otheres cannot creating a cycle of deprivation throughout generations that very rarely is broken and when is is only due to luck and not skill. It's not like there's better things than capitalism like socialism or communism.
@harshit_pathak_ 3 жыл бұрын
What's the song name used in the video
@turbotim7380 3 жыл бұрын
You deserve to (and should) go viral soon. A channel of this quality can't go unnoticed for so long. Keep up the good work!
@redboy518 3 жыл бұрын
His two viral videos are about Liverpool, coincidence? I think so
@dannysakr1121 3 жыл бұрын
Red Boy shut up big man
@coolshade789ify 3 жыл бұрын
Are u a fortunate teller mayte because his next video went viral 😂😂
@SandStormXII 3 жыл бұрын
💯
@kyleslades3067 3 жыл бұрын
But those hypebeasts buying limited Yeezys don’t want to watch this
@davohnbarefield874 3 жыл бұрын
I like how people are hating on shoe company about prices when people litterly go on stock x and sell a pair of shoes like double how much they got them for
@angelcamacho5266 3 жыл бұрын
the love in the game bro all my shoes are from stockx
@user-pd7qu3kw5n 3 жыл бұрын
Double? Try 15 x more
@ignignokt-6050 3 жыл бұрын
A shoe is only worth what your dumbass is willing to pay for it. Capitalism
@justinwein2069 3 жыл бұрын
Right
@justinjones143 3 жыл бұрын
@@angelcamacho5266 ouch
@davinodaninja7498 3 жыл бұрын
I can’t be the only person thinking this, who tf buys shoes from Amazon?!?
@maxdoesnothing1834 3 жыл бұрын
I do, the main reason is because I have pretty big feet (size 14 UK which is 15 US I believe) and most shops don’t stock that size, atleast in the UK. So ordering stuff online from online shoe stores and amazon I can get the shoes in the size I want!
@gazelle510 3 жыл бұрын
Yep the only one.
@sethmoneygetter7140 3 жыл бұрын
I think you are
@kaliyuga1476 3 жыл бұрын
Me
@terryiscool4773 3 жыл бұрын
You're not alone
@silaarprime2306 3 жыл бұрын
And the resellers gets 100% or more profit by hoarding and inflating the price of sneakers.
@thiagowill26 3 жыл бұрын
Damn them
@FuckHitler 3 жыл бұрын
we usually make about 50%. 100%+ would be on a super rare drop. For examples aj1s release for $170 and resell for $250-280 on average. Also, it aint easy, it takes alot of investment and patience to grow your inventory as a reseller, just like starting any other business. I do see where all the hate we get is coming from, but honestly we're just trying to make a living. I love sneakers, too.
@Edgar.Brito0123 3 жыл бұрын
@@FuckHitler you buy in bulk and sell at a higher price point... youre a prick lol
@jueru0 3 жыл бұрын
No problem with reselling. Only problem is botters.
@randytunru7731 3 жыл бұрын
@@Edgar.Brito0123 resellers don't buy bulk lmao
@dpke1 3 жыл бұрын
you didn't mention the design and technology they make to put a new shoe on the market
@loidforger5780 3 жыл бұрын
I think in other expenses you can consider that. He tried to make it as simple as possible for the avarge viewer.
@franceslaurel3414 3 жыл бұрын
I think it's in R&D. Treated as an expense if it doesn't produce any feasible results.
@fulippuannaghiti1965 3 жыл бұрын
To believe that companies like Nike and Adidas respectively make 10% and 8% net profit you guys must be full time fools. There must be a reason why these companies move to third world countries to have their factories. And if you consider how many weapons, illegal immigrants and drugs smuggle through borders " unnoticed" every single day, it wouldn't make a big deal for a multi billionaire company to do the same, on top of that shoes and clothes don't get the same attention as would cocaine or guns. Just get the shoes from Mexico or Eastern Europe where customs are known to be easily corruptible to smuggle anything you want in USA or Europe. And I'm not considering when it comes to declare the real amount of goods that the company is actually exporting, do you really think the real figure is always declared?. So, in summary, what he's showing in the video is just the approximate net worth figure IF companies didn't have to exploit third world labour, didn't have to smuggle through countries without declaring goods and paid the due amount of taxes to the countries of exports.
