business plan of sari sari store

How To Start and Manage a Sari-Sari Store Business: An Ultimate Guide

Sari-sari stores are an integral part of every Philippine neighborhood. For many Filipinos, sari-sari stores are not only a source of groceries and home supplies but also a great place to meet their neighbors.

According to Philippine tech start-up GrowSari 1 , there are more than 1.1 million sari-sari stores in the Philippines. Thus, they are important parts of the product distribution network in the country.

If you want to start a sari-sari store business yourself, you have to know how you can compete in this highly populated space. This guide will help you decide if a sari-sari store business is for you and teach you how you can earn a profit from running one.

Related: Best Business Ideas in the Philippines [Pandemic-Proof]

Table of Contents

1. overview, 2. capital requirement, 3. competitors, 4. earnings.

• Differences Between a Sari-Sari Store and a Convenience Store or Grocery 

1. Time To Run & Manage It Yourself

2. solid community ties, 3. strict & organized, 1. advantages, 2. disadvantages, a. join business training programs online or in your area, b. learn about your customers.

• C. Study Your Competitors 

D. Decision Time: Is a Sari-Sari Store a Good Fit for Your Situation?

A. set a goal for your sari-sari store, b. choose a location for your sari-sari store, c. create a product list.

• D. Find the Right Suppliers 

E. Do the Math

F. decision time: can you make a sari-sari store work in your location.

• A. Register Your Sari-Sari Store’s Business Name 

B. Register With the BIR

Business permit requirements for a sari-sari store, how to get a business permit for a sari-sari store, how much does a business permit for a sari-sari store cost.

• D. Set Up and Stock Your Sari-Sari Store 

E. Open and Run Your Store

F. maintain a strict record of your inventory and sales, g. promote your store locally & through your network, h. decision time: what should you change to make your sari-sari store profitable, a. break down your goal into smaller goals, b. expand your sari-sari store, c. what success looks like for a sari-sari store, d. decision time: should you continue running your sari-sari store, 1. separate your sari-sari store money from personal use, 2. remember: never sell on credit, 3. for sari-sari stores, success is making your customers feel that it is convenient to shop with you., 4. salesmen will sometimes visit you to push you into carrying their products in your store. try to negotiate a good deal for your store., 5. don’t stop trying to find more ways to reach more customers..

• 1. Is running a sari-sari store still profitable? 
• 2. How much does it cost to start a sari-sari store? 

Sari-Sari Store: The Basics

A sari-sari store is basically a small retail store, often family-owned and run, that carries a variety of basic goods, hence the name “sari-sari” which means “an assortment”. 

They carry anything that they think their community would buy, from candies to beer. And as Filipinos become more reliant on technology, sari-sari stores also begin to sell other necessities such as phone load or e-credits. 

Their primary customers are the people who live nearby, their neighbors. Thus, convenience is the main reason people buy from them.

Typically, sari-sari stores are set up in a family’s home through a small room with a window, usually with railings, that faces the road. 

So, the biggest cost is just stocking up on the products to sell. This can range anywhere from ₱2,000 to ₱30,000 depending on the variety and amount of products. If you are building a dedicated space for your sari-sari store, then the capital you need will increase by a lot.

Your other expenses include government registration , which ranges from  ₱1,890 to ₱6,590 depending on how much a business permit costs in your city or municipality .

The competitors of sari-sari stores include convenience stores, groceries, and other sari-sari stores. 

Sari-sari stores typically add a 10 to 20% markup on their products as their main source of revenue. Though owners usually don’t want to deal with centavos, so they round it up to the nearest peso. 

Differences Between a Sari-Sari Store and a Convenience Store or Grocery

• Convenience stores and groceries are bigger in size and carry a larger amount of products than sari-sari stores. It’s also rare for sari-sari stores to have a frozen or refrigerated food section, aside from a few cold drinks. 
• Sari-sari stores usually have cheaper prices than modern convenience stores. This is because convenience stores have air-conditioning and salary costs that are especially high when they are open 24/7. Meanwhile, groceries are usually cheaper than sari-sari stores since they buy in bulk and sell a larger volume. 
• Convenience stores and groceries are usually only located on maid roads where there is a lot of traffic. Sari-sari stores can be found in almost any location including side streets or even inside subdivisions. 

