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Sari-sari stores are small retail outlets that can be found in almost all neighborhoods, sometimes even in every street corner in the Philippines. Most sari-sari stores are privately owned shops and are operated inside the store owner’s house. Commodities are displayed in a large screen-covered or metal barred window in front of the shop. Candies, canned goods and cigarettes are often displayed while cooking oil, salt and sugar are often stored in sacks or cans. A small window is also present where the customer’s requested commodity is given. It is a business worth considering for a gradual entrepreneurship take off.

sari sari store

Estimated Investment Cost (based on 2009 prices)

I. Products

a. Drygoods (quantity, cost/piece, cost):

Sardines (big), 30 @P28.00 – P 840.00
Sardines (small), 30 @12.00 – 360.00
Corned beef, 30 @26.00 – 780.00
Tuna, 30 @28.00 – 840.00
Pineapple juice, 30 @20.00 – 600.00
Creamer /sachet), 60 @2.50 – 150.00
Egg, 48 @5.00 – 240.00
Catsup, 20 @25.00 – 500.00
3 in 1 coffee, 120 @4.00 – 480.00
Food mix enhancer, 48 @2.00 – 96.00
Choco powdered drink (sachet), 72 @4.50 – 324.00
Iced tea powdered juice, 48 @9.00 – 432.00
Orange powdered juice, 24 @9.00 – 216.00
Evaporated milk, 20 @22.00 – 440.00
Sinigang mix, 46 @10.00 – 480.00
Lechon sauce (in pack), 48 @9.50 – 456.00
Cooking oil (small), 48 @11.50 – 552.00
Cooking oil (big), 36 @24.50 – 882.00
Sugar, 48 @9.00 – 432.00
Fish sauce, 48 @11.00 – 528.00
Vinegar in plastic park, 48 @4.50 – 216.00
Soy sauce in plastic pack, 48 @6.00 – 288.00
Noodles in plastic cups, 30 @15.00 – 450.00
Candies, 300 @0 .50 – 150.00
Noodles (pancit canton), 72 @7.50 – 540.00
Noodles (soup), 72 @6.50 – 468.00
Tomato sauce, 20 @13.00 – 260.00
Meat loaf, 25 @55.00 – 1,375.00
Batteries (biq), 30 @25.00 – 750.00
Batteries (small), 30 @ 11.00 – 330 00
Diaper Subtotal, 60 @6.00 – 360.00
Subtotal – P14,599.00

b. Toiletries:
Shampoo, 96 @4.00 – 384.00
Conditioner, 96 @4.00 – 384.00
Body soap, 30 @28.00 – 840.00
Toilet tissue, 60 @9.00 – 540.00
Toothpaste In sachet, 60 @9.00 – 540.00
Sanitary napkin, 48 @4.00 – 192.00
Subtotal – P2,880.00

c. Laundry Products:
Deterqent powder, 72 @ 10.00 – 720.00
Detergent bar soap, 72 @8.50 – 612.00
Subtotal – P1,332.00

d. Drinks
Bottled softdrinks, 144 @7.00 – 1,008.00

e. Others
E-Load, 7 @1,000.00 – 7,000.00

Total – P 26,819.00

II. Cost of Good Sold


Particulars Goods E-Load
Initial purchase P19,819.00 P7,000.00
Add: 40% Weekly Purchase for 3 weeks replenishment of goods 23,782.80 21,000.00
Total Cost of Good Sold 43,601.80 28,000.00
Add: 20% Mark-up 8,720.36 5,600.00
Total P52,322.16 P33,600.00

III. Projected Income

Particulars Goods E-Load
Sales (P52.322.16x 80%) P41.857.73 P26,880.00
Less: Cost of Sales 34,881.44 22,400.00
Net Sales 6,976.29 4,480.00

Total Net Sales – P11,456.29
Less: Operating expenses

Water and electricity – 400.00
Labor – 3,000.00
Transportation – 200.00
Miscellaneous – 2,180.00
Total operating expenses – 5,780.00

Total estimated net income – P5,676.29

Assumptions:

40% of the items are being replenished every week
Mark-up of 20% per item
80% of total goods are considered sold per month
20% of the goods remain in the inventory per month

Here are some tips on how to start a sari-sari store business:

Create a niche. If there are already three such stores on your street, it would be good to specialize in something. Miriam’s sari-sari store in Quezon City flourished because she was the only in the area that sold nail polish, pad papers for different grades, ballpens and Campbell’s soups. What Miriam would do was look at the merchandise of her competitors and buy what they didn’t offer. Christine, who studied making tapa, tocino and longganisa, started selling her cured meats at her sari-sari store in a non-affluent area of Makati City and they were a big hit. Christine would cook a few pieces and offer them to her customers. Some of her neighbors would even order four to five kilos of tapa and tocino at a time.

Make it legal. A sari-sari store is a micro-enterprise but that does not mean you do not need a business permit to operate it. You also need to talk to your utility providers because the charge for business and residential areas are different and having a store does not fall under residential.

Look for the cheapest prices. There are a million wholesalers out there, all vying to be your store of choice but just because you have a suki does not mean that you should get all your merchandise from him or her. Look for other suppliers and don’t stop searching for the best bargains.

Keep records. Even if you’re not an accountant, keep records of all your transactions. Some storeowners simply add the day’s sales and apply a mark-up on what they sold to compute their net profit. But unless you’re really good with numbers, it is better to record all transactions in a ledger.

You need cash. Many sari-sari store owners have lost money because they extended credit to people who couldn’t pay them back. This is what happened to Delia of Quezon City, who extended credit lines to her neighbors and relatives. Unfortunately, these creditors did not pay their debts and Delia was left with nothing.

Registration Requirements

1. Business name registration (www.bnrs.dti.gov.ph)
2. Mayor’s/Business Permit (check your local municipality/city)
3. BIR TIN (www.bir.gov.ph)

Financing Facility

Click here: Funding sources for your business.

sources: dti.gov.ph, wikipedia, manilastandardtoday

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