@praveenwesley5186 3 жыл бұрын
@@fulippuannaghiti1965 Woowwww it was interesting to read your theory. Can you also explain what happens when people die? do they get transported to a different location or they just vanish into thin air. I really hope you can explain that. I'm just curious.
@dasanidaniel 3 жыл бұрын
@@fulippuannaghiti1965 Wow, you truly are an idiot.
@fredaap 2 жыл бұрын
Finally, a clear cut explanation... Im in the textile business myself and most people grossly underestimate the costs (import duties take 12% sometimes!). Its a good business, but not a money making machine.
@taigamizo3370 Жыл бұрын
what will make money like this business that we can create locally
@joshuasnajdar9474 3 жыл бұрын
These vids are TOO high quality to not go über viral
@jobbob1477 3 жыл бұрын
Another weird, brand new user with no content or activity that strangely has a GLOWING comment about this channel......
@maxdoesnothing1834 3 жыл бұрын
Job bob I don’t think that’s the case. I genuinely think these videos are amazing too. I don’t think they’re bot accounts like you’re insinuating
@opmab5941 3 жыл бұрын
@@maxdoesnothing1834 yep
@Lolo_Antonio-FryEmUpFan 3 жыл бұрын
No
@MartialLiam 4 жыл бұрын
This channel is gonna blow up soon, remember my words 💯
@user-yy4rq4nb4i 3 жыл бұрын
frfr
@wovengoal6641 3 жыл бұрын
Surprised he hasn’t even hit 30k yet great channel.
@riceball_4478 3 жыл бұрын
ooo
@leer.7198 3 жыл бұрын
F A X X
@sobafina2938 3 жыл бұрын
@@wovengoal6641 now he has 42k subs
@kapkaza2519 3 жыл бұрын
I think standard shoes are pretty reasonably priced. "Luxury" shoes, like those from Versace, Louis Vuitton, Gucci, aren't that reasonably priced. Gucci Ace Sneakers rip pretty easily (if you're like me and run alot with every shoe). And that shouldn't be that easily, if their competitor, the Stan Smith, costs like 450€ less.
@abyazzahin7089 3 жыл бұрын
Well to be fair, on those shoes you’re mainly paying for the design over the preferred
@kapkaza2519 3 жыл бұрын
@@abyazzahin7089 not just design. Mostly also history, and brand name. Louis Vuitton has a great history behind.
@thebbackyardigans9694 3 жыл бұрын
Your actully paying for fashion show costs
@tom-nl7fg 3 жыл бұрын
ur rich or stupid...rich i hope for the first =) any shoe that costs to make 5 bucks and u pay 200 ....its simple ... its a ripoff
@ladislavslapal3475 3 жыл бұрын
Mu7ammad Well since gucci makes everything except watches in Italy, it’s probably not a real factory
@kelvinmwaniki3889 3 жыл бұрын
The only sad thing about this is that I can only leave one like and I didn't find it sooner. The quality is just at another level
@hiratiomasterson4009 3 жыл бұрын
Absolutely brilliant explanation: whether you are an MBA student, an accountant, a supply chain manager, a retail manager or someone who just wants to understand, this is an absolutely superb introduction to a key part of the business of athletic shoes. Well done...and to anyone running an MBA course, this is how you teach people.
@jobbob1477 3 жыл бұрын
Another weird, brand new user with no content or activity that strangely has a GLOWING comment about this channel......
@hiratiomasterson4009 3 жыл бұрын
@@jobbob1477 Because this particular video deserves all the praise it gets.
@jenningsmills5398 2 жыл бұрын
This is propaganda So everyone else selling a shoe for under $94 is doing it at a lose? Get real paid troll.
