Sneaker Consignment Shops (trying to start one in Cleveland)

[aircarter15bh]

Hey guys, I thought I would post and try and get some perspective from NikeTalk.  So, I really want to start a sneaker consignment shop in Cleveland (born and raised), but my ? is do you think it could survive in Cleveland? I know a lot of these shops are in the big cities (NY, LA, Chicago), but I feel like if we had a website like everyone else it wouldn't matter and we'd still do good business.  I guess my concern would be how the market in Cleveland and the surrounding areas for people who are collectors looking to sell.  Any constructive criticism would be greatly appreciated!

 

[aircarter15bh]

Hey guys, I thought I would post and try and get some perspective from NikeTalk.  So, I really want to start a sneaker consignment shop in Cleveland (born and raised), but my ? is do you think it could survive in Cleveland? I know a lot of these shops are in the big cities (NY, LA, Chicago), but I feel like if we had a website like everyone else it wouldn't matter and we'd still do good business.  I guess my concern would be how the market in Cleveland and the surrounding areas for people who are collectors looking to sell.  Any constructive criticism would be greatly appreciated!

 

[moneymike88]

So you want to start a business, in Ohio?

 

[moneymike88]

So you want to start a business, in Ohio?

 

[jbfsu9]

Sounds good to me. From Cleveland heights

 

[jbfsu9]

Sounds good to me. From Cleveland heights

 

[aircarter15bh]

Yes Cleveland, OH.  Sorry for not specifying.

 

[aircarter15bh]

Yes Cleveland, OH.  Sorry for not specifying.

 

[damnitzdom]

If there's a big shoe game there, go for it!

 

[damnitzdom]

If there's a big shoe game there, go for it!

 

[doyung9]

Hmmm... so you want to open a sneaker store (consignment).

Few things to think about.

1) How much expendable income do you have? Meaning, how much money can you dump into this project right now and still be able to feed yourself, clothe yourself, and shelter yourself? To open a sneaker/clothing store (non-consignment) after all the start up fees, random costs that are relevant to licenses, renovations, etc. and placing initial orders (if you're credit is good enough, most major brands aren't going to let you COD) you're look at minimum $75,000, optimum $175,000.

2) Do you have connects? REAL connects. Like, a manager at your local footaction who'll let you get as many Cool Grey's as you want when they release for at least 30% off retail so that you can sell them at retail or slightly higher and not be caught in the wave of everyone selling them at "aftermarket" value. Because if you're buying at retail ($175) and selling for anything less than say, $250, you're wasting time and money because the cost of overhead will outweigh the $50 or so dollars profit you see.

3) Do you have backstock already available? Have you been putting FSR's to the side of popular shoes that have high re-sale value for a while now? Because if you can easily access it now, chances are no one wanted it when it first released.

There are other things to think about... but to be honest kid, unless you've got something that's going to REALLY make your store stand out from the major players in consignment, it's a TERRIBLE idea. There's Flight Club and then there's everyone else.

Don't do it.

 

[doyung9]

Hmmm... so you want to open a sneaker store (consignment).

Few things to think about.

1) How much expendable income do you have? Meaning, how much money can you dump into this project right now and still be able to feed yourself, clothe yourself, and shelter yourself? To open a sneaker/clothing store (non-consignment) after all the start up fees, random costs that are relevant to licenses, renovations, etc. and placing initial orders (if you're credit is good enough, most major brands aren't going to let you COD) you're look at minimum $75,000, optimum $175,000.

2) Do you have connects? REAL connects. Like, a manager at your local footaction who'll let you get as many Cool Grey's as you want when they release for at least 30% off retail so that you can sell them at retail or slightly higher and not be caught in the wave of everyone selling them at "aftermarket" value. Because if you're buying at retail ($175) and selling for anything less than say, $250, you're wasting time and money because the cost of overhead will outweigh the $50 or so dollars profit you see.

3) Do you have backstock already available? Have you been putting FSR's to the side of popular shoes that have high re-sale value for a while now? Because if you can easily access it now, chances are no one wanted it when it first released.

There are other things to think about... but to be honest kid, unless you've got something that's going to REALLY make your store stand out from the major players in consignment, it's a TERRIBLE idea. There's Flight Club and then there's everyone else.

Don't do it.

 

[teemohtee]

these threads still pop up??

Ohio??? son....

 

[teemohtee]

these threads still pop up??

Ohio??? son....

 

[thunderchunk69]

I mean if you dont have anything else to do... rent is gonna eat that that *** though.

if you can get a website and location for cheap, it may be worth your time... maybe. And even then consider used sneakers as well, Flightclub and RIF sell used.

 

[thunderchunk69]

I mean if you dont have anything else to do... rent is gonna eat that that *** though.

if you can get a website and location for cheap, it may be worth your time... maybe. And even then consider used sneakers as well, Flightclub and RIF sell used.

 

[xPowdrdToastMan]

I hear theres alot of businesses shutting down near the Arena. Open up the store and name it Miami Heat.

 

[xPowdrdToastMan]

I hear theres alot of businesses shutting down near the Arena. Open up the store and name it Miami Heat.

 

[sneakaprince]

Actually living in Cleveland Heights right now as many of you know. In fact I've been offing my collecting for the last couple of weeks or so (without the use of cosignment shops)

While I do feel that there is a market for nice sneakers to be sold it Cleveland I do feel that it could prove to be fairly difficult.

As I have learned over the last couple of months Cleveland loves both Streetwear and Sneakers.... Streetwear even more so. I am unsure if the general population is really ready for cosignment shops tho.

