Having a market stall is one way to start up your business with very little initial outlay. Tens of thousands of folk have begun businesses over the years and have not only thrived but have become extremely wealthy too. If you see a market trader regularly, then they are doubtless earning a living wage. If you see them ‘everywhere’ then you can be sure they are earning a significant living.
Can having a market stall business make you rich? Yes, most definitely. The more markets you attend the better off you will become. It is a matter of arithmetic. Do one market and earn 1X. Do two and earn 2X. Do five and earn 5X. Double up with your partner and double up on your income. Ad infinitum. Consider these well-known Market Stall Millionaires – these are only a handful of the ones that we know about:
- Michael Marks and Thomas Spencer, founders of M&S Stores, now with Group revenue of £9.0bn in 2021, who began trading in Leeds in 1884.
- Dunelm – Bill and Jean Adderley. Their story began in September 1979, when they took a stall at Leicester market. Bill and Jean where they sold seconds of ready-made curtains M&S seconds and slippers. Within a month they made 600% in profit.
- Poundland – Steve and Tracy Smith, sold the business in 2002 for £50m. First started at Bilston Market.
- Superdry co-founder, Julian Dunkerton began trading in fashion at Cheltenham Market.
- Lord Alan Sugar – was selling his wares at Petticoat Lane, London when he was 16. He founded his electronics company Amstrad (Alan Michael Sugar Trading) in 1968. The company was listed on the stock exchange in 1980 and he sold remaining interest in the company for £125M in 2007. He now has an estimated worth of over £1bn.
- The Range – Chris Dawson sold at Plymouth market and in 2020 had a net worth of over £2bn.
- Tom Joule – Joules. Began trading on his father’s stall in Market Harborough, Leicestershire. He then went on to sell his clothing brand at Equestrian Events and Country Shows. In 2019 his net worth was reported as £130m.
- Wayne and Geraldine Hemingway – Red or Dead. In the early 80’s Wayne and his wife Geraldine began selling second hand clothes at Camden Market, London. A year later they had 16 second hand stalls, selling their own branded and designed clothing range. They sold Red or Dead in 1995 for an estimated £25m.
How Much Can A Market Trader Earn?
Your personal earnings will clearly depend on your costs, profit margins and turnover and how hard you can work.
Turnover (Amount Sold) – to ensure a healthy turnover (gross revenue), then the more opportunities to trade that you create for yourself the more your turnover will be. Sometimes trading one day a week at a good event is as good as trading 5 days at a mediocre one. Whatever options are best for your business, the higher the turnover, the higher your earnings. Look at Red or Dead’s market stall days. They built up to 16 stalls a week from one. Take the profit from one market and multiply it by the number of markets you are able to do and you will thereby increase your turnover.
Costs of Sale – your stall and stock costs will probably be your main outgoings if you work from home, but if you work out of a unit or storage facility, then that will be a significant cost as will staff wages, if applicable. It may be sensible to establish your business first and see where the possibilities for growth are before investing in a unit or staff. The lower your costs, the higher your profit margin will be …
Profit Margins (Net Profit) – the difference between the stock that you buy and your selling price will be the most important area for profit. Once you know your percentage of profit for each sale that you earn, you can start looking at how other costs might make an impact on your profit. Don’t think that having really tiny outgoings will mean a guaranteed good income. If you sell something that people don’t want, then you will never make money, no matter what the selling price.
We bought a minimum quantity of Peruvian Rugs for £56 each. After a little research, we saw that they were being sold for £190. We put a price of £150 – we thought they would fly out because they were beautiful and a ‘bargain’! We never sold ONE on a market stall! We managed to break even by selling a few online, but that was one business idea that failed. But the upside is, we have our floors covered in beautiful rugs!
| Business | Retail Price Each | Amt. Sold | Gross Profit | Cost of Sale | Net Profit |
|---|---|---|---|---|---|
| Pies | £3.00 | 30 | £90 | (50p x 30) £15 | (£90 – £15) £75 |
| Rugs | £150 | 2 | £300 | (£50 x 2) £100 | (£300 – £100) £200 |
| Jams | £3.50 | 20 | £70 | (75p x 20) £15 | (£70 – £15) £55 |
| Bread | £2.00 | 100 | £200 | (25p x 100) £25 | (£200 – £25) £175 |
| Socks | £2.50 | 10 | £25 | (50p x 10) £5 | (£25 – £5) £20 |
| Sweets | £4.00 | 50 | £200 | (35p x 50) £17.50 | (200 – £17.50) £182.50 |
| Plants | £3.50 | 40 | £140 | (25p x 40) £10 | (140 – £10) £130 |
| Shoes | £10 | 20 | £200 | (£1.50 x 20) £30 | (200 – £30) £170 |
Here are a few examples of how to work out your potential profits based on the amount sold. In order to increase the final amount in your pocket, you need to find ways to increase how much you sell and make the profit margin as great as you can. Every business will have different profit margins and different volumes of sales potential. e.g. a bread seller will have a much greater possibility of selling more stock than a rug seller. Don’t be disheartened when a stallholder says they take £500 at a market, where you only take £200. You don’t know what their profit margin is, but you know yours and if you are happy with your income, then don’t think that the grass is greener and begin selling something else. Concentrate on building your brand and your turnover and you will be successful.
The real way to earn a significant income is to keep your eyes and ears open. Be ready to alter your business direction if necessary and if market forces dictate, be ready. Working ‘on the street’ will give you a real feel for what is happening in the area of your world. Supply and demand will dictate the prices you can charge and the prices that you will pay for your stock. The bottom line here is to be intelligent and adaptable.
Here’s to profitable trading!