I don’t even know how to start this post, I thought folks were supposed to be saving money, not wasting it. It seems as if the advent of the Corona Virus has caused the opposite effect. Maybe the stimulus is to be blamed for the extravagant use of monetary resources we’ve witnessed. I know what you guys are thinking: where is the data to make your case Tayib? Well the eye test has been pretty revealing and sufficient but let me show you just how insane folks can be when it comes to the acquisition of futilities. The Air Jordan 1 Retro high Dior is releasing on July the 8th for the exorbitant retail price of $2200. Neither Nike nor Dior will be able to justify why this shoe costs $2200 apart from the fact that Dior is a luxury brand. If both brands can justify the $2200, I’m ready to hear a breakdown on every element of the shoe that makes it worth the price tag given. Let’s check out the current value of the shoe on third party marketplaces so you can see how ridiculous folks can be.
The histogram above basically gives you the average resale value of the shoe by day since June the 25th. You can clearly see that there is a positive trend and the average recorded value reached is highest on July the 7th at $12703. I calculated the five number summary and came up with the following digits
Quartile Q1: $9827
Quartile Q3: $12474
The average resale value based on all the entries is $11273 which is pretty close to the median value. There was absolutely zero outliers which means that the distribution was very normal. The shoe retails for $2200 before tax and roughly $2400 after tax. At this price folks are looking at profits margins within the ( $4000 to $11000) for mark ups within the (165% to 488%) range. I can’t help but ask myself the following question: Who is actually paying this much money for these sneakers and why?
The projected number of pairs made is about 85,000 pairs and i’m assuming that most pairs will end up on the resale market. Let’s assume that 3/4 of the entire inventory ends up on third party marketplaces. This means that this shoe alone will generate between ($255,000,000 and $701,250,000) in revenues. What can I infer from this?
King Solomon said that God has laid a burden on the human race. HE has made everything beautiful in its own time, but HE has also set eternity into the hearts of mankind, but the latter hasn’t understood what God has done from beginning to end.
Therefore the person that hasn’t understood the purpose of God ends up in pursuit of futilities to satiate a thirst that only God can quench. Brands like Nike and Dior have quite understood this human behavior. Consequently they continue to pump out products that target people with this type of restless appetite for more, and the cycle never ends. Brands get richer and will continue to do so. I’ve touched on this subject in the post below, check it out