Zadehkicks pre orders

[ehveecee]

You run a pawn shop or something?

It’s an old paintball store, just storage space now

 

[ehveecee]

What I’ve heard over the years, I actually think Zadeh is the one that said this… he’d source as many pairs as he could from his connects (I’m assuming at some type of wholesale cost), and if that covered his orders, great… if not, he’d source whatever was left from apps, such as stockx/goat/etc… pretty sure I remember him posting a screenshot, or someone posting something of his goat score or something, he was definitely messing with goat too. I don’t understand why people are only thinking he messed with stockx.

A friend said that on one of the Twitter spaces a day or so ago, that someone mentioned he’d even have a buyback program of sorts… some people would make $1000s + from zadeh, without even touching the shoes… like a bulk buyer would preorder ____ pairs for ____, and Zadeh in the meantime would realize he couldn’t fulfill all orders, so he’d pay said bulk buyer _____ (more than what he paid obviously), and essentially buy that order out.

Also a theory of mine, I think once Nike started pulling mom n pop accounts, it got more and more difficult for him to source his pairs, so he probably had to go through avenues like stockx more often, which obviously cut most of/whatever profit he was making. Walls pretty much collapsed on him at that point…

This is his “buyback” program.

 

[skaterplayer808]

I think I've been watching too much Ozark but how is it that dude was willing to take losses essentially selling a pair for less than retail, but might've needed to buy pairs on sx for resell price just to fill the preorders that were under retail? Sounds like a great way to launder money

 

[1212theory]

SX is venture backed and fakes made it through their system according to Nike. Anytime you buy through a 3rd party you gotta respect it.

Agree, with buying from any 3rd party; you have to do your own research.

Yes, StockX is also venture backed but their supply comes from thousands and thousands of sellers hence higher chance of fakes.

Kickscrew according to that article, sources from 20 vendors. It was my speculation that some of those vendors backdoors pair onto Kickscrew, but that doesn't mean a rep can't make it through - which is exactly what happened a few years ago.

you asked the question if Kickscrew potentially was sourcing goods from Zadeh, to which I replied with my opinion along with sources and anecdotal evidence as to why I think Kickscrew doesn't source from Zadeh and also lower chance of getting a fake.

It's not a question of not "100% yes or no fakes?"; it's a question of "How likely is there a fake?" And yes, that's a crapshoot but I'd much rather take that shot with Kickscrew than Zadeh.

 

[s dubl]

I think I've been watching too much Ozark but how is it that dude was willing to take losses essentially selling a pair for less than retail, but might've needed to buy pairs on sx for resell price just to fill the preorders that were under retail? Sounds like a great way to launder money

The less than retail price wasn’t always available, and anything that was popular/had potential hype would sell out with rhe coupon code… before and after the coupon code pretty much any pair would be significantly over box price… I said this a page or so back. Plus hype/collabs would pretty much never be available to be had under retail.

 

[mr s j king]

I think I've been watching too much Ozark but how is it that dude was willing to take losses essentially selling a pair for less than retail, but might've needed to buy pairs on sx for resell price just to fill the preorders that were under retail? Sounds like a great way to launder money

Problem SX has is they had a consumer, not a business partner, a consumer purchasing tens of millions of dollars worth of items from their website and most likely never questioned the consumers need for that much product

Also let me ask this because I honestly don't know

Does SX ever buy shoes from their users and resell them or does SX strictly act as the middle man?

 

[urn0tlike]

Problem SX has is they had a consumer, not a business partner, a consumer purchasing tens of millions of dollars worth of items from their website and most likely never questioned the consumers need for that much product

Also let me ask this because I honestly don't know

Does SX ever buy shoes from their users and resell them or does SX strictly act as the middle man?

Its been speculated but never proven.

 

[1212theory]

Problem SX has is they had a consumer, not a business partner, a consumer purchasing tens of millions of dollars worth of items from their website and most likely never questioned the consumers need for that much product

Also let me ask this because I honestly don't know

Does SX ever buy shoes from their users and resell them or does SX strictly act as the middle man?

