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How much does Nike actually spend on a pair of sneakers that retails for $100? Answering that is Matthew Kish of the Portland Business Journal, who got a chance to look at a breakdown of production pricing as part of a workshop for the University of Oregon's new Sports Product Management Program. The new program will likely benefit from plenty of Nike insight–it's headed up by Swoosh veteran Ellen Schmidt-Devlin and the brand has always been happy to give back to the school where it started. The information comes via Steve , Nike's Director of Global Transition Management. Nike's average costs for a $100 shoe Sea Freight and Insurance Landed Cost (57% of Revenue) Mark-up (43% of Revenue) These figures are of course based on averages, as costs on production for vary based on materials. According to this chart, it costs Nike an average of $28.50 to make a sneaker that will retail for $100. That sneaker to wholesalers at $50, meaning Nike will get back $21.50 (the profit on this comes to $4.50 after SG&A and taxes).
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