@je6a478 Жыл бұрын
@@jenningsmills5398 Did you even watch the video? A big part of the price comes from retail margin. And if the retailer has to sell the shoe at a lower price because of lower demand, they'll have lower margins but not directly losses
@askeladd60 Жыл бұрын
@@jenningsmills5398 you are being stupid here. You don't want to buy $100+ shoes? Then buy cheaper shoes, it's not like shoes can only be sold for more than 100 dollars
@emmronkicks6391 3 жыл бұрын
The more expensive shoes are expensive because their is a low supply but a high demand
@drewstock4 3 жыл бұрын
white thats literally how that works, good job lmao. low supply makes it exclusive
@supergalaxy5900 3 жыл бұрын
white becuase they are...
@user-hc9qv9yb9m 3 жыл бұрын
Until they end up in the discount stores
@Viper-yv8tw 3 жыл бұрын
@white Exactly, plus Low supply - people who actually got their hands on the shoe can choose the price. Still has to be reasonable tho, cause nobody would buy a pair of aj1 mids for 5000$, (unless it's a super-duper exclusive collab of course, and there is only one pair made or something) That's why I hate resellers, trying to take the easy way...
@Viper-yv8tw 3 жыл бұрын
@@mineralwater25 It could happen, if everybody forgets about off-white for some reason... In the age of the internet when the fashion trends are changing in a blink of an eye it's not a surprise that people forget about things. I don't think that Virgil made something legendary, personally, for people to remember it through decades...
@Sid-nb4hp 3 жыл бұрын
I seldom take the time to comment. But some videos are worth the exception! Thank you for the exemplary work! Content is king and your explanation is easy to grasp!
@lotuxe1731 2 жыл бұрын
This is why I’m okay with people wearing reps as at the end of the day they were both made in a factory in china
@alexinc. 4 жыл бұрын
How this channel is still at 5,4K subs?? Okk now 56k.. that's more likable!
@MrDecBC 3 жыл бұрын
23.6k now in 3 weeks. On the rise!
@Prince-vg6jv 3 жыл бұрын
DeclanCBC 37.3k now in 5 days
@dillonclaussen3950 3 жыл бұрын
Dang they got 30k in a month
@MrDecBC 3 жыл бұрын
Unreal growth in 5 days. They deserve it!
@benjaminjacome 3 жыл бұрын
49.9k by July 2020
@Charside 3 жыл бұрын
Incredible stuff. The amount of work that’s gone into this🤯👏
@snova7437 3 жыл бұрын
First video I saw and already subscribed! Your quality of videos is far more superior than channels with millions. Stay persistent and you'll be at 100k subs soon :D
@praveenreddyc4997 3 жыл бұрын
Woooooooow man!!!😳😳 Very much information! Hats off to your homework!!🕵️ I got to know, how much informative your video will be in your second video!! Keep rocking man!! Very much appreciative to your dedication! All the best! 👍🏻😜🤟🏻
@mokazzo Жыл бұрын
Actually gave a very good perspective on the value of shoes and products as a whole. Always thought companies such as Nike and Adidas had at least a 75% profit on each pair
@cold485 10 ай бұрын
What about other shoes that are 10 times or even 20 times cheaper? I call BS. especially for the shoes they cost thousands of dollars a pair
@mokazzo 10 ай бұрын
@@cold485 shoes like that are definitely priced at bs ranges, but as a whole regular shoes that might cost 100-200 to buy aren’t really up priced from what this video said
@syedtahaquadri7153 3 жыл бұрын
Man you are great. Just daw a couple of videos today and subscribed right away. Im on loop watching all of your videos
@cococooley2589 3 жыл бұрын
I love well researched videos that I can be confident the information is good. Because for some reason once this type of information goes in that's it, it stays in my head forever
@OezgeSebisteri 3 жыл бұрын
Great content, fantastic channel!
@dfveiga9 3 жыл бұрын
Love your channel man ! You're doing a great job !
