Used clothing has long been a staple segment of the flea market business. Vendors would either unload their no longer needed clothing, or buy it from a local Salvation Army thrift shop.

Flea market vendors could make good money selling used clothing, often working on profit margins of over 500%.

Many established businesses set themselves up to supply used clothing to flea market vendors, offering pieces of clothing for as low as .25 each.

Vendors could then resell the clothing for $1 to $2 each, enjoying great returns while saving their customers plenty of money.

So it’s only natural for prospective flea market vendors to consider selling used clothing.

The pros are pretty clear. High margins combined with low priced goods mean that anyone can easily buy profitable merchandise to sell.

But based on the market research I have done, I have determined that used clothing is no longer a good category for flea market vendors.

My reasons are the following:

Reason #1

The price of new clothing is dropping drastically. Customers can now buy brand new clothing at Wal Mart for around $5, or even less at many dollar stores. Why should they buy previously worn clothing when the savings become pennies?

Reason #2

Better quality clothing. Clothing manufacturers are producing better quality clothing which lasts longer. Customers know that it is worthwhile to spend a few dollars more for new clothing. Since the clothing will last them longer, they will save more money than if they had to replace the used clothing in a few months.

Reason #3

Rising incomes. With the overall per capita income rising in the United States, most people can easily afford new clothing. While there will always be poor consumers, their buying power will increase as clothing manufacturers reduce the price of new clothing. In other words, as the price of new clothing decreases, more people will buy new only.