What Qualities Are Ideal for People Who Want To Run a Sari-Sari Store?

Certain qualities will help you start and manage a sari-sari store much more smoothly. If you have any of the following traits, then you might see success easier than others. 

Because of low margins, people or families who have the time to run the sari-sari stores themselves will be able to save on hiring an employee. Lowering your costs as much as you can also mean you can keep your prices competitive. 

People and families who have or can build a good relationship with their neighbors and community have an advantage since they can help drive traffic and sales to the store. 

Again, because of the low margins, people who are strict in managing their inventory and writing down records are more likely to succeed. It’s equally important to strictly never sell on credit as well. One bad stock or debt and a day’s worth of profits can be wiped out immediately. 

Advantages & Disadvantages of a Sari-Sari Store Business

Compared to other kinds of businesses, the sari-sari store has unique advantages, especially for a newbie entrepreneur. These include: 

• Easy to start. With a low capital requirement and a simple setup, the sari-sari store is a business that you can begin in just a few days. It’s also a good starting point for people who want to experience running a business, and if successful, grow into a bigger retail store. 
• Save on rent and salary. If you run a sari-sari store in your home by yourself or with help from your family, then you can save on costly rent and salary expenses. 
• Strengthen relationship with community. Being the friendly neighborhood sari-sari store means you are the go-to place of the nearby families for their daily necessities. This helps you build stronger relationships with your neighbors. 

However, due to its nature of being easy to set up, it also has its own share of disadvantages. These include: 

• High competition. Since almost anyone can start a sari-sari store, it means that there is stiff competition. Not to mention that you also have to compete with convenience stores and groceries. You have to learn how to keep your clients coming back to your store. 
• Low margin, low sales volume. Because convenience is the main selling point of sari-sari stores, they only add a small markup to their prices to remain competitive. They also don’t sell in bulk so they need to have as many repeat customers as they can. 
• Reputation of poor-quality products. There is a negative reputation that sari-sari stores carry poorer quality products. This is likely due to some owners not taking care of their inventory well by exposing them to the sun or air or letting products expire. This can be solved through proper storage and inventory management. 

How To Start and Manage a Sari-Sari Store Business: A Step-by-Step Guide

This guide is divided into 4 different phases. At the end of each phase, you will have to make a crucial decision. This is to emphasize that while sari-sari stores are easy to set up, it’s not easy to succeed. 

Phase 1: Training & Research

In this phase, your goal is to learn the basics of business so that you can determine if running a sari-sari store is a good fit for your situation. 

You have to learn a bit more about the basics of running your own business before you can properly evaluate if running a sari-sari store is for you. Many organizations, private and government, provide free business training programs and seminars. Here’re are some examples: 

• The Department of Trade and Industry (DTI) partnered with the Philippine Trade Training Center (PTTC) to provide seminars and training programs 2 , both locally and online. You should ask your local DTI branch or LGU if they currently have a program for you. They also have an online resource 3 for MSMEs regarding how to make a business plan. 
• Go Negosyo, by the non-profit organization Philippine Center for Entrepreneurship (PCE), provides free one-on-one mentorship around the country through their KAPATID Mentor ME program 4 . You can follow their Facebook page for updates. 
• TESDA has an e-learning program called “ Start and Improve Your Business ” that teaches the basics for people who want to start their own small business . 
• Hapinoy is a social enterprise that teaches sari-sari store owners the best practices of running their own store. They are not present in all Philippine provinces yet but you can follow their Facebook page for updates. 

Take note, however, that some programs are only available on a per-schedule basis. So, while waiting, you may want to read up in advance through the various videos and resources available online.

