16 yr old kid opens "SNEAKER PAWN" shop

[blastercombo]

The "sneaker game" is getting bigger but the price differential between retail and resale is getting smaller. Every year there is only a handful of shoes that ask for high dollars. Those are a lot more rare so the odds of starting a business and keeping it afloat with said shoes is pretty low.

 

[011781]

The "sneaker game" is getting bigger but the price differential between retail and resale is getting smaller. Every year there is only a handful of shoes that ask for high dollars.

I agree with that ...

IMO:

a. retail price of sneakers is going up, so the shoe companies are closing the gap in re-sale profits

b. there are more people buying **** just to resell -- the leeches that got involved just because they saw $$$, had zero interest in sneakers before hand  .... everything is getting sucked up, so now people have to make decisions on what they'll spend real resale bread on ...

 

[treystylezpopz]

Pawn stars got people fooled.

It aint like dat lol.

Yeah that episode were chum got those 3m Toros for $100 was DEFINITELY the inspiration for this idea.


I've had to pawn stuff before and its a crappy feeling to be honest. For real though if I had to pawn a pair of sneakers that'd be an all time low and I have too much pride as a man to even consider something like that even if I had to.smh

 

[011781]

no joke, friend of mine mentioned the idea of a "rent-a-sneaker" service.....

i told that ***** to get the **** off my phone talking that silly ****

 

[Based Jesus]

 
no joke, friend of mine mentioned the idea of a "rent-a-sneaker" service.....

i told that ***** to get the **** off my phone talking that silly ****

That's worse than rent em spoons

 

[PRIME]

 
no joke, friend of mine mentioned the idea of a "rent-a-sneaker" service.....

i told that ***** to get the **** off my phone talking that silly ****

That's worse than rent em spoons

C'mon b. Rent em spoons is crack proof

 

[jbc908]

Yall think I can open the first Legal rent-a-yambz on the NY-NJ border right where that travel lodge is by the holland tunnel?

 

[blastercombo]

Rent-a-sneaker is just as bad as a sneaker pawn shop

 

[airthompson]

Nothing wrong with the kids aim, just gotta change his target.

 

[tr1ll]

no joke, friend of mine mentioned the idea of a "rent-a-sneaker" service.....

i told that ***** to get the **** off my phone talking that silly ****

Bro you from Houston?

 

[PRIME]

Yall think I can open the first Legal rent-a-yambz on the NY-NJ border right where that travel lodge is by the holland tunnel?

Rent a yamb?

You mean like prostitution?

 

[servechilled81]

they have services where chicks can rent luxury bags, shoes, clothes.  I don't think that can work for sneakers because the wear on the materials would show to easily

 

[tr1ll]

Yall think I can open the first Legal rent-a-yambz on the NY-NJ border right where that travel lodge is by the holland tunnel?

Rent a yamb?

You mean like prostitution?

fixed

 

[mojodmonky1]

This isn't a pawn shop where they take in any and everything, he takes in SHOES. All your pawn shop knowledge is out the window. His clientele is limited. His product is limited. His profit margin per shoe is low.


What he's selling is being bought at retail and sold hopefully for higher. People who can wait a couple days could make more money putting them on eBay or CL. He doesn't have the notoriety of FC or any of those places who have that market cornered.


This is the underpants gnome business plan to the T

as someone else mentioned before, either you didnt read the article or you have no idea of how pawning works.

the basis of his business model is to provide short term loans secured by collateral. In this instance, the collateral is only high end resalable sneakers. How is his clientele and product limited when his product is MONEY. Everyone needs/wants money.

Also, how do you know that his profit margin per shoe is low? How do you even know what his cost basis is as it surely did not mention it on the article.

What I got from the article:

You're broke, rent's due, you need quick money, pawn your Yeezys for $200.

You have 30 days to pay for that $200 + $40 (pawn fee)

Someone comes in within 30 days and offers $2000 for your yeezys, you can keep 80% of the sell price ($1600) + store gets 20% ($400) (RIF/FC)

Either you find a way to pay $240, take the $1600, or take an L (can't pay the $200 after 30 days)

CLU713 broke it down nice and simple right here. Obviously he is making some assumptions about certain details that werent described in the article, but the overall explanation is on point.

I gotta give it up to the kid for having that entrepeneurial spirit at a young age. I hope he succeeds.

 

[jbc908]

It's only prostitution if u feel guilty for paying

 

[atlien seeko]

Would be cool to see a brainstorm on how dude could make it better vs how he's a clown.

