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Jordan Brand new Marketing Strategy to Curb Reseller market???? LOOKOUT 2013
- Thread in 'Jordan Brand' Thread starter Started by bigmike24000,
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JB's marketing strategy to curb the reseller market has been in place since they started jacking up the prices on each and every one of their releases. The price increases take directly from the would be resale profits. It was bound to happen.
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@ $130
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Though most of us feel this way, JB is doing the total opposite. Name one company that has been able to take a products and designs released starting 27 years ago and re-introduce and retro some of them over and over, raising the price with inflation cutting costs on the quality of materials and successfully bring in hundreds of millions in profit? If this continues JB has the potential to be a Billion dollar corporation.... and the only way they can do it is with you and me. They need no marketing which also saves MILLIONS since NTALK and other shoes sites do it for them plus giving a couple of celebs that have major influence a pair or 2 to rock at concerts, in public on tv, etc. Social media has changed the game but for JB it has become free marketing and no longer a company expense all this to give you and I the retros we crave....minus quality and low prices though.
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Price increases of MSRP are not profits just for JB directly. These price increases represent a small amount of inflation and profit for the 1st reseller which are retailers. This way JB can protect their profit, but when they raise the wholesale costs the retailers can protect their profit as well. Doesn't affect resellers in any way... they base their numbers on how much society is paying over retail.
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Though most of us feel this way, JB is doing the total opposite. Name one company that has been able to take a products and designs released starting 27 years ago and re-introduce and retro some of them over and over, raising the price with inflation cutting costs on the quality of materials and successfully bring in hundreds of millions in profit? If this continues JB has the potential to be a Billion dollar corporation.... and the only way they can do it is with you and me. They need no marketing which also saves MILLIONS since NTALK and other shoes sites do it for them plus giving a couple of celebs that have major influence a pair or 2 to rock at concerts, in public on tv, etc. Social media has changed the game but for JB it has become free marketing and no longer a company expense.
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You pretty much said it all. I agree 100% and its gonna help us true sneaker heads to be able to cop easier. It pisses me off when I'm in line and you got some *** hole hype beast in line talking about how there gonna flip the shoes for a nice profit while they're already putting up posts on CL or Ebay with their iphones smh. Then they go on to bash sneaker heads saying we're a bunch of losers etc... I hope the restocks happen more often to help get these d**ks out of the shoe game. lol plus I think getting rid of the hype beast it will help slow down violence over sneakers which gives us all bad reps when really its just somebody who isn't even a sneaker head that kills or robs somebody over shoes because they feel like they can make a huge profit off of them. smhAs we all know there are 3 types of resellers:
Hypebeast Reseller: Guys interested in buying the hottest release of anything trying to flip ASAP to make a huge profit. These guys are well educated on HYPE, Limited releases and GR's...long time lurkers of NIKETALK, ISS, etc. and are very well prepared. The usually have friends or family in line many times occupying half of line spots 1-10. These guys care nothing about thoe sneaker community or sneaker heads... matter of fact WE are their repeat customers. They only have a small amount of capital so getting rid of inventory when it comes in as fast as possible is imperative. A new release and re-release system would almost put these guys totally out of business.
Professional Reseller: These guys run mom and pops or online stores and can't get a Nike account or don't want one. They have some operating capital and go through any means to obtain as many pairs of most releases that they can, but are not so fast in liquidating their inventory. They are in business for the long haul, they buy and hold.. sometimes for a year or longer, and when the market is dried up they sell their inventory online and locally to make the most profit. WE are also their repeat customers, but frequent business outside of releases can secure a pair with these guys for a small premium. They may having some of the same practices as the Hypebeast... but it's their livelyhood. They take it serious, it's how they feed their families. Changes in releases will effect them NONE, as the don't buy to sell today.
Sneakerhead Reseller: Most of us, including myself sometimes fall in this Category. We buy kicks to wear and when we can double or triple up on pairs to sell to pay for our pair to make it free. A lot of times we may hook up other Heads for a little over retail, but we know the kicks and know the game. We sometimes buy pairs with the intent to resell but many times after getting a hold of more than one pair we don't. Reselling doesn't make or break us, and most of the time is a method used to buy the kicks we really want. Changes in the release would make it harder to buy more than one pair and sell the others to make money.. but would give us a chance to double up on some pairs or obtain trade bait to trade for what we want.. We come out on top in this case.
