A lot of you young heads are probably still scratching your head about what Nike SBs are and what’s the hype around it. Some of you probably can’t even tell the difference of dunk lows with Air Force 1 lows. Don’t worry, when i was younger, I couldn’t tell at first. I even asked myself why do Jordan’s look like Dunks with a Air Jordan logo. More importantly, some of you are asking yourself why are prices so INSANE!? Well for older heads we all know SBs were probably the shoes that created the whole sneaker re-selling. Some of you might disagree, but in my opinion…SBs were definitely the shoes that made people understand that shoes can be resold for WAY more than the retail price. Reselling definitely existed prior to the release of 2002 SBs, but SBs were the first shoes that resold for 4-5x or more the retail tag the very next day!
SB resell prices have always been up there…and we are just simply talking about the releases prior to 2005. In my opinion, all the releases after the Tiffany Diamond dunk didn’t really pop, with the one MAJOR exception of the What the Dunks. With the recent Dunk Pigeon hitting extreme new highs of $15,000 (this is something I never thought I would see in this life time), the buzz and heat around SBs got everyone talking again. The emergence of Travis Scott rocking SBs has definitely generated attention for the new heads. This is good and bad…the good…new sneakerheads are learning what they are, but the bad is NO ONE can afford them now. I recall buying DS pigeons 2 years ago for $4,500 and I was kicking myself for spending so much on a pair and at the time I felt I overpaid for a pair. Looking back now…I guess not and now questioning myself for selling them too early.
With insane money involved means a lot of attention and everyone out here are trying to figure out how to profit from this insane hype. Well to be quiet honest…it’s too late (in my opinion). The SB market has been so crazy that every SB you can name has gone up in price atleast 20-30%. If you’re merely in the market to make money, it’ll be tough! Unless you think prices can run up another 20-30%, there’s no reason to risk money in such a risky market. It’s not easy for resell prices on sneakers up jump 20-30% especially in today’s time because there are so many releases nowadays and just simply too many options out there for sneakerheads. However, if you’re thinking of buying pairs to rock personally, then in my opinion it doesn’t matter what price you buy if you don’t have the intent of selling in the future aside from just the feeling of “overpaying”, but then again…it is a market and the price you pay today is reflective of current day demand and supply.
So you’re sitting here thinking my title was click bait…If you made it this far in the blog..I’m glad you stayed cause here’s my golden takeaway for the day! Jumping in when prices are high is risky because the chances of prices reverting back is also higher…we call this mean reversion in finance. Instead of thinking how you can profit off the hype of SBs – think elsewhere! For example…The Nike/Air Jordan market has been quiet saturated as of this year and we all know in the long term based on historical trends that highly sought after Nike and Jordan’s eventually will increase in price. I’m sure a lot of us are not millionaire type of wealthy and we all have to rationalize on what to buy with our limiting constraint of money. This means sometimes we have to often sell pairs to buy pairs. Just off the top of my head I can think of so many pairs that you could have easily bought earlier in the year and resold in a few months and profited $100-$200. Look at the Travis Scott AF1s. They were literally selling for close to $275-$300 the first month they released and they are not selling close to $450-$500. Look at the Bred Toe 1s…you could have bought them for $300 the first month and they are now selling around $450. We always have to factor risk when you are in this sneaker reselling game. Buying low and selling high is the name of the game, but which risk adjusted return earns us the best bang for the buck at the least amount of risk is what we all want to target. So my take away today is that if you’re looking for potential profit in the market…don’t look into SBs because there are many other parts of the market that are low key good opportunities make yourself a few bucks and if you’re serious in this resell game…scaling small profitable opportunities like these can make you a business!