Regardless if you start a sari-sari store or not, what you learn can still be useful when starting other kinds of businesses. 

A sari-sari store’s main customers will be the people nearest to them, meaning your neighbors and community. There’re a few things you should find out about them to get an idea if they’ll shop at your sari-sari store or not. These include: 

• When and where do they buy their food and home goods? 
• What kinds and brands of products do they buy? 
• How much do they spend on a shopping trip? 
• What is their daily commute like? Will they pass by the location you want for your store? 

You can do this very informally while just chatting with your neighbors. This information will help you decide if a sari-sari store can fit your customers’ shopping habits or not.

For example, some people like to buy in bulk so that they can save money. If most of your neighbors are like this, then a sari-sari store may not be the best fit in your area.

However, there’s still an opportunity if there are products that your neighbors prefer to buy in “ tingi ” or small amounts. For example, they may purchase food in bulk but only buy non-essential goods, such as cigarettes or beer, per piece. 

C. Study Your Competitors

If there is a competitor in your area, then you’ll be fighting over the limited number of customers that you can reach. You should pay a visit to their store and find out: 

• What are the brands or products that your competitors are selling? 
• What are the prices of their most popular products? 
• What are their opening and closing times? 

If there’s a product that your neighbors want but is not available from your competitors, then that’s an opportunity for you. 

For sari-sari stores, convenience is the main reason people will buy from your store over others. So, when studying your competition, you need to find out what is inconvenient about the other options available. If you make it more convenient to shop with you, then you’ll get more customers. 

Using what you learned from your training, as well as what you researched about your customers and competitors, you should now have a better idea if a sari-sari store will work or not. 

• Will I have any potential customers? 
• Are there products that my potential customers will buy frequently? 
• Are my potential customers unsatisfied with the competitors? 

If your answers to the questions above are a ‘No’ then don’t get hung up on the idea of starting a sari-sari store. You can use what you’ve learned and researched so far to start another business instead. Click here to get business ideas.

If you think there is an opportunity for your sari-sari store to succeed, then it’s time to begin planning how your store will do just that. 

Phase 2: Planning

In this phase, your goal is to back up your decision to run a sari-sari store with actual numbers. By doing this, you can check if it will become profitable and if it is worth the effort. 

Tip : The steps you go through in this phase are all part of making a sari-sari store business plan . It’s not a requirement, but if you ever need a sari-sari store business plan for getting a loan or an investment, then all you need to do is create a formal document covering the details of each step in this phase.

The first thing you need to do is to set a goal that your business, the sari-sari store, must meet. Most of the time this is a monetary goal. An example would be “I want to earn ₱10,000 a month through the sari-sari store.” 

When setting a goal, just remember a few things: 

• Make it personal . This way, it’s important for you that the goal is achieved. 
• Make it realistic. If you have a big goal, break it down into smaller goals. So, you can keep yourself motivated as you make progress. 
• Set a deadline. This will force you to work hard and smart. 

Your goal will also be an important factor in deciding if you’ll run a sari-sari store or not. So, write it down and don’t forget it. 

Using your research earlier about your customers, you have to choose a location where it’s convenient for them to buy from you.  

Most sari-sari stores are run in the owner’s home to save on rent and to keep prices low. However, if your home is located in an out-of-the-way area, then your customers may not frequent you. 

To find out if your home is enough, then you need to: 

• Know what the foot traffic is like in the area . Is the number of people passing by a lot? What time do they pass by? 
• Learn what kinds of people are passing by. Are they students or office workers? Depending on the type of person, the products they buy will be different. 
• Find out if your store will be visible to the people passing by. If not, then you might need to add a large signage or another visible landmark. 
• Check the locations of your competitors. Are you near a mall, convenience store, or supermarket? You want some distance from them since it’s difficult to directly compete with these business establishments.

While renting a space in a more favorable location is an option, it’s not really recommended for beginners. With a sari-sari store’s low margins, it may be difficult to earn enough to cover rent expenses. 

