Garage Sales & Flea Markets .vs. Mega Retailers

[Thunder]

Greetings Earthlings

With each passing days, browsing on eBay and various sites, I am becoming a bit more motivated in starting my own self-employment and/or small business. Slowly, I have been ordering different things that I felt is reasonably priced with capability of higher resell value for profit. At this time, it is like something random here and there along with whatever things that I already have.

To start, I will do a Garage Sale to see how it goes. After that, I will move onto Mary's Flea Market on NE 23rd in MWC or Spencer ($5 a day outdoor) and then possibly onto Old Paris Flea Market (outdoor). I have to be wise in what I spend on getting in order to being able to sell them.

Now, onto the first question I am wanting to know... How should items be priced when compared to big-box retailers? I know that companies have large overhead operating and payroll costs, which is why the items in their stores are priced way up there. I also know that they are capable of mass-quantity orders to basically pay pennies-on-the-dollar, which provides them boosted profits.

Just how much cheaper should a Garage Sale and shop at a Flea Market be for the customers? I do know that people shop at Garage Sales to find something really cheap (price-wise) and slightly higher at the Flea Markets. However, most shops at the Flea Markets have branded themselves as a Small Business and the prices there are not much cheaper (or about the same) as the big-box retailers.

While working at Target for a year, I remember this one guy that I regularly see coming into the store to only shop for Clearance items that are typically 50, 75, and 90% off. He was obviously shopping for his business. Another example, there is a guy at this yogurt place (Swirl or something) at the new shopping center in MWC regularly buy large amount of milk at Crest for his business.

So, we have people buying Clearance items from other retailers, but is the potential for profit still there to price it at same original retail value when sold elsewhere? If I see something retailing for $5 with 75% Clearance, that brings me to pay $1.25 each plus tax. Will I be able to sell those for $4 each at my business? Or is the majority of the people still with the mindset of only paying higher prices at retailers and a dollar or two at a small shop?

Thanks for taking the time reading and answering.

[BBatesokc]

Like I said in another thread, many years ago I owned 2 booths at the then AMC Flea Market. My stuff was at least 75% WalMart returns. If the stuff looked brand new then I'd go 50% of retail. I kept my margins low so the inventory would sell quickly. This gives people a reason to keep coming back (you've always got new stuff). If your stuff is used then it had probably be selling for at least 60-80% off or more. Even at low margins it made enough that I didn't have to work it and paid a retired guy who liked to talk (alot) to work it and I just kept it supplied.

I'd also go into Target and WalMart the days after a major holiday and buy tons of clearanced decorations at 75% - 90% off. Then hold it till the weeks before that holiday again the next year and you could get within 80% of retail most times. Back then I used pen and paper to keep inventory and price paid. Today you could use a Smart Phone.

[Thunder]

Kool. Anything else to share?

[HewenttoJared]

I would work at a major retailer for awhile. Once you know how to display things in a way that sets off the WANT response selling becomes easier.

[Thunder]

I found some good deals at Walmart.

Question - Are the managers capable of reducing Clearance prices upon request? Especially when buying all of the same product?

[Thunder]

Walmart need to do a better job at pricing Clearance items. Most are only a few bux lower than retail. Its hard to keep checking back each day for these things to go lower all the while customers keep buying.

[kevinpate]

... Are the managers capable of reducing Clearance prices upon request? Especially when buying all of the same product?

I can't speak for Wally World, but in general terms, just about everywhere in retail , has some flexibility in pricing.
When an additional discount is available, how many items it can be applied toward, and how long it will remain available can vary from store to store, and even between personnel within a particular store. The top guy/gal for discounts may or may not be the top dawg in the store you want to purchase from. Such a decision may be assigned to a particular assistant manager or even a department head (though the latter is the least likely in my opinion, particularly with clearance items.)

Luck to you.

[HewenttoJared]

Walmart need to do a better job at pricing Clearance items. Most are only a few bux lower than retail. Its hard to keep checking back each day for these things to go lower all the while customers keep buying.

Their business model is "good enough that most of you will come back" not "good enough that you'll all be happy".

[HewenttoJared]

I found some good deals at Walmart.

Question - Are the managers capable of reducing Clearance prices upon request? Especially when buying all of the same product?

They can, but you have to make it worth their time. And only on items that aren't moving. Information that you won't have going into the conversation.

[BBatesokc]

They really don't have much incentive to sell you in bulk as they know their regular customers like knowing there are clearance items to go through.

[Thunder]

Which candies and treats are most popular to resell? I want to buy some wholesale packs at Sam's Club.

[BBatesokc]

Which candies and treats are most popular to resell? I want to buy some wholesale packs at Sam's Club.

That reminded me of high school. I used to get in trouble for buying candy at Sam's and reselling it at PC Central and PCHS.

Since most anyone can buy at Sam's for the same price you can (even with food stamps now) how do you plan to sell candy via CraigsList?

[Thunder]

That reminded me of high school. I used to get in trouble for buying candy at Sam's and reselling it at PC Central and PCHS.

Since most anyone can buy at Sam's for the same price you can (even with food stamps now) how do you plan to sell candy via CraigsList?

Garage sale, dear, its a garage sale.

[BBatesokc]

Garage sale, dear, its a garage sale.

Oh well, then that changes everything, HONEY, they will be lining up to buy your candy at a garage sale for more than they can by it themselves at Sam's. So glad you cleared that up.

[Thunder]

Oh well, then that changes everything, HONEY, they will be lining up to buy your candy at a garage sale for more than they can by it themselves at Sam's. So glad you cleared that up.