@shubhamdeshmukh6518 3 жыл бұрын
These are some of the finest videos you will find on KZfaq. Love this channel
@hxssan27 3 жыл бұрын
This was amazing and informative. You've definitely gained a subscriber, can't wait to see your channel boom into success!
@bellofrod 3 жыл бұрын
Incredible quality, I'm actually surprised this channel doesn't have millions of subs
@leonardotorreao5262 3 жыл бұрын
Your videos are unbelievably good and I'm learning a lot with them!
@piyushnahar9198 3 жыл бұрын
Really loved the video......keep making such content!
@ismailgarmate3581 3 жыл бұрын
I love this channel and the way it gives information Keep on hard work bro😁
@kevinstreitwieser882 3 жыл бұрын
kzfaq.info/get/bejne/g5uljKaIu8zZgIU.html
@samarthk4130 3 жыл бұрын
about a month ago this channel was at about 10k subscribers. I subscribed because literally the first video was of ridiculously high quality but the channel didn't have many subscribers. But now you've passed a 100k and you're on the road to 1 million. Good job!
@hopper6094 2 жыл бұрын
373k now
@aakashnegi6142 3 жыл бұрын
Please keep up the great work!!!! Love your videos.
@aaajamesbond2995 3 жыл бұрын
Instantly subscribed ! This channel deserves more...
@abhishekdamral314 2 жыл бұрын
The sad truth is that detailed videos like this always have less views, I mean this video is so important for everyone even if someone is not a Sneakerhead, it should have 20 or 30 million views at least, keep up the great work man 👍👍👍
@wuchstfinger930 3 жыл бұрын
Finde deine klare Aussprache und den leichten deutschen Akzent zusammen mit deiner Stimme unfassbar angenehm zum zuhören. Ich bekomme immer fürchterliche Kopfschmerzen wenn andere Deutsche versuchen künstlich american english zu sprechen. Außerdem natürlich auch inhaltlich ein tolles, super recherchiertes Video! Ich hoffe du gehörst mit dieser Qualität bald zu den ganz großen auf KZfaq!
@randyorton1769 3 жыл бұрын
Das 'r' am Ende eines Worts hat ihn verraten haha. 'For = Foa'
@Lampuunion9989 3 жыл бұрын
O du schoner westerwald
@pavankumar-wv8wj 3 жыл бұрын
top stuff!!! more and more like this please!! this channel is going to serve the best content for the sports enthusisats and for those who are looking for a career in sports!
@adityanair9191 3 жыл бұрын
Brilliant illustrations, very educative and clear and cogent delivery.. you guys will be big soon
@isheunesutsiga 3 жыл бұрын
This channel is a gold mine
@santanuverma8949 3 жыл бұрын
You are the best explainer.... your channel should be booming soon
@John69420 3 жыл бұрын
Okay Boomer
@raulalejandrogutierrezmora1146 3 жыл бұрын
I'm suscribed for sure. You provide an amazing content, and it also works as a listening practice for learners. Great job
@alessandromaniscalco1235 3 жыл бұрын
You made this very clear! Thanks
@benediktotto6191 3 жыл бұрын
Just here to feed the algorythm. Great content!
@lazysnorlaxcooks9107 3 жыл бұрын
Ich warte schon auf den Reaktionsboss, lass die Leertaste cheppern Justin
@jeremiemoludi 3 жыл бұрын
This channel is going to have 100k subscribers soon. Such great content 🔥🔥🙌🏿
@Faarontour 3 жыл бұрын
really interesting and well made video! keep it up man
@t30zzyyx 3 жыл бұрын
Just got this video in my home tab. Nice video. Subscribed.
