During his Beats 1 Radio conversation with Zane Lowe last week, Kanye West said that he was aiming to have all YEEZY kicks produced in the U.S. in the next two years. Thanks to the Footwear Distributors & Retailers of America (FDRA), who spoke to Complex, we now have a clearer view of how his shifting production State-side could affect the retail price.
Breaking down the costs with Matt Priest, President and CEO of FDRA, the investigation concentrated on one silhouette in particular: the YEEZY Boost 350 V2. According to Priest, that shoe currently costs approximately $35 to make and retails at $220. Only $4 in that production cost goes to labor, which of course will increase when paying the U.S. hourly wage.
Should those producing the sneakers in America be paid $17 per hour, that additional labor costs would amount to $84 . After deducting $7 saved on import duties, the result is an increase of approximately $77, which would bring the YEEZY Boost 350 V2 to $297 a pair.
Of course, that steep shift from production to RRP takes into account a 6x markup due to Kanye’s brand power. Normally, retail is around 4.5x of the production costs. What’s more, it also assumes that the manufacturing materials are imported, if not, that hikes up the price, too, potentially leaving the shoe around the $324-$400 mark if everything is handled in America.
Head over to Complex for the full breakdown.
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