Alarming for sure, but they probably didn't feel legally required to see why Zadeh's wife was buying so much. The bottom line was that they're providing a service to Zadeh's wife, and getting their cut from sellers so they probably don't have any legal obligation to check.

The second question, I believe those vaulted pairs for the SX NFT are owned by SX. Outside of that, no idea.

 

[s dubl]

It was speculated in the past that stockx was controlling the market buy buying up pairs sellers had to offer, and relisting at a higher price… and if they were indeed in bed with Zadeh (or any other large volume seller for that matter) , it all would make a lot of sense from their perspective.

 

[ihust1e]

i have a question to anyone thats been on zadehs website

in the shoe descriptions, did he say the shoes listed were 100% authentic? Or worded like taht in some way?

I was talking to a friend about this whole issue and he said that his descriptions would say some **** like "these shoes would pass stockx authentication" Is this valid? Lol

 

[s dubl]

i have a question to anyone thats been on zadehs website

in the shoe descriptions, did he say the shoes listed were 100% authentic? Or worded like taht in some way?

I was talking to a friend about this whole issue and he said that his descriptions would say some **** like "these shoes would pass stockx authentication" Is this valid? Lol

I don’t recall exactly, but he always mentioned that his shoes were authentic, and took that stance pretty serious, to where at a certain point, you’d basically get blocked if you questioned it (look at it from his perspective, probably got annoying/frustrating on the level he was, dealing with all the accusations. I mean, look how it was in here with only a handful of people.) maybe site didn’t say 100% authentic, again I don’t remember, but if it did say that about passing apps authentication process, he’s basically taking liability from himself, because he doesn’t authenticate every single pair that goes through his warehouse. I’d assume he felt confident his suppliers were legit, unless he didn’t care, which it seemed (at one point) he took his reputation pretty serious from what he led on.

 

[206to813]

i have a question to anyone thats been on zadehs website

in the shoe descriptions, did he say the shoes listed were 100% authentic? Or worded like taht in some way?

I was talking to a friend about this whole issue and he said that his descriptions would say some **** like "these shoes would pass stockx authentication" Is this valid? Lol

Na false, he made it very clear shoes are 100% authentic

 

[cobrab19]

I heard he has a cannabis farm or something, prices are at a all time low right now in that industry and product is sitting I wonder if that coupled with him losing in bitcoin tie in at all?

 

[thedrifter]

If zadeh really did buy that many pairs from sx and other 3rd party apps, I would assume the market for a lot of shoes current and future releases shouldn't see that precipitous rise for sneakers especially what we saw for some sneakers and trading cards in 2020-2021. But then again I feel like the stock/crypto market does also reflect how the sneaker market goes too and since we're like heading towards a recession, and think the price on sneakers won't be as crazy as what we saw the last a year or so.

 

[skaterplayer808]

The less than retail price wasn’t always available, and anything that was popular/had potential hype would sell out with rhe coupon code… before and after the coupon code pretty much any pair would be significantly over box price… I said this a page or so back. Plus hype/collabs would pretty much never be available to be had under retail.

I understand what you're saying, but 500 dollar travis x frag lows? Considering resell is 2k essentially, he was taking a loss on that type of business model. I can see it maybe working out for that VPs son IF he was able to buy pairs at 50% off or even more for those GR type of shoes. And even then, as some have said, why would a person sell a shoe at 500 bucks if he could literally sell for 2k? I know ZK wasn't your average FB reseller, but I see so many people in FB groups try to sell once they have the "got em" screenshot only to cancel on a sale if prices raise drastically before the shoes arrive. TS mochas, SWs, etc. From any business standpoint, that makes no sense what he was doing, especially at the end if he was having to secure orders through SX.

Great point to the other poster asking about SX and their services. I wouldn't be surprised if SX was buying pairs and trying to raise the market, but that's always been speculated and never proven. Something similar with GOAT storage but individual sellers aren't the ones storing, it's actually SX. Now that they were shifting to that NFT model, I can see that they'd be on the hook to purchase shoes at the moment a customer decided they wanted to convert their NFT to an actual shoe.