@trxstone 3 жыл бұрын
It's just so satisfying hearing someone pronouncing Adidas correctly
@torborossi 3 жыл бұрын
Yeah i'm from germany and the nikE pronounciation sucks. We say: nike
@Mongoboi 3 жыл бұрын
@@torborossi thats the correct pronounciation tho, nike is pronounced nikE, its an american brand after all
@leanderseiler 3 жыл бұрын
@@Mongoboiand adidas is pronounced as he does, not adiiiidas as Americans do
@francoislechanceux5818 3 жыл бұрын
@@leanderseiler Some people are born dumb really. In France, we also pronounce adidas in a way that is not german. You want to send us to the gas chamber for that ? I will bet the Japanese, the Koreans, the chinese etc...pronounce adidas in a way that is NOT german too. In your little world, do they even have that right ?
@francoislechanceux5818 3 жыл бұрын
@janzen: So you cannot bear hearing the Japanese, the Chinese, the Koreans etc pronouncing Adidas their way ?
@jamesholyfield3304 Жыл бұрын
You make great videos , I like how you break down the business of sports .
@AthleticInterest Жыл бұрын
Thanks, James!
@joz1693 3 жыл бұрын
great video! keep making vids like these and at least one of them should go viral. keep up the great work.
@TEX8109 2 жыл бұрын
I’ve just discover this channel and it’s very rich in contents. Good job, thank you very much!
@AthleticInterest 2 жыл бұрын
Welcome to Athletic Interest and glad you enjoy it ;)
@deppyc3299 3 жыл бұрын
I was here before ur channel blew up! I kinda wish you'd never blow up cus then you can communicate with ur viewer less and less. But I thank you so very much for good content.
@radiohe 4 жыл бұрын
Amazing content :)
@kevinstreitwieser882 3 жыл бұрын
kzfaq.info/get/bejne/g5uljKaIu8zZgIU.html
@jade9288 3 жыл бұрын
Yoooo thank you for making this video. Ive always been curious.
@Mal-SW 3 жыл бұрын
very educational and entertaining video. This is great!
@09shalopur41 3 жыл бұрын
The development and design stage costs far more than all of the other costs
@stevenqbosell 3 жыл бұрын
yeah R&D are probably one of the biggest factors
@SandStormXII 3 жыл бұрын
How much research does Nike need? They been doing it for years
@defnotnath4nie129 3 жыл бұрын
SandStorm XII they don't just make a new shoe design easily. they research the best shapes and materials along with technology to create a shoe that performs great and is comfortable. they aren't just making the same shoe they are trying to improve after each one
@ljpal18 3 жыл бұрын
And the shoes they just re-release?
@kewrock 2 жыл бұрын
@@SandStormXII Agreed. I think they got the science of shoe making nailed decades ago. R&D these days means what colors are we going to use and how much are we going to pay Michael Jordan.
@steverl22 3 жыл бұрын
I’m glad I never got bit by the shoe bug 👍🏾 I go to the Nike outlet and grab last years model for $45 and I’m good for the year😎 I do spend way too much on PC parts 🤣
@edenhoondia9932 3 жыл бұрын
Dude, I’m in love with your accent. Thank you for making this video! It was very entertaining!
@princegold1927 3 жыл бұрын
Exellent video brother !!!nuff information !!
@gagnepower 3 жыл бұрын
But how are 40$ shoes a thing??? Same shipping costs, same taxes rates, where are other companies saving 100$ in revenue and still be profitable?
@G3florentino 3 жыл бұрын
I thought the same question. Hopefully someone answers.
@supmeme658 3 жыл бұрын
Cheap materials, vans is a great example of a cheap shoe but it will not last as long as a Nike running shoe worn is the same duration.
@supmeme658 3 жыл бұрын
MWilly exactly. Also Nike & Adidas pays millions to dozens of athletes & sponsors competitions. While small companies that doesn’t have major endorsements or athletes well they save millions
@gagnepower 3 жыл бұрын
MWilly Probably, but same quality shoes from other brand are usually cheaper
@nuggetnchill 3 жыл бұрын
other brands don't spend as much on other expenses such as marketing
@elias4805 3 жыл бұрын
This video convinced me that shoe prices are fair. Although I think it could be just a few dollars less, because the brands sell so much that they would still make profit in the end if they only made 3 dollars per shoe for example.
