Ishod welcome to Parade

[Bob Dylan Jaeb]

skateboarings gone really corporate, so you might as well support the rich guy that truly care about the art .... Stephen Baldwin            www.jeffwonsong.com

[RichardBarkley]

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if you're going on parade to check local shops inventory then ordering through the shop to save 7 dollars you're a shitty person. 

[close]

Why

[close]

I wanted to respond to this by saying I didn’t order directly from the shop to save money. I did it to allow the shop to generate more money from the sale.

I am always concerned that tech platforms will continue to scrape away from the retail stores until they abandon them altogether.

There is almost no risk involved for Parade. It’s up to them to prevent backdooring, and I guarantee they will. I am certain they will begin to hide shops’ identity, or have ‘parade exclusives’ where if the shops list on Parade they are not allowed to sell in the store.

There is already a playbook for this. Doordash, Uber and of course Amazon.

People have been screwing retail for years. People go into a bookstore, look at a book and then go and order from Amazon.

Putting the greatest street skater ever on your team is a power move big time. It gives me cause to pause and wonder who these people are.

Also, 15% of sales seriously cuts into profit. So, a shop has to set up a board and instead of make $30.00 they make $15.00? It’s not even worth it.

Core shops should get together and form a co-op and contribute money to their own joint web-site. Otherwise, I don’t know how the Parade model can work for them unless people use Parade to search inventory and most People won’t care enough to do that.

[close]

something tells me math was not your strongest subject in school

Lol

[GardenSkater77]

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if you're going on parade to check local shops inventory then ordering through the shop to save 7 dollars you're a shitty person. 

[close]

Why

[close]

I wanted to respond to this by saying I didn’t order directly from the shop to save money. I did it to allow the shop to generate more money from the sale.

I am always concerned that tech platforms will continue to scrape away from the retail stores until they abandon them altogether.

There is almost no risk involved for Parade. It’s up to them to prevent backdooring, and I guarantee they will. I am certain they will begin to hide shops’ identity, or have ‘parade exclusives’ where if the shops list on Parade they are not allowed to sell in the store.

There is already a playbook for this. Doordash, Uber and of course Amazon.

People have been screwing retail for years. People go into a bookstore, look at a book and then go and order from Amazon.

Putting the greatest street skater ever on your team is a power move big time. It gives me cause to pause and wonder who these people are.

Also, 15% of sales seriously cuts into profit. So, a shop has to set up a board and instead of make $30.00 they make $15.00? It’s not even worth it.

Core shops should get together and form a co-op and contribute money to their own joint web-site. Otherwise, I don’t know how the Parade model can work for them unless people use Parade to search inventory and most People won’t care enough to do that.

[close]

something tells me math was not your strongest subject in school

[close]

Lol

Math is not my strong suit, but let me explain my math.

I just used rounded numbers in my head.

Assume: $100 complete sale price. $70 shop cost (30% margin). $30.00 profit.

15% commission, for lack of a better word, to Parade is $15.00, so their margin then becomes 15%.

Shops may make more margin, but i am not even taking into account the labor to set up the board, rent, inventory, tax, etc...

Also, I think @puddy mentioned they pay advertising costs just to have their shop listed on the site.

It would be nice to hear from a former shop owner that could provide some real information, but I was just looking at the arrangement from a shop owners perspective.

[shannamal]

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if you're going on parade to check local shops inventory then ordering through the shop to save 7 dollars you're a shitty person. 

[close]

Why

[close]

I wanted to respond to this by saying I didn’t order directly from the shop to save money. I did it to allow the shop to generate more money from the sale.

I am always concerned that tech platforms will continue to scrape away from the retail stores until they abandon them altogether.

There is almost no risk involved for Parade. It’s up to them to prevent backdooring, and I guarantee they will. I am certain they will begin to hide shops’ identity, or have ‘parade exclusives’ where if the shops list on Parade they are not allowed to sell in the store.

There is already a playbook for this. Doordash, Uber and of course Amazon.

People have been screwing retail for years. People go into a bookstore, look at a book and then go and order from Amazon.

Putting the greatest street skater ever on your team is a power move big time. It gives me cause to pause and wonder who these people are.

Also, 15% of sales seriously cuts into profit. So, a shop has to set up a board and instead of make $30.00 they make $15.00? It’s not even worth it.

Core shops should get together and form a co-op and contribute money to their own joint web-site. Otherwise, I don’t know how the Parade model can work for them unless people use Parade to search inventory and most People won’t care enough to do that.

[close]

something tells me math was not your strongest subject in school

[close]

Lol

[close]

Math is not my strong suit, but let me explain my math.

