Inside Sneaker Con: 500% Markups and Millions in Profit | WSJ
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- čas přidán 16. 04. 2019
- Sneaker Con co-founder Yu-Ming Wu and Hayden Sharitt, a 21-year-old resale business owner, take us inside the industry where some sellers make millions of dollars on pre-owned shoes, as they attend a sneaker trading show in Cleveland. Photo/Illustration: Tyler Clark/Drew Evans
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#WSJ #SneakerCon - Jak na to + styl
That one kid with his dad, who's like," I don't need a job to make money. "Will definitely never profit from this.
K Mcw that kid had AirPods
He meant a 9-5 job obviously, but you are right...He will never profit from this, because nobody will.
This is a high budget con.
I'm sure his family brag about the kid making a few bucks already, so they are feeding his ego which will grow out of control one day and "Will definitely never profit from this."
@@crinosis2302 There is no profit to be made from this. They are just like the "winners" in a 3 card monte scam. They are just acting like they are making money
He’s young. He’ll learn.
Sneaker CON ...really takes on a new meaning.
RAD that’s what I read it as first, didn’t know it was a convention
Too funny. Sometimes fresh perspectives see things for what they really are.
It full of fake...
Any brand name item that is overpriced will have cheap Chinese knockoffs (eg. Yeezy, Rolex, Beats, etc.)
If you get ripped off with fakes, you got a bigger meaning.
i been buying sneakers since 90s.. my philosophy is if i can't get it retail i move on..
Henley Deng , exactly!!! I have a plug overseas that some of these resellers be using!!! Cut the middle man & go straight to the source!!
Lucinda Gray Where can you find plugs ??
@@BlueDragongaa The rep guy in China
straight facts! 💯
Lucinda Gray so true. And you can buy them in “bulks” just like the guy in the video. Then buy a recipe machine and a good label printer and those replicas just became authentic.
Guy: ive been making money for a long time.
StockX: allow us to introduce ourselves
He sells on Instagram no fees on there
@@yeshuacarrasquillo3604 no but now people only want 2 pay payout
IRS boutta come after this kid
Daniel Cristea there’s no tax but when buying for retail.
@@WhatAxe59 There's this little thing called Federal income tax.
And BTW, if selling to the end user, state and local sales tax should be collected and remitted.
There a tax examination but if he had so much profit and do it full time he need to do tax for it..
we be paying our taxes were good
He is not black they won't bother.
3:57 toxic
damian valle kinda
Fr
This guy probably doesn't know he has to pay tax
AKEWSD Oh I’m sure he knows.
It's just a con... but obviously convincing to the naive.
It is like the "single mother makes $200,000 working from home" promotions, but on a higher budget.
he's taking lots of cash, making it eaiser to hide his true income
@@jasondads9509
He's fake...Just like the "winners" in a 3 card monte scam.
@@kaba_me Gj calling him a "Fake" while he still earns a lot. Keep commenting the "Just like the "winners" in a 3 card monte scam." everyone boy.
WSJ , Thanks for doing this episode. Love it
He didn't make $4K-$6K in one day. It probably took him a lot of time to acquire all of the shoes that he sold. How many emails, calls, and in person meetups does getting $20,000+ of merchandise take?
He probably make like 2k
That's the advantage of a having a business. Either you work just enough to pay rent or you work long hours trying to get rich
He said he's on his phone constantly, so he probably spends 60 hours a week on his work, so it pays like a decent job.
Still better than a regular 9 to 5 if you break it down by hourly wage
@@romanorleans504 That's just an excuse , if you really want to be successful you will figure it out. People in my circle make 6 figures from sneaker investing.
This whole video is just a perfect example of how extreme blind consumerism is in the U.S.
This is world wide. Lol. It's not just a US thing.
Your whole comment is a perfect example about someone who never see any other part of this world except US
@@muhammadhaikalpermanaatmaj73 This entire video is of places in the US, with American people speaking to the camera, can you really blame me? Even if it's not in the U.S., that just makes it even worse. I thought blind consumerism to this extent is only apparent in the US, due to the high drive for goods in this country.
