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Open a market stand - this is how you proceed!

Katharina Rösner
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In the regional direct marketing there are different sales channels, for which there are also different framework conditions. One of them is a stand at the weekly market. Find out here what you need to consider if you want to open a market stand.

What types of businesses are there in regional direct marketing?

In addition to the trade, there is also the travel industry. As we have seen in latest blog article, farm shops in the regionals direct marketing need not necessarily be signed in as crafts. For example, farms do not belong to the travel industry, as do businesses and delivery services.

Basically, you must sign in a travel industry when you selling goods outside the commercial establishment, do not have such a branch, or if you sell goods without receiving orders first. That applies to sales cars as well as market merchants or craftsmen who do not have a commercial branch. If you sell agricultural products outside of your company that is excluded from the travel industry when they come from the first stage of processing. Because then they will not exceed primary agricultural production. This includes products from orchards, agriculture and horticulture, fishing, beekeeping, hunting and poultry farming. In addition milk, dairy products and margarine.

If the original production is exceeded because the products are further processed, a business must be registered — or even a travel industry. The street sales, as is common with strawberries, asparagus or pumpkins, for example, is considered special use, for which permission must be obtained. Market stalls are also excluded from the travel industry if the weekly market is set by the municipality. Defined markets however, as a market industry, are subject to the industrial code. This means that market stands must be registered with the trade office.

Does a market stand belong to the travel industry?

If it is a weekly market having been registered with the competent local authority by the organizer personal or legal entity, the trade code applies after the application has been approved. Stands at weekly markets are then excluded as subject to notification as travel industry.

For example, if you sell agricultural products at stands outside a fixed weekly market, you need a travel business license. You can apply for this from the trade office, for which a processing fee will be charged. The need results from the fact that the travel industry is less easy to control.

What else do I have to pay attention to?

Every market has a market organization that you must comply with. You don't need a business license for a market stand if you offer first-stage agricultural products only. However, you can also find out the regulations if you report the stand to the market management.

To serve food, you need a health education. Perishable goods such as fish, meat and milk or dairy products must be refrigerated and packed hygienicly and must not be touched by customers. If these perishable goods are sold loose, you need a valid certificate in accordance with the Infection Protection Act.

While packaged goods need labels with best-before date, information on allergens and ingredients and a nutritional table, for loose goods you need Information signs stating the quality class, the animal husbandry and the best-before date as well as the weight class concerning relevant food. The best-before date of eggs is 28 days after they have been laid. When you want to pre-sort eggs, you need a packing center approval. Unsorted eggs for the weekly market need a producer code.

Which products are worthwhile?

Goods that are an integral part of a classic weekly market include, of course, fruit, vegetables, sausages, and cheese, or even bread. However, the range is becoming more and more diverse. There are stalls selling spices, honey, sweets such as licorice, other specialities, flowers and plants, but also handicrafts from vendors from the surrounding area or the region. Drinks and stands with food such as fish, fries, fried potatoes and so on are also well received. Since there is market and trade freedom, you can sell what you want at weekly markets - provided that it does not violate market regulations. You are not allowed to sell alcoholic beverages and you are not allowed to sell raw milk. An exception is chilled and correspondingly indicated preferred milk.

If you have a farm, you will probably sell fruit, vegetables, eggs, milk, or meat. Of course, this can also be processed foods. Since such foods are very common on markets, it makes sense to take off from the competition. For instance through a special prize or special quality. When you process your products, you can also package them particularly beautifully or advertise them through particularly sustainable packaging, cultivation, production or even market them as particularly healthy products.

If you have others market channels in addition to the market stand like an online shop, a delivery service, a farm shop or vending machines, you can greatly advertise those at your stand. After all, market stands are a good way to get in touch with your customers. A basic requirement is that you have fun at communicating,too.

What are the advantages and disadvantages of a market stand?

The advantage of having your own products is, of course, that you don't have to buy anything more and that you can definitely save money. When registering your stand, you must note that your sales prices must cover the stand rent, which can be quite high in cities. The advantage of market stalls is less operating costs than you would have to cover with a standing shop.

Keep in mind that markets are open on all weather conditions. Since you are obliged to operate the stand, if you have a permit, you have fixed opening hours. So consider whether or how you would like to try out this sales channel.

You should have more income in your main job than in your side job. Business tax is due for an annual profit of more than 24,500 euros, the sales tax at the latest from a turnover of 25,000 euros. As I said, whether you need a business license depends on your range of goods.

conclusion

For a market stand you need a business license, but usually not a travel business license. However, you should ask the municipality about this before registering. In addition, you must comply with the market organization of the respective market and also whether it is a fixed market according to the trade regulations or not. Having a market stand can be worthwhile since you have an alternative distribution channel and operate in expanding your channels without high operating costs. FrachtPilot is the perfect solution to connect all the synchronized sales channels. If you are still looking for an ERP software for your regional direct marketing, visit us, book a free webinar to get to know FrachtPilot or Try FrachtPilot directly. We're looking forward to seeing you!