Feel free to add to the reseller type list for the types I forgot...
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Bigmike, I would add either as a separate catagory or part of the sneakerhead reseller the bargin reseller. This reseller will buy a pair or two on clearance if he knows he can make a few bucks on them to fund a future release for his own collection. He will not put in major work, he might go by a store and decide to check out what is inside. Perhaps he comes across a pair of fire red IV marked down to one hundred dollars. He picks them up and flips for a small profit, nothing major. He now has a few bucks off of his next personal shoe purchase.
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It should have been this way though. Patience almost always pays off.
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Nike couldn't care less about resellers. Resellers go to work after retail has sold out, so Nike's sales numbers are unaffected. Resellers set the fair market value and create the hype and mass hysteria which causes people to desire the shoes even more.
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I respectfully partially disagree. True Nike's sales numbers are unaffected, but like I said earlier Nike, Jordan Brand in particular has made their money long before release date. The reseller market provides them with priceless data as to how much we are willing to spend on each release in turn giving them equal leverage to raise prices. With just a little research it's not hard to see that even GR's go for 220-250 after release date. With a potential price raise of 10 dollars in 2013...they are using this data to in turn add to their profits....whether we like it or not Nike may not care directly...but they do indirectly.
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I see where you're trying to go with your angle but you are omitting one key fact, these are after market prices not before. There are not alot of people willing to pay those prices on the back end let alone the front end. A small minority of sneakerheads are willing to pay after market prices or outrages preorder prices. In the grand scheme of things, Nike is not missing out on any money. Going from 160 to say 170 is not an extreme jump. Going from 160 to 220-250 is pretty steep and would probably cause them to lose customers which they don't want.
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The only testing that JB is doing regarding the "resellers market" is price increases. And prices will continue to increase as long as resellers are selling their product at 200% above retail.
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all JB gotta do is raise the quality a bit and produce more sneakers. They will always sell thats a fact. They make enough to go around and than some there wouldnt be any resellers. Cant resell a shoe if everyone got a pair.
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The ONLY WAY Re-sellers will die and get off the JB bandwagon by just buying retail and selling +$100 is if JB produces enough shoes and re-stocks it every week to where we can see them sitting on the shelf on display. Then EVERYONE can buy a pair at retail.
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Nike has spent quite a while perfecting and cultivating continued hype for their releases. This is not an easy thing, I don't believe for a second that Nike is interested in quelling the secondary market. I do believe, however, that they are interested in maximum profits; which means re-releasing kicks for those who may want additional pairs or missed out on the release. The gradual price increases have shown that their intended market not only has the resources to afford such prices, but are willing to purchase the same products at the higher costs. Few shoes in recent memory, save for the Gold Medal Lebron X, have reached their price ceiling. Everything that we all rant and rave about (resellers, hypebeasts, eBay, CL, etc.) Nike is well aware of. And they've certainly done their best to take advantage of the new culture. I, for one, have no problem with that. It's just good business. And the moment I've reached my own price ceiling, I'll gracefully bow out.
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if we think bout alot of resellers are buying as many pairs as possible. (thats the problem)i think their should be a strict limit of 2 maybe they are making enough pairs but when 1 person has a fsr that kills
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Nike tried to stop resellers when they released the Thunder's the first time around charging $500. Imagine if they upped the price of the new releases to that. JB still wins in the end.
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Yeah the Jordan Brand always wins no matter what but the resellers shouldn't win alongside the brand though. I rather dealing with rape prices (let's be real people even retail prices for the retros is rape prices) from NDC, Footlocker, Finishline, & other retail stores instead of dealing with someone I didn't know & risk the possibility of receiving fakes from them & paying WAY over retail. I don't know about everybody else but if I purchased a shoe from a reseller for over $300, once I get the shoe I will eventually look at the price tag on the sticker on the box & I would immediately feel like crap because I would know I got screwed over.
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Come again?!?!?!?!?
