What would you do? Trouble at the flea market

[Cygnet]

Okay, my entire booth is hair accessories and jewelry and sunglasses. Most of my stuff is hair accessories.

I set up this morning and then another lady showed up and seemed to make a point of setting up across from me. (This is not her usual location, and I think she paid someone else a few bucks to move to a new space.) She sells shoes and cheap plastic toys and pots and pans.

She's come by my booth several times and made observations that I "have a real good business" and have "lots of customers."

Well, today she set up with a ton of hair accessories from the exact same wholesaler I use. SAME stuff -- same brands, same packaging, identical. So she's found my wholesaler.

And she's charging the *wholesale* cost of the stuff. So where I'm selling headbands for $1.50 she's selling 'em for 3X$1.00 each -- that sort of thing. She's losing money when you factor in the cost of shipping.

All day, I sold three pair of sunglasses and *one* headband, in a style she didn't have. Pathetic. Normally I'd gross $30-40 on the hair accessories.

Augh. My suspicion is that she's trying to run me out of business, and then she'll mark her prices up. I'm not sure there's anything I can do, but I'm almost heartbroken at this -- I've tried so hard to build a customer base up, and I was getting somewhere, and now someone does this.

She has other merchandise, so I guess she can afford to sell at cost or at a slight loss ... it's no skin off her nose.

She also made a comment about how well the sunglasses were selling (!), so I expect she'll have sunglasses next week. I only sold three sunglasses, but they're eyeball bait -- they bring people over who buy other stuff after they try the glasses on. Except if there's a vendor across the aisle shouting that her stuff's cheaper, then eyeball bait doesn't exactly work.

And if I switch to other merchandise? Will she just keep undercutting me?

I've deliberately *not* sold much religious jewelry so as not to take sales away from the people selling rosaries and the like. I don't sell hats because I don't want to take sales away from the guy with the huge selection of hats. I came in with hair accessories and (handmade, beads) jewelry because nobody was selling anything similar to that. And now ... this.

[bluemoonluck]

Is there anyone in charge of who sets up where? If so you might want to tell them that you need a new location - away from someone who is imitating your business. Other than that, I don't think there's much you can do. Sorry...that's a rough place to be

[Cygnet]

This is a very informal swap meet. It's a dirt field behind the local liquor store & hole in the wall restaurant -- they rent spaces for $4 each and then make a killing on all the customers it draws in to their businesses.

It's close to my house, and the informal aspect is nice in some ways, because I can also sell poultry or goats there if I have extras. But there's very little management at all. You just pick a spot and park and they come around and collect their $4 and make it very clear they don't want to be bothered by trouble from the vendors.

[Cygnet]

What irritates me is that if she's behaving like this, it's also ultimately going to be counterproductive to her. If the swap has lots of vendors, it brings in lots of customers. If she runs the other vendors out of business then there will be fewer people visiting the swap.

(This is not a huge swap meet -- maybe 20 people total. It tends to have decent business though; my gross is higher here, on average, than at the "big" formal swap meets in Phoenix.)

I dunno. None of her other stuff was selling, so maybe *she'll* go out of business. She's marking her shoes and pots and pans up higher than what Wal-mart charges for the same things, so she may be trying to make up for what she's losing on hair accessories with that. I didn't see her sell anything but hair accessories.

OTOH, it was a really bad day overall. I didn't sell anything but sunglasses and one headband, which was pathetic period. I usually sell a bunch of jewelry and not one piece (not even a friendship bracelet) sold.

[Pearl B]

Thats really a hard one to answer, & I do feel for you.
I used to make some good money at our local swap meet, & then they sold the land to some developer,who wants to run poor looking people out,& the small one that is left is just junky. Really, he got the local non-government,all donation, food bank closed.
This is a poor area.
Its my experience that clothes,books,pots & pans dont go over to well in this area.
I think a lot of the people that stopped by were just looking to spend an afternoon with the kids, & spend a few bucks here & there.
I guess what Im trying to say is you just got to know your market & area.
One girl would show up with veges that were rejected as 1st rate from farms & would sell out in a few hours. People went there just for the produce she brought. She would also give out a business card where they could buy through out the week as well.
One other girl bought a bunch of SMC merchandise & sold very little, people around here just weren't into it.
One guy bought holiday themed items from china.I got to talking to him & he said he bought bulk loads at wholesale prices, Im guessing less than $1 a piece & sold them for $2. He usually walked off with $2-300 a day. People loved to buy some cute little knick knack for $2.
Then you have your collecters, they are looking for certain items, at a good price. I have a little knowledge about that,not enough to make a lot of money at it.
One guy used to sell these blue/older bottles from the 1900 era's & made some really good money at it.
Its just weird what will sell at a swap meet.
You get so many people looking for so many different things.
If I was in your situation, I would try to figure out what people want,what kind of place your in, like a rich or poor area, & cater to the market.
As too the lady, I might just raise my prices a bit, & send every customer I could find her way. Eventually she will go broke, or get tired of hauling around stuff, & then pack up all the stuff at the end of the night, for no profit.
Meanwhile figure out what else you can offer.

