- 1,036
- 430
- Joined
- Aug 7, 2012
i wonder what will happen say for the next fire red 3 and 5 release since this policy will be in effect by then...hmmm
Nike Cuts Ties with Several Small, Local Retailers - EFFECTIVE JUNE 30, 2013 - MORE TO COME
- Thread in 'Jordan Brand' Thread starter Started by grapeape,
- Start date
- 10,646
- 9,738
- Joined
- May 19, 2004
Retailers are resellers my man - happens in all types of businesses. Grocery stores, Walmarts, auto dealerships, etc... Unless YOU buy directly from the manufacturer/supplier you're buying from a reseller. Even NikeTowns and employee stores mark up their product...
You could go a step further and say that Nike themselves are a 'reseller' of product that's manufactured offshore.
- 1,809
- 238
- Joined
- Dec 3, 2007
I think he means that many retailers have become the type of "reseller" that we all hate. You know, buying up pairs and putting them up on eBay for "R" rated prices. Retailers are bound to MSRP. My local does reservations, but you have to pay between $10-25 over retail. I was cool with it until the BRED's where they charged me $100 over sticker. That is bold.
- 240
- 189
- Joined
- Feb 11, 2013
Retailers are not bound to MSRP. The unwritten rule is to go by the MSRP 99% of the time but there is no rule saying that they cannot. Smaller retail chains that have decent accounts and receive decent limited color ways often abuse it on a regular basis.
- 231
- 60
- Joined
- Jun 30, 2008
Yea its about freaking time Nike did something like this...its bad business and exploitation of consumers when these m&p's try to rape people...
Before in Sunset, Brooklyn and Fulton St... (especially when they had the mall) the most you would see is 250 for a pair of kicks if it's early...now I'm seeing 350+ ...280 on bugs bunnys... i never understood why people still buy at that price...
Before in Sunset, Brooklyn and Fulton St... (especially when they had the mall) the most you would see is 250 for a pair of kicks if it's early...now I'm seeing 350+ ...280 on bugs bunnys... i never understood why people still buy at that price...
- 392
- 26
- Joined
- Feb 3, 2013
i'm yet to run into a mom and pop store here in El Paso. One that sells Js anyway.
- 392
- 26
- Joined
- Feb 3, 2013
I know you guys like stupid questions...When kicks/apparell go on sale or hit the outlets, is Nike still pulling a profit or are they taking losses? I've always wondered this.
- 1,610
- 201
- Joined
- Mar 26, 2013
I hope nike sends these products from closed mom and pop shops to Ross or Marshall's. I'm so sad our mom and pop shop is gone they were real cool people (Miami international shoes). ;,(
- 3,376
- 7,236
- Joined
- Aug 9, 2012
Still a profit unless they get marked down below cost. Their profit margins are huge for most of their products, especially when they sell product directly. They actually make more money per shoe selling discounted b-grades at an outlet than they do selling the a-grade stock to retailers like ftl and fnl.
- 49
- 11
- Joined
- Mar 25, 2013
This.
- 10,646
- 9,738
- Joined
- May 19, 2004
As a former retail employee, I can second this. The difference between wholesale and MSRP is quite large - the only time Nike might take a hit is if a product is RTVed (return to vendor). That means the product is utter doo-doo and Nike's gonna have to hold onto it for a while or blow it out at below wholesale.
Last edited:
- 10,646
- 9,738
- Joined
- May 19, 2004
Yeah bud, I knew exactly what he meant and I'm not justifying the massive price increases over MSRP. It's just that there's an incredible demand for low quality, retro product and unscrupulous people are taking advantage of it. If everyone took a stand and stopped buying all these releases you'd see some change but until then, keep expecting the MSRP to go up, up and up.
rell826
Banned
- 6,740
- 2,125
- Joined
- Apr 25, 2013
Because there's a demand for the product and people have paid those prices in the past. If there wasn't history to base those prices on, guarantee you wouldn't see those. Unless you're getting it from the manufacturer, you're overpaying for the product to begin with.
It is hard for mom and pop stores to deal with shoe companies especially Nike because for every Foamposite they order they have to take in double or triple the crap like the Nike fusions. They are not allowed to just order shoes like Foamposites or Air Jordans.
