Recently I talked about shoes being a risky investment strategy. Although I answered some very important questions in that article, I want to talk more about when you should flip and when you should not.
Personally I think buying shoes for the sole purpose of making money is too risky.
But for those that want to make a lot of money, flipping shoes can work and there are fat stacks of hundred dollar bills to be made.
But just like any business strategy, it takes skills, knowing when to buy and when to sell.
So I hope in this article that I can help you make better decisions and make you some money.
Anyway, lets get right into this article.
Is buying and selling shoes worth it?
Like I said in my other post, investing in shoes can be a great earner.
You can earn anywhere from 500% – 4000% ROI.
Lets say you buy a pair of shoes for $300 and sell for $3000, that’s 900% ROI.
In the stock market you may double your money (200% ROI) within 5 years, but that’s 5 whole years.
Whereas making money from shoes can earn you much more in a lesser time frame.
So yes, buying and selling shoes can be worth it if you know what you’re doing.
This is how the shoe market works
Before we dive into whether or not you need to buy and hold (like the stock market) or get rid of asap, lets talk about how the shoe market works.
It fluctuates immensely.
One day there’s hype around them, the next day no one wants them.
That’s why investing in shoes is a risky business. You could lose out on your $300 if no one else wants to buy them.
And eventually those shoes lose all its value because no one wants them and they are probably falling apart from the inside-out.
That’s right, the midsole rots first which is why shoes appear to be top quality at first glance but rotting on the inside!
Buy and hold or get rid of asap?
This is the million dollar question and the reason I started this article in the first place.
Should you buy and hold?
Buying and holding does have its perks, but in my opinion the longer you hold them, the longer the risk.
When shoes are first released, they are trendy.
Everyone talks about them and they want to get their dirty little mitts on them.
Holding for more than a few years is a surefire way to lose money.
Yes you can strike gold and make 1000% ROI and even more, but it’s highly unlikely.
Should you sell asap?
Unlike the stock market where the value goes up over time, selling right after buying is a great way to make a sale.
And you can still earn a good 300% – 600% ROI.
The market is HOT, the shoes are IN, people want what everyone else has.
But that also means getting your hands on a limited pair of shoes which isn’t always easy.
In most cases a hot pair of limited shoes sell out in a matter of minutes.
THESE are what you should be investing in as their are limited options and you have a higher chance of making a sale soon after buying.
When can you buy and hold?
Like I said, buying and holding does have its perks.
The perks of holding means you have a good chance of making a great Return on Investment.
But that also means following the sneaker community’s every move.
Knowing what’s in at the time will be your greatest weapon, as this gives you a competitive advantage over those that aren’t doing their research.
Also follow other sneaker groups on Facebook, Tumblr, and various different forums.
There are literally thousands of them.
See what people are talking about and what others are selling.
In conclusion: what would I do?
I think there’s too much risk involved when buying and selling shoes, so I put my money in the stock market instead.
However, if I had to choose which approach to take it would be to invest in limited edition sneakers.
They sell like hot cakes instantly and soon after for a good few months.
Those that couldn’t buy in time don’t mind spending thousand of dollars just to feed their addiction.
However, for others that really want to dominate the shoe market and thrive in this business model, buying and holding may be for you.
But that means more work is required on your part.
Like I said in my shoe investing article, this is a business model.
And behind every successful business is a smart and expert decision maker.
Do you want a side hustle with less risk? Sell asap.
Do you want make lots of money with high risk? Buy and hold.
Well I hope this article clear up some questions for you regarding buying and selling shoes.
I would love to hear your thoughts and experiences, so please leave them in the comments below and I’ll get back to you asap!