The Real Cost of a Pair of Nikes: It's Way More Than $2
2025-04-09
An X post debunks the myth of incredibly cheap, sweatshop-produced Nike shoes. Analysis reveals that a $100 Nike shoe's manufacturing cost in Asia is around $25 (FOB), with tariffs, shipping, and other costs bringing the landed cost in the US to roughly $50. This significantly refutes claims of a $2 manufacturing cost. The post further argues that even after accounting for manufacturing costs, Nike's profit margins aren't as high as some believe due to retailer markups. The final price reflects accumulated costs throughout the supply chain. Relocating production back to the US might not increase US jobs, potentially leading to fewer sales due to higher prices and a net job loss.