Over the last few months we have been slowly ramping up purchases in not so hype sneakers and have slowed down on our purchases of ultra hype grail sneakers considerably. To be honest this really wasn’t an intended/thought out plan from last year but we are simply going with our gut feeling of where the market is heading and taking what the market is giving us right now. Last week we bought a bunch of DS Jordan 3 SEs that were deemed by the market as “bricks“. For the record when I say the market it really means the market price set out by sellers and buyers. If shoes of this caliber are selling for less than retail, then in my book it’s a brick…at least for now.
This past weekend, we also picked up a few pairs of these pine green 1s. The market price in my opinion was more than fair on the after market barely selling over retail and we were able to get a fair amount quantity in with relative ease. The reason why I love working with sneakers like these is because as a seller I don’t have to go hunting for these shoes. These shoes somehow find their way to us. Vice versa, sneakers such as off white and Travis Scott’s are honestly 10x more difficult as we actually have to work for them and the market is just way to competitive. To be honest, I’m getting too old to waste time chasing down sellers, so from our perspective the game is a lot easier when you buy sneakers that people don’t want because they bring them to me and not the other way around.
Of course you might say, how am I going to make money on this? Well I won’t be making money today, but it doesn’t mean I won’t be in a few months or even a year’s time. Right now I feel like we are EXACTLY in the 2001-2002 era again. I’ve seen it, lived it and experienced it first hand. During this time frame it was when the SB hype was just starting out and Jordan’s were literally on clearance racks. Jordan 1 royals and Breds discounted and even THEN, they had trouble moving them. If you really think about it, we are living that exact same time in terms of SB and Jordan’s in 2020. Right now most Jordan’s coming out are still sitting and SBs…well you know….you don’t need me to state the obvious.
This isn’t the only reason why I decided to change our strategy. It’s mainly because the landscape to buy and sell sneakers have changed drastically over the past years. The emergence of StockX has really changed our buying and selling behavior. While the debate continues to be whether or not StockX is a cancer to the market or not – if you ask me as a business, they are nothing short of amazing. They not only serve as a market price for DS sneakers, but more importantly they provide liquidity to the market. I know some of you have absolutely no idea what I mean when I say liquidity, but in finance it simply means how fast you can translate your product into cash. As a business this is extremely important. Why? Because when you need cash in a very short period time, having high liquidity for your product is very important. This was a big problem for me when StockX wasn’t around. Sometimes you need to come up with money FAST to fulfill a buyout you didn’t plan for and knowing you have to take action right away or else the opportunity will fade – the only way to go about this when cash flow is not available is you got to sell some of your inventory. For those that know what I’m talking about…selling takes TIME! If I were to offload sneakers, I can’t just find a buyer RIGHT AWAY through my own platform unless I massively slash my prices to unfavourable means – even then it still will take time. My platform just simply isn’t as big as StockX. StockX provides liquidity to the market that no one can else can do on the market.
Circling to my point of today’s topic. If I concentrate on buying lower valued Jordan’s that are bricks now, I massively reduce my liquidity risk in the future of my inventory. For shoes like the Pine Greens, they will trade on StockX with very tight spreads, which in my opinion is extremely favourable. That means IF I really needed to off load ALL my pairs at any given moment I can do so – same day if I really needed to. On the flip side, if I was trying to offload high end grails like Fragment 1s, the spreads are WAY too big often in the $500-$1000 range. For someone to bid close to my ask price might take weeks or months. Hence, for me …the more logical inventory to buy are highly liquid recent releases that I hope will increase 20-30% over the year in which I can offload any time if need be. This allows me to take exposure on the mid-long term price increase but also reduce my liquidity risk. At the end of the day, sure having grails is a great for your IG page, but it may not necessarily be the best for your overall business.
Very interesting read! I find it fascinating how sneakers are now looked at as valuable commodities to some people rather than something that they just put on their feet. People can start reselling businesses that focus on sneakers as a stock or valuable resource that they can sell or trade! When treating sneakers like stocks, there is one obvious difference, sneakers are a physical, tangible item while stocks aren’t necessarily physical. The question I have for major sneaker resellers (resellers who move hundreds to thousands of shoes a month) is when do reselling sneakers become a space issue? For example, as mentioned in this article, you currently bought many pairs of the Pine Green 1s to hold. Do you ever have space problems when you are holding a certain sneaker for months while conducting normal reselling practices with other sneakers?
I’ve been renting a storage unit for last 2 years to store over 350+ pairs of sneakers. I keep about 40-50 pairs at home. Not a huge reseller like many out there but I’m doing something right.
This man knows what up. His knowledge of this resale game is better than many. I bought bricks bloodlines now look. Some pine greens. Some black cat 4’s. Etc. Bought many at retail. Free ship. No tax. Good sizes. My future holds are no longer beyond 12 months but I believe in due time I’ll make something. I’m not a fan of stock x but I agree on his liquidity aspect. What goat and stock x mean to me….it’s a quick way to flip bricks. Break even. Maybe make something. Maybe lose some. But recover quick cash for personal expenses or fund other sneaker purchases. I know longer have to go and look for a buyer or buyers. Discuss prices and waste time. Just list on goat and stock x and quick flips regardless of the outcome in profits or not. Back in the day selling on Craigslist. Or even eBay was annoying asf. Now it’s simpler. I wanted Travis dunks…I flipped like 3k in 1 week on goat…flipping shit that wasn’t moving up. On many of those kicks broke even. Oh well. If you have enough sneakers to flip you have good capital. Reselling is one of my passions in life and I love it. I resale steel aluminum for a living by the way. Turning 38 in October. Been buying reselling kicks since I was 15.
YES SIR!!! Exactly…a few years ago, if you had to flip 20-30 pairs overnight it’s near impossible because eBay always needed atleast 3 days to sell and yes you can list a one day auction, but you risk not hitting your target prices. StockX eliminates that price uncertainty and allows you to move volume instantly. I can’t agree more! Some people complain why they can’t get Travis Dunks for retail…but honestly all they really had to do was walk into the retail store, put in a little work – flip a few pairs and you can EARN your pair of Travis without even paying retail! Thank you for sharing man and appreciate the thoughtful comments. Hope the reselling keeps going well for you as well! Much love.