Want to get started in the retail business? Check out your local
flea market or swap meet as an inexpensive yet effective point of
entry. "It's a good way for people to get into
business," says Chuck Pretto, president of the National Flea Market
Association, which estimates there are currently between 2,500
and 3,000 weekly flea markets across the nation, bringing in about
$5 billion in annual sales.
The first step, says Pretto, is to research your local flea
market. Shop the market to get a feel for the customers, the booth
design/setup and the kinds of products that sell well, paying
special attention to vendors in your same category. Says Pretto,
"[Determine] who your competition is, and then you can make
[your offering] a bit different or a bit better." In terms of
booth design, "Don't just lay your merchandise on tables
and on the ground," he says. Design a display that is both
welcoming and attractive to customers.
Most cities and states require a vendor's license, and many
marketplaces offer a bevy of information to new vendors. Though
fees and terms vary by market, booth rentals range from $10 to $100
per day (the high end is usually for permanent vendors selling new
merchandise), and fees are often payable upfront in cash. Pretto
also notes that many flea markets operate only on weekends--and
you'll generally want to shoot for between $300 and $500 per
day in gross sales. According to Pretto, items that tend to sell
well at flea markets include impulse items under $20: T-shirts,
sunglasses, used items, knickknacks, collectibles, toys and kitchen
items.
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Once you start selling, remember that it's all about value
and great one-on-one customer service. As Jack and Marilou Johar
discovered, the right balance can help you turn your flea-market
business into a larger retail enterprise. Jack, 48, and Marilou,
35, launched their Paramount, California, fashion leather retail
and wholesale business, Street Leathers Corp., to sell leather
goods like jackets, belts and more. After purchasing quality
products from local and international wholesalers, Street Leathers
debuted at the Paramount Swap Meet in 1998, where the couple sold
$500 of product their first day. Jack is the salesman, says
Marilou: "His motto is, If a customer comes to [our booth],
never let him or her go without buying."
Soon, they were able to rent a larger, permanent space at a
daily swap meet in Anaheim, California, and in 2001, they were
grossing about $10,000 per month in sales. The pair then rented a
wholesale warehouse space in downtown Los Angeles and expanded
their product line to include leather clothing, boots, handbags,
wallets and hats. They also began wholesaling to other small
vendors. The couple eventually transitioned out of the flea
markets, and today, they focus on wholesale, mail order catalog and
online sales (www.streetleathers.com), which have together pushed
2005 sales projections to between $2 million and $2.5 million.
Flea markets can be just the springboard you need into
retailing. "The [entrepreneurs] that are the best at
[flea-market selling] will go through that life cycle--they'll
start selling, then establish a permanent booth," says Pretto.
"And then, over time, if they make the decision, they will
find many different outlets for their businesses, [like] online
stores and [brick-and-mortar] storefronts. There are phenomenal
success stories out there along those lines."