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Air Jordan 1 Retro Production Cost Breakdown

air-jordan-1-retro-production-cost-breakdown

You payed how much?! Really, how much did you pay for your last pair of Air Jordan 1 retros? As you think about that, we've come across some pretty interesting data that hints at the actual numbers that go into producing one of today's hottest retros.

As pictured in the image above, an Air Jordan 1 retro costs $16.25 to produce with materials costing around $10.75, $2.43 for labor, overhead at $2.10, and a factory profit which rings in at $0.97. Of course there are other factors that may influence the final cost, however, these numbers aren't too far from the truth! Now just think, you probably pay between $125 and $140 for each AJ1 - that's an $108.75-$123.75 profit margin in the pockets of Nike, Jordan Brand, and MJ.

Does that change your perspective on things, or are you unaffected by the realities of it all? Sound off in the comments below and keep it here at Sneaker Files for more.

via hk-kicks

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262 comments
John
John

I'm an economics major and as much as you want to believe that foreign workers are underpaid, they aren't. granted from a proportion of their wages to profits earned, yeah they get the shaft. but large companies moving production facilities overseas actually helps increase median incomes and standard of living for host underdeveloped and developing nations. Much of America screams for "Made in the USA" tags, but if that were the case, we would be spending much more on everything. International trade is a two way beneficial exchange. Nike/Jordan only charges those prices because they can. If demand was less for retros, then well prices would be too. 

Derrick Maurice-Bonilla
Derrick Maurice-Bonilla

The last pair of Jays I bought from retailers were my Bred 4s and before those were my Old Royal 10s, I just try my luck on FB groups and eBay I'm staying away from supporting JB. I mean it doesn't make a difference but at least you're not contributing directly to their financial gain.

Derrick Maurice-Bonilla
Derrick Maurice-Bonilla

That's business for you. It costs less than 15% of the retail price to make the shoe. That's how business works. But the cost of Labor is just ridiculous. Business is business, but a human is a human and they make so much money that paying these workers at least $10 wouldn't hurt them at all. I mean I love shoes but social awareness is important.

William Plummer
William Plummer

lol That's the gimmick, we oay so much for them although they cost so little to make.. So in the end when you buy a pair of Nikes your getting fucked.. I mean they are the best so you still get them, but yeah it's messed up..

Brandon Pence
Brandon Pence

Love Jordans but this is reason I don't buy. This world needs to get away from the greed. Its sad, main reasons economy is in the shape it is in.

Anthony Skins Gleesh
Anthony Skins Gleesh

Correct me if im wrong but I bet if people were not to buy Jordan's Nikes for one whole year they would drop prices asap On who!!!!!!

Derrick Boss
Derrick Boss

Thats it im going to stop by the Jordan factory when i go to china

Charles Doran
Charles Doran

And add warehousing, shipping, distribution, advertising, design, profits (Brand & seller) and more. It doesn't tell the whole story. Jordan V's all day.

Matthew Mckenzie
Matthew Mckenzie

Something is worth what someone will pay you for it. Don't hate Nike because they charge so much stop buying their shoes. Lol real likely

Carlos Driscoll
Carlos Driscoll

That's why you cut the middleman buy bulk on wholesale from the right manufacturer and triple the price because people will pay the cost for popular brand names its what society is based on who has the most expensive cars clothes shoes its what the media projects to the people for high dollar markets its call getting pimped by a buisness. Its what NIKE does and has been doing for years using famous athletes to advertise and consume the youth as well as adults for generations.

Javier Oyola
Javier Oyola

Remember when we were talking about this Sachin Samaroo

Jontez McBee
Jontez McBee

What most people are missing in this whole post is astonishing. Lol You can tell how most of you are inside by your comments and what I'm seeing is sad. You call yourselves human and you didn't even pay attention to the fact that the materials cost more than the labor (people). This is a one of the worst things I've seen from Nike besides the quality of Jordans today. How in the fuck do you pay more for materials than you do the people who make your product? I've been in management for years and my most costly expense has always been payroll. How can you support a brand that just gave you proof of sweatshop labor with this breakdown of how much it cost to make a pair of shoes. Nike is full of racist white people that care nothing about people and everything about money. This shit is fucked up! Jordan Brand will leave Nike I see that coming. It's a new day and Black people are waking up to the bullshit Nike is full of bullshit. 2.50 really? Fuck out of here! Everyone that has a job should be offended because what's stopping this shit from happening to you? Oh wait...

Chris Winston
Chris Winston

This goes for pretty much all shoes when you think about it Tyler C Stevens

Jessie Shuttlesworth
Jessie Shuttlesworth

Certainly there are other finances left out but what's really annoying to any seasoned sneaker person- the quality of each shoe is declining yet the price of the shoe is (without real reason) getting jacked up. They don't care. WE should.

Daniel Garcia Davila
Daniel Garcia Davila

Athletes don't get paid for every shoe that's sold, they sign a contract before making the shoe and of course it's a big amount of money but nothing compared to the revenue that the company gets out of the sales.

Sonny Sachdev
Sonny Sachdev

Doesn't include the millions spent on advertising, paying MJ, corporate employees cost , etc etc

Rick Smith
Rick Smith

But if you buy them, you too...can be an NBA legend.

Cameron Millican
Cameron Millican

And we buy them for a way more expensive price. I know they need to make a profit but.

Felix R. Matos
Felix R. Matos

y te la espetan en cuanto ???? like casi 300 ???? thats what yeezus talks about

Patrick Appiagyei
Patrick Appiagyei

And with all that profit Jordan brand still ain't a billion dollar company!!