I don't know if this point has been raised, but maybe Nike is canceling accounts because they've shown an inability to pay for their merchandise? Nike lets stores operate off of credit and eventually they will come calling for their money. Like my local shop that used to be one of the best in Brooklyn, they racked up a bill of 500K and Nike deaded them. They have to operate through a middleman to get the latest product. They still get stuff like Foams, LeBrons, Jordans and Kobes, but they have to charge more than retail for some of the stuff because they no longer have an account. Nike let them get away with not paying over a decade. They are very generous when it comes to that. They couldn't pay what they owed and got cut off.
Also, as pointed earlier Nike has made a push for independent stores to update their look and feature Nike product in the front of the stores. This is the stuff that sells more than anything else in the store because consumers aren't likely to walk around and look. They know this and this why they are requiring stores to implement the requests.
The market is over saturated as it is. On every block in a major city, there's a sneaker store. There's not much money to be made unless you're established and have been around the block before.
Last edited:
- 10,646
- 9,738
- Joined
- May 19, 2004
^^^
Repped on the above my man, solid points dropped. I'll go one step further and say that this the beginning of larger plan to get away from 'brick & mortar' based stores and consolidate their 'dealer' network. Similar to GM & Chrysler shutting down dealerships a few years back after receiving bailouts - Toyota was able to outsell them then with half as many dealerships. Another benefit of severing the Mom & Pops contracts is limiting product over saturation as you stated.
Repped on the above my man, solid points dropped. I'll go one step further and say that this the beginning of larger plan to get away from 'brick & mortar' based stores and consolidate their 'dealer' network. Similar to GM & Chrysler shutting down dealerships a few years back after receiving bailouts - Toyota was able to outsell them then with half as many dealerships. Another benefit of severing the Mom & Pops contracts is limiting product over saturation as you stated.
- 240
- 189
- Joined
- Feb 11, 2013
Please keep in mind that these independent stores allegedly are losing their accounts due to the lack of updating their physical locations. I think the real reason is being avoided by a few posting on here.
- 10,646
- 9,738
- Joined
- May 19, 2004
^^^
Fair enough bud, I've been in some stores that haven't had updates since the early 90s.
Fair enough bud, I've been in some stores that haven't had updates since the early 90s.
- 4,718
- 421
- Joined
- May 6, 2007
Lol I left b4 Marc got there tho. We was better with Johnny Mayhane, Brandon Hollinger and all them guys tho. Im out in a place called Newport News now tho.
- 9,833
- 6,587
- Joined
- Feb 9, 2013
That's cool. I'm somewhat familiar with VA. As a matter of fact, I'm flying from Houston to Richmond in about an hour (about to board the plane). Anyway, I'll be passing through Newport News on my way to Va Beach tonight.
- 4,718
- 421
- Joined
- May 6, 2007
Damn small world homie. U must got a navy chick out in the beach
Have a safe trip my dude
Last edited:
israel3
Banned
- 130
- 17
- Joined
- Jul 24, 2012
I dont get a bad vibe from jamaican ave but they do over charge
Whats some good spots that dont over charge alot?
- 2,920
- 759
- Joined
- Mar 18, 2012
just quick question ; is it legal or illegal selling nike shoes above MSRP for small stores?
- 759
- 697
- Joined
- Apr 9, 2012
Just found this thread. A lot of good posts. Good points by 1IX8VI and BIP Roberts.
Nike is certainly making it harder for the smaller guy to stay profitable. They already know whats going to sell. Shoes like Jordan retros and most AF1's (contrary to "sneakerhead" opinions) will always sell. But what they're trying to do now is ramp up apparel and other shoe styles. Almost 50% of orders from owners are apparel now. They're requiring that certain shirts are bought to go along with a release. In some cases, they gotta order apparel for shoes they won't even get allocations for. I'm still setting GMP shirts in spots that never got em.
They also wanted the owners to update their displays, store layouts/modeling, add the Nike-recommended shelves and nesting tables, and replace older styled hang racks with their recommended racks for hanging apparel. On top of that, they gotta increase orders on all the inline JB shoes, and overpriced zoom turf jet's and so on.. that and most people just don't care about.