Just give it a rest, it's a piece of culture, it's like area and people want a piece of that culture
Nah. There's lots of rich chumps all over the world where 800 dollar collectable shoes are nothing. There's +18,000 millionaires in the US and 10% of American workers make over 150,000 a year.
whoever’s paying over 3k for the EU Off White 1s please buy mine
No
I’m glad how this video (unlike others) actually explains reselling and sneaker-head culture accurately.
Star is born ? Those hit the outlets how is he selling them above retail
value appreciates and people pay more if they can buy them then and there
He probably has 💸 sz’s
Sizes my guy....different sizes go for different Money, so he probably had the money sizes
All sizes bricked lol wym sizes
I'm sorry to disappoint you, but you are all stupid.
Just like the winners of of a 3 card monte scam... He is part of the con.
With a a year making six figures......he should start by buying a new phone.....
He only buys assets that appreciate in value.
I suspect he doesn't difference between turnover and profit and would assume he is referring to turnover.
ouroesa idk, he earned 4-6000 in one day and if he only earns just half that when he’s not selling at the convention he’ll still hit six figures
his phone is fine, not that old
Right maybe 600 buks he made
He said he made $6k in one day. I'm not knocking it, but that wasn't in one day.
He had to have the capital to purchase inventory through his "connections", which I'm sure took a long time to build, store inventory, transport inventory to these events, pay a vendor fee, which could be a percent of sales, and account for his time, which he implies he spends much of building this business.
That $6k was hard earned, which is not a bad thing, but it's not as easy as it looks.
Also, pro-tip, when running a cash business, don't brag to anyone, especially on camera to the WSJ about how much you're making and expect to make. That's inviting trouble from shady characters and the IRS.
He didn’t have a connect, he said paid retail for Yeezy 700 static’s maybe by using bots he was able to get multiple pairs. The only hard part is waiting for the right time to sell or waiting for the price of that particular sneaker to shoot up in value. But yeah ppl that do this have the capital to invest big to gain that 6K profit!
@@Isaac2. At 3:18 he states that he's been fortunate enough to meet the right people to get Jordan's and Yeezys at the right price. Sounds like a "connection" to me.
BUT, I'm not in this game and don't use bots, so you could be right. 😊
Yeah I'm not sure why videos frame this as just being lucky rather than all the time & effort that actually goes into makingling a business like this sucsessful. People are going to watch & be jealous anyway, at least give them more insight into how much work it actually takes. You can say more than staring at a phone for 12 hours a day without giving away any tips, just like your comment.
He has a business and he's doing well for the time being while someone else is still working the 9 to 5 making ends meet. Lol ya'll hating too much on the hustle.
yeah but he says he tries to spend 12 hours on his phone each day id rather work 9-5 then spend 2/3 of my time looking at sneakers
Bernie 2020
@@gamehub429 He clearly has a passion for it though so he'd be researching himself even if he wasn't selling & he enjoys it. Working is much different if you enjoy your job, are knowledgeable & genuinely love what you are selling.
My Dad & Gran used to have a antique furniture business, they both enjoyed going to salerooms & looking for pieces for themselves so they just expanded their hobby. They enjoyed traveling all over, making connections, finding bargains, restoring them & selling them to other people who appreciate quality pieces.
They worked hard but in their days off they would still choose to work on fixing/creating something, going to a fair etc, they just loved antiques & managed to make it their job. Don't get me wrong they did other stuff too but apart from family (& films) antiques was the center of their life & it brought them joy.
they all cost about $5 from chinese factories, the markup from nike is already insane to begin with
the power of marketing
Thats why I only pay $60 max for sneakers and mine always last for a long while.
@James Chungus well its true..just like designer eyewears..which is 10 dollars to make
Dictator Sith Gayyy
@@dictatorsith1795
broke boy..
really good indepth entertaining piece
Finally a vid a bout sneakers
interesting, thanks for the perspective!
The prices are exaggerated, no way blue tints are 550$
RichyRich in sneakercon and other sneaker event some of the prices are more high than stockx or goat or your local sneaker store. that's how marketing work's
that's why you see more suburban soccer moms than street smart kids from the hood at these sneaker cons.
Now they are.
