Quote:
Originally Posted by RobG7aChattTN
A pair of Nike's cost only a few bucks to make so they sell them cheaper in poorer countries and jack up the prices in the U.S. because that is what people are willing to pay.
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Manufacture is only a small part of the total cost of an item. Imagine how expensive these items would be if they weren't made in China or Vietnam. In these countries wages and standards of living are much lower so they can manufacture things more cheaply.
Once made they get exported then the costs start to rack up; transport, storage, import taxes, shop space, power, infrastruture, currency exchange; and then you have the profit margin on top of that this is what makes them seem expensive. They are still much cheaper than they should be.
If these items were sold in countries like China they would seem cheaper to us beause their overheads aren't as expensive and you have favourable exchange rates, but the company say Nike are still making the same pofit margin.