While Kanye West has promised that he and adidas are working to lower the price of their collaborative sneakers, it turns out that the actual production cost of an adidas Yeezy is a fraction of the final retail cost.
According to SoleReview.com, the actual freight-on-board cost, or the cost of the sneaker at the time that it is placed on a shipping vessel, for the adidas Yeezy Boost 750 is $76. This $76 number solely represents the raw production cost of the sneaker in it's country of origin. The dollar figure does not represent anything passed the point of production which includes the actual shipping of the sneaker to it's origin, customs duties, taxes, marketing, endorsement deals, retail markup, etc.
At face value, it looks like adidas and Kanye West are making a killing on the Yeezy Boost but as the article goes on to point out, once all other costs are accounted for, adidas is making $2 profit per $100 sneaker. So as Kanye has mentioned before, in order to drop the price on his adidas sneakers, adidas is going to have to make a lot more Yeezys. Seems like a win-win.
