Have you ever wondered what happens behind the scenes when you buy a pair of Jordans? While Air Jordan prices generally range between $180 and $230, there’s a lot that goes on before the kicks reach the retailer’s shelves. So today, we’re gonna answer a pretty interesting question. How much does it cost to make a Jordan? Do Nike and Jordan Brand really overprice their items? Let’s find out together, shall we? And in case you wanna read about the latest hot releases, our blog has you covered with the latest scoops!
How Much Does It Cost to Make a Jordan?
There’s a whole process that goes on behind the production of a shoe. You see, from the factory to your feet, the shoes go through a whole journey! So, let’s start with ground zero, the factory. Jordans are mainly a product of factories in China, just like most Nike shoes. If you wanna specifically know where Nike kicks are made, check this out. Now, let’s take the Air Jordan 1 as an example of the cost and revenue breakdown.
Production Costs
Now, the cost of production itself at the factory is pretty low per pair. For example, say the materials cost roughly $11, $3 for labor, $3 for overhead, and the factory profit for $1. That adds up to about $17. Mind you, these are approximates and roundings, some kicks might cost more, while others could cost less. On average, the cost of production can range anywhere between $16 and $30 per pair.
Shipping Costs
As we already mentioned, Js and Nike shoes are usually made in countries like China. Hence, we have to take into account that shipping will cost the brand. Now, an ocean container can hold about 3,000 pairs of shoes and will cost $4,000 to ship. So that’s approximately $1.5 per pair. Then, if the kicks arrive in the USA, there’s a 20% import duty, which adds up to about $5. So here’s an extra $6.5.
Royalties and Retailers
So, we’re at about $36.5 now, but let’s not forget about Mike’s royalties! Although the exact amount isn’t disclosed, let’s assume that he gets 5% of the wholesale price. This will be about $5 per pair! Now, retailers won’t sell your shoes if you don’t agree to give them a piece of the cake, right? Generally, retailers get about 50% of the final price in the footwear industry. Kinda explains why Nike dropped the stock numbers at retailers. Hello, extra profit!
Are You Getting Ripped Off?
Well, the brand will wanna make a profit right? So while we now know how much does it cost to make a Jordan, there’s always more that we don’t know! So yes, of course, brands can always make their shoes cheaper, but why would they when they can increase their profit? But don’t worry, you can get that money back if you work smarter and consider becoming a sneaker reseller! If you wanna take that step, then make sure you learn about sneaker botting. You see, it’s gonna be your best friend, especially if you wanna cop kicks for retail in bulk. Godspeed!
