the $1 trainer
Discussion
Piece on BBC website
http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
I read that earlier, the 'one dollar' trainer won't be to quite the same spec as the U.K market trainer, more a comfy shoe really, probably not a fashion accessory . With U.K market footwear there's the logistical costs to add, transportation, distribution and storage, import duties, marketing, r&d and then a retailer's margin to add to that for example . I'm sure that'd bump the 'cost' up a bit. I would imagine they're making good money still though!
tonym911 said:
Piece on BBC website
http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
Advertising isn't cheap. That's the trouble with brands; you aren't buying the product, you are buying the brand.http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
davepoth said:
Advertising isn't cheap. That's the trouble with brands; you aren't buying the product, you are buying the brand.
and this lot of worshipped heroes don't come cheap:REEBOK ATHLETES
Who are some of the major athletes that are sponsored by Reebok?
Baseball:
Tommy Hanson – SP, Atlanta Braves
Josh Beckett – SP, Boston Red Sox
Clay Buchholz – SP, Boston Red Sox
David Ortiz – DH, Boston Red Sox
Tim Wakefield – SP, Boston Red Sox
Bobby Jenks – RP, Boston Red Sox
Justin Verlander – SP, Detroit Tigers
Hunter Pence – RF, Houston Astros
Justin Morneau – 1B, Minnesota Twins
Andy Pettitte – SP, New York Yankees
Heath Bell – RP, San Diego Padres
Tim Lincecum – SP, San Francisco Giants
Brandon Webb – SP, Texas Rangers
Adam Lind – DH, Toronto Blue Jays
(partial list)
Basketball:
Ramon Sessions – G, Cleveland Cavaliers
Jason Terry – G, Dallas Mavericks
Yao Ming – C, Houston Rockets
Danilo Gallinari – F, New York Knicks
Morris Peterson – G, Oklahoma City Thunder
Jameer Nelson – G, Orlando Magic
John Wall – G, Washington Wizards
Allen Iverson – G, Besiktas (Turkey)
(partial list)
Cricket:
Mahendra Singh (MS) Dhoni – Chennai Super Kings
Yuvraj Singh – Kings XI Punjab
(partial list)
Football:
Joey Porter – LB, Arizona Cardinals
Roddy White – WR, Atlanta Falcons
Matt Birk – C, Baltimore Ravens
Joe Flacco – QB, Baltimore Ravens
Derrick Mason – WR, Baltimore Ravens
Haloti Ngata – DL, Baltimore Ravens
Brian Moorman – P, Buffalo Bills
Steve Smith – WR, Carolina Panthers
Lance Briggs – LB, Chicago Bears
Chad Ochocinco – WR, Cincinnati Bengals
Mohamed Massaquoi – WR, Cleveland Browns
Jay Ratliff – DE, Dallas Cowboys
DeMarcus Ware – DE, Dallas Cowboys
Knowshon Moreno – RB, Denver Broncos
Louis Delmas – DB, Detroit Lions
Atari Bigby – S, Green Bay Packers
Mason Crosby – K, Green Bay Packers
Brandon Jackson – RB, Green Bay Packers
Matt Leinart – QB, Houston Texans
Antoine Bethea – DB, Indianapolis Colts
Peyton Manning – QB, Indianapolis Colts
Jeff Saturday – C, Indianapolis Colts
Adam Vinatieri – K, Indianapolis Colts
Reggie Wayne – WR, Indianapolis Colts
Maurice Jones-Drew – Jacksonville Jaguars
Jamaal Charles – Kansas City Chiefs
Thomas Jones – Kansas City Chiefs
Brandon Marshall – Miami Dolphins
Cameron Wake – Miami Dolphins
Antoine Winfield – Minnesota Vikings
Aaron Hernandez – TE, New England Patriots
Vince Wilfork – DT, New England Patriots
Danny Woodhead – RB, New England Patriots
Ahmad Bradshaw – RB, New York Giants
Eli Manning – QB, New York Giants
Jerricho Cotchery – WR, New York Jets
David Harris – LB, New York Jets
Santonio Holmes – WR, New York Jets
Dustin Keller – TE, New York Jets
Nick Mangold – C, New York Jets
Michael Bush – RB, Oakland Raiders
David Akers – K, Philadelphia Eagles
Larry Foote – LB, Pittsburgh Steelers
Heath Miller – TE, Pittsburgh Steelers
Antwaan Randle El – WR, Pittsburgh Steelers
Antonio Gates – TE, San Diego Chargers
Philip Rivers – QB, San Diego Chargers
Darren Sproles – RB, San Diego Chargers
Justin Smith – DE, San Francisco 49ers
Matt Hasselbeck – QB, Seattle Seahawks
Ronde Barber – CD, Tampa Bay Buccaneers
Vince Young – QB, Tennessee Titans
Chris Cooley – TE, Washington Redskins
(partial list)
Formula One Racing:
Lewis Hamilton
Hockey:
Patrice Bergeron – C, Boston Bruins
Ryan Miller – G, Buffalo Sabres
Marty Turco – G, Chicago Blackhawks
Matt Duchene – C, Colorado Avalanche
Pavel Datsyuk – C, Detroit Red Wings
Roman Hamrlik – D, Montreal Canadiens
Sidney Crosby – C, Pittsburgh Penguins
Marc-Andre Fleury – G, Pittsburgh Penguins
Victor Hedman – D, Tampa Bay Lightning
Jean-Sebastien Giguere – G, Toronto Maple Leafs
Dion Phaneuf – D, Toronto Maple Leafs
Roberto Luongo – G, Vancouver Canucks
(partial list)
Soccer:
Iker Casillas – GK, Real Madrid
Ryan Giggs – MF, Manchester United
Thierry Henry – F, New York Red Bulls
(partial list)
Tennis:
Nicolas Almagro
Shahar Peer
(partial list)
Track and Field:
Martin Fagan - Marathon
Steven Hooker – Pole Vault
Micah Kogo – Long Distance
Carolina Kluft - Heptathlon
Dexter Lee – Sprint
Aries Merritt – Hurdles
Blake Russell - Marathon
Shalonda Solomon – Sprint
Nick Willis – Middle Distance
(partial list)
Boxing
Amir Khan
Lacrosse
Dan Dawson – F, Boston Blazers
Mark Steenhuis – F, Buffalo Bandits
Brodie Merrill – D, Edmonton Rush
Zack Greer – ATT, Minnesota Swarm
(Partial List)
tonym911 said:
Piece on BBC website
http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
For these type of goods the selling price need have NOTHING to do with the material costs or manufacturing costs, and EVERYTHING to do with the value to the buyer.http://www.bbc.co.uk/news/magazine-15873765
talks about how Reebok could make and sell trainers in India for $1 a pair. In Bangladesh trainers cost $3 to make.
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
Consumer product profit margins in the UK are surely long overdue for examination and (if needs be) control?
k is soccer , ttonym911 said:
Makes me wonder, given that UK market trainers are also made in these places, how Reebok et al price their products here and how, even allowing for marketing costs, they can justify multi-thousand percent markups.
1) Gross profit and net profit are vastly different2) If the market stands this price, then it is the correct price.
The only problem I have is when they stop people importing from abroad and undercutting the 'approved' suppliers. Same as Tesco with 501 jeans.
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