Hi Jim,

The problem with looking at things through the media's eyes is that you only see whatever is newsworthy. Why didn't they go further to show that to the chinese it only cost $5 to manufacture the pair they sold to Nike for $11?!??!

You have to look at the whole picture. They pay $11 for a pair, then they pay whatever it costs to promote it, then they also have to ship it here, and make sure that the quality is acceptable, and deal with whatever problems may arise. In the end Nike only sees about $10 or $15 as net profit.

Most people like to only look at half the picture... they complain that pc's are expensive, so when Dell lowers their price everybody is happy, except NO ONE seems to have their eyes open enough to see that for dell to sell you a pc for $500, they have to then off-shore jobs and then everyone complains that our jobs are being stolen by indians. The economy is in the mess it is because everybody wants something for nothing. It's "horrible" when JCPenney is hiring cheap laborers in guatemala to make jeans, but no one wants to pay an extra $10 for a pair that are made locally, really benefiting OUR economies.

Alex

>Thanks for the details.
>
>One thing... back when Nike was showing the way for "offshore production" I read a few article over a period that said that their cost of manufacturing a pair of runners AND shipping them to the U.S. was $11.00 a pair.
>They were selling for $90+ back then.
>
>That's how they could afford such widespread and expensive ad campaigns. When their bottom line was in jeopary for a quarter they would cut back on advertising.
>
>cheers