Thread: Images in this thread Kanye is just trolling us right...?
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 4 months ago '14        #18
worldwide202  5 heat pts5
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$1,785   Props total: 8454 8454
 dubsax said
the capital required to purchase entire raw material runs and logistics would price the shoe into non existence.

His shoe costs $75 to make which is at the upper end of all shoes.
Addidas has relations and the capital to reduce supply costs by purchasing large runs of materials. You also have to pay tool and dye makers to press soles instead of doing it in house. It would likely add anywhere from 50-75 more dollars to manufacturing costs (including loan interest for buying materials and increased logistics, ads, hiring etc). With shoes being a 4x mark up you are looking at $450 out of the gate.

This is why Lonzo's shoe was so expensive and a pre order was done,
so they could avoid over exposure in over ordering supplies.

His shoe 100% also means that he is also on the hook for loan repayment.
He could go the hedge fund route but they dont have your best interest in mind.
They will loan you the money, short your company, buy the stock to cover at a cheaper rate, take over the company when you default, allow it to recover then sell at a profit.
Dappin this because it sounds informative and all smarty ar.