 

[skaterplayer808]

If zadeh really did buy that many pairs from sx and other 3rd party apps, I would assume the market for a lot of shoes current and future releases shouldn't see that precipitous rise for sneakers especially what we saw for some sneakers and trading cards in 2020-2021. But then again I feel like the stock/crypto market does also reflect how the sneaker market goes too and since we're like heading towards a recession, and think the price on sneakers won't be as crazy as what we saw the last a year or so.

I 100% agree. Oftentimes, people will have to choose between what they're going to liquidate when going into a recession. Crypto/stocks been taking a hit so naturally the shoe resell market is also down. I can see it bouncing back once this "recession" is over. Looking at some of the trash Nike put out couple years ago only to see what prices are now. C'mon. I know pollens, shadow 2.0, marinas, and these heritages aren't everyone's cup of tea, but I would argue that they're better than phantoms and even those crimson tints and those are surprisingly quite high for what it is. Even Panda Twists were going for near or under retail, which is why I returned my pair, now look at it.

 

[s dubl]

But if he secured 200 pairs beforehand at let’s say 800, sold 50 or so pairs at 500 preorder to keep the “good guy/good price” reputation up, then sold the remainder at 1500+ once the release happened, he still turns a profit… just because he doesn’t turn that profit that day, doesn’t mean he doesn’t at all… I’ve heard other resellers with this same mindset, so he could have had the same thoughts.

If anyone was familiar with his prices after a shoe released, at times they’d be borderline absurd.

And the more that gets discussed, more things I recall… he used to mention how he’d actually get extra pairs to cover flawed pairs he’d receive, and/or resell later down the line.

At the time, it seemed like he was either putting too much out there, or took some type of pride being transparent with his customer base.

 

[sneakaprince]

What I’ve heard over the years, I actually think Zadeh is the one that said this… he’d source as many pairs as he could from his connects (I’m assuming at some type of wholesale cost), and if that covered his orders, great… if not, he’d source whatever was left from apps, such as stockx/goat/etc… pretty sure I remember him posting a screenshot, or someone posting something of his goat score or something, he was definitely messing with goat too. I don’t understand why people are only thinking he messed with stockx.

A friend said that on one of the Twitter spaces a day or so ago, that someone mentioned he’d even have a buyback program of sorts… some people would make $1000s + from zadeh, without even touching the shoes… like a bulk buyer would preorder ____ pairs for ____, and Zadeh in the meantime would realize he couldn’t fulfill all orders, so he’d pay said bulk buyer _____ (more than what he paid obviously), and essentially buy that order out.

Also a theory of mine, I think once Nike started pulling mom n pop accounts, it got more and more difficult for him to source his pairs, so he probably had to go through avenues like stockx more often, which obviously cut most of/whatever profit he was making. Walls pretty much collapsed on him at that point…

I know it goes against super reps theory but I do so a lot of logic with this theory.

I heard he has a cannabis farm or something, prices are at a all time low right now in that industry and product is sitting I wonder if that coupled with him losing in bitcoin tie in at all?

Some of this is speculative but maybe I missed his posts about his crypto holdings.

 

[s dubl]

Crypto crashed pretty hard in (I think 2019), which provided a ton of opportunities for people willing to take a risk, and it did last year… so I’d imagine someone like him would realize crypto taking a recent slight dip, he wouldn’t worry much about it… unless everything else was falling apart around him, which looks like what was happening as far as him not being able to meet demand.

Maybe hands in too many things, and all not working out the way as planned.

All speculation on my part, I’m just really trying to look at this from as many angles as I can, to understand why this went down…

 

[ihust1e]

s dubl 206to813 appreciate the clarification fellas

 

[ehveecee]

I have no clue where the crypto thing started but IMO has no substance. The guy blew our money on $800 hoodies, Kaws toys, etai lighters, mclarens, watches, and bethenes plastic surgeries which imo he could of found a better doctor.

The weed farm thing is true it’s eugreen farms. You’d be amazed at how many are going under and losing money in Oregon and Colorado.

