Adidas warns Trump tariffs will put up US shoe prices

[The Sage of Main Street]

That's a very deceiving chart... Read this link if you don't want to read my very long post...

What does it cost to make a running shoe?

For as long as we can remember, we’ve been reading comments such as these on the internet: ' Nike makes their shoes for $2 dollars.’ ‘ The Yeezy Boost costs $10 to make and adidas sells it for $350. adidas makes a $340 margin’. ‘ Sneakers could be considerably cheaper if brands stopped paying...

www.solereview.com

The cost shown is only production cost, FOB cost (freight on board)
The brand then pays freight costs and insurance costs, and taxes, tariffs and duties which vary by material content in the shoes, and unloading and reloading g and trucking costs to their warehouse and peop!e to oversee all of that taking place, before you have a LANDED cost for the product....when I worked with the type of duties/tariffs we had to pay, and all those other expenses we had to pay to land that shoe in to the USA and pay the finance officer who handled all the nitty gritty like letter of credits with the banks,

and on some shoes primarily in a fabric material we estimated with tariffs etc about 35% added to the FOB cost, before it was sitting in our warehouse...and that was 20 years ago....

A $30 production cost shoe shown in your picture is really about a $40 cost shoe for the manufacturer/wholeseller once expenses are paid, who sells it at a 50% margin to the retailer, so they sell it for $80 to the retailer to cover all the overhead and expenses of running the business headquarters and warehouses. So Adidas is selling it to the retailer for $80 and NOT for the $160

AND the Retailer gets a 50% mark up on the $80 they paid for the shoe, so they retail it for the $160...not the shoe manufacturer Adidas which is implied the way your pictures show.

Adidas only makes around 5% profit when said and done, Nike could make around 10% profit when all said and done. It isn't this $30cost with a $160 retail in the pockets of Adidas.

Money Talks, and That's All We Hear from Both "Sides"

Pity party for price-gouging plutocratic parasites. Posing to be against that, the analysts made the labor cost many times what it actually is in a coolie sweatshop.

 

[Leo123]

Adidas warns Trump tariffs will put up US shoe prices

Company had strong first quarter but says it cannot raise outlook for this year owing to tariffs uncertainty

www.theguardian.com

This is bad news for fashion conscious Americans. Im a gazelle man myself.
The sense I am getting is that they dont know which way to turn.
It must be a nightmare running a business in todays trump chaos.

I don't wear those stupid virtue signaling brogans..

 

[GLASNOST]

Its because you are Russian. What do you have in Russia Comrade? Army boots?

You are a 360º idiot.

 

[Zincwarrior]

You are a 360º idiot.

You didn't answer the question.

 

[Care4all]

Money Talks, and That's All We Hear from Both "Sides"

Pity party for price-gouging plutocratic parasites. Posing to be against that, the analysts made the labor cost many times what it actually is in a coolie sweatshop.

There is not a huge profit in shoes, there is a profit but not something outrageous....most shoe companies are content or even giddy, with an overall 6% profit.

The benefit of buying from China is selling a lot more shoes at lower price than if the higher priced American made ones were bought....making shoes more affordable for the masses....it's the consumers that benefit from lower prices at retail vs American made....and yeah, CEOs pay themselves more....

 

[Care4all]

Yup. Thanks to “free trade” idiots in Washington.

Thankfully President Trump is reversing that.

It's too late to reverse the past 40 years in any kind of quick manner....maybe we could cut the 40 years and cut it to 20 years to reverse it....and times have changed greatly....

Computers and automation, cut out the worker in this day and age....if businesses were to bring manufacturing back to the USA at this point, and spend the enormous amounts of money to do that....they will automate wherever they can, so not to have to pay the worker's benefits and and government's payroll taxes, etc ....so their product can be priced at a sellable price for more people....

I have nothing against them returning manufacturing to the USA, but it will not be the way it used to be, with hordes of workers who were paid more than the Average Joe citizen, working 9-5 with weekends off....

It will be non union lower paying jobs, if any jobs at all if the industry can automate manufacturing.

Personally, I think the cheap stuff we buy can stay in China or India or Indonesia, but the more technical, the national security and military stuff, the pharmaceuticals and medical equipment type things that are more expensive where a higher American salary could be absorbed (proRated in to) easier, should be brought home....

And Trump isn't trying to bring manufacturing back, he's working on better trade deals, it seems?

 

[theHawk]

It's too late to reverse the past 40 years in any kind of quick manner....maybe we could cut the 40 years and cut it to 20 years to reverse it....and times have changed greatly..

Says who? I am not claiming it can be fixed in four years. But it has to start somewhere.