Cosignment shops can be great for a variety of reasons, typically they offer customers sneakers that would be very difficult to obtain without the use of the internet. They also offer individuals a chance to sell sneakers they may no longer need....

Unfortunately with cosignment shops individuals are also forced to raise prices to levels they never would if they could just sell the shoes themselves, for example:

Earlier this year I attempted to sell my silver anni XIs through a friends store (Heart & Sole) (both because I hated the shoe and also because I know my friends would charge me a fair price on the cosignement). I typicqally make my own listing for things here on NT but I knew that the XI wasn't really that in demand here on the boards and I wanted to see how things go when selling in store. Truthfully I only wanted 150-160 on my XIs but I was forced to raise the price to 180 because of cosignment fees. This price unfortunately made it very difficult for many individuals to actually purchase the shoe. My shoes ended up sitting in a display case for about a month until I finally decided to take them back, they told told me that the shoe gained alot of attention but no one was really ready to pull the trigger because of my price-point (which I totally understood)

I ended up selling those XIs right here on NT for cheaper in the end

Anyways my point is cosignment shops can be cool but it can prove difficult to actually sell the merchandise because of the inflated prices, which I understand are a necessity if you would like your business to actually thrive....

You must also consider your market. While Cleveland does like Sneakers there are many other places that offer similar services. I don;t really think the city has the type of individuals that are willing to regularly drop extra money on sneakers. Especially with the way Nike retros EVERYTHING now and days and other grail kicks seem to always be right around the corner.

Honestly I don't understand how many cosignment shops could thrive in cities outside of LA, NY, MIA and possibly CHI (the basic tourism cities). People who live in these cities typically have already built their connects at other avenues and won't pay that much over retail if it can be helped..... I.e. I've lived in Cleveland for less than a year, I have connects at Footaction, Footlocker, Champs and Next... Not to mention I know the owners of Heart and Sole by first and last name (when not IF they ever do get a Nike account I'm sure I won't have a problem getting releases their either)

You must remember not everyone is a sneakerhead and many people (especially in the midwest) will not spend much more than 100-125 on a simple pair of tennis shoes.

 

[doin90onthefreeway]

Real question: Will you sell Lebrons??

 

[doin90onthefreeway]

Real question: Will you sell Lebrons??

 

[sneakaprince]

Actually living in Cleveland Heights right now as many of you know. In fact I've been offing my collecting for the last couple of weeks or so (without the use of cosignment shops)

While I do feel that there is a market for nice sneakers to be sold it Cleveland I do feel that it could prove to be fairly difficult.

As I have learned over the last couple of months Cleveland loves both Streetwear and Sneakers.... Streetwear even more so. I am unsure if the general population is really ready for cosignment shops tho.

Cosignment shops can be great for a variety of reasons, typically they offer customers sneakers that would be very difficult to obtain without the use of the internet. They also offer individuals a chance to sell sneakers they may no longer need....

Unfortunately with cosignment shops individuals are also forced to raise prices to levels they never would if they could just sell the shoes themselves, for example:

Earlier this year I attempted to sell my silver anni XIs through a friends store (Heart & Sole) (both because I hated the shoe and also because I know my friends would charge me a fair price on the cosignement). I typicqally make my own listing for things here on NT but I knew that the XI wasn't really that in demand here on the boards and I wanted to see how things go when selling in store. Truthfully I only wanted 150-160 on my XIs but I was forced to raise the price to 180 because of cosignment fees. This price unfortunately made it very difficult for many individuals to actually purchase the shoe. My shoes ended up sitting in a display case for about a month until I finally decided to take them back, they told told me that the shoe gained alot of attention but no one was really ready to pull the trigger because of my price-point (which I totally understood)

I ended up selling those XIs right here on NT for cheaper in the end

Anyways my point is cosignment shops can be cool but it can prove difficult to actually sell the merchandise because of the inflated prices, which I understand are a necessity if you would like your business to actually thrive....

You must also consider your market. While Cleveland does like Sneakers there are many other places that offer similar services. I don;t really think the city has the type of individuals that are willing to regularly drop extra money on sneakers. Especially with the way Nike retros EVERYTHING now and days and other grail kicks seem to always be right around the corner.

Honestly I don't understand how many cosignment shops could thrive in cities outside of LA, NY, MIA and possibly CHI (the basic tourism cities). People who live in these cities typically have already built their connects at other avenues and won't pay that much over retail if it can be helped..... I.e. I've lived in Cleveland for less than a year, I have connects at Footaction, Footlocker, Champs and Next... Not to mention I know the owners of Heart and Sole by first and last name (when not IF they ever do get a Nike account I'm sure I won't have a problem getting releases their either)

You must remember not everyone is a sneakerhead and many people (especially in the midwest) will not spend much more than 100-125 on a simple pair of tennis shoes.

 

[k2theablam]

Originally Posted by doin90onthefreeway

Real question: Will you sell Lebrons??

 

[k2theablam]

Originally Posted by doin90onthefreeway

Real question: Will you sell Lebrons??

 

[sneakaprince]

By the way lil tidbit that most people don't know... Selling LeBrons in Cleveland is officially a double edged sword.... As most people would suspect they don't sell nearly as much as they use to.

But the demand for certain colorways i.e. the soutch beaches etc is def still here.

Footlocker in Tower City is pretty much cut off from the LeBron line now because they sold nearly NO pairs of the 8s at all (location is to close to the Q)

I could see a lot more footlockers getting cut off as time passes by, (That hate in Cleveland is DEEP)

Therefore there is a demand because there are def still people who still want LeBrons but the vast majority of the colorways won't sell at all.