Make Money Market Trading

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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