Discussion: Sneaker Costs | Does It Cost Jordan Brand $16 To Make A Shoe?

Check out this video regarding the costs on  Jordan 1 shoe and the total costs to make the product, allegedly by the image we have seen floating around the internet.

The image states the following:

Materials $10.75

Labor $2.43

Overhead $2.10

Factory Profits $.97

Total Costs $16.25

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Now If you listen to my video, hopefully it will give you a better understanding of why I am quick to defend Jordan Brand when things like this come out.  It is very misleading to have no background, and no credible source, for all we know this could have been the cost breakdown for a replica website.

All I can say is the info is misleading and inaccurate.  I have spoken to some people and the actual total costs are closer to $25 for a Jordan 1 Men’s size sneaker.  That being said, you must realize the cost breakdown for every jordan shoe will be different.  There will be different prices for different models, as well as different materials for the same models.  Also, Jordan and Nike sell through authorized retailers such as Eastbay, Champ Sports, Finishline Footlocker etc, and do you tihink they pay $120 for a Jordan 1?  No.  They pay roughly 50% of the retail, so closer to $60 in this case.  So It may cost Jordan $25 to make a shoe sold at $60, leaving a profit margin of $35 on a shoe that retails for $120.  That is a great profit margin, but it is still not the exaggerated amount we are lead to believe. Not everything is as cheap as people may lead you to believe.

In closing, just keep in mind that what you see isn’t always accurate or true information, don’t be a sheep and follow along just because you hear something.