The world of collectibles is crazy!
Lots of finessing going on here.
I love how there are stupid people in this world and people that take advantage of that 💯 perfect example here
i been wearing the same 30$ kenneth cole sneakers for 15 years now lol
I’m a vintage luxury dealer, and the business model is VERY similar, the only difference, our items are waaaay harder to find because they either never were mass produced or just a few survived until these days.
Not all sneakers have high resale value. Most are not something people will collect. They are mostly limited edition drops that people are interested in.
30,000 in a year? It sounds like a lot until you realize an assignment manager at Walmart makes more...
ThreeAnimalShow he’s a teenager and it was his first year
He said his first year
Running your own business will get him into a good college, jokes on you
plus it’s not a full time job dude , he could work walmarts too like u mentioned so he got double payment
You need experience to get that job.
Too many salty people in these comments hating on this guys’s hustle.
@@MrYoyoman12345 i don't get how hes scamming people explain more
@@hiiguys4773 I probably only get Walmart shoes that why he saying they scamming
Wiggywonka That’s not a scam tho. It may be a rip off but at the and of the day people choose to pay resell prices.
@@MrYoyoman12345 that's not scamming if people are willing to pay for it.
@@MrYoyoman12345 supply and demand. if so, why bother $10 for mac donalds when you can make your own bun from yeast and hunt for a cow in order to make the patty. By your logic, mac donalds is a scam too right?
Rules of Acquisition Number 12. "Anything worth selling is worth selling twice." Number 13. "Anything worth doing is worth doing for money." and Number 22. " Wise men can hear profit in the wind."
1:52 that's jits dad did not look happy lll
“Say you can’t pay rent, you have a shoe, you might have to sell that shoe to pay rent” that is one of dumbest things I have ever heard. That’s the problem in today’s society.
Andrea Rojas wym
@uy97 He's saying why on Earth would you buy any pair of sneakers if you don't already have the money to be able to pay rent
See thats the thing about all these fastball hitters they dont understand the art of the strikeout
All the people they interview (not just in this video but in general sneaker videos Blake Linder, Ben kickz, this guy, etc.) are always like already rich white kids who’s parents start them off with crazy funds to buy these shoes, they’re not self made teens, talk to the real ones
Lil Mayo my thoughts exactly. I could do it too if I was fortunate to have a rich dad to loan me $100k to stock up on rare shoes. I know he didn’t get buy all those shoes working at Starbucks!!!
Goals! But the hardest part is finding your plugs :(
i NEED a plug
1:50 billy comin up off his pop’s money
How do I find about local Sneaker con in my area ?
I want to start my own collection to so i could start selling where do you buy them for that price? Or how can i get started?
Don’t even try to get into reselling unless you have bots or an inside plug other than that your never gonna get any shoes on drop
I wish Sneaker Con would come to Boise Idaho 😔
Very cool
Gotta get the bag
Hey guys I have a question. So I bought the off-white Chicago’s a while back but they feel so weird on feet because of the loose flaps. Anyone has tips for that and how to solve the annoying part?
LucWideyes cut them off
Meanwhile, 99% of other resellers are scanning the clearance wall at the Nike outlet just hoping to find ONE decent shoe they can make $20 on after expenses. 🤦🏻♂️🤦🏻♂️
Sneakers taught me about the stock market much respect
using screen time to use the screen more 👌🏻
How do the sellers not get conned selling online with like fake credit cards and stuff? Also, how do they know what sizes to buy when new ones come out?
I love wsj
where is place
They guy in the red sweater at 3:05 is CashK he has a CZcams channel.
This will propel America far ahead than any other country. This is a real innovation. Forget about G or quantum computing. The sneaker's reselling is the way to go to solve poverty, pollution, inequality and everything else that might come in the future. USA, USA, USA, USA...
This type of people are the one that are going to kill the love for shoes , they legit have no soul
Only the 1% with bots and industry connects can get into the action.
Thats not true, I dont have a bot and I made 1 thousand dollars this week its all about understanding the market and selling at the right time
@@homersimpson9784 what did u resell this week??
