2006-07-01 12:33:36 · 13 answers · asked by nfg_all_in 1 in Business & Finance ➔ Advertising & Marketing
Because people will pay it.
2006-07-01 12:39:28 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I don't know about the $2 cost, but people pay for brands. If you want to wear Nike running shoes, you pay for the privilege of wearing that brand. You are not buying the shoe so much as the experience of owning a specific brand, and how that brand makes you feel.
That's why high-end companies spend so much on marketing (TV advertising for example). Of course, all of that marketing is expensive, which is why not all that margin goes to profit for the company.
If you don't want the price, you can't get the brand.
2006-07-01 19:37:38 · answer #2 · answered by Karl the Webmaster 3 · 0⤊ 0⤋
Because that's the price that enough people are willing to pay that meeds the needs of the shoe company. In addition, even if the shoes cost $2 to make (in terms of material and labor), that's just where the cost begins for a company. For example, there are the costs of overhead (electricity to run lights and the machines to make them, for example), shipping costs to obtain the materials and to send them to you/the stores, costs of advertising and selling, etc. etc.
2006-07-01 20:10:29 · answer #3 · answered by Sean P 2 · 0⤊ 0⤋
because pepole will pay for them at that price if pepole stoped buying the shoes the price would go down but if the price went down pepole proubly wouldnt want to wear them.alot of big brand name companies also have there factorys in other countries because they knnow they can pay the workers peanuts then sell them to us for alot of money.
2006-07-01 19:42:31 · answer #4 · answered by sar sar 4 · 0⤊ 0⤋
Because they can, and people will still buy them at that price. They don't want "everyone" to wear there shoes. The less people wearing them, the more hip they will seem. It's all about image.
2006-07-01 19:36:48 · answer #5 · answered by greatamericanfolkhero 2 · 0⤊ 0⤋
By using brilliant marketing and advertising strategies,and cheap foriegn labor.
2006-07-01 19:37:51 · answer #6 · answered by kojackamus 3 · 0⤊ 0⤋
Profit. plain and simple. People pay for the name.
2006-07-01 19:36:53 · answer #7 · answered by um_ericaann 2 · 0⤊ 0⤋
in order to pay for promotion and advertising and to make a profit
2006-07-01 19:38:38 · answer #8 · answered by michael t 1 · 0⤊ 0⤋
Why do people pay that kind of money? Thats why they ask it anyway. There are people paying it.
2006-07-01 19:36:45 · answer #9 · answered by Puppy Zwolle 7 · 0⤊ 0⤋
Profit and greed
2006-07-01 19:37:18 · answer #10 · answered by Anonymous · 0⤊ 0⤋