Make Money Market Trading

INTRODUCTION

Starting out in business on one's own account often comes hand in hand

with a need to convince sceptical bank managers of the reason for that

loan requested, and might also find the entrepreneur asked to submit

profit and loss forecasts and business plans as prerequisites for

financial assistance.  Then there is usually a need to acquire business

premises, employ staff, and carry out a number of other formalities

confronting the first time entrepreneur.

Market trading though, is a different matter altogether.  It's an ideal

one-man business, one which might allow the individual to work when and

where he or she pleases, and one which normally provides a sizeable

income virtually from the very beginning, whilst requiring little

capital to start out in.  In fact, with the exception of those intent

on selling designer jewellery, items of silver, porcelain or other

precious materials, pricey ornaments or whatever, it's likely that the

newcomer to market trading will get by with just a few hundred pounds

available for stock.

Other essentials include transport - can be hired in the initial stages,

and of course display equipment packaging materials, scales where

appropriate, and a few other basic items appropriate to the goods or

service the trader intends to offer.

We must point out at the very beginning that market trading need not

necessarily be confined to the regular outdoor markets dotted around

many towns and villages up and down the country.  There are also the

indoor markets to be considered, including those operating as a

permanent feature of the locality, as well as more intermittent events

such as fleamarkets, antiques fairs and collectors' fairs.

Nor must we forget car boot sales which in themselves can offer 7

days a week potential trading to the entrepreneur willing to travel

far and wide looking for places to buy, and perhaps more importantly,

places to sell.  Car boot sales incidentally, do not always comprise

a few vehicles parked in the local pub's car park; there are in fact

many large venue operating in heavy tourist areas, sometimes operating

as trade fairs, as do those massive events held regularly in the Midlands

to cater for hoards of customers and many traders, including the higher

echelons of the antiques trade who flock there to buy - and to sell.

But for many, it's the regular outdoor markets, those which often have

been held on the very same day each week for decades, perhaps even

centuries, from which the best and most reliable profits will result. 

So let us first of all consider exactly what makes market trading so

popular and extremely profitable a venture.

THE ADVANTAGES OF MARKET TRADING

Perhaps the greatest benefit to the entrepreneur is that of minimum

capital injection usually being required to make a concerted start in

business.  Normally these will be no need to contact bank managers or

loan companies for assistance with the purchase of stock.  Their

intervention might however arise where the trader does not currently

have suitable transport, but even so, it's unlikely that the operator

will have to possess, or acquire, more than a few thousand pounds for

start up costs.

Perhaps next in the scale of advantages comes the fact that the operator

can choose his or her own working hours, even plan the entire week

around markets, purchasing expeditions, days off, and so on.  The trader

can in fact choose to work only part-time hours, maybe working just one

or two days a week on the markets, with a day or so each week set aside

for purchasing stock, preparing for the next venue, carrying out

administrative tasks, and seeing to whatever other jobs might be

outstanding.

The trader might instead opt for the really lucrative proposition of

'following' the market organiser from one venue to another, drawing

custom - repeat custom at that - in all parts of the country.  It really

is up to you.

Next we might add that this is an ideal 'cash in hand' business.  But

it must be stressed that the intention is not one of suggesting that

the Inland Revenue might by defrauded of its share in the profits you

make - that is by no means a wise idea.

The reason for pointing to this particular attribute of market trading

is one of indicating the likely benefits to present themselves to the

cash flow of your business.  No waiting for debts to be paid or credit

to be discharged, will of course mean that you too can immediately pay

your creditors, thereby establishing a good working relationship with

your wholesalers who might in turn provide better discounts and trade

terms for you.

For many market traders, the initial attraction is one of a business

requiring no premises, no heavy capital outlay for fixtures and fittings,

and no need to employ staff.

Market trading is therefore seen as an ideal one-man business, one which

also offers great scope as a family concern, even providing the

opportunity to run a chain of businesses extending the length and breadth

of the country, as family members branch out and establish their own

stalls, sometimes selling similar products to their relatives, at other

times dealing in a completely different range of products and services.

