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they are...they charge crazy prices on stuff.
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
alp
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k lol, must not be fun trying to get kicks for yourself though, that **** is hard for sz. 16 ppl
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back then nike stock was cheap less then $50.00 a share
i got around $5000.00 worth of stock back then sold it when the price peaked around $95.00 and change a few years late
then the stock split after i sold it
one of the smartest sneaker moves i made and that was bad once the stock split
i picked the stock to only sell down the line
never to hold on to
anyways the bottom line is these stores can sell for what ever they want
we are the idiots that just keep buying at retail or otherwise
i dont think nike is going to do anything like cut these nyc locations
too much cash goes through these stores
its wishful thinking as us being educated consumers
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So, to summerize. After reading all of these paragraphs in here. Nike is cutting out the Urban and the slander. Ending crooked backdoor deals by giving m&p shops the ax. Pushing their products to their large retail accounts and premium boutiques only. Creating more pairs to go around, ending resell.
Good Job.
Finally.
Good Job.
Finally.
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Came in here to say this.
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Better yet, Nike needs to take more control of stock and lock in cards and addresses, so imposed shoe limits can really mean something. 1 pair per customer
alp
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this is so funny, last time i heard this joke i laughed so hard i fell off my dinosaur
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Obviously this is going to make major profit for Nike, but it can also have a negative effect on the impact of Nike's sneakers moving forward... It's great for the collectors and people who genuinely just want to own a shoe they like w/o all the hooplah and hype surrounding it. Over the past few years the hypebeast has become a mainstay in the sneaker culture and by closing down boutiques/ mom & pops i think it would really start to take a hit on the anticipation of the shoes.
Whether we like it or not hype is one of the main factors in people buying a shoe now. they have a whole generation of new "sneakerheads" who are accustomed to this style of business from Nike. So say they close all M&P stores and beef up their stock online, niketowns, Big retail stores... you now have a sneaker that is significantly more available and affordable. That boutique price & resell price of 500-1000k no longer exist & you have to wonder in this climate, does the demand for the shoe stay the same.
I worked at FL from 2006-2010 obviously the demand for some Nike's & Jordan Retros have always been high but over the past three years things have hit a fever pitch like never before. EVERYONE wants a pair of Jordans or foams because they see the celebs with them, They know the ridiculously high prices they go for in those M&P stores, they seem to give you a certain exclusivity if you own them. All of those mall fights, Lines that form several days before release, High prices on Ebay etc etc may all sound bad for business but over the past few years i believe those incidents haven't done anything but elevate and enhance the perception and aura around the shoe.
If things get back to normal and suddenly that same hype isn't their what stops that new generation that was built on hype from losing interest in the sneaker because suddenly instead of going for 500$ on ebay they our now 100$ in an outlet.
I agree with this.
The Mom and Pops have helped Nike grow their hype.
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People don't even need to wait for Nike to do this. Stop buying from these places and they can't charge these prices. The consumer creates resellers and crazy prices at stores.
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http://www37.homepage.villanova.edu/stacy.landreth/MKT 1137/Articles/Nike- Channels.pdf
Turned up in google search.
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If I lived out there or had to deal with this, I'd call corporate right in front of the shop owners. I'd email. Hell I'd buy shoes at each location and scan and send the receipts to nike showing them how their stores their supporting are raping customers. They'd be done!
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called a local nyc nike rep on a store nothing happened this was back with the dmp pack came out
the bad thing about me placing these stores in this post
all it brings is traffic to these shops & nothing really gets done with these crooked stores
one of these places or should i say 2 of these shops sells nike products whole sale and i believe that's a big no no on a nike account/contract
a lot of the local reps are paid off to look the other way and give these stores the better product
this used to go on about 7 or 8 years ago
dont know if the same thing happens now
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alp
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get set probably still does that cuz they had every hyped release recently such as yeezy 2, galaxy foam and galaxy rookie. They even had the lebron corks. I can only imagine how much they wanted on those yeezy 2's. they wanted 650 on the rookies and 900 on the corks smh.
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There are more people not paying the rape price than paying the rape price IMO. But you got "the priveliged" with their parent's bank account walking over from 5th Ave to East Harlem to buy hype.
alp
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lol so thats whos coppin at those outrageous prices? One scrawny white kid aint spending $500 on kicks in east harlem and leaving with the shoes
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Then they go to sneaker events so they can show off while frontin like they trying to sell them. (sorry if this is anyone on here)
Edit: Not frontin' I've bought one or two kicks off resale rape price $450 for galaxy zoom rookies and $500 for SB Lebron 9s.
But, hey I'm a grown up and earn a living...so it's my time to spend on myself. Plus I wear my pairs.
