Flea market selling is very different from other kinds of selling. Most flea markets generate high volumes of customers and restrict you to a relatively small selling space. So the key in flea market selling is turnover. Without turning merchandise quickly you cannot survive. One of the ways to do this is to carry a loss leader. Sell an item that is well known but also related to the products you carry, advertise it as a super special with a large and bright sign. Make a small margin percentage on the item or break even on it. Customers will come over to your booth and buy that product, but while they are there many of them will buy other products you carry. The big box stores use this method constantly. Note how they stack up a product on a corner aisle and mark it down. Watch the customers as they buy that product and then buy other products which the big box store will make money on. It’s a tried and true method, but one most flea marketers and small businesses are afraid to try. Get away from the mentality that you have to profit on every item you sell.
An advantage of using a loss leader is to also knock out any competition you may have. Sounds evil, but it is necessary and a function of our economy. Anyone who shies away from competition does not belong in business. You want customers to look at you as the low cost flea market booth, the booth they make sure they visit when their looking for bargains. You want to save the customer money and keep them happy. Think of all the customers you will make happy and the one competitor you will not. Not a bad trade off.
Flea Markets often draw huge crowds and is a good place to turn over product.
Another turnover method is to closeout merchandise. Take items that have been sitting around and advertise them as closeout merchandise. Sell them for a loss if necessary. Move product and keep it fresh. Let your customers see new and different merchandise, give them a reason to stop by your booth. This will generate repeat customers which many of them will ask, “You have any closeouts today?” Customers are always looking for bargains, give them what they want.
Never over price your merchandise. You are in a flea market, people expect bargains so don’t disappoint them. Think turnover turnover turnover. There is an old story about merchandise turnover, two guys are selling widgets (yes it’s always widgets). One guy is selling each widget for $1.00. The guy next to him is selling each widget for $1,000,000. The guy selling widgets for $1.00 is raking in the dollars hand over fist while the other guy is sitting there. Finally the guy selling the widgets for $1.00 asks the other guy why are you charging so much. He responds, “well I only have to sell one right?” I have the strange feeling that mister non-turnover is going to be waiting a lifetime and still not sell that one widget.
Pushing out merchandise and generate cash is a major key to success. This gives you the ability to now purchase from your suppliers in quantity, thereby lowering the cost of your purchases. This feeds on itself as your suppliers begin to respect you as a top customer and treat you differently. They will do things such as tell you what the hot sellers are and what is not, save key merchandise for you and give you the first chance at any closeouts they may have. Being friendly with your suppliers and of course paying them on time or with cash helps you tremendously. Never be past due on your bills to a supplier, this is a sure way to get on their blacklist. You want to be their ideal customer, one that they will take care of. One that means something to their business.
Successful flea market dealers know how important turnover is. Try these turnover methods and see how quickly your sales rise. Your profits rising will soon follow as customers purchase more, you acquire more repeat customers and your suppliers treat you with a new found respect thereby giving you the inside track with them and lowering your cost.
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