Have you been wondering why shoes are so expensive and continue to rise year after year?
There are many reasons for this to happen.
I have been a shoe enthusiast all my life, and even though I’m “only” 27, I have seen shoe prices rise in the last decade.
And that brings up the question:
Why are shoes so expensive?
Well I’m going to tell you why below 🙂
Shoes Prices aren’t Really Rising Fast
Contrary to popular belief, shoes are actually one of the slowest popular products to be hit with inflation.
Just check out the graph below.
The biggest rise in inflation was back in 1947, which was a whopping 22.5% inflation.
In the last 5 years we have not even seen a 1% inflation.
2018 and 2017, the average price of shoes actually went down!
I mean, we can’t really blame inflation for shoe prices so what else could it be?
Increased Competition Should Decrease Price, Right?
Shouldn’t an increase in competition decrease the price of shoes, clothing and other apparel gear?
Absolutely, and shoe value definitely have decreased overtime.
However, you have to take into consideration what it takes for shoe manufacturers to run a successful factory.
They need to pay for leasing buildings, wages, logistics, shipping, warehousing and much more.
Building and land costs go up, and so does shoe prices to compensate for the added prices of everything else that comes with running a shoe company.
So even though the value of shoes and apparel have gone down, they have to keep up with the forever rising prices of everything else or they simply won’t profit and will go out of business.
Lower Profits in Stores
No thanks to the help of the internet and less products being sold in stores, shoe companies have to up the costs of their shoes to make a profit.
Not only that, but brands need to pay overseas contractors more money for inflation.
When those shoes come into our own country, the cost of international shipping are passed onto local consumers which is higher than our wages.
This is why lots of people buy online.
There is no middle man for the costs of upkeep, so everything is much cheaper.
Lots of retail stores are going out of business as a result of more people online shopping, and it’s only going to get worse.
Supply and Demand, Especially Designer Shoes
Limited designer shoes is what drives the price of shoes through the roof!
Brands like Yeezy only release a small amount of shoes when there are thousands of people wanting them.
This causes people to buy the shoes instantly and resell them on online stores with, yep you guessed it, 4 figure price tags.
That’s why you will find shoes in the thousands.
And you can’t help but wonder why are shoes so expensive when you see these prices!
Well supply and demand is a big factor in this situation.
Trends and Social Media Influencers
There’s a huge trend of social media influencers purchasing shoes and flexing on their followers.
You only need to look at how many views one picture can get…into the millions.
These social media stars are always buying the latest sneakers because it’s trendy and eye candy, making their pictures extra special.
Their followers see this and now they also want those shoes to look “cool”, just like them.
It’s another reason for supply and demand.
Young people have proven that they will buy shoes no matter the price.
That’s why shoe companies release shoes and automatically know they’re going to sell, so they’ll put a pretty hefty price tag from the get go.
Do they cost enough for the average consumer?
Absolutely not, because they are not targeting the average consumer.
They are targeting people that chase trends.
And as I mentioned above, they’re going to buy because they do not care about the price tag.
Does this Mean You Have to Shop Expensive for a Good Pair of Shoes?
It might seem that you have to drop a couple hundred bucks on a pair of shoes to get something decent.
But this is not the case.
The average price of shoes are $115 to $120, but there are shoes priced much lower than that.
And if you shop online, that price can go down even more since there is no middle man to cover overhead costs like wages, buildings, rent, etc.
So if you want cheap but high quality, I will always go online.
But if you’re “old school” and like to try on shoes before you buy, by all means go in store.
But for others, online shopping is the way to go and that will continue to rise every year.
Actually my recommendation for a pair of high quality kicks for cheap is the Nike Air Max 90.
These are eye candy shoes, high quality and happens to get lots of compliments.
Shoes are not as expensive as they could be.
It’s just that overhead costs of running a retail business can get costly, so shoe shops have to up their price to make a profit.
On the other hand, buying online is becoming more popular and it’s something you should consider if you’re worried about paying lots of money.
So at the end of the day, yes shoes are getting more costly as a result of supply and demand, trends, social media and overseas inflation.
But it could be far worse.
And that concludes my article on why shoes are expensive.
Let me know in the comments below what you think about this article.