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Ok, just had this conversation with my boy who owns 2 stores with accounts. From what he told me, the stores in the Cherry Hill/Philly area are not losing their accounts because of them being shady. This had more to do with stores not updating their retail space to Nike's satisfaction or at all in some cases. The way Nike sees is it that it is a privilege for a retail location, especially Mom & Pop stores, to have a Nike account, let alone an urban account that may get you the hottest releases of the year. My boy situation was that he has a store in North NJ. It was a per existing shop with small account. During this same time, he had another shop not too far away they didn't really have a Nike account and a few sister stores in the area. They decided to do some renovating and actually ended up closing one of the stores that had the most foot traffic. Nike rep stopped in a few months ago and more or less insisted he make renovations or he may lose his account. So he shuttered the door to one store, and decided to renovate his premium space to start a new store. Nike came back and inspected and were very impressed with the newly renovated location. Because of this he said they may be giving him a quick strike account, upgraded from second tier urban I believe. BUT the trade off is that the other location that he refused to renovate can no longer hold the Nike account or even sell Nike products. This has everything to do with Nike's desire to have an "upgraded" customer experience with its higher end, money making products.
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Good info, thanks.
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And they aint even all that... Smh.
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Of course Nike can "cut out the middleman" to increase profits, but it's not as simple as a lot of you make it sound.
First off, while Nike doesn't need these stores to help them move hot items, they do need them to help move the junk. Hell, Nike uses them to move the junk. As others have stated, you have to accept a lot of other crap to get the privilege of selling hot releases. And, this is key to Nike for a number of reasons.
First, Nike doesn't have to worry about selling their less desired product on their own. They hold the hot items for ransom and essentially extort the shops by forcing them to buy all this other stuff - for the NYC cats, this is the same model Dolan used with his networks that led to the MSG/Time Warner lock out a few years ago. Anyway, if you take away the retros from these stores and many of them fold, Nike now has trouble moving their Tailwinds and stuff, so that eats into the profits they gain by bringing a greater percentage of the hot item commerce in house. Rule #1 - there are always unintended consequences to actions!
Second, tons of these shops are likely in debt to Nike in the first place. If you cut off their best sources of revenue, you hurt your chances of getting paid. That's part of the reason Nike is somewhat two-faced about the mark-up issue. They act like they hate it, but they set up their vendor model in a way that often makes it borderline necessary for the shops. Essentially, a good chunk of that money goes back into Nike's pocket too - paying down bills, and keeping the store going to sling more product and begrudgingly accept more shipments of stuff that won't sell. A pimp can't beat his ladies to the point that they can't work...
Third, somebody in the thread mentioned creating more Nike Towns. Well, physical stores are expenses. You have to pay for space. You have to pay employees. You have to pay liability insurance. When Nike sends product out to others, these are all costs that the third party retailers have to bear. Certainly the overhead to expanding their digital storefront is lower, but it's still more employees to process orders, more warehouses, and all that. Changing the current model requires bringing in costs that are currently passed off to others. ...Certainly, this does not equate to the increased profit per item from selling more through their site and B/M locations, but it's a factor that hasn't been discussed.
TLDR; relationships with shops are not about moving AJ Retros, they are about a network that allows Nike to still profit from all the junk too. The proposed move potentially threatens that.
BTW, nice info 160 - but it's quite ironic to hear you so adamantly lambaste those marking up newer releases. Sold those Yeezy 2s for your $2500 asking price yet?
First off, while Nike doesn't need these stores to help them move hot items, they do need them to help move the junk. Hell, Nike uses them to move the junk. As others have stated, you have to accept a lot of other crap to get the privilege of selling hot releases. And, this is key to Nike for a number of reasons.
First, Nike doesn't have to worry about selling their less desired product on their own. They hold the hot items for ransom and essentially extort the shops by forcing them to buy all this other stuff - for the NYC cats, this is the same model Dolan used with his networks that led to the MSG/Time Warner lock out a few years ago. Anyway, if you take away the retros from these stores and many of them fold, Nike now has trouble moving their Tailwinds and stuff, so that eats into the profits they gain by bringing a greater percentage of the hot item commerce in house. Rule #1 - there are always unintended consequences to actions!
Second, tons of these shops are likely in debt to Nike in the first place. If you cut off their best sources of revenue, you hurt your chances of getting paid. That's part of the reason Nike is somewhat two-faced about the mark-up issue. They act like they hate it, but they set up their vendor model in a way that often makes it borderline necessary for the shops. Essentially, a good chunk of that money goes back into Nike's pocket too - paying down bills, and keeping the store going to sling more product and begrudgingly accept more shipments of stuff that won't sell. A pimp can't beat his ladies to the point that they can't work...
Third, somebody in the thread mentioned creating more Nike Towns. Well, physical stores are expenses. You have to pay for space. You have to pay employees. You have to pay liability insurance. When Nike sends product out to others, these are all costs that the third party retailers have to bear. Certainly the overhead to expanding their digital storefront is lower, but it's still more employees to process orders, more warehouses, and all that. Changing the current model requires bringing in costs that are currently passed off to others. ...Certainly, this does not equate to the increased profit per item from selling more through their site and B/M locations, but it's a factor that hasn't been discussed.
TLDR; relationships with shops are not about moving AJ Retros, they are about a network that allows Nike to still profit from all the junk too. The proposed move potentially threatens that.
BTW, nice info 160 - but it's quite ironic to hear you so adamantly lambaste those marking up newer releases. Sold those Yeezy 2s for your $2500 asking price yet?
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alp
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does he charge retail for his hot products?
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