- Aug 9, 2004
- 1,297
- 544
Thanks for the claim of me having no concept of business... I actually have a business degree, and have worked in business most of my adult life. While what you say does make a lot of sense, and is mostly correct, the other fact of the matter is if a large amount of people drop off from buying something, the stores start to order less, and in the long run that also affects Nike. I have spoken to smaller shops that have been cutting back their Nike orders because it doesn't sell like it used to. Of course stores still make money when product is marked down, and yes Nike has already made the wholesale from selling it... but in the end both parties prefer the product does not have to see mark downs because it affects the bottom line of both.
And again for everyone, I'm not referring to the "game" as just resale, that's just one aspect of it... even just copping as a collector has become a "game" in many areas. In the mid 2000's I could go into any store and cop a retro afternoon of the releases, sometimes weeks later (i'm in Canada). For the most part that had changed, until the last few drops. All I'm saying is **** is changing, and it could shake **** up. Not looking for arguments, just pointing out the recent drastic shift in sneaker culture...
I wasn't attacking you, it's just that too many people on this board who have no understanding of business continually make comments while being ignorant or not fully having an understanding of business and marketing principles.
As far as the smaller shops ordering less - long story short - they don't matter! I am pretty sure if you ask them, and they answer truthfully, it will be discovered that nike/JB stopped giving them access to the "GOOD" stuff. Once Nike/JB is no longer giving you access to/or guaranteeing that you will get the occasional limited releases, what incentives does a shop have to order all the other crap/non-hyped stuff Nike throws at them. Nike/JB's actions the past few years have pretty shown that unless you get that coveted tier zero designator (I think that designator has been changed), your shop can go kick rocks. It's also one of the reasons, but not the only one why you see more and more mom and pop shops selling shoes above retail when they used to sell at retail a couple years agos. Nike cut them off, so they have to get their product via other means. They no longer get it at the retail cost, so they have to up the price. People think that these mom and pops selling you a $190 shoe early for $250-$300 is making a killing? Most of them are damn near paying retail for those shoes. Account for rent, payroll, and those shoes being their biggest means of store income, it's a wrap longterm for them!
With the success of the big chains and their own retail locations, Nike/JB can pretty much decide to complete leave out the little guys. From the looks of things, one of the reason Nike/JB hasn't gone that route is the litigation that it would bring about. They would throw everything from: collusion, fair business practices, and monopolistic practices at them.