Based on what you learned about your customers, you now have to create a list of products that you will sell in your sari-sari store.  

It may sound difficult to do, but if you just focus on what kind of customers you’ll have, you’ll be able to create a list much more easily. 

For example, if you are located inside a subdivision, your customers are mostly households. So, food and home essentials are perfect products for your market. 

Meanwhile, if you are near an office, then your customers could be people who are taking a break from work. So, you can stock up on merienda items, such as coffee or instant noodles. If there are a lot of smokers, then sell cigarettes. 

If you are near a school, then it’s a good idea to stock up on what students like or need. These include candies, snacks, and school supplies. 

When you are creating your product list, remember to: 

• Be conscious of your customers’ budget . Don’t sell expensive brands if you don’t think they can afford them. 
• When you carry popular brands, make sure to check the prices of the competition . You should aim to have the same or lower price unless the competition is inconvenient to visit. In those cases, you can add a little premium to your prices. 
• Avoid choosing problematic products , such as those with a short expiry date or those that spoil due to heat. One product going bad can wipe out your whole day’s earnings. 

If you really have no idea where to start, then you can check DTI’s list of basic necessities and prime commodities 5 . However, just choose the ones that you think your customers would need or like. 

Your product list does not have to be perfect. You can always adjust what you stock after you have opened and received feedback from your customers. 

D. Find the Right Suppliers

Now that you have a product list, it’s time to find a place where you can stock up on your products. Here are some ideas on where you can find products to sell: 

• Wholesalers. These are stores that normally sell their products in bulk so you can get your stock at a cheaper price. Puregold is an example of a nationally known wholesaler. However, there are many other wholesalers across the Philippines. You’ll probably know better the name of the one that is nearest to you. 
• Supermarkets. This is not the ideal place to get your products. They typically sell at higher prices than wholesalers, so you’ll have lower margins. However, if you just need to restock quickly to meet a customer demand then you can use it as an alternative. 
• Direct from Manufacturer. You can contact a manufacturer or the distributor in your area to see if they are willing to sell their products to you at prices cheaper than a wholesaler. Although, once your sari-sari store is more established, it’s not uncommon to get a visit from a salesperson offering you good deals as well. 
• Sari-Sari Store Apps. There are also dedicated apps, such as GrowSari , for the sari-sari store owner. Each app would have different features. GrowSari, in particular, promises to sell products to sari-sari store owners at distributorship prices. However, their app is not available in all Philippine provinces yet. 
• Online Marketplaces. If you want to add some uniqueness to the products in your sari-sari store, then you can add some from online marketplaces such as Shopee or Lazada. However, you have to know exactly what your customers would want so you don’t waste the delivery fee. 

Feel free to take your time and explore your supplier options. This is where most of your capital will go, and it will affect every crucial part of your sari-sari store. 

You don’t have to buy your products just yet. You can just take note of the prices so that you can properly compute if you can make a profit or not. 

Here are a few tips on selecting a supplier: 

• You should already have information about the prices of your competitors. The suppliers you choose should make it possible for you to compete with a reasonable 10% to 20% markup, otherwise, you should look for other options. 
• Don’t forget to treat transportation costs as part of the cost of your products . Ideally, your suppliers should be nearby, so you don’t have to spend too much on transportation. However, if you buy products in bulk then you can spread out the cost across the different products you carry. 
• Lastly, choose suppliers that have a solid reputation and a reasonable return policy . Bad suppliers may attempt to trick you into purchasing expired or poor-quality goods. Due to low margins, you don’t much room for errors. 

At this point, you should have enough information to see if you can make a profit from starting a sari-sari store or not. 

To do that, you need to do a computation like the one below. You can make it as detailed as you want, but here is a basic example: 

In this example, let’s assume that you don’t want to stock up on too many items, so you choose only a small amount of the essentials. 