@jonhard1049 2 жыл бұрын
If they sell them cheap, everyone will have them because they are now so easily accessible to get, so hype dies and the company goes downhill :(
@sokolaad1238 Жыл бұрын
@@jonhard1049 that's ony for rich kids who only buy shoes because they are expensive and no one else has them. normal people don't care about hype
@kunaljhala725 2 жыл бұрын
Wow, didn't thought that deep. Thank you for information Athletic Interest.
@nemer473 3 жыл бұрын
Great editing and voice over work, keep it up
@lordfejixo9069 3 жыл бұрын
I Love how your Voice sounds at the end of every sentence.✌️
@loganwhitesell9070 3 жыл бұрын
It makes sense until I think about the Dior Jordan 1. I’ll say it takes even $150 to make (prolly way over shot it but still has the same point) but retails for $2000 that doesn’t add up so obviously they make a lot of money
@abyazzahin7089 3 жыл бұрын
It’s not high for quality, just the extreme hype and the design
@eljuniorcen2675 3 жыл бұрын
Abyaz Zahin I agree,I wouldn’t even pay 500 for those Dior’s.
@lilobungus1572 3 жыл бұрын
its an exclusive collab so they might as well sell them for 2000, and their gonna sell out no matter what the price is, so why bother making them cheap if you can make them expensive and still sell out
@eljuniorcen2675 3 жыл бұрын
Tharusha Fernando I know,just don’t think they are worth it.
@viniciusfurtado5568 3 жыл бұрын
i think its because of the design, and the fact that those shoes are made to be expensive, after all, it wouldnt be a hype shoe if i was cheap and affordable to everyone, and i really think thats why people buy them
@barimirgames 3 жыл бұрын
Amazing work!
@BrentMurrell 2 жыл бұрын
You have a great voice for narration sir - also, bravo to everyone involved in the production of these videos they are top notch.
@zeedause5289 2 жыл бұрын
I really liked this video, it was informative and seemed quite unbiased, but if all of these costs pile up for each pair of shoes to make them cost these companies around 120 dollars off the retail price, then how come target shoes cost around 10 - 20 bucks? I understand the retailers margin being removed because they are home brands, but that doesn't account for about 60 dollars of alleged costs. Even if we say the materials used in target shoes cost absolutely nothing, that only removes about 30 dollars of material, so you've got a 30 dollar shoe going for 10 dollars. I'd really like to see an indirect follow up video on how home brands sell for so much less, if these are the costs of these shoes from big brands.
@Saul_Goodman_Criminal_Lawyer 3 жыл бұрын
Research and Design is the most expensive, thats why these shoes cost like this.
@vhallis 3 жыл бұрын
good point
@yarmite6726 3 жыл бұрын
and sometimes the artists that give the idea
@irfannugraha8370 3 жыл бұрын
exactly, Research and Development is the most expensive.
@katharinag3283 3 жыл бұрын
And advertisements
@DMMINO493 3 жыл бұрын
What about plain black shoes that may have a little tick or design that go for 100's
@JokobZuma 3 жыл бұрын
Such a well put together video
@tatouribe492 3 жыл бұрын
Such a good video, thanks!
@jamessoth1479 2 жыл бұрын
Nice analysis. The other cost left out of the video would be the design cost. How much time is put into researching and developing appealing and comfortable designs is a hard thing to estimate if you don’t have any numbers to base it off of. But over all i would guess it takes probably $1-2 off the profit of a pair of newly released shoes but that number gets smaller the longer a shoe silhouette i.e Air force ones have been around since they aren’t changing much. But it could be less or more than that I have no data to base my guess off of.
@JustAGuyAllDayAnyDay 3 жыл бұрын
It was a very professional video and I enjoyed it as an industrial engineer. But just to give a constructive feedback, the last part sounded too rushy. I would expect you to go deeper into these other managerial expenses like you did with the landed cost. It would be great if we could see respective product development and marketing costs and have your comments for the outlook of the companies and I would appreciate it even more.