Owners were basically told all of this in the quarterly meetings through last year. They were also instructed to take pictures of the actual store and displays after the updates and send the final shots to nike/JB for review. Now guys are getting their Retro allocations cut for various reasons like small square foot space, outdated displays, and friggin floor panels.
These upgrades and changes cost serious money. And they have to weigh those costs while they gotta mark down some ugly a** $185 max flyposites to try and break even on the 6 month old shoe.
I get everyone's frustrations about price gouging and back door tactics. But if that was really a concern Nike would have let all the owners know at their quarterly meetings, and you'd be seeing most stores tighten up everywhere. From the small mom and pop joints to the high school kid at the big mall store counter. Not just stores in one small region. I can't speak for the stores that are closing in the Philly area, but not all mom and pop stores sell early or price gouge. Their Nike account covers almost all of their entire sales and they're not trying to lose it with back door tactics.
Nike is certainly making it harder for the smaller guy to stay profitable. They already know whats going to sell. Shoes like Jordan retros and most AF1's (contrary to "sneakerhead" opinions) will always sell. But what they're trying to do now is ramp up apparel and other shoe styles. Almost 50% of orders from owners are apparel now. They're requiring that certain shirts are bought to go along with a release. In some cases, they gotta order apparel for shoes they won't even get allocations for. I'm still setting GMP shirts in spots that never got em.
They also wanted the owners to update their displays, store layouts/modeling, add the Nike-recommended shelves and nesting tables, and replace older styled hang racks with their recommended racks for hanging apparel. On top of that, they gotta increase orders on all the inline JB shoes, and overpriced zoom turf jet's and so on.. that and most people just don't care about.
Owners were basically told all of this in the quarterly meetings through last year. They were also instructed to take pictures of the actual store and displays after the updates and send the final shots to nike/JB for review. Now guys are getting their Retro allocations cut for various reasons like small square foot space, outdated displays, and friggin floor panels.
These upgrades and changes cost serious money. And they have to weigh those costs while they gotta mark down some ugly a** $185 max flyposites to try and break even on the 6 month old shoe.
I get everyone's frustrations about price gouging and back door tactics. But if that was really a concern Nike would have let all the owners know at their quarterly meetings, and you'd be seeing most stores tighten up everywhere. From the small mom and pop joints to the high school kid at the big mall store counter. Not just stores in one small region. I can't speak for the stores that are closing in the Philly area, but not all mom and pop stores sell early or price gouge. Their Nike account covers almost all of their entire sales and they're not trying to lose it with back door tactics.
- 251
- 30
- Joined
- Nov 17, 2003
Not reading this entire thread.
I know of shops that charge extra for early purchase but retail day of release.
Maybe I'm wrong, but I'm from the "old school". I'm use to putting in years at a retailer, building a rapport with owners/employees, eventually it got to a point where I've never had to wait in line. I "paid my dues". idk man this sounds alot like new jack crying.
I know of shops that charge extra for early purchase but retail day of release.
Maybe I'm wrong, but I'm from the "old school". I'm use to putting in years at a retailer, building a rapport with owners/employees, eventually it got to a point where I've never had to wait in line. I "paid my dues". idk man this sounds alot like new jack crying.
- 3,090
- 2,135
- Joined
- Nov 12, 2002
The IMPOSSIBLE can happen...
Enough people complained about my local mom and pop after some recent releases that nike threatened to take their account away. They now release on RD and charge retail. I'm not saying to go out there and snitch... But hey, I just got my 2nd pair of grapes for retail, when they've been known to charge at least $300 for any hyped shoe.
Enough people complained about my local mom and pop after some recent releases that nike threatened to take their account away. They now release on RD and charge retail. I'm not saying to go out there and snitch... But hey, I just got my 2nd pair of grapes for retail, when they've been known to charge at least $300 for any hyped shoe.
- 75
- 23
- Joined
- Sep 4, 2012
A few of the mom and pops around my way usually sell to their FRIENDS and family or their resell buddies. The only time you can walk in off the street and cop a jordan from them is when no one wants them (crimson 3's). They haven't been affected by this new practice, but I am seeing major retailers that don't normally even carry Jordan's carry them in the last couple of releases. Coupled with the heavy loads of late, I believe nike/jordan brand are trying to keep the game as honest as they can. Death to the resell game is coming.
