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The truly luxury Nikes, the ones that cost way more than $100 - $150 are not priced to maximize revenue, however. The evidence is their pricing on secondary mar
by gorbachev 1y ago
The truly luxury Nikes, the ones that cost way more than $100 - $150 are not priced to maximize revenue, however. The evidence is their pricing on secondary markets, which often price them at multiples of the retail price.
- UncleEntity 1y agoThe difference between selling every shoe at $150 and selling less than every shoe at $300 (or whatever the secondary market is charging) probably gets tossed around in pricing meetings. Plus, higher secondary market prices drive demand for the less desirable shoes as everyone can't afford to spend a week's wages on a pair of shoes but can stretch their budget for the still-kind-of-cool models. I'd go so far as to say the secondary market prices drive more demand for the lesser models as the cool kids want to be seen wearing what the rich cool kids are wearing. I'm sure they spend a lot of time discussing what price they can charge without people openly revolting against their 'predatory pricing' strategies.