New Nike shoe cuts production costs dramatically!

I love minimalism. Make a shoe out of LESS materials and charge MORE for it!

Yeah, the only thing you're paying for is the materials. Do you know what R&D stands for?

Yeah I'm sure Nike really spent billions of dollars researching technology for this highly advanced shoe.

Azaleas wrote:

Yeah I'm sure Nike really spent billions of dollars researching technology for this highly advanced shoe.

i feel like i can get a lot of miles out of shoes, but the flyknit looks like if i take one step in them, they'll fall apart.

I love how they refute the asking price for it by admitting that it is cheaper to make. This is all marketing. The shoe isn't any more sock like than a traditional upper. The threads and weave are very large in order to be rigid.

Classic!

Scumbag Nike: Makes a shoe that they admit costs far less to produce than the current Zoom Streak XC 3, charges more than twice as much for it. Essentially you'd be paying an extra $80.00 for this knitted upper on an existing platform.

bangalangadanga wrote:

i feel like i can get a lot of miles out of shoes, but the flyknit looks like if i take one step in them, they'll fall apart.

Don't worry. I've had a pair of these in my hands (not my size so I didn't get to run in them). Durable shoe. Can't wait to race in them.

Wear two pairs of Thorlo socks on your feet for less!!!

You guys are missing the point. These shoes are produced with very little labor involved. So they could produce them anywhere in the world, China or US and the production cost would not vary much. I think that's great.

Before, the production cost difference was so big that they could not produce in the US, when having it assembled by little children's hands in China only cost 5 USD per pair. Now if that's changing, that's a good thing.

Except for China and the consumer who will still pay 10 times more than what it costs to make.

Nike is a business, not a charity. Let them sell their latest fad shoe for $150 to people who want to be fashionable and let the people who want a good light shoe to run fast in buy the Zoom XC for $60. I don't see the problem.

Best case scenario: the technology is successful and trickles down to lower price points. Think of all the 3-5 oz spikes and racing flats now available that were only found on custom one-offs as little as five years ago.

Dan

yeah, until you produce 20 million pairs of them.....ever heard of operating leverage or average fixed cost?

DF wrote:

yeah, until you produce 20 million pairs of them.....ever heard of operating leverage or average fixed cost?

makes sense if we were taking about Boeing researching, designing, developing, testing, and finally producing something like a dreamliner

doubt nike spent more than a few hundred thousand on the fly knits

150 is nuts for a racer. I guess ill look forward to purchasing the Streak 4's now instead.