And finally, one of market trading's greatest benefits is that of low

running costs.  Over and above the cost of stock, the trader usually

has just stall fees and transportation costs to find.  Profit margins

can therefore be far lower than those for similar products and services

offered by traditional marketing outlets given the latter's notorious

incidence of high rent and rate charges, and cost of essential fixtures

and fittings, security requirements, and so on.

And if you don't like it, or if you want to alter course to another

venture, perhaps retire, then market trading with few personal

commitments or ongoing liabilities, allows an almost immediate

transition to be made.

IS IT THE LIFE FOR YOU?

We might be forgiven for implying that market trading is an easy option

for those contemplating a relatively secure and profitable means of

self-employment.  It isn't, and in general only those dedicated to their

aims will succeed.  Amongst the main characteristics making for success

in market trading, of the outdoors variety at least, are determination,

a liking for life out of doors (whatever the weather), and the ability

to get on with the public which at times can be very awkward indeed.

Perhaps though, it should be left to the experts to sum up what makes

for success in market trading.  'Countrywide Markets' of Worcester,

one of Britain's leading market organisers, describes itself as providing

a 'nationwide network offering over 70 trading days a week', with sites

provided from Clwyd to London, Kent, the Midlands, and further north

to Hartlepool and Redcar in Cleveland.  In an excellent introduction

to market trading, one that provides details of their own highly

professional services - 'The Nuts and Bolts of Market Trading' -

Countrywide takes the newcomer through the very basics of the profession,

expressing the freedom and independence offered to those willing to

work long shifts, and start work early in the day, often in adverse

weather conditions.  I quote "It's not a job for the lazy or fainthearted. 

There's no point hiding the fact that it's not easy money.  Early

mornings, late nights, long journeys between home and markets,

sometimes appalling weather conditions are all part and parcel of

the business....but if you get it right....the profits can be high".

So there we have it - high rewards in return for not always perfect

working conditions.  But for many traders, the cold weather, early

mornings and sometimes arduous journey to and from the day's trading

venue, are more than compensated for by the many advantages of market

trading, not the least of which is the opportunity to be one's own

boss in a field where variety is one of the most regular features.

DECIDING WHAT TO SELL

The question of what to sell must of course be considered very carefully. 

Too many selling one particular item or range of items, for instance

fruit and vegetables, might well mean traders sharing their profits to

a point which might eventually prove anything but profitable.  Choose

something too different or specialised and you might instead find there

is no demand for what you offer.  Perhaps there never was a demand,

which might of course well explain why no-one has already chosen to

provide a similar product or service.  Tread carefully!  It must also

be remembered that localities have their own individual characteristics,

and consequently such a computer-generated search for the origins of

the customer's surname such as operates very profitably in wealthier

localities, will be unlikely to pay its way in a poorer, deprived

area or one of high employment.

When deciding what to sell, the trader must never ignore the power and

profitability of impulse buying on the part of passing customers. 

Passing trade can represent the main part of the stall's customers,

drawn from the ranks of people out for the day or on their way to

somewhere else, but diverted to the market and to your stall, they

might buy something, perhaps several items they had no intention of

buying earlier when they left home.  Good impulse buys are household

knickknacks, toys, small novelty items and gift ware commodities. 

Offered at a price of around œ5, and no more than œ10, these items

can represent a fairly hefty slice of your day's takings.

OBTAINING STOCK

With the exception of such as second-hand items, home produced goods

and other items for which specialist or specific suppliers exist, it

is likely that you will obtain the majority of your stock from a wholesale. 

Even consumer perishables such as fruit, fish and meat are usually

obtained via the wholesaler whose services you will learn more about

simply by looking trough your local 'Yellow Pages'.

Various trade magazines and advertising publications also include

a wealth of information concerning wholesalers and sources of stock

for market traders as well as the less mobile retailer.  Wholesalers,

the lines they stock, and the services they offer, can of course

vary from one area to another.  You might find yourself dealing with

a few, perhaps several local or long-distance wholesalers.  You might

need only one.  You might be required to pay 'cash on the nail' for

what you require; alternatively you may be allowed credit facilities

with obvious benefits to your cash flow; you might have to attend in

person to select, pick up and take away your goods; you might instead

use a wholesaler who deals entirely by mail.  Nothing can be taken

for granted in market trading.