• Step 1 : List down the cost per unit of each of the products you want to stock. You can make it more detailed than the one in the example above by listing each item or brand. 
• Step 2 : Write down the quantity of each of the products you want to stock. 
• Step 3 : Multiply the cost per unit and quantity to get the total cost of each brand or type of product you want to stock. 
• Step 4 : Add up all the costs of your products to get the total. 
• Step 5 : Multiply the total costs of your products by the markup or “patong” you want to add to your products. In this example, a 20% markup was used. 
• Step 6 : List down an estimate of your other expenses. These may include transportation, rent, salary, electricity, and water. In this example, the sari-sari store owner is not paying rent or salary. Note that you may encounter other expenses later, such as taxes. 
• Step 7 : Subtract the total of your other expenses from your markup. The number you end up with is your income if you sold all of the products. 

After doing your computations, you now have to make another crucial decision based on the information you have. Answer the questions below to see if a sari-sari store makes sense or not. 

• Can you beat your competitors? 
• Can you sell the whole quantity of goods that you plan to stock in a reasonable amount of time? 
• Did the potential income make sense based on the goal you want to reach? If the income will not help you reach your goal, you might want to explore other ways of earning income instead. 

It’s not easy to answer these questions, so you might want to do a trial run first. This should help you build confidence that you are making the right decision. 

Once you decide that this is really something you can do, then you have to be committed to it for the long run. The next steps will take a lot of effort and incur additional expenses. 

Phase 3: Business Registration and Launch

At this point, it’s about time to turn your plans into a reality. To do that, you have to start your business right and work hard every day to earn enough to at least cover your business’s expenses. 

A. Register Your Sari-Sari Store’s Business Name

To start your business right, you have to register with the required government authorities. By registering properly, you can legalize your business and take advantage of government programs for micro and small businesses. 

Usually, the first step in the process is to register your business name. However, for sari-sari stores, this step is optional 6 if you will just use your given name. 

However, if you want to use a business name, then you need to register with the government . You can just keep the business name simple such as combining “your name” with “sari-sari store”. For example, “Lydia Bautista’s Sari-Sari Store”. 

For a sari-sari store, it’s recommended to register as a sole proprietorship with the DTI. You can do this easily by visiting a local DTI office or one-stop shop. DTI registration is also available online . 

Please note that the fees you have to pay will depend on the business scope that you will choose. For sari-sari stores, you can just choose “Barangay” as the scope, so you only have to pay ₱200 plus a documentary stamp fee to register. 

Next, you have to register with the BIR by visiting the revenue district office (RDO) with jurisdiction over the city or municipality where your store will be located, or by using their online registration system. Note that you can do this at the same time as getting your business permit 7 from your city or municipal office. 

Since you are a sole proprietorship, you have to fill up BIR form 1901 . You can check your RDO code at our updated list . 

You can ask the BIR staff if there are tax exemptions for sari-sari store owners. If there are none, you can expect to pay the following: 

• Annual registration fee (ARF): ₱500  
• Documentary stamp tax: ₱15  
• Certification fee: ₱15 
• Registration of books of accounts: ₱800 
• Sales Invoice: ₱30 

In total, you have to pay ₱1,360 to complete your registration with the BIR.  

Under the TRAIN law, you are exempt from paying taxes as long as your sari-sari store is not earning more than ₱250,000 annually 8 . However, you still have to file your papers monthly, quarterly and annually to comply with the required procedures. 

C. Get a Business Permit for Your Sari-Sari Store

Does a sari-sari store need a business permit? Yes. Sari-sari stores are considered micro-business and you will need to get a business permit as part of the government registration requirements. 

You can ask the staff at your local city or municipal hall if there are any exemptions for a sari-sari store business. However, if there are none, then you need to go through the regular procedures. 