False
As someone who’s been to sneaker con. ALL of these sellers have the same sneakers for the same price. No one is under the other. And another thing is like I pointed out. It’s all the same stuff and every table. No one has something unique like retro air maxes or vintage adidas. It’s all just Jordan 1s and yeezys.
For someone that is expected to make 6figures can pay for a new screen lol
Sneaker Con Artists.
I'm not sure Why spot on 👌
These noobs: paying 500$ for sneakers that they keep as an investment, and collect
Me an intellectual: buying sneakers on clearance so I can run in them with no stress
Michael Quintero I mean unless you can pull it off, goods looks
I can't understand for the life of me when you can look up any shoe online in a matter of seconds why anyone would overpay for a shoe. And if it is only available at an insane price, I would pass since there is likely something newer and even better available for a lower price.
Posted on my birthday
With the rapid increase of sellers, who buy to sell, has seen a rapid increase in demand, and subsequently, prices. I don’t think that’s sustainable, and we may be in the mists of a massive sneaker bubble.
Must americans make a bubble out of everything? I have an uncle sitting on thousands he spent in Hot Wheels back in the 80's and 90's, and now he can't get rid of them, same deal with 90's basketball cards, they're worthless now.
I mean people kill other people just for wearing certain shoes in certain areas so yeah shoes always have value lol
@The chukchee Speak for yourself ... I expect to be floating around barefoot in my flying car in 2080.
@Matthew Menotti for now.
Bad Xerge well, there was a huge demand for Jordan’s in the 80s and there’s a even bigger demand for them in 2019 sooo...... and some shoes will never release ever again and go up crazy in price, like the pairs sb dunk, $120 retail I do believe $30k re sell 10+ yeas later
Nico Glock Earth won’t be habitable by 2080, at the rate it’s going right now
When they made nike in Korea. I would buy air Jordan's for 5$ a pair at the nike store when they were 110$ in the U.S. Were getting screwed.
Wish the Sneaker Con App was on Android
nothin but tulip bulbs
Wrong, these sneakers r worth so much, because they r limited in production, not restocked or limited edition as well as collaboration with other companies. These sneakers r very well known within the sneaker market, and therefore some of the sneakers r collectors items and skyrocket after launch.
They even have reselling market companies like StockX and Goat, that makes millions per year.
@@MrAceekidd When you have so many people buying for the purpose of reselling: that's when you know you have a bubble.
@@1stGruhn the bubble of over priced sneaker might release, but not the reselling sneaker business. That's been going on since the start of sneakers.
@@MrAceekidd and people still buy tulip bulbs. My first statement was merely calling the price those shoes are fetching a bubble as I was intending on referencing the tulip bulb craze of the 1630s: it's the classic price buble and subsequent crash which nearly all other buble/crash cycles are compared.... hardly original on my part but I think the comparison here is applicable.
@@1stGruhn not really, as it isn't a bubble. The highly priced sneakers r mostly limited editions, or friend n family pairs. They might decline in price but not burst, as there is no bubble. These sneakers r iconic.
What about ppl like with a UK 12
#SneakerheadLife 👟👟👟💯
DOPE!
I bought a pair of Nike shoes only £40 but their superb and their mine.
Just buy in the original Nike store ..It is none sense to purchase one of that there for triple the original price
Lil Pro bruh they sell out in like 1 minute, that’s why they’re so expensive: very limited amounts for lots of people wanting them. Big demand, small supply
@@FreXLZ very non sense bro honestly the quality of those products is not worth even 5 percent you've paid
About 2 years late wallstreet
Can someone explain me this?
anyone have any tips for me to start a resale business??? please i need help
If you wanna get to the level of these guys right now you have to be rich to begin with, because you need volume to accomplish what these guys are doing.
You're better off finding your own niche, this sneaker thing has been going on for years.
It's all about Cleveland! America's "come back city"
Also how do you screen for fakes? Someone can pull up with fakes and undersell.
