Making Money At Flea Markets

A flea markets or swap meet is a type of indoor or outdoor bazaar where cheap or second-hand goods are sold ranging from clothes, jewellery, novelty items, toys, pets and food.  It’s every bargain hunter’s paradise and a great place to find over runs of signature clothes and other items which won’t cost you a “song”.

There are two ways to make money at flea markets. You can either sell popular items at bargain prices or specialize on items that are of particular interest to you or to a particular target market.  The keys to success though are differentiation, sourcing your items from those that give you the least price for the best possible quality and then reselling these at a reasonable profit.

Keep in mind that sellers will only sell what customers want.  The problem is, you’re certain to find the same items being sold in a row of stalls in any given flea market.  So the best way to get ahead of the others is to offer something different whether in your price, the value-for-money when buying more of the same item at special discounts, the design, or the variety of items to choose from.

But before you take the plunge, do your research.

Know Your Market

Make a list of every outdoor or indoor flea market in your area and make the time to visit these sites on a weekend.  TAKE NOTES.  How busy is the place?  What is the most sellable?  What’s the profile of its customers?  What do they buy and how much are they willing to pay for the item?  How much rent do you pay for a space and how much will it cost you to rent tables or racks for your merchandise?  How much do seller make vs. their expenses?

Once you have all the information you need, DECIDE what you want to sell and WHY you prefer those items. That should also help you come up with your own “unique selling proposition” to distinguish yourself from your co-sellers.

Find Your Supplier

There’s a host of ways to source your items in bulk.  On weekends, check out the “For Sale” section of your local paper.  You’re sure to find people or outlets selling the items at wholesale or rock bottom prices.  Look for stores with a “Closing Out Sale” sign. 

If you’re creative enough, you may even want to make the items you intend to sell yourself.  Who knows you might just come up with something innovative, or even find something in the basement or cellar you can work on that might be worth selling.

Determine the Price

After acquiring your items, it’s time to determine the price of each item keeping in mind how much similar items are being sold for in flea markets. You’d want to keep your prices competitive yet reasonable enough to earn you a profit.

It would be helpful if you arrange the items you bought into columns labelled according to: Item, Cost, and Retail Price.  To determine the price per item, simply decide how much you’d like to add to each item in terms of percent (also called “mark-up”) usually 40%.  This should cover your expenses and bring in your intended profit.  The amount you add to come up with your retail price should also help you determine the number of the items to sell to help you break-even at the least.

By the way, haggling is a common practice in flea markets.  So it’s best you price your items higher than your intended price.  In that way, you can deal with hagglers and still sell at the price you want.

Stand Out

One of the most overlooked and yet effective tools to help you sell your items is having an eye-catching stall and well arranged merchandise that would, at the very least, lead to impulse buying.

Remember, you have to STAND OUT from the stream of sellers offering the same items.  You’d want buyers to STOP and LOOK at your merchandise.  The Rose Bowl market in Pasadena, California for example has an estimated 3,000 sellers trying to catch the attention of some 50,000 bargain hunters.

Come up with colorful signs in bold letters.  Highlight your special offers.  Use display racks and provide a shade if you’re outdoors.  Use some upbeat music if you can to attract customers.  Greet your customers and keep a smiling face.  Spice up your stall with balloons.  You may even want to give customers a “free gift” or token for simply having them buy from you.  The “gimmicks” are as endless as your imagination.  Don’t overdo it though lest you end up looking like a funhouse.

Other Helpful Strategies

1. Keep enough stock of your merchandise in various sizes if applicable.  This allows you to cater to customers in all sizes and shapes, and lets them know that you have enough to meet their demand.
2. Whatever it is you’re selling, make sure they come in a variety of designs or colors or features.  That gives customers a wider choice.
3. Price your items for multiple purchases at a discount.  You’d want to sell all of your merchandise in one day without sacrificing profit.
4. Clearly label and price the merchandise but never directly on the item as this reduces its value.
5. Prepare simple flyers of your booth about what you sell so that customers returning the following week know where to find you.  They might even refer you to their friends and family members.

Making money at flea markets or swap meets or thinking about doing so? Be sure to share your comments, thoughts, ideas below…