Don't forget car boot sales, local craftsmen and women, auctions and

such, remember also bankrupt and surplus stocks, end of line clearance

sales, bulk offerings of old products to make way for new lines, and

so on.

GETTING ESTABLISHED

If you already have a venue in mind, perhaps a local market you might

have attended as a customer for some time, there might be very little

to do but contact the market manager or superintendent at the venue

concerned, whereupon you can make enquiries of him or her as to how

to commence trading.  But it isn't as easy as just setting up your

stall and trading.  Most organisers will need to know that what you

propose selling is ethical and of course lawful.  Foodstuffs, toys

and clothing for instance, are covered by certain rules and regulations

usually concerning safety standards with which the trader must comply. 

The Trading Standards department of your local authority will be able

to help in this respect, so make a visit to one of their officers a

priority before you begin trading.  The market superintendent might

also wish to satisfy himself that you do not intend to trade in a line

already more than adequately catered for, in which case you might eat

into the profits of already established traders.

Most markets comprise two categories of traders: those with regular

pitches, and so-called 'casuals' who simply turn up with their goods

and hope to find a stall available for them.  A well established market

with its own heavy band of regular traders might offer only casual

pitches to the newcomer.  Sometimes a selection of permanent 'casual'

pitches are retained for distribution of a 'first-come-first-served'

basis.  At other times, you might be offered the pitch of a regular

trader who for whatever reason has not turned up on this occasion.

BUSINESS HOURS

Most markets are open from 9am onwards, usually with traders depleting

in numbers as late afternoon draws near.  4pm is the popular 'closing time'

for most outdoor markets; indoor markets in shopping precincts might

remain open until the end of normal retail hours.  Setting out one's

stall can however take a few hours, and most traders arrive around

7am to begin preparations for the day.

COST OF THE PITCH

Prices vary from one market to the next, and from one region to another. 

Organisers might charge a set fee for a pitch they provide and which

remains static from one market day to the next; they might instead

charge footage for an area of ground upon which you set up the stall

you provide and transport to the venue.  Even the success of the

market and its popularity and profitability can have a marked impact

upon the fee you will be asked for the right to trade there.

At the time of writing, a stall can cost anything from œ6 a day

in smaller, less densely populated location, to many times more in

larger towns and cities.

EQUIPMENT

Transport of course an essential requirement.  Whether it is your own

or hired is entirely irrelevant, as long as it is reliable, safe and

properly taxed and insured.  Most traders opt for an estate car or

van to transport themselves, their equipment and stock, although a

few do get by with just a family car and a custom-made trailer to

tow their stock behind.  At some venues the vehicle will be parked

alongside the stall, thereby making for ease of loading and unloading

stock and equipment; at others the vehicle might need to be parked away

from the locality during trading hours and only allowed near the stall

for the purposes of setting up and clearing away.  Always check in

advance as to what the exact procedure is.

Warm weatherproof clothing also proves essential to the dedicated

market trader, who will still be expected to trade in bad weather

just as when the sun is shining.  Other necessities include

weatherproofing for stock and stall, spare change, a cash apron or

till, scales where appropriate, refreshments where not provided nearby,

and help if possible at regular times of the day to provide cover

should the trader wish to take a walk, visit the loo, or else just

take a well-earned break.  On the subject of providing cover for

emergency situations such as might arise during unexpected illness

or urgent trips to the toilet, it must be said that in general next

door's stall holder will usually watch your stall during your shorter

absences, though he or she might not feel inclined, for  new trader

at least, to serve customers during your absence.

The reader's attention is drawn to appendix 1 which provides details of

firms specialising in equipment for market traders and out of doors

operators.

INSURANCE

You will quite naturally be required to adequately insure your vehicle

and stock against damage and harm to others.  Third party insurance

will normally prove sufficient to cover what accidents might occur. 

Most insurance companies will be able to assist, as will the National

Market Traders Federation (NMTF), this being a form of traders' union

designed to represent the interests of members, and able to provide

advice on most aspects of trading.  A small charge is asked of members

to the Federation which can be contacted as follows:  National Market

Traders Federation, Hampton House, Hawshaw Lane, Hoyland, Barnsley,

South Yorkshire.