 

[je ne sais quoi]

so his pops works at his store in the day while he is at school?

something is so wrong with this picture

Would you rather his dad promise to work for him...then leave...which opens up to...

"HOW COME HE DON'T WANT TO WORK FOR ME, MAN?!"

 

[tkae225]

He's reselling enough shoes to pay rent and turn a profit? Ok....

 

[smokey]

I think he's better off just selling all kicks if he's trying to profit off shoes.

 

[sundoobie]

I gotta give it up to the kid for having that entrepeneurial spirit at a young age. I hope he succeeds.

Yeah same here. Great idea considering there are a lot of desperate people out there with high end sneakers.

 

[jbc908]

I can't hate on his grind but sneakers aren't valuable enough to run a pawn shop, he may have the field to himself but why would somebody pawn jays when they can get 4x as much selling on facebook. And if he opened up a sneaker shop the competition is even tighter with the HOH in harlem and sneaker store in NY in general.

 

[mojodmonky1]

I can't hate on his grind but sneakers aren't valuable enough to run a pawn shop, he may have the field to himself but why would somebody pawn jays when they can get 4x as much selling on facebook. And if he opened up a sneaker shop the competition is even tighter with the HOH in harlem and sneaker store in NY in general.

not really sure i follow your reasoning here.

people will pawn their jays because they DONT want to sell them on facebook. They still want to keep their jays but just need some quick cash to get them through a tight spot. Shop holds it as collateral and fronts the jays owner some cash. If that guy comes back in 30 days (or whatever the set time period is) with the money (+fees) then he gets his shoes back and the shop collects their fees.

 

[jbc908]

I can't hate on his grind but sneakers aren't valuable enough to run a pawn shop, he may have the field to himself but why would somebody pawn jays when they can get 4x as much selling on facebook. And if he opened up a sneaker shop the competition is even tighter with the HOH in harlem and sneaker store in NY in general.

not really sure i follow your reasoning here.

people will pawn their jays because they DONT want to sell them on facebook. They still want to keep their jays but just need some quick cash to get them through a tight spot. Shop holds it as collateral and fronts the jays owner some cash. If that guy comes back in 30 days (or whatever the set time period is) with the money (+fees) then he gets his shoes back and the shop collects their fees.

If you in that much of a jam you needa pawn your sneakers you shouldn't buy 150$+ sneakers theses kids obviously aint gonna make the pawn money back and end up losing they shoes to a pawn store for like 50 dollars, that's what i'm saying.

 

[mojodmonky1]

I can't hate on his grind but sneakers aren't valuable enough to run a pawn shop, he may have the field to himself but why would somebody pawn jays when they can get 4x as much selling on facebook. And if he opened up a sneaker shop the competition is even tighter with the HOH in harlem and sneaker store in NY in general.

not really sure i follow your reasoning here.

people will pawn their jays because they DONT want to sell them on facebook. They still want to keep their jays but just need some quick cash to get them through a tight spot. Shop holds it as collateral and fronts the jays owner some cash. If that guy comes back in 30 days (or whatever the set time period is) with the money (+fees) then he gets his shoes back and the shop collects their fees.

If you in that much of a jam you needa pawn your sneakers you shouldn't buy 150$+ sneakers theses kids obviously aint gonna make the pawn money back and end up losing they shoes to a pawn store for like 50 dollars, that's what i'm saying.

if everyone in this country was finacially responsible there would be no need for the pawn industry. The reality is, the majority of Americans are very uninformed and irresponsible when it comes to money and finances. Pay day loans, collateral title loans, hard money lending, etc... are all big business that thrive off of this sort of financial irresponsibility.

But you did touch upon another good point. Obviously these kids aren't going to make the pawn money back to get their sneakers out of hock. That is what the shop is counting on. All these hard money lenders/pawn loans prey on the optimistic outlook of their clientele. Most people who enter into these transactions do so with the belief that they are going to get the money to pay it right back. Whatever happens, its win/win for the shop. If the customer comes up with the pawn money in 30 days, the shop generated some revenue in fees. If the customer does not come up with their pawn money, the shop just acquired a fairly liquid asset (since shoes are fairly easy to resell these days) for pennies on the dollar.

 

[blastercombo]

People don't want the shoes, they want the reps. They get the shoes, get the reps, pawn the shoes, keep the reps, use the money to buy more shoes. This store will be full of recent retro Jordan's