Every Sunday in the south end of the Chicago loop there is a ‘flea market’ that offers everything from fruits and vegetables to IPODs and other electronic accessories. Clothing, cosmetics, gum and candy, hardware and tools, game cartridges and soft wear, jewelry, and underwear are only a few of the myriad of products offered at huge discounts: The entire market is cash and courtesy based.

There is much to learn from these ‘flea market’ salespeople. In drilling into the data I found that if a product is seasonal or in short supply the price seems to be fixed by all of the sellers. If the product is technological, out of season, or in large supply the price is negotiable. What is amazing to me is the ‘wow’ or ‘entertainment’ factor from this ‘flea market.’ Families make it a weekly event. Vendors make it a ‘must attend weather permitting’ offering. The challenges of the economy are clearly presented in the essence of retailing: one on one selling.

Each Sunday these vendors arrive early in the morning and set up their booths in what appears to be a ‘pecking’ order based on seniority. I have observed how the market place adjusts for competition, how the same real estate (site for the booth) is ‘owned’ by the most frequent sellers, and the extremely high level of customer service that is provided.

I am not sure if they have a group meeting to set prices but I can tell you that certain commodities have a fixed price from numerous vendors. In other cases the vendors closet to the entrances often charge more by stating 10 to a pound for $1 which those furthest offer 15 to a pound for $1. And only the experienced shopper would know that information until they have been to the marketplace on a frequent basis.

Upon examination we find sever competition, more commodities than unique products, poorly trained sales staff, the bare necessities of ‘brick and mortar’ which is really a flimsy tent and limited shopping hours: Sunday 8AM-4PM. So how do they survive?

1. Competitive customer experience. No matter how much you buy the experience is similar from booth to booth.
2. Want a sample? No worries.
3. Want to negotiate? Give it a try.
4. Want terms? You have got to be kidding.
5. Want to return an item. No hassles as long as it is unused, same box, same contents, etc. In other words in perfect sales conditions.

Some of you might want to consider this for your business. Make your experience memorable. Reduce your inventory so that by the end of the holidays you are ‘bare to the bones.’ Then you can discover new products, deals, etc. and rebuild your business for 2010. Perhaps survival in 2010 will be downsizing to a simpler business model: Cash and Courtesy.