YOUR FIRST DAY

When your first day arrives, make sure you get to the venue early;

earlier tan you might normally arrive since until you know the ropes

you are likely to take longer to set up your stall than the longer

established of your colleagues.  If a stall is reserved for you, it

most likely will have your name chalked across it or sellotaped to

it should weather permit.  Now all you do is set out your stock and

wait for opening time.

If you arrive on a 'first-come-first-served' basis, you should inform

the market superintendent of your arrival and await his or her instructions.

When you have your stall, give a great deal of thought to presentation. 

Remember, your business more than most can profit greatly from the

interest and custom of passers by.  Anything you can do to attract

otherwise disinterested passers by will be to your advantage.  So try

to make your stall as attractive as possible; try to arrange your stock

in layers of descending height, the highest point of your display

centered towards the back of your stall, but never at a height from

which your observation will be obstructed.  One of the unfortunate

facts of market trading is the high level of pilfering that takes place

when culprits think the stallholder is not on guard.

And because stock can 'wander' during the course of the day, it should

perhaps go without saying that valuable items should be kept as far out

of reach as possible, perhaps towards the back of the stall, access to

which demands that the intending customer must request your assistance. 

By the same token, money should never be left lying around; wear a body

belt where possible and make sure it's securely tied to your person. 

Alternatively, or indeed additionally, a zipped inner pocket might be

used to carry notes and cheques.

Your stock should be pre-priced to avoid the customer from having to

ask the price - some don't bother to ask, and many an otherwise willing

customer might shy away from your stall simply because he or she lacked

the courage to ask a price which might subsequently prove too high.

Haggling, though no longer as prevalent as might once have been the case,

might sometimes be resorted to by customers willing to take perishable

goods from your stall at the end of the day.  As such it isn't uncommon

for customers to arrive at fruit and vegetable stalls just before

closing time and offer to buy everything left in one or more trading lines. 

They fill their freezers on the cheap; you leave with some extra cash

and no rotting goods to leave lying around while you look for somewhere

to dispose of them.  But it isn't entirely realistic to expect the

dealer in clothes or fancy goods to haggle with customers.  If he or

she is happy with a lower price than indicated on stickers and

tags, then that lower price should be the one set at the very beginning. 

Don't resort to haggling over durable items unless you really have to

in order to pay your way.

And continuing with the subject of changing trends and procedures in

market trading, one rarely finds today's operator shouting out the

finer points - and prices - of his or her stock to crowds of eager customers. 

'Del Boy' please take note!  A clearly priced selection of goods, properly

and attractively displayed, should be all that's required to make a

handsome profit.

USEFUL ADDRESSES AND SOURCES OF FURTHER INFORMATION

Amongst the many excellent publications available to guide the market

trader, are such as 'Exchange and Mart', in which a highly informative

stock section provides information relating to a wealth of wholesalers'

names and addresses, suppliers of bankrupt stock and surplus lots,

jewellery and crafts products suppliers, clothing and accessories

specialists, toy suppliers, and so on.  This section also includes

details relating to suppliers of bags and other items of use to traders

of all types.

'Exchange and Mart' is available from newsagents and is published on

Thursday each week.

Another excellent publication which includes a wealth of information

regarding wholesalers and other stock suppliers, is 'Trader', available

monthly from newsagents, or on subscription from: The Trader,

Subscriptions Department, Competition House, Farndon Road, Market

Harborough, Leicester, LE16 9PU.

'Wholesalers Gazette' is, in the words of promotional literature,

"dedicated to the needs and interests of buyers throughout the UK". 

Depending upon the amount of stock you purchase, it might be

worthwhile taking out a subscription to this monthly magazine. 

Further details are available from: Wholesalers Gazette, Subscriptions

Department, Central House, 27 Park Street, Croydon, CR0 1YD.

'Trading Place' is another very popular monthly advertising magazine,

in which articles and news features are also provided or the retailer,

market trader, car boot specialist, and so on.  'Trading Place'

is available monthly from newsagents or on subscription from:

Trading Place Subscriptions, 89 East Hill, Colchester, Essex CO1 2QN.

