Managing the Price Upswing and When to Sell

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For a lot of re-sellers that hold a view on the market and stash pairs that will go up in value will often be stuck with the million question of…when should I unload my stash? To be honest, no one person is powerful enough to dictate the market, so really demand and supply is really the true force of dictating re-sell prices.  With that being said, as a small player in the market you always want to maximize your returns and be able to enter and exit at the most favourable points.  This is not always possible because no one knows when these points are.  Had we looked at Seans AM and Union Jordan 1s in the past months, you’ll notice a quick spike followed by a slight retraction in price.  For the obvious, your best move would have been sell your pairs when they spiked up in price and now that the price has dropped…buy them back!

In line with my price prediction post last year, I’ve been suggesting to buy the Parra Air Max 1s . I was copping a lot of pairs that were selling for a decent price on the market whenever I came across them and over the year I think I copped a good amount, which are now stashed in the vault.  One year later, I can’t help but to revisit my purchases over the year to see if I made the right choice or not.  Nonetheless, prices have been steady increasing and this was as expected for the exact reason I outlined last year.  However, the hardest part of my job is knowing when is the best time to sell.  To many, if there’s a decent profit, you sell! That is correct, BUT when you want to make money long term in the re-sell business, you need to factor in opportunity cost and time value of money.  If I sell all my pairs today, what would I do with the money.  Are there better pairs that I can invest in the market that would yield me a better return or would sitting on the pairs and do nothing be the best option?

https://blog.netmagnetism.com/2018/08/13/price-expectation-nike-air-max-1-parra/

One thing I love about sneakers is it’s exactly like the stock market, but the only difference in my opinion is sneakers is more predictable than stocks.  We all know supply is finite and diminishing, so all we have to do is predict the demand side.  Over the past 2 months, I’ve noticed quite a few people have decided to pass on the Parra’s 1 year ago for a favourable price but are now in the need of a pair for current resell prices.  This is exactly the reason why prices for the Parra’s have been creeping up.  If i’m seeing this trend in my small sample size in the sneaker community, I can safely say it’s happening elsewhere in the world.  In summary, it simply means the demand for the Parra’s are increasing compared to a year before?  Can this be explained?  My best guess is people didn’t want to buy them when they first came out because they were too easy to obtain.

The market is a funny place.  If I unload all my pairs right now, i’ll satisfy the current demand, but I totally lose out on any future price increases because I don’t have any more pairs to sell.   Being a successful re-seller, you have to be able to make correct calls atleast more than 50-60% of the time.  This is also the situation where when having a lot of money in the bank helps and at the same time makes you a powerful re-seller…why?  Because when new opportunities come up you don’t have to force yourself to sell your existing inventory to fund the new buy outs.

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So what should I do now?  In my opinion, I think the Parra’s are going to have another run up in price leading up to next year’s Air Max day following a similar path as the Air Max 1 Atmos Elephant print retro in 2017.  The price on that pair simply exploded in the past months.  Literally selling for about $500 a few months ago to $700-$800+ on some sizes.  A lot of people ask me whether a certain shoe will go up in price in the future or not…honestly, I can’t always be right, but what I do better than most is I know sneaker history and remembering past trends and learning from them.  If you have followed Parra collabs with Nike in the past, you already know this is a pair that is almost guaranteed to go up in price.  I’m not a legend or an expert…I’m simply just re-stating the story of what’s happening in the market right now in my own words, which means you can do so to.

 

 

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