@silversurfer8237 3 жыл бұрын
Brilliant video. Great insight. Transparency for the consumer.
@dominykasneimontas2707 3 жыл бұрын
Such a high quality video Kudos for you
@kieronfarley1924 3 жыл бұрын
The pricing makes sense and I think they sadly sell them at reasonable prices given the costs but I feel it wouldn’t hurt if they could somehow improve efficiency to reduce the cost by £10-£20 (which I know is asking a lot but still!)
@sjoerdsiemes 3 жыл бұрын
So then how does Primark sell shoes for 10,- / 20,- dollars? I know the quality and marketing costs are lower. But they also need to pay shipping, taxes and everything else.
@hiratiomasterson4009 3 жыл бұрын
The actual shipping / logistics costs are a very small percentage of the overall cost of shoes. Primark also has marketing and salary costs a fraction of major brands. They may only make a $2-5 dollars per shoe, possibly less, but they rely on rapid movement of product to keep inventory carrying costs low (this includes warehousing and depreciation, which kill margins with time).
@DanceySteveYNWA 3 жыл бұрын
Primark aren't shipping to third party retailers, they sell in their own stores.
@Pvemaster2 3 жыл бұрын
Shit quality
@Darkest_matter 3 жыл бұрын
@@Pvemaster2 they're actually decent quality.
@kxyoto8541 3 жыл бұрын
Ibraheem Productions Depends what you get.
@medicatedmexican 3 жыл бұрын
Channel with a nice thumbnail and title and a nice talking and quality sounding voice over the video as well with nice editing and animations not to mention very informative I have to say this channel is going places keep up the amazing work 👍🏽
@TheTonyAndreas 3 жыл бұрын
This was really good and you didn't even mention packaging/marketing unless I missed it. Also paying athletes/influencers. Seems to be priced fairly IMO. Thanks for doing the research and sharing this amazing synopsis!
@philip6879 3 жыл бұрын
0:05 adidas doesn’t sell them for 350$ that’s just the resell price
@nickjoy4584 3 жыл бұрын
Yeezys retail is $300 cad😕
@philip6879 3 жыл бұрын
pro EYE lemme tell you, yeezy retail is $220/€220, and some yeezys go for 300, others go for lot more than 300
@f1ftys363 3 жыл бұрын
yeezy v2 retail is 220 but for other yeezy versions i think its up to 300
@Zachhhhh.12 3 жыл бұрын
POWERSLAM FILMS he said 300$ Canadian dollars = CAD Canadian cash is less valuable then American cash so yeezys would retail at 220$ in America and in Canada 300$
@barrypark1881 3 жыл бұрын
750s were 350$ retail 350s v2s are 220$ (v1s were originally 200$ 380s are 230$ 700s v1s and v2s are 300$ (but only the v3 is marked to 200$) 500s are 200$ (220$ for the high models) Yeezy slides are 55$ retail Yeezy Foam Runners are 75$ retail Yeezy Powerphase are 120$ retail Yeezy Desert Boot are 200$ retail But of course since these are retail prices, there are places as such Stock X and GOAT where sellers can either mark up the prices or if the shoe isn't as popular it could drop below retail prices
@randombloke10 3 жыл бұрын
There’s a load of money invested into R&D as well as tooling too that ends up in all that cost
@GMan10321 3 жыл бұрын
Yo man, you have amazing content. You have acquired a loyal subscriber here. Keep it up!
@diegoaryen2129 3 жыл бұрын
Great and clear information! Keep it up! I'm now a fan from Mexico!
@thatgoodsucc6928 3 жыл бұрын
I want this man to read me a bedtime story.
@Samwerly 3 жыл бұрын
Using this logic shouldn’t shoes in Australia be cheaper than the US/Europe seeing the journey is shorter from the factories in Asia? Yet they are more expensive...