If you can't tell it's fake then its real
@@cheesemastergaminglive3292 lol
You can get your shoes legit checked at sneaker con
Most people will understand that if something is to good to be true it probably is
If youre avid about them its pretty easy to tell. Stockx is a major platform to sell on that will check for fakes
Just sold some USED SW air max 1/97, bought them for 160$, sold them for 750$
You could've sold yours for 1k
Coochie Monster Naw, they wouldn’t sell for 1,000$ because you can get them for 1k brand new,
@@isaac.a7039 o I thought they were new.I didn't read it correctly my bad
But the part that people don’t understand how hard it is to actually get a pair
@@marcus23fraser So what? There are other sneakers
2:46 i see my country’s flag , i hit the like button 🇳🇵
He should become a hedge fund analyst...
Good
1:50 Wrong kid... Your job is selling sneakers
Sneaker game has been good to me I made a quarter million from 2015-2019
Teach me
Did u use botting?
justin harris never bott I just took advantage of people do the hard work for me
@@jamarparker1what was your normal job before?
Federal officer
If Rocky sold sneakers
why is the price of resell higher than retail ?
Low quantity and high demand
Is a bubble still a bubble if those perpetuating it are not only stupid enough but also financially capable enough to keep it inflated?
I think so, because in a matter of time a new shiny obsession will take over and the shoe bubble will burst.
Same thing is happening to stainless steel Rolex watches right now ... $10k retail, $20k+ gray market.
Constant rrumors that authorized Rolex dealers are supplying the gray dealers, the same as these sneaker resellers.
@@Glock_Nico you mean they give out these "third party" resellers so they act like salesmen without tax right?? what are other reasons for doing so mate? im interested with that kind of strategy
For me it is retail or nothing 🙅🏻♂️ I’d rather get a 1:1 replica than paying those ridiculous prices for a retail pair.
@cash k at 3:03
Although not my thing, I can appreciate individuals hunting for a cool pair of sneakers, even paying over retail, and then actually wearing them.
I don't understand collecting them ... like all bubbles, this one will burst too.
Sneakers will never die, cause people will always wear them
You can still collect while wearing your pairs
It’s been almost 30 years lol
Nico Glock it will. Once Nike steps in to rein them in, the Bubble will burst
❤️
if you want cheap, used sneakers use poshmark
This kids bout to get robbed 😂 by the government
I protect the bottom of my feet with the souls of my enemies. Your argument is invalid.
For the 700th time, It’s Nike Mag, not “Air Mag”. There’s no Air Technology in the Sneaker
I honesty know for a fact I can do what this guy does for a living but possibility of leaving with what I started with is the headache
fable I pray u find your gift and hidden talent have a blessed life
Lol cashk at 3:04
this guys knows business!
Help people out? really take their money
Shaggy Locs it’s all business. supply and demand
its about business some people are bored with their sneaker so they ask reseller to sell his sneaker and split the profit.
I mean it's not truly helping, it's also not just taking money. It's just goods and services in exchange for money.
I mean he wouldn't get the money if the people didn't want to give it in exchange for something.
@@jasonsantos6430 so what the purpose of consigment store they are actually helping people out trough third parties
@@jasonsantos6430 we talking about work and the hustle here in my experience all the consigment store never treated me like im a visitor at a five star hotel its not about service its about the hustle
Bubble ready to explode. The sellers in the convention are re sellers and the assistants are re sellers too.... so when they end to the final users?
dude wasent raised in the hood was he? makes a video how hes making money but appearantly not paying taxs then posts it on youtube 😂 i can hear it now
fbi+irs raiding his house at 2 am in the morning.
Scare League how do you misspell wasn’t 😂
Well it wouldn't be the FBI lol it would be a letter from the IRS
Wasn't*
The IRS don't give a shit about these small time dealers. They only focus on much larger assets.
Why do people always say "in the morning" after am?
Exploiting emotions is profitable.
I mean if by “emotions” you mean fashion trends and nostalgia then I guess
Welcome to Marketing.
subtitles?
What is the third trait that makes a sneaker valuable, mentioned by the man at 4:21?
I got the other three factors, i.e. the rarity, collaborator's fame, and popularity("sought after").
Mimi Mu how on trend it is
Demand
IRS be at your pad in April.
i want to resell my yeezys but its just so hard to let go
Don't be an idiot. Yeezy is still a baby you air head
Why is the dude at 5:43 doing push ups?