• Barangay Business Clearance – you can get this from the barangay hall with jurisdiction over the place where your sari-sari store will be located. 
• Community Tax Certificate (CTC) or cedula – you can get this from your city, municipal, or barangay hall. 
• Ph otos of the exterior of your sari-sari store – applicants need to submit printed copies of these photos.  
• Sketch or vicinity map of your store’s location – you can also use a screenshot from Google Maps.
• Original and a copy of your DTI Business Name Registration Certificate .
• Copy of your contract of lease (if you are renting the location). 
• Go to the municipal or city hall with jurisdiction over your place of business and obtain the official checklist of requirements for business permit application. You may use the above list as a reference but keep in mind that requirements may change without further notice, hence the need to verify it with the personnel at the city or municipal hall.
• Get a copy of the business permit application form from the city or municipal hall. You may also get a copy of it online, if available.
• Notarize your business permit application form. 
• Submit the business permit application form along with the other requirements. 
• Pay the assessment fee. 
• Once everything is in order, the staff will tell you when you can claim the business permit for your sari-sari store. Just go back on the scheduled date. 

It depends on the city or municipality. It varies wildly as it can cost anywhere from ₱300 to ₱5,000.  

Please note that the business permit is something that you have to pay for either quarterly or annually. So, make sure to consider that cost as part of what you need to cover with your sari-sari store’s income. 

D. Set Up and Stock Your Sari-Sari Store

Once your government registrations are done, the next step is to actually set up your sari-sari store. It’s also the time to buy the items on your product list so you can begin selling them to your customers. 

It’s up to you if you want to spend money on construction to make your store look more appealing. However, you can always do it slowly and spend as you earn. 

There are a number of things you should do to optimize your sari-sari store’s setup. These include: 

• Ensure that the most popular brands and products are easy to see from far away. One trick you can use is by lining up the same or similar products like how they do it in a supermarket. This will improve the visibility of these products and will attract customers to your store. 
• Ask your suppliers for posters, signs, and other things you can use to promote products . Place them where they can be easily seen. This will also help let your customers know that you are carrying those brands. 
• Make it clean and organized . It’s tempting to just place your posters and stock wherever there is space; however, people who are walking by won’t know where to look if it looks cluttered from the outside. 
• When organizing your sari-sari store’s products, you should make it easy for you to get the earliest stock . The way you organize your products should follow the “First In, First Out”(FIFO) system. This means that you should always sell the stock that you bought earlier or has the nearest expiry date. 
• Check with your local city or municipal office if you can get a license to sell regulated products , such as cigarettes and alcoholic drinks. 

You can also set up your store as a gathering place for people in your community by adding chairs or tables. This can be beneficial in attracting customers. However, you should be careful that it doesn’t attract a bad crowd, such as drunkards, that could scare off your other customers. 

After setting up your store, you can now open it and start selling your stock. Don’t expect to be successful overnight. There’s still a lot more work to do to make your sari-sari store profitable, including: 

• You should decide on what your opening and closing times are according to the foot traffic in your sari-sari store’s location. 
• Remember, a customer with a good experience has a higher likelihood of coming back to your store. So, try to build a good relationship with your customers as much as you can. 
• During times when there aren’t many customers, you can keep yourself productive by doing online marketing, organizing your stock, or updating your records . 

For now, just do things slowly so you don’t overwhelm yourself. After you get a feel for running the sari-sari store, the next thing you should aim for is to reach your sari-sari store’s breakeven point. 

The breakeven point is when “You are selling enough to cover your business’s expenses”. This should be your very first monetary goal. You should cover everything that you’ve spent so far, including the government registration fees. 

In order to do this, you have to work hard in the next steps. 

One of the most common reasons that sari-sari stores close is because of bad inventory management. Just one product that expires, becomes damaged, or gets lost can lead to a day’s worth of income disappearing.  

This is why you should be very very strict in managing your inventory.  

