Nike is selling LeBron James’ new basketball shoes for $315. No, that’s not a typo. Nike blames the absurd price on the “increased costs of materials” such as cotton and shipping costs. The ‘LeBron X Nike Plus’ shoes debuted during the USA vs Spain gold medal game at the 2012 London Olympics.
LeBron’s 1st sneaker release was in 2003. That shoe sold for $110. The price increase comes as Nike continues its free-fall in the stock market. Nike’s margins are now lower than most of its direct competitors, including rival Adidas, according to the Wall Street Journal.
Critics of Nike’s price increases are taking to social networking websites to urge others not to buy the high-priced sneakers.
“Prices are getting crazy excessive and as long as we continue to buy sneakers, Nike is going to keep increasing the prices,” Donell Brown, 30, told the WSJ.
Nike is “not arbitrarily taking up prices,” Nike spokeswoman Mary Remuzzi told WSJ. “We are constantly looking at ways to enhance the product line with new innovation and product attributes.”
Nike attempted to justify the price increase by including some electronic technology in LeBron’s shoes. The Nike LeBron X comes with motion sensors that tells you how high you jump.
Paul Swinand, equity analyst with investment firm Morningstar, said he isn’t surprised by the cost of the newest LeBron James shoe and overall price increases, especially if they can be re-sold for thousands of dollars at times.
“Part of the whole shtick of the marquee sneaker products is they create a scarcity, a buzz, or a hype. Part of the outrageousness of them is that they are expensive,” he said. “If they were a great bargain at $59.99, they wouldn’t be as rare.”
Nike has issued new safety rules to stores before the release of its LeBron James high-tech basketball shoe, mindful of the crowds of shoppers who line up for the popular sneaker releases.
Retailers such as Foot Locker who sell the shoes will have to open their doors at 8 a.m. instead of the usual time of midnight, according to a company memo, the Wall Street Journal reported. It was prior to previous midnight releases when brawls took place in California, Florida and other states for the release of retro Air Jordan and Foamposite Galaxy shoes.
“If a retailer offers Nike products for sale under circumstances where the retailer knows or should know that consumer response is likely to be exceptionally high, it must do so in a prudent and responsible way,” the company memo stated, according to the Journal.
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