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A Breakdown of the Cost to Produce a Pair of Running Shoes

The economics of a single pair of kicks are more complex than you thought
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Image via: Solereview

Image via: Solereview

We've all heard the stories about the true cost of sneakers, which are rumored to be a pittance compared to the sometimes exorbitant prices they command on retail shelves. To determine what's apocryphal and what's factual, Solereview examined the exact costs that go into the making of specific models, as well as the profits going to all parties involved. 

The infographics below tell just part of the story in succinct form: 


Before you get too outraged, consider this: last year, adidas made just 4.1% in net income after taxes, and Nike just a bit more at 10.7%. Where did all that money go?

The factory cost of a shoe will take on more dollar amounts as it leaves the country of origin. See below:   


When all is said and done, you may be surprised by the slim profits that brands like Nike and adidas enjoy on the sale of their shoes. 


Head over to Solereview now for the full story.