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If you raise prices until only the amount of people left wiling to buy matches the limited supply of the shoes then sure you've married supply and demand in a t
by have_faith 8y ago
If you raise prices until only the amount of people left wiling to buy matches the limited supply of the shoes then sure you've married supply and demand in a textbook sense, but you've removed the fever-pitch generated by everyone clamouring for the shoes at a price point just attainable to a larger audience that will rarely buy them. The pandemonium caused is a driver of the demand.
- moate 8y agoIf you're running a shoe company, the hype helps build brand support as well. Have a wide audience means that people are interested and engaged in the brand, because hey you could get a lotto ticket pair and make yourself a bunch of money. Sneaker culture is so strongly tied to hip hop culture, which has a really strong DIY-attitude to it, so making it hyper-elitist from the outset would short circuit the whole thing. You're totally right, that part of the value of these shoes to the company is the commotion they create in the market as everyone scrambles and pays attention. Then if someone can't get the limiteds, they'll settle for the dope looking regular release (which is still sold at insane margins for the company).