For a sari-sari store business, proper inventory management involves the following:

• Make sure to record everything , from the inventory to the cash, coming in and out of your sari-sari store. You can use a computer, phone apps, or a ledger for this. 
• With a proper record, you can see which products are selling faster than the others. This way, you can plan and stock your store accordingly . Your goal is to avoid any “out of stock” issues when your customers drop by to shop. 
• Always keep track of expiry dates . As mentioned before, when selling your stock, make sure to sell the ones you bought earlier or have the nearest expiry date first. 
• Store your products properly . You want to keep them away from excessive heat, pests, and theft. 
• Never get any product from the sari-sari store without paying for it . It’s true that you own the stock, but you should separate the sari-sari store’s finances from personal use. Make sure your family also abides by this rule. 
• Never sell on credit . “Palista” is the enemy of small businesses like the sari-sari store. Debts can not only wipe out your income but also lead to the closure of your business. 

Below is a sample inventory and sales record. We’ve also created a FREE inventory and sales record template that you can download to make your own. 

It might look complicated at first but once you get the hang of it, it becomes much easier. Let’s break it down into smaller parts. 

• Step 1 : Write down the period of time that the inventory and sales record will cover. It can be daily, weekly, or monthly depending on your needs. Since you are just starting out and don’t have much sales volume yet, “weekly” is a good starting point. You can do “daily” once your sales have increased significantly. 
• Step 2 : List down all of the products that you will have for sale. Make sure to include details such as their brand, variant/flavor, and size. If you are selling items in “tingi”, then what you will write is the size in “tingi”. 
• Step 3 : Write down the starting quantity of your products. Since you just opened, the starting quantity for all your products is zero. After the week is finished, create a new record where your starting quantity is how much of each product you have at the end of the week. 

• Step 4 : List down the cost of each product that you stocked. If you are selling it in “tingi”, you write how much it cost you per piece. 
• Step 5 : Write the quantity of each product you stocked. 
• Step 6 : The template will automatically compute how much was spent on each type of product. This is the quantity multiplied by the item cost. At the bottom, you’ll see the total purchase cost. This should be equal to the amount shown on the receipt from your shopping trip. 

• Step 7 : List down the selling price for each item you have. 
• Step 8 : As you run your store, you can write down how much you’ve sold of each item in this column. If you find it difficult to update while running your store, you can always just write it down on paper first and transfer it to the template at the end of each day. 
• Step 9 : As you update your sales, the template will also automatically update how much your sales are for each item. You’ll find the total sales for the period at the bottom.

• Step 10 : In ‘Bad Stock’, input how many of each type of product got damaged, went unpaid, or got lost. 
• Step 11 : This part is automatically updated as you input the quantity of your sales and bad stock. Here you’ll see how much of each product that you should still have on hand. Make sure to check every day if your records match the real-life scenario in your store. 

• Step 12 : Once the week has ended, you just need to copy what you’ve made so far and change the date for the next week. You can copy the product description, item cost, and selling price. However, you need to remove the quantity to have a clean record for the week. If you are purchasing a new product, simply add a new row to the product description. 
• Step 13 : Lastly, you need to copy the ‘Current Stock on Hand’ from the previous week and make it your new starting balance. 

As you’ve seen from the example above, it takes a lot of effort to strictly maintain your inventory and sales record. However, seeing the numbers makes you understand the value of each of the products you sell. That’s why everything in your inventory should be taken care of properly. 

Once you are open, you can freely promote your business. There are many ways to do this, and you can be as creative as you can. 

Here are some ideas: 

• Visit your neighbors and share the news . If you did your research properly, you should already know what products they would be interested in. Tell them that you have those products available if they ever need them. Don’t give out free stuff though, they might take it for granted. 
• Join social media groups or chats for your subdivision or area. You’ll usually find these on Facebook. You can announce that your store is now open, and you can also post updates like telling them about any new products that you carry. 
• Ask your barangay hall if there are any local events coming up . You might be able to find an opportunity to promote your sari-sari store there if they will also allow you to sell your stock during the event. 

It might be hard to find time to do promotions especially when you are running the store at the same time. However, during times when there aren’t many customers, you can use the time to promote yourself online. 

