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  #1  
Old 02-19-2007, 05:45 PM
Cornell Fiji Cornell Fiji is offline
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Default How much does it cost to produce an (American) football?

I was having a disagreement with one of my buddies today and google searches produced no results.

I want to know how much it costs Wilson to produce this:


Things to consider:
-We are talking about the high quality, game quality balls
-It is made in America
-It retails for around $120
-It is made out of leather
-I have no idea if it is hand sewn but there has to be a human element in the production process.
-Do not count the cost of Wilson's liscensing contract so that they can say that theirs is the 'official' ball. Do not count costs to get the football to the buyer but do count the cost of getting the materials to the factory (there is an economic term for this that I can not think of off the top of my head)

If anyone knows of a website that has the definitive answer to this question I would appreciate a link
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  #2  
Old 02-19-2007, 05:47 PM
driverseati driverseati is offline
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Default Re: How much does it cost to produce a football?

That's my estimate (31-40), and that excludes shipping and distribution/packing costs. But this is just a wild guess...
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  #3  
Old 02-19-2007, 05:59 PM
DCopper04 DCopper04 is offline
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Default Re: How much does it cost to produce a football?

I think it costs $20.50
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  #4  
Old 02-19-2007, 06:03 PM
Skoob Skoob is offline
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Default Re: How much does it cost to produce a football?

300% markup sounds about right for an item like this.
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  #5  
Old 02-19-2007, 06:53 PM
Cornell Fiji Cornell Fiji is offline
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Default Re: How much does it cost to produce a football?

[ QUOTE ]
I think it costs $20.50

[/ QUOTE ]

Well, then you can pick either of two options.
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  #6  
Old 02-19-2007, 07:06 PM
NU Star NU Star is offline
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Default Re: How much does it cost to produce a football?

You guys think there is a significant cost of manufacturing difference between the NFL game ball, and the other pretty high quality ball that sell for under $15-$30?
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  #7  
Old 02-19-2007, 07:09 PM
omega21 omega21 is offline
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Default Re: How much does it cost to produce an (American) football?

If FULL retail price is 120.00 then wholesale price would be in the 60.00 range (price retailer pays) Then you can estimate manufacture cost at 1/3 to 1/2 so in the 20.00 to 30.00 range. I live in Columbus, Ohio and they are made in Ada which is about halfway between Columbus and Toledo. I have always wanted to go and take a tour......maybe this summer. How a football is made.
As you can see from the video looks like they are pretty labor intensive and basically made by hand.
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  #8  
Old 02-19-2007, 07:16 PM
stabn stabn is offline
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Default Re: How much does it cost to produce an (American) football?

Between 7.50 and $15.00. Sick markup for NFL licensing changes the real numbers.
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  #9  
Old 02-19-2007, 07:17 PM
Kneel B4 Zod Kneel B4 Zod is offline
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Default Re: How much does it cost to produce an (American) football?

I doubt Googling or anyone here will give you the definitive answer, since you really need to include things like overhead, employee salaries, electricity to run the factory, etc.

take an Activity Based Costing class, it's fun!
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  #10  
Old 02-19-2007, 07:22 PM
El Diablo El Diablo is offline
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Default Re: How much does it cost to produce a football?

CF,

You can prob find the answer here: http://www.ibisworld.com/industry/re...893&chid=1

I would guess under $10, almost surely under $20. NFL licensing costs could easily be more than the production cost of something like this.
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