youbetterfly is a consignment store, a marketplace for selling collector pieces, sneakers, and streetwear items. Over the last couple of years, our pieces became a commodity and the business grew to depend on supply and demand factors. Very often we get questions about the pricing we give to the products we sell, so we thought it is best to explain our pricing model for a clearer understanding to our customers and to ensure full transparency.
To set things straight, We do buyouts when it makes sense. If the product is right and that comes with the different variants: Size, Model (in-demand) and Price we will buy it straight away to sell it for a fair market price. If any of these variants do not exist, the deal fails and so the rule is:
I won't buy if I can't sell it.
1. Supply and demand
It's
the first rule to take into consideration, the easiest example is yeezys : they
are the fastest moving items in this region, and our allocation in the Middle
East is small in comparison to the States or Europe, however the demand is
often very high on every single release; Hence the premium price of the yeezys
here and why is it more expensive then certain places.
By premium we are referring to a logical price and not to "UAE Mall" price.
2. Retail Price
The retail
selling price at the local retailers in MENA is higher than Europe and USA:
1- Yeezy retails for 850 AED outside while the retail
price is 1000 AED in the UAE.
2- Same
goes for Jordan 1s, 680 AED outside against 780 AED and even 1000 AED sometimes
in the UAE (on some collabs).
3. Business model
You
can't really compare our model to stockx or goat or whatever platform is available
online. The market is different (refer to the first point), and the model is
different.
To give you a clearer picture, I will showcase and summarize the models that exist vs. youbetterfly:
On the platforms I have mentioned above, the seller stores the item at his own place and he lists it online for any price he chooses, once sold he will ship his item to the company (platform in question), who will then check it, take a processing fee and a shipping fee before shipping it to the buyer.
This
lengthy process takes up to 10 days from the time you place the order to the
time you receive it as an end customer.
Moreover,
recently a luxury tax duty was introduced -which is a hidden cost that you
cannot anticipate until you receive the product and will have to pay it as
extra (even though you already paid a 40 USD shipping fee).
Let
alone ordering the wrong size and having to go through the hassle of getting
rid of it because most likely you won't be able to return it.
Our business model is built on a premium retail experience, to consign an item we need to legit check it, store it, maintain it and market it offline and online, all with a promise of one-day or same-day delivery across the UAE.
4. Experience
Dropping in by the store, trying out the sneaker, interacting with the staff, and discussing sneaker culture is all part of our concept. You can spend hours or minutes, you can just drop by for a question (we know some of you try the shoe to know the size and order online, we see you but it's okay), you can leave with one shoe or 10, it's all about the community.
For everyone questioning our pricing, not all our prices are above market price, some are less some are equal some are higher. It all goes back to the points listed above.
As a
believer in the community spirit, we regularly carry out sales, steal of the
day, host events, and give out prizes.
5. Consignment
We
don't really cop for retail and resale, and when we do we make sure we break
the market's price, all you have to do is to follow us and stay alert for our
drops.
80% of our inventory is consigned (you can read about our consignment terms here: https://www.youbetterfly.com/consignment-policy).
Now Dealing with consignors is not the easiest task, the more they sell and make money on our platform the more they will bring items, and the more they increase their payouts, especially with a volatile market, and that's what will affect our listed price as well. that's how dynamic is the industry.
Resale has been existing for a long time, with retail stores such as RIF LA and others leading the way to Flight Club and Stadium Goods (more on the commercial front)… It's a fun business, it involves people, a lot of learning, and a great deal of love for the products we share.
It's
been a fun ride so far, can't wait to see what the near future unfolds.
Genuine and we act on it.
