The Air Jordan 1 Mid Black + Red is the perfect gimmick. The bred colorway is by far the most successful one in Nike’s catalog, especially when it is slapped on a pair of Jordan 1’s. Nike has released an avalanche of Bred themed 1’s in both mens and grade schools sizes and each time, they sell out. So the brand’s marketing genius came into play again as they decided to actually release another bred themed 1. This time by plastering the Black and Red on all its panels and midsole. But the trick is the sudden bump for $105 to $120. By releasing a “new” shoe that is just a slightly different version of an existing popular model, Nike is able to get people to fork over an extra $15-$20 without blinking. And it will probably work too because the Bred 1’s are always a coveted item come resell time.
Now talking about resale, Nike’s recent price increase might not seem like a big deal to regular buyers, but for resellers it’s a real killer. Most resellers have margins that seldom exceed the $15-$20 mark, so Nike’s 14.28% price hike is a direct attack on their bottom line. This is the swoosh brand’s attempt to give resale just enough breathing room to survive. If resell dies, it will have an impact on hype, so Nike is wise enough to leave resellers with enough room for a bag of potato chips. Every little bit of hype, as any sneakerhead knows, counts. And Nike and company are no strangers to this notion. Let us see how the GS Air Jordan 1 Mid Black + Red is doing now on third party marketplaces
Jordan 1 Mid Black + Red Resale Value
The chart above gives you a breakdown of the average sale price by size between May the 2nd and May the 9th. The size 7y went from $178 on 5/2 to $125 By 5/7. The 6.5y hasn’t changed much but I expect it to drop to $135 as well. The 4y,5y6y are also going to follow the same pattern. So it’s safe to say that the overall resale value will be right around $148, which leads to a profit margin of +$7. I guess Nike was enough to leave resellers with more than a bag of potato chip ( you can add on a hot dog and perhaps a soda with it).
By looking at third-party marketplaces, the brand has discovered the ideal way to maximize their revenues in a very efficient manner. With an MSRP of $95, resellers had a profit margin of +$34. ( a 33.67 percent mark up). By raising the price to $120, the brand effectively absorbed approximately 28 percent of the resellers’ profit, leaving them with a few denarius. At this point, the only third-party merchants who will profit from Jordan Retros or Nike hyped sneakers are long-term investors or those who obtain the sneakers through shady channels. I even suspect that many retailers are selling their inventory on StockX because seller information is not publicly available. As a result, it will be simple for any retailer to send 25 percent to 50 percent of its inventory to GOAT, StockX for higher margins. I’m not sure how much auditing is done, but this is a strong possibility.
What does it mean for the average reseller?
As a reseller of sneakers, it is important to be aware of the changing market so that you can adjust your business accordingly. With other recent shifts in the sneaker resale market and the MSRP bump, unless you are able to get shoes for 20-30% below retail price, reselling is becoming increasingly difficult. This is especially true for general release sneakers – the demand just isn’t there like it used to be. There is still some room for profit margins on extremely hyped shoes, but for most resellers, the writing is on the wall. It’s time to start looking for other opportunities and get out of the sneaker resale game.
Air Jordan 1 Mid Black + Red Release Information
- Release Date: 2022-05-11
- Style Code:DM9650-001
- Color: Black / White / Gym Red
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