Wholesale selling price for branded footwear. Other competitive factors being equal (S/Q rating,
product line breadth, advertising, rebate offers, and so on), the more a company's wholesale price to
footwear retailers in a geographic region exceeds the geographic industry average, the more that
footwear consumers in that region will be inclined to shift their purchases to lower-priced brands—
since higher wholesale prices to footwear retailers translate into higher retail prices for footwear
consumers. Similarly, charging a wholesale price that is below the geographic market average raises
a company’s potential for above-average unit sales and market share unless the effects of a lower
price are negated by a sub-par S/Q rating, comparatively few models/styles for buyers to choose
among, low advertising, fewer retailers carrying and displaying your brand of athletic footwear, and
other factors that matter to footwear consumers. However, above-average wholesale prices to
footwear retailers can be partially or wholly offset with a higher S/Q rating, increased advertising,
higher mail-in rebates, and so on. The further the wholesale price is above the industry average in a
geographic market, the harder it is for a company to use non-price enticements to overcome
consumer resistance to higher prices. Likewise, the further a company’s wholesale price is below the
industry average in a region, the greater the potential sales gains unless the effect of a lower price is
negated by a sub-par S/Q rating, comparatively few models/styles, insufficient advertising, weak
celebrity endorsements, and a below-average number of retailers merchandising and promoting the
company’s footwear—low price alone won’t attract droves of buyers.