Are table merchants at competitions legal?

[Query]

I am interested in the idea of selling something at skating competitions or tests.

At some figure and hockey skating competitions, merchants set up tables to sell things. Tee shirts. Sparkly things. Dresses. Soakers. Pictures of the competition. Jewelry. Books, Videos, assorted nicknacks and souvenirs. Skate fittings.

If the areas around me are typical, at least in urban areas, where many of these competitions are located, you generally need state, county and usually municipal business license(s) to sell goods (e.g., a "hawker's license", though the exact name differs by locality), even if you only do it for a day. These are quite expensive - in total maybe $100 - $200 / day. And there are substantial paperwork requirements - probably not something you can do the same day.

On top of the fees merchants pay to buy the right to set up a table at a competition to sell stuff - likely another $50 - $100. Plus the deal with the rink often requires that they pay a 10 - 20% cut of the sell price to the rink pro shop. (I think.) And then there is the cost of travel - roughly $0.50/mile by some estimates, plus hotel costs.

It seems unlikely that most of the merchants can reliably make that much profit. Am I wrong?

So does that mean most of these merchants aren't fully legal, and ignore these rules?

Or have I misunderstood something?

[rd350]

I can't speak for merchants at skating events but I'd guess you have a mix.  So many people selling at smaller markets and/or street fairs and events are testing the waters and skipping some technical requirements.  Most get away with it but depending on the infraction (like if you're selling food for human consumption and don't have the correct licenses) they can get a fine.  In some outcomes, they won't be issued a license after an infraction.  In other cases it may be a slap on the wrist or a strongly worded letter, to perhaps a warning (although that is becoming less common with everyone wanting a piece of the action!).

Personally, I have always gone by the book for my business but, in my industry especially, I know many don't.

I guess it's a risk/reward/integrity/what makes sense kind of thing and what you are comfortable with.  There are some rules that are so ridiculous but don't have high risk consequences and so most in a particular industry will never follow them unless they are ordered to.

Some events will ask for all your licenses (if needed), some just want their $$.

I suggest reaching out of some people in the industry, at events or even by e-mail if you know some, and asking.  Just tell them you are looking to do this and wondered what others do at start-up.  Some people won't answer you but many will be generous with their experience and knowledge.  Compliment them first!

[Query]

I don't want to break the law - the consequences are severe, especially if I have dreams of getting back into the software industry, where background checks are universal. Based on what I've seen so far, most of the businesses must be cheating.

It's different for most of the boot fitters and some of the other distribution side reps. Because the sale actually goes through the pro shop, and is covered by their licenses. The rep then gets their usual cut from the manufacturer, who only needs their own local licenses. So I suspect those people are legit. But those positions are hard to get.

[blue111moon]

The venders I've seen at competitions around New England and the East Coast tend to fall into two categories:  Most are professional businesses with storefronts somewhere and so have all the necessary licenses, tax IDs and certificates.  These are generally the ones who travel great distances to sell their wares or services:  the T-shirt guys, the video/photography people, the boot and blade folks and a lot of the bigger dress and bling venders.    And then there are the one-shot folks who are usually local folks selling homemade items like American Girl doll clothes or jewelry.  These people have to have tax IDs but may or may not be professional venders.  Generally they're either members of the host club or friends of a member. 

Because of state laws, no one is allowed to sell products in the rink that duplicate anything sold by the rink's vendors without their written permission.  That eliminates most food items (although I have seen a woman who sells packed bread mixes and spices at several events) other than club-run bake sales.

So I would say that your best bet would be to contact a local club and find out if their competition accepts vendors and then ask what their terms and conditions are.  If you start small and local it could work into something like a profitable hobby over time but I wouldn't expect huge profits to begin with.

[Query]

Because of state laws, no one is allowed to sell products in the rink that duplicate anything sold by the rink's vendors without their written permission.

I'm aware that many pro shops have a non-compete requirement in the concession contract, but if there is also a state law, what would it be called?

[blue111moon]

I have no idea what the law is called.  But a good number of local seasonal rinks are owned by the state and leased to a management company.  The in-house vendors bid for the spaces and are guaranteed to be the sole provider of specific goods/services on prem. 

[Query]

Ah. It is hard to imagine a pro shop renting concession space at an ice rink to sell something without insisting on such a clause in their contract. The whole point of renting pro shop space at a rink is to have a captive market.

OTOH, we all know many shopping malls that rent space to stores selling many of the same things - so there probably isn't a state law saying you can't.

[blue111moon]

Shopping malls aren't in the same class as recreational facilities.  Places like ball parks, arenas and amusement parks and beach fall under a different category and have different laws governing their uses.   I know at one time, MA state rink concession stands were supposed to be run by non-profit groups (the hockey or figure skating clubs or school who rented ice at the facility) but Gov. Weld ended that perk because the state could make more money putting the food and skate shops out for bid.  Now 20-odd years later, the rink management company runs the food stands and only the skate shops are leased, with the rental fees going to the management company. 

Outside vendors brought in for special events like competitions or hockey tournaments have to be approved by management.  Generally during skating competitions, the hockey shops don't open at all and don't object to figure skating gear vendors, since the hockey shops don't sell much FS gear.  But I know several rinks where skate and blade vendors aren't allowed on prem because the skate shop stocks FS boots and blades.  I even remember a dress vendor being forbidden to sell laces on her table because the skate shop stocked them, even if the shop was closed during the competition.  Dumb but legal.