New Economy Rant

Doug Henwood dhenwood at panix.com
Wed Sep 27 12:01:22 PDT 2000


Michael Pollak wrote:


>If it really costs $2 to produce, people should be piling in.

Dunno about actual retail prices, but I got that cost of production from Jeff Ballinger, who's been harassing Nike for years. But that's just cost of production; marketing costs are a lot higher (Klein argues that it's those high costs that forces Nike and the rest to minimize labor costs), and it'd cost a fortune to build a brand that competes with Nike.

With an operating profit margin of just 10%, Nike's a piker next to Intel (37%) and Microsoft (48%).

Doug



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