'World's Fair' brings with it access to the weekly trade paper

'Market Trader', through which numerous wholesalers might be contacted. 

'Market Trader' incidentally, also carries news of what's happening in

the world of market trading, including updates on new and changing

legislation, new markets, markets closing or undergoing changes, and so on. 

'World's Fair' is available from newsagents.

A NOTE ON COLLECTORS' FAIRS, ANTIQUES FAIRS, AND CAR BOOT SALES

Collectors' items attract great interest at fleamarkets, collectors'

fairs, antiques fairs and sometime even car boot sales.  Ephemera in

particular is a highly profitable avenue to which the trader might

direct his or her attention.

Ephemera, loosely defined, comprises the paper collectors' items of

yesterday.  But if you thought the term included only matchbox labels

and theatre programmes, think again!  Just a very small selection of

today's more popular items includes: old postcards; magazines; old

items of local historical interest, for example letterheads, mortgage

documents, advertising literature and so on; full-page advertisements

from early magazines; reproduction and original photographs or early

street scenes and special events; old advertising brochures; early

greetings cards; books; calendars; guide and travel books; early

newspapers; stamps; labels and product packaging; prints; sheet music;

public notices and posters; cheques and receipts, etc., etc., etc.

By now you must surely realise how very many items one can offer in

just this one area of collectors' items.  Amongst the many other

items being sold at fairs and sales are: bric-a-brac - some say this

is just another name for jumble - it includes jewellery, tools, books,

magazines, and toys; specialist toys and dolls; prints, paintings and

pictures; stamps; books; jewellery; pottery; militaria and all things

wartime related; early clothing; linen, etc.

A stall at suitable venues is extremely easy to arrange.  All worthwhile

collectors' fairs are advertised extensively in order to draw the

necessary crowds of customers.  Either telephone the organiser to

reserve a stall on a particular occasion, or much more preferably,

visit one of their venues as a customer yourself before booking a stall. 

You will then see whether the organiser's advertising is drawing

sufficient customers, or whether as some unfortunately do, the organisers

are pocketing the traders' stall fees in the hope that sufficient

customers will be attracted by road signs set up to direct interested

parties to the event.

Not a world away from collectors' fairs, fleamarkets and bric-a-brac

fairs, car boot sales offer a good income to those prepared to offer

reasonable stock at realistic prices.  Here we have another excellent

trading place for the sale of collectors' items, other than those of

the paper variety, unless you manage to acquire an indoor pitch or

else have your stock safely tucked away, but still on view within your

vehicle.  Here we also find sellers of jewellery, silver, books,

stamps, collectors' toys, and so on.

Stock must be selected with care, some things you will be precluded

from selling, notably livestock, often food, and of course anything

which does not come up to standard, and here I would advise you to

steer clear of electrical goods which you can not honestly vouch

for the quality and reliability of.  Your local Trading Standards

department will be able to advise on those items they themselves

disallow, while the organisers of the sale itself will identify those

items they exclude.  In the later case I have found that food is one

of the main exceptions, primarily since someone will no doubt have

paid for the exclusive privilege of providing eats and drinks to hundreds

or bargain hunters.

Stock is unbelievably easy to acquire whether from your own garage or

the attics of friends and relatives; from jumble sales or other car

boot traders; charity shops, and private sales featured in the classified

pages of local newspapers and freesheets.

All you do to start trading is turn up on the day, make your presence

known to the organiser, set up your table, lay out your stock, and sell.

G O O D   L  U C K

APPENDIX 1

Firms Specialising in Equipment for Market Traders and other Out of

Doors Operators

Medway Town Market Stalls, Unit 5, Pier Road Industrial Estate,

Gillingham, Kent (covers, stalls and other equipment. Also operates

a repairs and spare parts service).

L J Polythene & Plastics Ltd., 53 East Road, London, N1 

(Supplies paper and plastic bags, bubble wrap, tarpaulins, etc.)

