Street vendors part of down-low economy

The turbulent economy has made it difficult to find stable employment especially for those with no college education or extensive work experience, which too often are Black men.

So people like Leroy (last name withheld to protect his privacy), 45, have resorted to innovative and creative ways to make a living. They are a part of an underground, tax-free economy that helps them feed their families and support themselves.

For the past 25 years, Leroy has been selling items on the street, such as T-shirts, hats, bath towels and pillows. He is “open for business” daily from 10 a.m. to 7 p.m. on the South Side at the corner of 87th and State Street. “I had an entrepreneur spirit at an early age. When I was 10 years old, I sold cupcakes, lemonade and candy at the corner of my house,” Leroy told the Defender. “It felt good to make your own money and not have to ask your parents for anything. That feeling has stayed with me all these years because I do not like asking people for money.”

But not everyone who sells merchandise on the street is doing so because they want to be an entrepreneur, said economist Bruce Saunders, 62.

“Some people have been forced to become vendors because of the soft economy and the fact that there are no jobs out here,” said Saunders, an economist for J.P. Morgan Chase. More and more families need extra money, and the only way to get more is to either reduce your spending or work a second job.”

That’s what happened to McKinley, 49. He sells bottled water for $1, a pack of 10 white socks for $4, Barack Obama buttons for $2 and clothes.

“I have a family that depends on me so I have to do whatever it takes to support them,” he said. “I ride the Red and Green train lines during the morning and evening rush hour to build up my clientele.”

It is usually during this time that he earns the bulk of his money, which has been as high as $1,000, he said.

Some retail stores like Wal-Mart, Target or Kmart usually purchase their merchandise directly from the owner. Leroy and other “street entrepreneurs” said they purchase their goods from wholesale companies and through the “black market,” which entails dealing with dishonest employees at department stores, warehouses and shipping companies to get merchandise at an inexpensive, cash price.

“We’re just businessmen trying to make it just like the CEOs at these big department stories,” said Juno, 49, who sells cigarettes, DVDs and CDs at the Red Line train station at 95th and State Street.

While Leroy and McKinley consider themselves entrepreneurs, the city defines them as peddlers.

“A peddler is a person who moves from place to place on the street selling food and non-food items to the public,” said Efrat Stein, a spokeswoman for the city's Department of Business Affairs & Licenses, which issues peddler's licenses.

Leroy said that selling items on the street as opposed to inside a store or at home means bigger profits.

“I have less overhead, more productivity and minimum stress,” he said.

And just like retail stores, street entrepreneurs markup their prices to allow for a profit.

“I pay $2 each for DVDs and sell them $5 a piece or three for $12,” Juno said. “That’s cheaper than the $15 to $20 Target may charge when they only paid $5 for it from the movie studio.”

For the most part, prices are reasonable for merchandise sold on the street, said one of Brown’s regular customers.

“Every Friday I come see my man to get the latest movie flicks and CDs. The only time I go to the movies is when I am with my girl. Otherwise, bootleg works just fine for me,” the man said.

Leroy charges $10 for Barack Obama T-shirts, Cubs baseball hats and a 10-pack bundle of face towels or socks. At stores like Wal-Mart, Barack Obama T-shirts are not even sold, and 10 face towels cost more than $10.

For safety reasons, he declined to reveal how much money he earns as a street vendor.

“I have been robbed, stabbed and shot while selling my merchandise so I don’t want to say how much money I take in,” Leroy said. “But obviously if I have been doing this for 25 years, I must be doing pretty well.” But as lucrative as some street vendors’ enterprises may be, it could be illegal.

City ordinance requires those selling items on the street to the public to first obtain a peddler's license that is good for two years. To do so, sellers must be at least 16 years old, have a valid driver's license or state identification card, obtain an Illinois business tax number from the state, not owe any debts to the city such as parking tickets and pay $165 fee. The license can be purchased at City Hall. Still, city officials said it is illegal to sell certain merchandise on the street like DVDs, CDs and cigarettes, even with a peddler’s license.

Leroy said he does have a peddler’s license, but Juno said it's a waste of money.

“The city wants me to give them money to make money, and the only thing I get for my money is a piece of paper. Man, please. The city can go to hell,” Juno said.

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