I just used rounded numbers in my head.

Assume: $100 complete sale price. $70 shop cost (30% margin). $30.00 profit.

15% commission, for lack of a better word, to Parade is $15.00, so their margin then becomes 15%.

Shops may make more margin, but i am not even taking into account the labor to set up the board, rent, inventory, tax, etc...

Also, I think @puddy mentioned they pay advertising costs just to have their shop listed on the site.

It would be nice to hear from a former shop owner that could provide some real information, but I was just looking at the arrangement from a shop owners perspective.

that math is...still not correct.

they would take 15% of the $30 profit, which is $4.50. there's no way a shop would agree to a 15% cut of the gross

[Billy Bitchcakes]

Yeah Parade wouldn't know how much the store paid for the product so can't calculate 15% of the profit. 15% of the gross sale does seem pretty steep considering how tight the margins are in skating already.

[GardenSkater77]

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if you're going on parade to check local shops inventory then ordering through the shop to save 7 dollars you're a shitty person. 

[close]

Why

[close]

I wanted to respond to this by saying I didn’t order directly from the shop to save money. I did it to allow the shop to generate more money from the sale.

I am always concerned that tech platforms will continue to scrape away from the retail stores until they abandon them altogether.

There is almost no risk involved for Parade. It’s up to them to prevent backdooring, and I guarantee they will. I am certain they will begin to hide shops’ identity, or have ‘parade exclusives’ where if the shops list on Parade they are not allowed to sell in the store.

There is already a playbook for this. Doordash, Uber and of course Amazon.

People have been screwing retail for years. People go into a bookstore, look at a book and then go and order from Amazon.

Putting the greatest street skater ever on your team is a power move big time. It gives me cause to pause and wonder who these people are.

Also, 15% of sales seriously cuts into profit. So, a shop has to set up a board and instead of make $30.00 they make $15.00? It’s not even worth it.

Core shops should get together and form a co-op and contribute money to their own joint web-site. Otherwise, I don’t know how the Parade model can work for them unless people use Parade to search inventory and most People won’t care enough to do that.

[close]

something tells me math was not your strongest subject in school

[close]

Lol

[close]

Math is not my strong suit, but let me explain my math.

I just used rounded numbers in my head.

Assume: $100 complete sale price. $70 shop cost (30% margin). $30.00 profit.

15% commission, for lack of a better word, to Parade is $15.00, so their margin then becomes 15%.

Shops may make more margin, but i am not even taking into account the labor to set up the board, rent, inventory, tax, etc...

Also, I think @puddy mentioned they pay advertising costs just to have their shop listed on the site.

It would be nice to hear from a former shop owner that could provide some real information, but I was just looking at the arrangement from a shop owners perspective.

[close]

that math is...still not correct.

they would take 15% of the $30 profit, which is $4.50. there's no way a shop would agree to a 15% cut of the gross

I reread the article Roy Machine posted and they compare Parade to FarFetch, but Parade does not divulge their commission structure, so the 15% of sale by the author was just a guess.

I believe the commission comes off the top And that each shop negotiated a % with Parade.

There may also be monthly fees for being on the site.

[GardenSkater77]

Yeah Parade wouldn't know how much the store paid for the product so can't calculate 15% of the profit. 15% of the gross sale does seem pretty steep considering how tight the margins are in skating already.

I agree. I changed my post based on rereading the article.

[shannamal]

if a shop is agreeing to let parade take 15% of the gross, effectively reducing their profit by 50% in this example, that's an insane business model. as someone who works for a company that is heavily reliant on both DTC and wholesale, this makes zero sense to me.

[Billy Bitchcakes]

Wait was the 15% just made up for @GardenSkater77's example? Someone must have a local shop who is a client, someone go and ask

[GardenSkater77]

Wait was the 15% just made up for @GardenSkater77's example? Someone must have a local shop who is a client, someone go and ask

I wouldn’t do that. The article Roy Machine posted is where the 15% number came from. I don’t want to be unfair to Parade to bolster my argument. The author did indicate that FarFetch starts at 15%.

https://www.google.com/amp/s/www.businessoffashion.com/amp/articles/bof-exclusive/could-the-farfetch-model-work-for-skate-shops

One on the investors in Parade is the CEO of FarFetch so the author made an assumption that Parade uses FarFetch commission structure which begins at 15%

I take back my model based on 15%. Puddy seems to know about Parade but claims not to work for them. He could work at/own a shop anD just not want to share too much other than liking the concept.

[kneebone]

I believe it was mentioned earlier in this thread that Vans are no longer available through Paradeworld, and now it looks like all Nike products have been taken off the site as well.