Nikes only cost $10-20 to make and you're fine with that...

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Tariffs don't gouge the consumer, Nike does wrote:
Don't blame tariffs for Nike's price gouging. Same with all other products made in SE Asia.
Profit Margins:
Shoe companies typically mark up their products significantly, with retail prices often being several times higher than the production cost.
Examples:
A basic running shoe, like the Nike mentioned in the video, might cost around $11 to produce, including materials, labor, and packaging.
-The cost to make a $70 shoe is around $15.
-The cost to make a $250 Nike shoe is around $11.
-The cost to make a $160 trainer generally costs a retailer $80-90 to purchase.
- A high-end running shoe, like the Adidas Ultra Boost, might have material costs of around $40, labor costs of $12, and other costs, leaving a profit of $92.

Except tariffs are an additional fee (tax) on something that you argue already is too high.

Also, your idea of making might be the labor and materials, but you are ignoring the design aspect as well. I am skeptical of your numbers.

5 months ago 04/03/2025 12:33pm EDT

re: better go back to school

better go back to school wrote:
Ahh dude, you understand the difference between gross profit and net profit, right? Sure, gross profit was $21billion...that's revenue minus variable costs (the cost of making/shipping the shoe). But you forget about those pesky things like taxes, R&D, marketing, paying employees, paying your athletes under contracts, buildings....you know, the whole infrastructure of the business....those are called fixed costs you have to cover with your sales too.
Fiscal 2024:
NIKE annual revenue for 2024 was $51.362B, a 0.28% increase from 2023.
NIKE gross profit for the twelve months ending February 28, 2025 was $20.955B
NIKE annual net income for 2024 was $5.7B, a 12.43% increase from 2023.
So after ALL expenses (fixed and variable costs) they made just over 10% profit margin in 2024. Now you want them to bring it back to the U.S.? That will increase their material costs (if it is produced here, or they'll have to bring in from overseas....that will be tariffed), higher employee costs, not to mention having to build out the manufacturing capacity here from scratch ($billions investments). Plus, they're still an international business, so they'll still need to operate overseas as well.
The clothing is such an impossible market to get into since the margins are razor thin. Shoot, if you've ever watched Sharktank you'll hear those investors talk about what a nightmare the clothing industry is and they'll hardly ever invest in startups because it's so tough...and they sharks are the saviors to those young companies because the have the contacts to get stuff produced overseas so it's cheap enough so they can sell it in the US market.
That's why the markets hate these stupid moves by the current admin...it's bad business for everyone. Time you got some glasses "so blind"

It's funny watching liberals now argue that American wages are TOO HIGH after they spent DECADES fighting to increase minimum wage.

You were ok with prices going up due to minimum wage increases. But now you are against prices going up when tariffs are being used to increase wages for Americans.

5 months ago 04/03/2025 12:53pm EDT

re: opposite liberal

opposite liberal wrote:
better go back to school wrote:
Ahh dude, you understand the difference between gross profit and net profit, right? Sure, gross profit was $21billion...that's revenue minus variable costs (the cost of making/shipping the shoe). But you forget about those pesky things like taxes, R&D, marketing, paying employees, paying your athletes under contracts, buildings....you know, the whole infrastructure of the business....those are called fixed costs you have to cover with your sales too.
Fiscal 2024:
NIKE annual revenue for 2024 was $51.362B, a 0.28% increase from 2023.
NIKE gross profit for the twelve months ending February 28, 2025 was $20.955B
NIKE annual net income for 2024 was $5.7B, a 12.43% increase from 2023.
So after ALL expenses (fixed and variable costs) they made just over 10% profit margin in 2024. Now you want them to bring it back to the U.S.? That will increase their material costs (if it is produced here, or they'll have to bring in from overseas....that will be tariffed), higher employee costs, not to mention having to build out the manufacturing capacity here from scratch ($billions investments). Plus, they're still an international business, so they'll still need to operate overseas as well.
The clothing is such an impossible market to get into since the margins are razor thin. Shoot, if you've ever watched Sharktank you'll hear those investors talk about what a nightmare the clothing industry is and they'll hardly ever invest in startups because it's so tough...and they sharks are the saviors to those young companies because the have the contacts to get stuff produced overseas so it's cheap enough so they can sell it in the US market.
That's why the markets hate these stupid moves by the current admin...it's bad business for everyone. Time you got some glasses "so blind"
It's funny watching liberals now argue that American wages are TOO HIGH after they spent DECADES fighting to increase minimum wage.
You were ok with prices going up due to minimum wage increases. But now you are against prices going up when tariffs are being used to increase wages for Americans.

How do tariff increase wages for Americans? I'm seeing autoworkers are already being laid off at Stellantis (Chrysler, Dodge, Jeep. . .) today.

5 months ago 04/03/2025 1:35pm EDT

re: opposite liberal

opposite liberal wrote:
better go back to school wrote:
It's funny watching liberals now argue that American wages are TOO HIGH after they spent DECADES fighting to increase minimum wage.
You were ok with prices going up due to minimum wage increases. But now you are against prices going up when tariffs are being used to increase wages for Americans.

That's not a valid argument in this case though. Our economy is heavily service-based. You need people manning the stores, restaurants, entertainment venues, ect. right at the point of sale and unemployment was under 5% when fatso took office. When we talk about Nike, you're talking about manufacturing. Manufacturing can be done cheaper elsewhere, and as American's we EXPECT cheap clothing other goods. If you don't supply it, you can buy a cheaper alternative elsewhere. Now we're just raising costs for the sake of raising costs.

Lots of companies won't be able to compete with these higher costs by making it here or paying the tariffs, and will either raise prices or will shut down. That means we lose jobs. Now with higher unemployment companies won't have to pay higher wages for workers because of job scarcity, and the spiral begins...it's called stagflation.

But keep drinking the cool-aid that bringing these jobs back home will somehow make things better. And let me know when you figure out how to grow coffee here in North America...we just added 10-32% tariffs on countries for that too. Love to know how that's going to create better paying jobs for the American worker.

Tariffs don't gouge the consumer, Nike does wrote:
Don't blame tariffs for Nike's price gouging. Same with all other products made in SE Asia.
Profit Margins:
Shoe companies typically mark up their products significantly, with retail prices often being several times higher than the production cost.
Examples:
A basic running shoe, like the Nike mentioned in the video, might cost around $11 to produce, including materials, labor, and packaging.
-The cost to make a $70 shoe is around $15.
-The cost to make a $250 Nike shoe is around $11.
-The cost to make a $160 trainer generally costs a retailer $80-90 to purchase.
- A high-end running shoe, like the Adidas Ultra Boost, might have material costs of around $40, labor costs of $12, and other costs, leaving a profit of $92.

If it only costs Nike to $15 to make a $70 shoe, why don't you take $15,000 and make 1000 shoes and sell them for $65? That's an easy $50k in your pocket.

we probably don't even have the workers available to do the jobs even if theyre created.

I think Trump has badly misfired here.

When he first started dreaming of this stuff in the 80s and 90s, it probably made a lot more sense.

5 months ago 04/03/2025 2:10pm EDT

re: ZachSawyer

ZachSawyer wrote:
If this is not a big deal why is the stock market crashing?

your forgetting the big upswing in the stock market over the last few years, yes? what goes up must come down

Does New Balance have the ability to increase manufacturing output at it's US facilities ?

support.newbalance.com

NewBalance USA FAQ

Link:support.newbalance.com/s/article/New-B...

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