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Six Steps to Flea Marketing in South Africa

 For Many South Africans , Stall holding be it online or at a market is a popular side hustle or full time income source. 

Follow these six steps to establish and grow a market stall. 

Step One: Planning with S.W.O.T

Conduct a S.W.O.T analysis (An acronym for strengths, weaknesses, opportunities and threats.) to determine viability.

Ask questions such as

  • What are your product’s strengths & weaknesses? 
  • How unique Is your product?
  • Do you offer better pricing? What gives you a competitive edge? 
  • What are some challenges?
  • What opportunities does the market create? For instance, the increased power outages created a market for need for solar panels and generators. 
  • What are some threats that may create challenges for your offering? a new product or technology may threaten your product’s viability

Step Two: 5P's to Getting Your Product Sold

(Product, Price, Promotion, Place, People). 

Doing a Marketing analysis using the 5P’s will help you to identify the best methods to positioning and selling your offerings.

Selecting and Finding Products.

When choosing a product, consider whether it’s something that people will want and if the location is right.

Besides making your own items, you can source products at wholesalers, clearance sales, special promotions, recycled materials, auction houses, estate sales 

Social media platforms such as Facebook, Gumtree, OLX are also sources to find inventory.

Pricing

What are similar items going for?

What is the cost of producing the item or the cost price?

Add your expenses to produce the item or take it to market together with a  profit margin to arrive at a recommended retail price. 

Leave some room for negotiation.

Promotion

Promotion of your offerings and stall entails both direct and indirect promotions.

Direct promotions in the form of direct customer contact and indirect promotions in the form of advertising, stall layout and social media communications. 

Direct Sales Using A.I.D.A

Stands for Attention, Interest, Desire and Action. Attention    Create awareness of offering. Establish through: Direct Contact: Eye Contact & body language. Be open and friendly but not forward. Indirect Contact: Advertising, social media, Promotions & stall Layout. Interest requires holding the customers attention from awareness to interest. Creating a hook to promote interest and give a reason to buy.  For instance, a limited offer discount. Align your offering with the customer’s needs and values. During the Desire phase, build value using emotional connection, consistency, social proof and appeal with the five senses Action is the final phase where the customer has decided to buy the product. Use the A.I.D.A method to be more effective in closing sales. Indirect promotions require actively promoting your stall through different forms of communications. Social media such as face book, Instagram, twitter can be a cheap and cost efficient way to market your stall. Be careful that what you post won’t be considered spam. Good signage is also necessary if you want to be professional and have your product and stall stand out.

Indirect Sales Using Stall Layout

Before deciding on stall layout, determine the product you are selling and your target audience. If for instance you are selling a product targeted at children you might consider including bright colours and a layout that is bright, colourful and youthful whereas if you are selling a product or service targeted at organic health care products – consider a layout that communicates health and wellness by using more natural colours such as greens or browns. Fill your space with items or to give the impression that your space is full as opposed to having a half empty table or stand as this may give the impression that you stall is not well maintained.

Indirect Sales Using Stall Layout

Decide which market will suit your products and offerings. In today’s digital age, an on-line store might suit you better. If you decide on a flea market or event stall, observe the flow of traffic and choose a location best suited to your product. Location of your market stand can make a difference in terms of visibility and sales, so choose a spot with high visibility and close to products of similar or complementary offerings. For instance, it’s good to place a sauce stand near the food department or accessories near clothing stalls… In general, the types of market that can be found within a community include: Car Boot Markets  a good way to sell pre-used and Bric n Brac items and can be a good source to find inventory. General Markets  Cater for the general population and have a wide variety of products and food stalls. Craft Markets  Tend to cater for a target audience that prefer more unique and one-of-a-kind items For instance, the Rosebank market in Gauteng comes to mind. Food Markets  Strive to create a vibey ambiance where visitors can enjoy good food and company with a great atmosphere. Specialized Markets  Specialized events – For instance, expos for toys, health and wellness, hobbies, classic cars… there are special events for practically every subject matter you can think of.

People

People refer to anyone who engages in marketing activities of your stall either directly or indirectly and includes the stall holder, sales personnel and support services and customers. Ensure that your stall manager is trustworthy with good salesmanship skills.

Step Three: Managing Your Income and Expenses.

Point of Sales Systems (POS)

A Point of sale (POS)facility make it convenient to offer as an optional payment method. There are several different POS systems.  Do some research to decide which is best for you. Ensure you have sufficient data and battery life when using a POS system. Additionally, a direct EFT or electronic funds transfer into a stall holders account can also be an option. Ensure deposits are made with an immediate clearance before releasing purchased items.

Step Four: Keeping Track of Sales.

On the day, record sales initially on a piece of paper, an app or your cell phone – Make it as simple and convenient as possible before transferring data to a formal record keeping system.

Step Four: Legal Matters

Be sure to meet all legislative requirements relating to the product you are selling. For instance, if you are selling food, you will need a municipal clearance certificate. Consult your local municipality to ensure that you comply with all requirements.

Contract Terms and Conditions

Contract Terms and Conditions (H3)

Read the Terms and Conditions of your application form carefully before signing. Be careful about signing a long-term contract especially If you are not totally confident about the venue or whether your product will cover rent and make enough profit.

Sign up as a casual stall holder first if you are in any way uncertain.

You can trade as a sole proprietor to begin with if you are establishing and managing your stall as a one-man business.

VAT registration does not usually apply to most stall holders since their annual turnover does not exceed the minimum requirement for VAT purposes.

Step Five: On the Day Set up and Tips.

Set-Up   

◻ Table Use this as a guide to what you may need to set up a stall.

◻ Your Products
◻Tablecloth

◻Chair if necessary

◻Shelter –umbrella or gazebo if required

◻Packaging

◻Stationary: Pen, Notebook, sticky tape or prestick,

◻Other accessories e.g. scissor

◻Business cards

◻ Promotional material if you have

◻Signage – Poster – display boards

◻Price Tags

◻Cash Float

◻Payment system- POS

◻Cell phone and cordless charger

◻Accounting book or app to record sales

ON THE DAY TIPS 

  • Set up early
  • Be friendly but not overbearing
  • Hand out flyers and other marketing materials.
  • Keep your stand neat and tidy and within your stand boundaries.
  • Rearrange stock if necessary to maintain a full look.
  • Wear comfortable clothes and look the part.

Keep your relationship with fellow stall holders friendly and respectful.

Step Five: On the Day Set up and Tips.

Like all businesses and professions, it’s important to keep up to date with latest developments and things that might impact your business. Stay connected by reading, learning new skills and, networking with relevant people, Stay connected with our Facebook Group, Stallholding.co.za Good Luck and trust this guideline will help you on your journey of becoming a successful stall holder

FAQ

What sells well at flea markets?
Most things can sell well if the right product is sold at the right type of market. For instance, artwork may not sell well at a general market but can do well at a craft or art market. Generally, food and beverages do better but the stall fees are also higher.
Stall fees can vary from around R80 at a car boot market to R650 at a specialised market.  The average being around R200. Food stalls are generally more expensive.
You can start with your own and family members pre-loved goods. Making your own original items, car boot markets, auctions, wholesalers, manufacturers and estate sales  on-line platforms such as marketplace and gumtree are some places where you can source re-sell stock.
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