By Oliver Pritchard-Jones and Kelsi Karruli for Dailymail.Com
23:12 6 March 2023, updated 23:31 06 March 2023
- Zach Berkowitz, from New Jersey, has revealed how Nike shoes can make you rich
- The “sneaker geek” says that reselling trainers is a surefire way to make money
- He explained that sneakers are one of the few products that increase in value
A self-proclaimed “sneaker geek” has revealed how he made a fortune flipping shoes and shared the top 10 kicks you should invest in to get rich.
Entrepreneur Zach Berkowitz, from New Jerseyfirst fell in love with sneakers in middle school after buying his first $300 pair of Nike Dunk Low’s – and now has a closet filled with the finest sneakers money can buy.
And while many people see his love of shoes as an obsession, Zach notes that it’s a smart investment.
He explained that sneakers are one of the only products that can increase in value over time, adding that if you choose the right brand and style, you can start making money.
“Sneakers are an interesting asset class because supply decreases over time as some of the shoes are used, creating a scarcity effect that results in rising prices as the years pass after a release,” Zach, who co-founded the New Jersey sneaker brand Hi-fi said.
“The retail market is currently recovering from what can be called a bubble in 2020 and 2021.
So, if you own a pair of original Nike Air Jordan 1 Retro Chicagos, you could be sitting on, or standing on, a small fortune.
“Now is a good time to invest because prices are no longer inflated.”
Zach’s love for sneakers began when he was just a young boy.
He said: ‘I had always been interested in all the different styles and colorways but couldn’t afford any shoes at the time.
“When I got my first pair of Nike Tiffany SBs after working hard and saving money to buy them, I wore them a few times and then displayed them in my room because I loved them so much.
– So far I have spent about 5,000 dollars on my personal collection.
“Most of the shoes I got at the lowest price ever and now have a much higher market value.”
Globally, the sneaker retail market is valued between $5 billion and $7 billion and is growing every year.
Zach has designed a “Footsie Index”, a guide to all retro items guaranteed to resell for a great deal of money.
Surprisingly, the top 10 list is dominated by one brand: Nike.
He said: “Nike dominates the market due to its long history in the sneaker business, as the market today is very receptive to classic/retro styles.”
Nike has 40 years of releases to remix and re-release.
“The brand also had first mover advantage by partnering with Michael Jordan, whose sneakers continue to command the highest degree of brand loyalty.”
Resale value depends on brand and style, as well as color and even size.
Zach said: “Last year we saw more and more customers looking for classic colours.
“Of course, new styles sell well, but sales of classics have been the strongest for a long time.
“The new styles that sell the best tend to be colorways similar to original retro styles.
‘Often the bigger the size, the more [the trainers] will be worth it, since there is more demand and shortage of the most common larger sizes.
“However, with the reopening of Asian economies as pandemic restrictions end, smaller sizes may see appreciation as Asian consumers tend to have smaller feet.
“So with some styles, where an eight or nine in some of those styles is around $500, the bigger ones can go for over $1,000.”
The Chicago is the most well-known colorway of the Air Jordan 1 sneaker, having caused controversy when it first launched in 1985.
They were quickly banned by the National Basketball Association (NBA), which issued hefty fines every time they were worn on the court due to their predominantly red and black color, which violated league policy.
Zach said, “Even some of the less popular Air Jordans that have come out in the last five or six years have doubled or more in value.
“For example, the AJ1 Twist Women’s was trading for around $160 retail for months after its 2019 launch.
‘Now the sneaker is sold for close to 1,000 dollars.
“Even if you get into a re-release of a classic style like the Air Jordan 1 Chicago’s at a great price, you can make money by flipping the sneaker right away or holding out for a few years for a much bigger return on your investment.
The AJ1 Chicago Lost & Founds, which are more or less a November 2022 re-release of the original AJ1 Chicago, retailed for $180, immediately skyrocketed to $340 on the secondary market upon release, and currently trade for around $450 per pair. ‘
Zach launched High Fidelity in May 2021 with business partner Mark Chesler, and now the duo operates two stores and a warehouse.
Mark added: “My philosophy as an entrepreneur was to pick a high-growth, dynamic industry you love and establish a business however you can.
“This sneaker journey has been a lifelong passion of mine.
“I am extremely grateful that I have been able to turn something I love into a successful business.
“Work doesn’t feel like work, and I look forward to stepping into the warehouse every day.”
As well as revealing current prices on the biggest classics, Zach and his team at High Fidelity have put together a first-time investor’s guide that reveals the shoes you should invest in for the future to make a fortune.
First up, the Nike Dunk Low SB Concepts Orange Lobsters are said to retail for $450 to $900.
After that, Nike Air Jordan 3 Retro Reimagined can earn you anywhere from $400 to $800.
Finally, the Nike Dunk Low Triple Pink can retail for $100 to $400.
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