Sweetheart, I am simply wanting to offer refreshment when they shop. Not a lot of candies, just a few boxes and some drinks.

Do you remember how much outdoor renting at Old Paris?

[Thunder]

I'm thinking a direct dive into a flea market. Maybe the Golden Goose in MWC on NE 23rd and Douglas. Old Paris have very long waiting list and last time I was in Golden Goose, there was some booths available. Sent an email to them on the prices and booth sizes.

Probably no garage sale to start as I'd like as much inventory to start when opening up the booth.

Anyway, where can I get free display fixtures? Especially those that will hold necklaces, earrings, and braclets. And any other fixtures I can possibly find? Brian, did you throw all of yours out or you still have anything?

[Thunder]

Where can I order Palm Tree things wholesale? A lot of people are selling them on eBay, but I can't seem to find any good ones listed wholesale package/price. Waste of money to buy some from random sellers when they are already marking prices for their own profit.

I'm gonna bring this post over here from another forum.

.....

Greetings Earthlings

I am thinking of scratching the garage sale idea and go straight to a flea market instead. There is one in MWC on NE 23rd and Douglas, the Golden Goose, and I'm going to see how much for monthly booth rental.

I need a name. Rather than Thunder's Discount Shop, I wouldn't want to reduce the profit margin too much, so how about Thunder's Paradise or Thunder in Paradise? Or any names good with Thunder?

The theme (decorations) will be Palm Trees. Sort of a tropical scenery. I got a 6 foot nice Palm Tree for 15 bux and a nice furniture set with mirror will be great to set things on for sale. I also have a nice woven with iron frame shelves and a couple of beige/tan tables.

I got a lucky break at Walmart today. The black plastic table (4 foot) retailing for $30, there was some beige/tan table with soft material on top stocked within these black tables. I asked for the price and it came out at $20, so I grabbed 3. I might get one more. These were probably mixed up in shipment or arrived too early before plan-o-gram change at the store, so $20 is quite a steal for these tables.

At a later time, I am considering setting up a 20 long for one Goldfish. Just a cute show tank for the shop. I'll have palm trees inside.

Shop name ideas, please. :-)

.....

[Thunder]

Are all the stores/shops inside a Flea Market classified as small business? One interesting thing to think about, every time I buy something, I do not pay any sales tax. Are the owners still required to report their sales and pay all taxes? Does renting a booth in a Flea Market require to register with the state for Tax ID? If not, then how will it all be tracked? Will charging customers all those taxes harm my business?

Is there anyone here with such experience? I know Brian shared a lot of things and I will reread his posts. I just need more assistance, because I really want to give this a shot.

Here is what I am making on the craft side. This is a Star Twist Hot Pad. I have made a lot years ago and this is what I decided to make steadily (one per night). I just finished the 2nd and will make the 3rd soon. It takes me a few hours to finish it. Color combination I am doing now is green (pictured below) and brown, because it matches my Palm Tree theme. Many other colors can be done and I will be able to create them on request.

Just out of curiosity, how much should I price this? How much would you be willing to pay?

[BBatesokc]

If you are in the business of selling something, then you are a small business. Technically selling pretty much anything requires you to report it as income and pay tax on it. However, it is too difficult to track individuals selling only occasionally. However, if you've got a booth at a flea market then its a no brainer the tax man can get you. And lucky for you, if you don't file taxes or keep records, the IRS will gladly estimate your income - which is most certainly be estimated much higher than your actual sales. Then they will tack on penalties and interest. Just depends on the market if they require a tax ID. You can technically operate under your social security number because that is how the state and feds will also track you.

I'll be interested to hear your reports on these hot pads. You say they take you hours to make? Well, at least you'll get a taste of how those naked kids in some 3rd world country survive on a few cents an hour making items for USA retailers. Lets say a 'few hours' is 3. Since you can make at least $7 an hour working most anywhere, you'd need to sell these for at least $21/each and that's not counting materials. Since you can go into WalMart and buy this sort of thing for probably $1-$5 I'd say you've got your work cut out for you. I'm guessing someone might pay $5.

[Thunder]

I'll do all the tax stuff just to be safe.

$5 each is what I was thinking. I watch my recorded shows each night, so doing it while the shows is running is fine. Looking at it this way, I can either just sit and do nothing while watching or do something useful while watching.

[BBatesokc]

I'll do all the tax stuff just to be safe.

$5 each is what I was thinking. I watch my recorded shows each night, so doing it while the shows is running is fine. Looking at it this way, I can either just sit and do nothing while watching or do something useful while watching.

Business Plan:
1. Do that tax stuff, "just to be safe."
2. Work for myself to make $1.67 an hour.

Sounds like a solid business plan to me!

[Thunder]

I was thinking about that, self payment, and was wondering how that will work. Do I have to pay the minimum wage $7.25 an hour to myself or not? Do I have to write a check to myself or not? I will not accept checks and will not deal with checks.

[BBatesokc]

Actually, some of the most successful business owners don't even pay themselves initially for some time. When I opened my screen printing business in 1990 I took a night job just so I wouldn't have to pay myself and I could put all my profits into my business so I would be debt free within a year. I had two employees initially and they got pay checks but I didn't.

I imagine you're going to be a sole proprietor probably operating as a DBA. Actually, every dime you take in will be your income or profit in the eyes of the IRS. You'll need to keep track of your expenses to prove what little was left was profit and not the whole thing. I make a habit of photographing all receipts, invoice and deposits with my cell phone to help me keep track.

[Thunder]

Kool. I will be doing that.

[kevinpate]

You might want to spend some time at this site:
http://www.okcommerce.gov/Commerce/A...sked-Questions