 

[theHawk]

Computers and automation, cut out the worker in this day and age....if businesses were to bring manufacturing back to the USA at this point, and spend the enormous amounts of money to do that....they will automate wherever they can

So what? At least we wouldn’t be dependent on Communist China to make most of our goods. Also, manufacturing that uses automation still have plenty of humans. See any auto manufacturer plant.

 

[theHawk]

Personally, I think the cheap stuff we buy can stay in China or India or Indonesia, but the more technical, the national security and military stuff, the pharmaceuticals and medical equipment type things that are more expensive where a higher American salary could be absorbed (proRated in to) easier, should be brought home...

On that I can agree with. I don’t care about socks. Technology, military, and medical should be made here.

 

[Tommy Tainant]

I don't wear those stupid virtue signaling brogans..

Personal anecdotes are always welcome. I dont see you as the target market somehow.

 

[Tommy Tainant]

It's too late to reverse the past 40 years in any kind of quick manner....maybe we could cut the 40 years and cut it to 20 years to reverse it....and times have changed greatly....

Computers and automation, cut out the worker in this day and age....if businesses were to bring manufacturing back to the USA at this point, and spend the enormous amounts of money to do that....they will automate wherever they can, so not to have to pay the worker's benefits and and government's payroll taxes, etc ....so their product can be priced at a sellable price for more people....

I have nothing against them returning manufacturing to the USA, but it will not be the way it used to be, with hordes of workers who were paid more than the Average Joe citizen, working 9-5 with weekends off....

It will be non union lower paying jobs, if any jobs at all if the industry can automate manufacturing.

Personally, I think the cheap stuff we buy can stay in China or India or Indonesia, but the more technical, the national security and military stuff, the pharmaceuticals and medical equipment type things that are more expensive where a higher American salary could be absorbed (proRated in to) easier, should be brought home....

And Trump isn't trying to bring manufacturing back, he's working on better trade deals, it seems?

Its hard to say what he is working on. The whole tariffs war is chaotic and unstructured and changes focus every day . Im old enough to remember when the purpose was to stop the flow of fentanyl.

 

[The Sage of Main Street]

There is not a huge profit in shoes, there is a profit but not something outrageous....most shoe companies are content or even giddy, with an overall 6% profit.

The benefit of buying from China is selling a lot more shoes at lower price than if the higher priced American made ones were bought....making shoes more affordable for the masses....it's the consumers that benefit from lower prices at retail vs American made....and yeah, CEOs pay themselves more....

Legacy Leeches Leaking Us Dry

When people's jobs are taken by outsourcing, they can't even afford cheap alien-made products. It's better to have the money circulating within our country. That also goes for insourcing with the cheap-labor invasion and H1-Bs.

Draining it out into Third World sweatshops is responsible for the National Debt. The toxic oligarchs have to keep things afloat through Ponzi Scheme borrowing, because a draining nation can't self-finance.

 

[The Sage of Main Street]

Says who? I am not claiming it can be fixed in four years. But it has to start somewhere.

Cheap-Labor Capitalists Committing Capital Treason

Just like dynamite, an economic boom only needs a short fuse. And it only busts because incompetent and undisciplined high-rollers take it over. Also, because wages don't keep us with profits siphoned off at the top, so consumers can't buy the last levels of production.

 

[theHawk]

Its hard to say what he is working on. The whole tariffs war is chaotic and unstructured and changes focus every day . Im old enough to remember when the purpose was to stop the flow of fentanyl.

If tariffs are so bad why does the EU use them against the US?

You brainiacs on the left can’t answer that one.

 

[krichton]

Spoiled-Brat Greed

They can absorb the tariff. They feel entitled to get the same profit all the time. Besides, they will lose bigly on volume if they try to pass their new costs onto the consumers.

The 145% from China? What company can absorb that? GM said they will lose 4-5 billion in just this year alone from the tariffs. You really expect them to absorb that? lol

 

[krichton]

If tariffs are so bad why does the EU use them against the US?

You brainiacs on the left can’t answer that one.

Why did the US use tariffs on the EU?

 

[theHawk]

Why did the US use tariffs on the EU?

For the same reason the EU uses them, to protect our manufacturing industries.

 

[krichton]

For the same reason the EU uses them, to protect our manufacturing industries.

So why make a big deal that other countries put tariffs on some of our products? Sounds to me like busy as usual.

 

[krichton]

So why make a big deal that other countries put tariffs on some of our products? Sounds to me like busy as usual.

*business

 

[theHawk]

So why make a big deal that other countries put tariffs on some of our products? Sounds to me like busy as usual.

It’s not a big deal. But we have the right to do the same to protect our industries.

So direct your question to the people screaming about tariffs.