Shoe Pricing - From Cost of Production to Retail Price

The hardest thing about starting a shoe line, or really just starting your business plan to a shoe line, is coming up with the price that you want to sell your shoes at, retail value. There are so many factors that will dictate what that final price will be, factors that you might never have thought about before, like the fact that retailers will mark up a shoe's wholesale price 2-3 times over (e.g. wholesale price = $100, retail price would be = $200-$300). But those are just the two end prices, let alone the cost of production versus the cost of what, me, the shoe designer, would pay the factory, for each pair. This is what I am going through right now, as I decide where I want to make my shoes (Italy vs. England) and how I am going to be able to do my best to balance price vs quality. Because all in all, I want to make a good quality, goodyear welted shoe, that can last a good amount of time for my customers, but at the same time don't want them to retail at way above the common man's price range. This dilemma is a big one, and has made me realize why some shoes are indeed, very expensive.











Shoes at Top of Page: Allen Edmonds
Shoes Above: Grenson

In my opinion, globalization is the reason that I, and many other designers/makers are having or had this same problem. If you can remember, there used to be a number of fantastic shoemakers in the US, that made good quality shoes, such as Florsheim and Johnston & Murphy. But now, due to the amount of cheap labor and materials, many of those same companies decided to take that lower-priced route and shirked on their quality of labor and materials, thus resulting in shit shoes. Granted, there were a couple of American makers that stood their ground, such as Allen Edmonds and Alden, but even now, you can see where the quality is slowly deteriorating on Allen Edmond's models, or you will find the same quality, but the price has gone up and you no longer get a pair of extra laces, nice shoe bags or some sort of shoe horn. It's just the shoes and some cloth that they wrap the shoe around. So when you wonder why shoes are so expensive these days, thank globalization for it, because in reality, the high quality, goodyear welted shoes that you think should be cheaper, in fact should not! Grenson, for example, can make a beautiful, well-made shoe, but they have now chosen to re-evaluate their company, and with that decided to start mass producing by having shoes made in India, with either glued or blake stitched soles so that they could retail at $300-$400. Because their high end goodyear welted shoes, would sell for 350-450 GBP, which would then result to around $700. It's not a bad thing, it just is what it is. Companies want to stay afloat, and unfortunately because of the way the world is right now, that's what they have to do.

Shoes Above: Stefano Bemer

Back to my dilemma. I am sitting here thinking, 'Okay, for my customer, I want to make a high styled shoe. Something classic but with a modern touch yet it is absolutely pertinent that I make a good quality shoe or else I would just be a complete hypocrite.' This is what I tell myself. But then, I am stuck with knowing that it will cost me around 120 GBP (minimum) to buy a goodyear welted shoe with high quality leathers from a British factory (and who knows what it actually cost them to make it?). Then let's say that I only want to make 50 GBP profit on each pair. (That's not asking too much now!) That would mean that my wholesale price would be 170 GBP to sell to retailers. So let's say that I sell it to retailer X in London. Their price would at least be 425 GBP. You might say that this is not a lot, and when comparing it to a pair of John Lobbs, it's not a super high price in reality. But now, considering that the British pound is the strongest form of currency and it's market will only be a small part of my business, we have to take into account what that same 170 GBP wholesale shoe would sell for around the world. So now let's assume that retailer Y in the States wants to buy my shoes (and the x-rate is 1.6 dollars to the British pound). That would make my wholesale price at $272 which would then make the retail price $680 and that does not even take into account the tariffs that US custom's is going to tag on. So, to make a simple goodyear welted shoe, with some nice leather that will last the average man around 10-20 years with re-soles, you are looking at 425 GBP or around $700. How many people can afford $700 or 425 GBP shoes? That's my dilemma!










Shoes Above: John Lobb

Cheap Shoes - Don't Kid Yourself

One of the truest statements I ever heard before was from one of my high school friends who is currently a bed salesmen and tells his customers this: "There are two things that you should never go cheap on. One is your shoes and the other is your bed because if you are not using one you are using the other!" When I actually thought about it, he was dead on and I had never realized that. And now I cannot wait for the day that I can buy a memory foam mattress to have heavenly sleep on. The problem is that most other men don't think like this, but they should. 

(For statements made down below I have added pics of nice shoes vs. cheap shoes just to show how easy it is to tell the difference. That same difference is just as noticeable when they are on your feet!)

Top Of Page Picture Courtesy Of: Leffot

Above Top Row: Left - Cheap Shoe; Right - Gaziano & Girling

Above Bottom Row: Left - Cheap Shoe; Right - Barker Black

I never understood why most men are willing to drop thousands of dollars (or pounds or euros) on a suit but right after go to a shoe department and not want to spend more than 200 dollars. They then look like an oaf because the intelligent eye can see the contrast between a Zegna suit and a China-made Hugo Boss or some Kurt Geiger shoe. Yet, it is always like this and I cannot comprehend why? I want to understand the point in history where it came to be that most men decided that shoes were the part of the wardrobe to go cheap on. You don't know how many times I have heard men say, "I would never spend 400 dollars on a pair of shoes," scoffing as they say it. What's funny is that most of those men were rich and could easily crap 400 dollars. And when I heard this I thought three things: 1. This guy is a cheap bastard, 2. He is a complete idiot and 3. He is sadly naive. 

