Interesting infographic from this site! the takeaway for me is that even with aggressive discounts at its employee store, nike still profits since that money would have been margin for 3rd party retailers anyways They’re so big, they set the prices for the industry. As the Pegasus’s price goes up, all other brands follow suit. Then they can heavily discount previous models, make a profit and, leverage “perceived value” https://www.solereview.com/what-does-it-cost-to-make-a-running-shoe/