Hawkesley Engineering Ltd., Unit 6, Park View Trading Estate,

107 Pershore Road, King Norton, Birmingham 

(Suppliers of counter stalls, walk-in stalls, car boot stalls

and tables, and numerous other accessories)

APPENDIX 2

A Selection of Fair and Markets Organisers

Countrywide Markets, Countrywide House, Sheriff Street, Worcester,

WR4 9AB  (Organisers for indoor shopping halls and malls, open-air

markets, general and retail outlets, antiques and collectors' fairs

craft fairs, bazaars, swap meets, fleamarkets, car boot fairs etc.)

A G Rolestone & Partners, Hewitts Farm, Hewitts Road, Chelsfield,

Kent

Alisons, Skegness Indoor Market, 2-6 Lumley Road, Skegness

Lincolnshire Bargoed Markets Ltd., 1 Broadway, Cardiff, CF2 1QZ

Barry Peterson, 7-9 Solebay Street, London , E1 4PW

Bee Kay Properties, 26 Umberston Street, London, E1 1PY

Birmingham City Markets, Manor House, 40 Moat Lane, Birmingham B5 5BD

Border Market Operators, Shaddon Mill, Shaddon Gate, Carlisle

Britannia Markets, 1 Golden Mile Centre, The Promenade, Blackpool

Capital Design Markets, 113 Bridge Road North, Wollaston, Stourbridge,

West Midlands

Cenprime Property Development Investment Management Ltd.,

10 Castle Street, Rugby, Warwickshire, CV21 2TP

Devonshire Markets, 7 Windham Street, Yeovil, Somerset, BA20 1JJ

East Kent Fairs, 201 London Road, Dover, Kent

Essex Plan, 89 High Street, Rayleigh, Essex

For markets in specific locations, the following telephone numbers

will provide further information:

Aberdeen 0224 642121 Alnwick 0665 603221 Altringham 061 941 4261

Ashbourne 0335 43851 Ashington 0386 765403 Bolton 0204 22311

Borough Bridge 09012 3466 Bradford 0274 752244

Bridlington 02626 06719 Bridport 0308 25507 Brighton 0273 605200

Bristol 0272 260021 Buckingham 0280 812295 Cambridge 0223 358977

Canterbury 0424 753272 Cardiff 0222 612114 Carlisle 0228 22232

Castleford 0924 297196 Catham 0895 675558 Chelmsford 0245 256558

Cheltenham 0242 584052 Chester 0244 324324 Chesterfield 0246 78946

Cleethores 0472 200200 Covent Garden 071 836 2139 Coventry 0203 224927

Darlington 0325 380651 Daventry 0327 71100 Dewsbury 0924 451170

Doncaster 0302 349631 Douglas (Isle of Man) 062 23021

Dover 0304 361161 Dundee 0382 22423 Eastbourne 0323 639504

Edinburgh 0506 420316 Exeter 0392 265710 Falmouth 0895 675558

Farnborough 0444 236623 Featherstone 0977 780777

Fishguard 0437 68177 Fleetwood 03917 71651 Folkestone 071 240 7405

Fulham 0734 507546 Glasgow 041 227 4755 Gosport 0444 236623

Guildford 0483 505050 Halifax 0422 59034 Harrogate 0423 64867

Hartlepool 0429 861220 Hereford 0432 455268 Hitchin 0462 456202

Huddersfield 0484 22133 Hull 0827 713452 Ipswich 0473 252879

Kendal 0539 740486 Keswick 0900 4351 Kirkly 051 548 4911

Lancaster 0524 66627 Leicester 0533 549922 Liverpool 051 228 4741

Llanelli 0554 683176 Lowestoft 00502 562111

Macclesfield 0625 27785 Manchester 061 832 3552

Middlesbrough 0642 245432 Newmarket 0638 716000

North Shields 091 259 5380 Nottingham 0602 417324

Peckham 071 639 2463 Plymuth 0752 222514 Portsmouth 0705 827354

Rotherham 0709 365021 Southampton 0703 221736

Southend 0895 675558 Stockton 0642 676242 Sunderland 091 42523

Torquay 0626 64560 Truro 0752 222514 Windsor 0753 68111

York 0904 650355