Above Top Row: Left - Cheap Shoe; Right - J.M. Weston

Above Bottom Row: Left - Cheap Shoe; Right - Lodger

As I have said before there is a health issue at hand when it comes to cheap shoes. Not being properly supported can affect your posture, your spinal alignment and can create feet problems like bone spurs. The only difference between wearing cheap vs. expensive clothes is how you will look. Chances are that if you are one of my regular readers, you don't fall under this category but if you just happen to be visiting for the first time, ask yourself if this sounds like something that you would do. And if so, stop being cheap! People can see and smell it a mile away and it's not attractive to anyone. If you have the money, invest it properly. And believe me when I tell you that a good pair of shoes will be one of the best investments that you will ever make. It may not do so in a monetary gain, but it certainly will in health, looks, and perception of yourself from others as well as from yourself.

You are only kidding yourself when you try to justify that shoes should not be something you spend wisely on.

What Makes A Shoe It's Price

So many people are completely oblivious to the value of a good shoe and the reason why buying good shoes is better for your health, your look and believe or not, also your wallet. Therefore I will enlighten you to clear up the mystery of why this is so. (To keep things clarified, I will say that a shoe $200 and below is a cheap shoe and anything above that is a good one)

Let's first start off by imagining that all shoes are equal in brand value (no brand is better than the other or more famous). Taking this into account, what separates a more expensive shoe from a cheaper one are the differences between the quality of the construction and the quality of the leather, two fairly obvious things right? Apparently not! Therefore shoes with better leather and better construction will be more expensive by nature.

You may ask, "Why do these make such a big difference?" To explain, let's start with the construction of the shoe. Most cheap shoes are made in large factories where the attention to detail is slim to none, probably just some team that checks the shoes at the end of the conveyor belt process to make sure that there are not any extreme blemishes. You usually find that most cheap shoes are made with rubber soles that are glued on, being that leather is more expensive a material than rubber. If they do use a leather, it is normally a very low quality leather or some hybrid, chemically processed leather that almost looks like plastic. Also, to glue a shoe's sole on is a much easier and inexpensive way to attach a sole as opposed to the more traditional way of stitching it on which also requires a person manning the machine to guide the shoe.

More expensive shoes on the other hand are usually made in smaller factories where the attention to detail is much higher or at least if it is still a large factory there are many more people who are skilled in either working the machines (guiding shoes while stitched among other important processes) or the preparations of the leather i.e. not just straight conveyor belt style. Now what I won't get into today because it will involve much more writing and even pictures is the differences between the constructions. There are 4 main one's and that is Blake, Blake Rapid, Bologna and Goodyear-Welt. There are others but are far more rare, like the Norwegian stitch. Any good salesman will be able to explain the differences or you can wait until a future post of mine.

However, if you are much too impatient to wait, I will provide this for you. While I don't agree with everything on this link that I am providing you, you may visit it to get a good idea of the different constructions. http://www.askandyaboutclothes.com/Tutorials/JCuseySHOEconstruction.htm
I will tell you that most shoes that are well worth their price are the one's that are goodyear-welted. Also leather sole stitched shoes can also be re-soled as opposed to their rubber soled and glued, cheap counterparts.

As for leathers, this is something that I am not completely an expert of (knowing whether this high-grade leather is better than that high-grade leather) but it is evident that the difference a good leather can provide is substantial. What you will find is that better leathers are usually softer and more supple (but not always) yet more durable than a cheap leather. They will handle bad weather much better and stay in shape and form much longer so long that you do not treat your shoes as if there were made of concrete and can withstand everything, for this is not true. Leather is a skin, just like yours! A higher grade leather will also breath better keeping your feet cooler and more well-balanced in temperature. Higher grade leathers can also be rejuvenated much easier and will hold a shine much longer. Most of the time they will also break-in more quickly allowing your shoe to adapt to your feet faster. But the most important thing that a good leather will do, is FEEL BETTER, and this is evident by just putting on a more expensive shoe.

To touch on the topic of better health I will let you know that most expensive shoes have better support. I don't exactly know why this is, since it has to do with the way the last (wooden mold shoe is built around) is made and this I would think would not be a factor but yet it is. If you start to pay attention, you will see that most cheap shoes are made with almost flat lasts, which you can tell by seeing that there is virtually no difference in height between where the heel sits and the toes fall. You will then noticed that higher-end shoes have more arch support since they are made with lasts that are much more contoured (shaped closer to what are feet are like). This is better for your health because as any doctor will tell you, many people's bodily problems are contributed to a lack of support in their feet.

As far as looks go, cheap shoes are just plain ugly and you can see it a mile away. A cheap leather is by no means elegant nor attractive and will show to those around you. A more expensive shoe is always noticed by it's attention to detail, it's good leather and it's better construction. Also, nobody likes cheap people because it is just not respectable being cheap, especially when you are rich! To explain in terms of your wallet I will tell you that the average cheap shoe, being worn everyday for example, will last you anywhere from 3 months to a year depending how hard you are on them. A good shoe, on the contrary, will last you anywhere from 3 to 5 years depending on whether or not you would like to re-sole them, in which case they could last even longer. It does not take a mathematician to calculate the end cost divided by the amount of time they last you. Now, I know that not everyone is rich and can afford expensive shoes but I will tell you that if you can save up to do so it is a much more intelligent thing to do. To sum things up there is a quote by Gucci that rings so true and says, "Quality is remembered long after the price is forgotten." Remember this and live by it!!