Good Luck, I hope this helps

[Watcher48]

If she is using the same wholesaler. You might be able to leverage them. If she is only buying a little and you are buying a lot they may not wish to lose you as a customer. On the other hand if you know your real coast and she is undercutting you there has to be a reason. And it may be she has promised to buy more from that wholesaler as she may have more than one stand or sell more often. Its the free market but this kind of free market sucks. Believe me I know. try and complete with the Chinese someday . You may just have to count on loyal customers and hope you can outlast her.

[lharvey]

Unfortunate for sure.

But... This is business.

Some people just don't have the common courtesy and sense of right and wrong. They are the ones that usually don't stay in business very long.

Hand in there and keep at it. Never surrender and never quit. You will eventually prevail.

L

[Alice In TX/MO]

Maybe she won't show up again. Maybe she'll get athlete's foot really bad.

[Cassie]

That is so maddening and mean. I know, some might call her a good businesswoman; I'm sticking with mean. I don't know anything about this kind of business, but is there any way to find a wholesaler, maybe through word of mouth, who could supply items she wouldn't have--at least for awhile until she finds them. Or a wholesaler who offers territories on their products and won't sell to her. What about buying unique and unusual items via craigslist, garage sales and ebay. My sister-in-law makes good money buying and re-selling antiques. I hope things work out for you.

[PonderosaQ]

I was in the flea market business for ten yrs and this type of seller really spoils things.
Most folks can't afford to sell at a loss even in one line of several they carry. I feel for you especially that the owners aren't willing to deal with this type of issue and at least approach her, maybe move her to the other end or something. I know you have worked hard to get this business going, I hope you don't lose it.

PQ

[SquashNut]

We do flea markets and we have good enough suppliers that we often can sell for less than other venders do.
We are not loosing money. We just have better supplies. is it possible you have a middle man supplier and she knows where your middle man is getting the hair clips.
I used to sell them my self. i could sell whole pks for $1 or 2 dollars and some people broke the pkgs open and sold them by the peice for much more money. i still made good money, on volume sales. in fact I had people come to me to get things whole sale and they took them to a different market to sell them by the peice.

[foxtrapper]

If management of the flea market has no restrictions, then it's just between you and her.

In that case, it's who ever blinks first. If she can sell at a loss longer than you can handle having no sales, she wins. If you can hold out longer at no profit than she can hold out with a negative cash flow, you win.

Either way, one of you must lose.

[Shepherd]

Can you sell baked goods there that you make?

[Ken Scharabok]

Perhaps drop your prices down to what they cost you. That would force her to go even lower - increasing her loss. Then try to outlast her.

[||Downhome||]

I would talk to her and tell her just like you told us, and how you worked hard
to build you buisness and what it means to you and how her actions have affected that. either she will see reason or not and if not well Ive got one name for ya "GEORGE HAYDUKE" you should be able to find his copys of his books online (e-book format) might help formulate a plan after
all one good deed deserves another right.

[Ken Scharabok]

An example of eBay and alternative inventory. Does anyone at this flea market sell fishing tackle? As an example go to eBay and do a search on fishing tackle, then on wholesale lots. One on there from the Cleveland, OH area seems like a decent deal, but you are buying the pig in the poke. Also try alternative searches, such as fishing lures. (I'm not recommending fishing tackle, just using it as an example.)

If you have the resources to do so, play dirty. Consider a sign: I will beat any market seller's prices by 10% for an identical item.

I have friends who flea market. One is a consignment shop. The owner there will frequently mark up inventory if she feels the vendor has priced it too low. The other is one which rents out booths. There they note it is basically the same crowd every weekend. For some it is apparently just something to do that day.

[Pony]

Originally Posted by ||Downhome||

I would talk to her and tell her just like you told us, and how you worked hard
to build you buisness and what it means to you and how her actions have affected that. either she will see reason or not and if not well Ive got one name for ya "GEORGE HAYDUKE" you should be able to find his copys of his books online (e-book format) might help formulate a plan after
all one good deed deserves another right.

Aw, geeze...

An Edward Abbey fan, eh?

But I don't think that GW Hayduke's methods are necessarily something in which the OP would engage.

Cygnet, I'm sorry that woman is doing this. It can be SOOOoooo irritating when you feel unable to deal with some situations.

Hopefully, you'll find a way to deal with this in a way that helps you come out on top.

{{{HUGS}}}

[hoggie]

Not sure what your takings are like, but could you put up a small raffle prize, and give a ticket to every customer who spends money with you?

Hope it works out

hoggie

[Pony]

Originally Posted by hoggie

Not sure what your takings are like, but could you put up a small raffle prize, and give a ticket to every customer who spends money with you?

Hope it works out

hoggie

Hoggie, you're so clever! What a great idea!

[Claudia in NY]

walmart has come to your fleamart in the guise of this woman! sadly, this is the unseemly side of business...underhanded competition...either beat her at her own game: 1) be creative, like the raffle ticket idea or give a coupon for 50% off one item on next weeks purchase (that way they come back to you) 2) move your location or change your merchandise. good luck, common sense and a good dose of creativity should serve you well.