more expensive shoes will lead to longer lead times to sell inventory, due to downward slope of the Demand curve (less demand for more expensive shoes).
If you sell $75 shoes, you can sell 1000 units/mo, but if your shoes are $100 you can only sell 700/mo and it will take 1.5 months to sell 1000 units.
This effectively increases fixed overheads per pair of shoes and decreases net margin per pair, given constant demand
If you sell $75 shoes, you can sell 1000 units/mo, but if your shoes are $100 you can only sell 700/mo and it will take 1.5 months to sell 1000 units.
This effectively increases fixed overheads per pair of shoes and decreases net margin per pair, given constant demand