@aakashbaliga1881 3 жыл бұрын
Usually due to import/export fees and duties, and also trade deals
@SirZeck 3 жыл бұрын
Different policies.
@tyrionliu1673 3 жыл бұрын
The much less population in Australia leads to much less number of sales which means much less revenue and profit in total, so they have to price higher for each pair of shoes.
@OG.600 3 жыл бұрын
Great Video glad it got recommended to me 💯🥶 Keep up the great work 🔥
@kevinstreitwieser882 3 жыл бұрын
kzfaq.info/get/bejne/g5uljKaIu8zZgIU.html
@avishakebudhathoki2616 3 жыл бұрын
Kudos!! Very informative channel.. 👍👌
@nascarcricketer4702 2 жыл бұрын
When this channel becomes big we all can have the pleasure of knowing we were the OGs
@kevisgoat6140 2 жыл бұрын
bruh they already at 370k u ain’t an OG 😂
@Lorant1984 3 жыл бұрын
After watching this what would be even more exciting to know is that how Primark or Sports Direct makes money on a pair of £5 shoe...
@lilsphere3770 3 жыл бұрын
Top tier editing my man
@LeoMoraesfr 3 жыл бұрын
I'm almost finishing Business college and this video is pretty accurate, nice!
@vongdong10 3 жыл бұрын
Yeah, it's cheap to make them but you have to factor in everything that is between from the shoes being designed to the customers recieving them.
@manlikederek925 3 жыл бұрын
Also I've noticed, both Nike and adidas shoes typically say made in Vietnam. Just something I found interesting.
@aakashbadree5617 3 жыл бұрын
I'm assuming it's because the labor is cheaper there
@kel2614 3 жыл бұрын
white damn someone’s never felt buttery tumbled leather😳 also that’s China bro
@NoThing-jq3iq 3 жыл бұрын
Bro you put so much effort into your videos that it’s actually mad that you’re so underrated. Keep up the good work bro!
@kevinstreitwieser882 3 жыл бұрын
kzfaq.info/get/bejne/g5uljKaIu8zZgIU.html
@magnussnsn4767 3 жыл бұрын
Great video! First time seeing your channel, but now I subscribe. So it definitely won’t be the last!
@letsanima4481 3 жыл бұрын
Ich warte schon auf den Reaktionsboss, lass die Leertaste cheppern Justin
@yoboyharewood7492 3 жыл бұрын
Cool video, very informative
@ProdByXorak 3 жыл бұрын
Never once seen one of your videos but today i got this in my recommended. Probably going to go viral soon
@WildBeret 3 жыл бұрын
these poor big shoe companies , rhey are literally giving us shoes fo free
@edwinbetancourt3958 2 жыл бұрын
😂🤣
@dorianbernard6921 3 жыл бұрын
If the profit is so low and a lot of the cost comes from shipping , insurance and processing it once it arrives to the US bring their profits down to $4 or $5 a shoe. Why not make the sneakers in the US to cut your shipping cost, create jobs , raising your profits.
@rumblingend8443 3 жыл бұрын
Way more expensive unfortunately. They xan always pay kids in China way less
@irfanrani8577 3 жыл бұрын
Rumbling End yup it’s true manufacturing is mainly in asia because labour is very cheap as compared to western continents so companies are actually kinda alr maxing their profits
@NuclearSandwich7 3 жыл бұрын
Rumbling End articles im reading on this topic show that it would be about a 70 dollar increase on the price of the shoe in their example of a yeezy boost 350. I honestly wouldn’t have a problem paying the extra 70 dollars knowing that the shoe was giving an American worker a 17 dollar an hour job, and was shutting down a sweat shop in China.
@dorianbernard6921 3 жыл бұрын
$30 to make $5 to nike , cut travel insurance , cut 22% cost shipping cost , cut land cost video said. Something not adding up like , They are still running sweatshops nd not reporting it.
@albrightaz 3 жыл бұрын
So insightful Thanks
@yashveerrana6164 3 жыл бұрын
Great content man.......Cheers
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