 

[dannyarcher]

But if he secured 200 pairs beforehand at let’s say 800, sold 50 or so pairs at 500 preorder to keep the “good guy/good price” reputation up, then sold the remainder at 1500+ once the release happened, he still turns a profit… just because he doesn’t turn that profit that day, doesn’t mean he doesn’t at all… I’ve heard other resellers with this same mindset, so he could have had the same thoughts.

If anyone was familiar with his prices after a shoe released, at times they’d be borderline absurd.

And the more that gets discussed, more things I recall… he used to mention how he’d actually get extra pairs to cover flawed pairs he’d receive, and/or resell later down the line.

At the time, it seemed like he was either putting too much out there, or took some type of pride being transparent with his customer base.

The guy was flexing on Insta, had terrible customer service and now we see that he was getting deeper and deeper in the red - do you seriously think he would be selling at significantly under market to be the "good guy"?

 

[1212theory]

... And even then, as some have said, why would a person sell a shoe at 500 bucks if he could literally sell for 2k? I know ZK wasn't your average FB reseller, but I see so many people in FB groups try to sell once they have the "got em" screenshot only to cancel on a sale if prices raise drastically before the shoes arrive. ...

The only reason why he would do that, is because he probably thought he could keep the gravy train rolling. "Oh man, Zadeh is actually legit, cos Reseller was able to cop a FSR and flip X shoe on StockX for a profit of $XXX ea"

Seeing that, guys like me who were initially on the fence or against Zadeh then sign up to give Zadeh 0% interest free loans (lol yeah yeah i know, GOTEM you's a clown har har har, lol granted i only did it cos my brother really wants the Chi's and thought at worst I'll just ask my CC to reverse the charges nbd)

Let's break it down with a speculative example and analysis:

Let's say Joe preordered 10 pairs of TS1 lows for $500 ea. On that purchase Zadeh now has $5000 cash. We're going with this shoe as an example because that's what your question is seeking.

Sometime 6 months later, Zadeh hopes that the TS1 low drops below $500 but he's SOL cos the fiends gobble up the TS1 lows from resell markets and even his plugs don't have any spare pairs. He waits and waits but they settle on $2K on resell. What are his options then?

​

A. Issue $5K as store credit, +impact on "working capital"​

B. Refund $5K back to Joe and ban Joe, -impact on working capital​

C. Buy back order for more store credit, +impact on working capital​

D. Fulfill partial order, +impact on working capital​

​

I say working capital, because it's money that he can use to fund his other business or investments, or use to actually conduct the business of fulfilling orders.

All of the +impact scenarios leave his pockets flush with cash, but arguably the best scenario would be to try to keep customer hush hush so complaints won't spook future buyers. That option would be best done with D. By buying at least 1 pair at $2K, Zadeh still gets to keep $3K here while looking like he's trying his best to fulfill orders.

How it falls apart
But this all falls apart by a few things:

1. Too many complaints and orders where he is underwater
If he has way too many TS1 low orders to fulfill with too many people threatening to do a chargeback, and not enough preorder money on hand to cover the people complaining, then he has no choice but to buy something or refund money from his own pocketbook since there's not enough working capital from new+existing buyers.

2. Walls closing in
What s dubl was saying, with shops reopening/closing up after covid, Zadeh has even less legit pairs to obtain orders from, forcing him to buy from StockX Goat. This trend appears to be from archived StockX data from Mar 2020 to Nov 2020, increasing market value and # of items in StockX portfolio during that time. Data for 2021-2022 is not available but if it shows a tapering of buying, then you know he was basically just pocketing preorder money. The ability to read and predict sneaker valuations over time would be critical here.

3. To some degree, Nike has been putting out garbage
Nike releases (rumored and not) were straight up garbage so less new money coming up to help him keep the train going.

4. Unrealized straw that broke the camels back
This is one is even further on the speculation spectrum, but as others have suggested, something external had to have happened. Did something happen to the cannabis business that required cash to burn? Did he lose on bad bet - Crypto? Stocks? We don't know what his portfolio looks like.

any questions? let's talk

 

[headdetective]

How does one gain this much trust/credit from absolute strangers?

 

[aceofjays]

How does one gain this much trust/credit from absolute strangers?