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.

In order to kickstart your dream of opening a sari-sari store, you have decided to pursue your entrepreneurial venture by borrowing from a licensed money lender to secure the initial capital needed for inventory and store setup.

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

ParticularsGoodsE-Load
Initial purchaseP19,819.00P7,000.00
Add: 40% Weekly Purchase for 3 weeks replenishment of goods23,782.8021,000.00
Total Cost of Good Sold43,601.8028,000.00
Add: 20% Mark-up8,720.365,600.00
TotalP52,322.16P33,600.00

III. Projected Income

ParticularsGoodsE-Load
Sales (P52.322.16x 80%)P41.857.73P26,880.00
Less: Cost of Sales34,881.4422,400.00
Net Sales6,976.294,480.00

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

By BD

33 thoughts on “How to Start a Sari-sari Store Business”
  1. hello… just asking lang po okay lang po ba na iclose ang business permit ko sa store at mag-register for computer shop nainspect po kasi kami last friday ng munispyo namin here in binangonan.. kahit po ba sa bahay lang namin ang shop need po talaga ng business permit di naman po kumikita ang store namin sa dami na din ng kacompete na alang permit same din po ng shop ilan na po kami na meron dito at sa pagkakaalam ko lahat po kami alang permit . sa barangay lang po ang permit ko sa shop. sana naman po ay magkaroon ng exemption or mababang fees pagkasa barangay at home base lang po . thanks

  2. i wan to know if you have a package deal for a sari sari store, with diffrent deals and cost of each package deal. let me know who to contact, thanks my email is victorguna@yahoo.com thanks

  3. Tama ka boy sa pagtanong mo..baka ibig sabihin halimbawa sa isang linggo let say 40,000 ang sales-turn over mo 40% from that….mamimili ka na naman base sa sinasabi nyang 40%….atmga 16,000 pesos ang worth na ipamimili mo..ganun cguro.

  4. try nyo mag business ng new oil engine conditioner 150 srp may tubo kayo 70 pesos agad isang piraso pwede sa motor o sasakyan.
    1.mabilis ibenta dahil maraming sasakyan
    2.murang halaga batrya lang ang 150
    3.epektibo at mabisang produkto
    4.pwedeng bitbitin kahit saan magpunta dahil maliit lang ang packaging
    5.walang expiration
    6.maliit ang puhunan
    7.online selling masmaganda
    8.kahit nasa bahay ka kumikita ka.
    9.full time o part time
    10.walang age limit
    tested and proven sa TESDA MMDA DENR GERMANY VOLKSWAGEN

  5. Thank you for that advice, you are so right! You can't win having a small business if you are surrounded by Relatives and Friends and if you are not strong enough to say NO to credits upon credits. As sad as it is, that is a fact. How do you avoid friends and relatives wanting credits on a daily basis – You cannot ! the only way is not to have that business. And if you own any other type of business, Do not make it known that you are the owner.
    Some things never change in our culture.

  6. I have not checked in here for a while as I thought it was getting boring, but the last few posts are good quality so I guess I’ll add you back to my everyday bloglist. You deserve it my friend 🙂

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