Opportunities for vendors when shoppers seek bargains

While many brick-and-mortar retailers have been hit hard by the poor economy of this “Great Recession,” flea market vendors in general are not feeling the same pain. When money is tight, shoppers look for bargains, and they flock to bazaars, swap meets, fairs, and flea markets.
That’s also why deep discount stores and dollar stores are performing better than upscale merchants and even middle-level retailers. News organizations are hip to this trend: witness recent headlines including “In a Recession, the Dollar Store Seizes the Moment” (in The New York Times), “Family Dollar stores stays on top in a recession” (in CNN Money), and “How America Now Shops: Dollar Stores, Online Retailers (Watch out, Walmart)” (in The Wall Street Journal).

And although the industry is ignored, as usual, by the mainstream media, the same trend holds true for flea market vendors and suppliers. According to Sally Blakewood, co-owner of Waldo Flea Market in Waldo, Fla., shoppers looking for low prices are a fundamental strength of her business. “The nice thing is that flea markets are where people can go when they want to scrape dollars together and hunt for bargains,” she says. “The trend in the whole economy is saving money.”
Ron Simmons, president of three-location Traders Village in Texas, agrees. “People are looking for bargains,” he says. “Their consumer dollars are important to them. Mom-and-pop vendors appreciate that dollar.”
One measure of a market segment’s vigor is the extent to which companies continue to put money into marketing. Many companies forced to trim expenses will cut advertising budgets to a minimum. But according to Merchandiser Group publisher Scott Steele, the number of wholesalers reaching out to the flea market audience remains as strong as ever.
He cited booming attendance at markets. “We hear about fantastic traffic numbers — tens of thousands per weekend.” Steele is upbeat about future prospects, too. “In the current conditions, the flea market venue is booming. More and more consumers are being drawn toward value shopping.”
Ron Simmons says that value-shoppers are driving product trends. “People are buying the things they need, as opposed to the luxury items,” he says. “Tools and tires and the stuff you have to have are more in demand.”
According to a poll of readers of Merchandiser Group magazines, the top categories remain general merchandise, watches, and jewelry, followed by sunglasses, apparel, and knives. More than half of those vendors have been selling for five or more years. Looking at annual sales volume, 35 percent of them are generating at least $25,000 a year, and 11 percent are pulling in six figures.
But magical gnomes are not sneaking into booths to stuff money into vendors’ cash boxes. Sellers still face plenty of challenges, and keeping profitable requires careful watch over expenses as well as income.
Rising gas prices are a major concern for vendors, who do a lot of driving and hauling. Sally Blakewood says that sales at her market are flat because of the driving it takes to reach her non-urban site. “Our business has been steady. Our market is hurt more by gas prices because of our rural location. Less rural markets are doing even better.”
Another challenge at hot markets is finding a space. “We’re hearing from several markets that their vendor spaces are full,” says Steele. “There are vendor waiting lists.”
But for sellers clever enough to take advantage of shoppers’ need for low-prices and good value, these kinds of hurdles are made to be jumped.
This is the first part of a two-part report on how the economy is affecting the flea market and swap meet business. Read the second part here.