Nike’s upcoming product Lebron x Nike Plus will be priced at $315. One of the features is that there is a motion sensor embedded into the shoe which detects how high a player can jump. Nike shoes along with other sneaker companies are raising prices of newly launched and original designed sneakers because the material and labor costs are also rising. Personally, I would not pay $300 for Nike LeBron sneakers. I would rather pay $300 for another pair of shoes in the style I prefer. This is because I’m not a consumer who is interested in playing basketball, nor am I a Nike fan who would gather sneaker collections. If I really had to buy a pair of basketball shoe, I would pay around $100 for a basic pair of basketball sneaker without special features.
Just as females who would pay a few hundred to thousands of dollars for a pair of heels, so would basketball players and fans.
However, I think that within the scope of young adults who are amateur to professional basketball players, it is worth for Nike to test out the $300 limit for Lebron x Nike Plus sneaker edition. I believe this pair of sneaker was marketed to target at amateur to professional basketball team players. Players can use the motion sensor feature while practicing to track if their jumping skills improved or not. Meanwhile, professional basketball players can use this function to track the stability of their jumping skills. Therefore, the high price allows Nike to price discriminate and target at the customers who would buy their products inelastically. This will help them reduce consumer surplus by making sure that the product was distributed to consumers who recognize the worthiness and capability of Lebron x Nike Plus that would help their basketball career.
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