Over the last few years, farmers and craft markets have shown up everywhere. If you've ever considered setting up a market stall of your own in your local market it is important to first do some research into the market itself. The following are ten important things to consider:
1. Existing competition
One of the first things you should consider when considering setting up shop in any market place is existing direct, or indirect competition. Direct competition is easy to spot. They are people who are already selling a similar product (or service) that you are considering selling. Most market organisers will restrict the number of similar stalls from opening at a market. This is to protect existing stall holders from having their profits diluted, and once you are 'in', it can serve to protect you. That said, market organisers cannot restrict fixed stores from opening nearby. Say, for example, you have a market stall to serve coffee. A coffee shop down the road from the markets can, and will, be direct competition to you.
Indirect competition can be harder to gauge. These are stalls in the market that in the customer's eyes offer an alternative to your product. For example, if you sell bread products, a stall that offers breakfast alternatives may affect your business as customers who would normally buy a croissant or danish from you for breakfast may decide to eat elsewhere. Both direct and indirect competition will affect how much business you get at your market stall.
2. How busy is the market (traffic)
How many people normally pass through the market on market day? Why do they come to the market? Being able to answer these two questions will enable you to estimate how many market goers could become your potential customers. The market organisers should be able to tell you the amount of through traffic on a regular, good, and not so busy week. As for why people come, this should be easy to determine by noting where people shop already.
3. The market type
The type of market can determine how successful your stall will be. Your stall can do better in some markets more than others and it is important to work out why people go to the market you are considering. If you have a craft product to sell for example, it may do better in specific craft markets or a weekend market. If you sell a certain type of food product that people don't often eat in the morning, then a night, or twilight market may be better for you. A busy market doesn't necessarily mean a busy market stall for you.
4. Rent
Overheads are one of the major killers of most small business, and rent is often one of the highest ongoing costs on the list. Every market will have a different rate of rent, and the type of stall, space required, your set up configuration, and even how busy your market stall will be can determine your rate of rent within a market itself! Doing your research by asking the market organisers, and if possible, a few existing market stall owners will help to avoid any rude surprises later down the track. It is important to note that it is not unheard of for market organisers to increase rent as a market becomes more and more established.
5. Facilities and utilities
Electricity and water. If you are considering a market stall that will be selling food, this is an especially important consideration. Electricity may also be necessary for lighting if you are setting up outdoors in a twilight or night time market. If the market you are looking at does not have electricity you can always provide your own by either hiring or buying your own generator, just make sure you get one that has enough capacity to meet your needs.
Most markets will have a water source nearby where you can get water if you need it. Just make sure that you have a means of getting it from the tap to your water container! This may mean bringing your own hose extension and/or adapter. Also consider that if you are a food stall holder in Australia, council regulation will likely require you to have your own hand washing facilities available.
Just as importantly for any market stall owner is the location of the nearest toilets. If you are planning on running your market stall on your own, it is a good idea to have a plan for when you will eventually need to visit the loo!Most markets will have a water source nearby where you can get water if you need it. Just make sure that you have a means of getting it from the tap to your water container! This may mean bringing your own hose extension and/or adapter. Also consider that if you are a food stall holder in Australia, council regulation will likely require you to have your own hand washing facilities available.
6. Market potential
If you are entering an emerging or growing market, it is important to take note of the potential of the market to grow. There are a combination of factors that will help you to work this out. Most importantly is the attitude of the market organisers and their plans for the future of the markets. How do they currently advertise the market to the public and establish a 'presence' for the market. What is their attitude towards creating a market vibe through music, seating and other means? What is their relationship like with the local council and how do they plan to improve the facilities and utilities for the market stall owners in the future?
7. Insurance
In our experience, the market organiser should have some form of public liability insurance that will cover the market in the event of a claim being made against them due to negligence resulting in injury or illness. Regardless of this, it is always a good idea to speak to a qualified insurance agent/broker and considering getting your own insurance.
8. Required commitment
In our experience, some markets require a regular commitment by stall holders to get a regular, or better position. For some markets, being anywhere outside the frequently visited zone(s) can be a killer for your business so your level of this may be something to think about.
9. Location
It is important to conside the physical location of the market itself. Is the market easily accessible? Is it well sheltered from the elements? How well does it cope when it rains? Knowing this will help you to assess the affects of weather on the market traffic, and the conditions you'll have to contend with as a market stall holder. Another location based consideration is if there is room for further reasonable expansion. This may or may not work in your favour. If the market is likely to stay a certain size, this may mean that there will be less competition in the future, or it may mean that the market may not get any busier.
10. Demographics
Like any small business, the socio/economic profile of the people who attend the market will be your pool of potential customers. It is vital to know this information to determine whether your product will be suitable for the market and your sales approach, both of which will result in sales for you!