After a few months of running your sari-sari store, you should be able to determine if your plan is working or not. If the plan isn’t working, it’s time to take a moment and evaluate what you are doing. 

Check your numbers. Are there areas in your sari-sari store’s operation that you should adjust? 

• If you think that your margins are too low, you can raise your prices. But if that isn’t an option due to the competition, then you can try lowering your costs by finding new suppliers or buying in bulk. 
• Are your products selling slowly? You should check if the products you are carrying fit the needs of your customers. You can also promote yourself more or check if your opening time matches the time when there is high foot traffic. 
• Do you have any products that go bad or get lost? You should be stricter in your inventory management. 
• Are customers coming back to your store? If not, then you should find out why and solve that problem before it’s too late. 

Here’s an example of an adjustment you can learn by checking your numbers: 

In this example, the original flavor of the Vienna sausage is outselling the spicy flavor. It’s quite possible that your customers prefer the original flavor. If that’s the case, then the adjustment you should make is to stock less of the spicy variant. 

However, maybe the reason is that they don’t see the spicy variant on your shelves and that’s why they don’t purchase it. If that’s the reason, then you need to make sure that the spicy variant is visible in your sari-sari store. 

Here’s another example. 

Above, you can see that the records show one bad stock of a high-value item that costs ₱135. Since you can no longer sell that product, it’s a huge loss for your sari-sari store, especially with your low margins. Find out why it happened and make sure to learn from your mistakes. 

These are just some examples of what you can encounter. There are many other scenarios where the numbers will show problems in your store that you can make adjustments to. 

Remember, your first goal for this phase is to sell enough to cover your expenses, from the cost of products to the government fees. Once you reach that goal, then you can start expanding and thinking about increasing your profits. 

Phase 4: Growing Your Sari-Sari Store

After reaching the breakeven point in the previous phase, it’s now time to grow your sari-sari store and earn larger profits. 

Once you’re in this phase, you’ll probably have a better idea of what works or what doesn’t work in your community. In phase 4, you need to use everything you’ve learned to reach the goal you’ve set from the very start. 

If you have just reached the breakeven point, it’s hard to believe that the goal of “I want to earn ₱10,000 a month through the sari-sari store” will ever come true. 

That’s why it’s a good idea to break down your big goal into smaller goals. For example, a ₱10,000 a month goal can be broken down into: 

• ₱2,500 after 3 months 
• ₱5,000 after 6 months 
• ₱7,500 after 9 months 
• ₱10,000 after 12 months 

It’s up to you how you break down your goal. However, make it realistic by using the data from your records. Once you have your smaller goals listed down, you can continue to make the adjustments you’ve learned from the previous phase to make your store more profitable. 

To get closer to your goals, you may want to start exploring ways how to expand your sari-sari store. You can get as creative as you want, as long as you think of your customers first. 

• Expand your product range if you think there are products that your customers would buy that you do not carry yet. For example, if there is a substantial increase in the number of babies in your community, you might want to start carrying diapers. 
• Expand the size of your store if your customers are doing most of their grocery shopping with you rather than going to supermarkets. Just be careful not to overstock. 
• Expand the reach of your store by offering delivery to customers who live farther away. Only offer this if you can make time for it. Set a clear set of rules so your customers’ expectations match your capabilities. 
• Consider adding a “pabili” or personal shopper service. If you have customers in your area who are always busy and don’t have time to shop for groceries themselves, then they might be interested in a “pabili” service. You can just charge a premium for it and do it at the same time you buy stock for your sari-sari store. 

Just a word of warning. Sometimes you can get too excited about trying out new ideas that you push to do them without considering the cost. Whenever you have an idea, sit down first and write down its advantages and disadvantages . This way, you can make an informed decision. 

It is up to you to say what success looks like for you based on the goal you’ve set at the start. If you think the profit you are earning is worth the time and effort that you’ve put into the sari-sari store then continue to work hard to grow it. 

Based on the examples we’ve used so far in this guide, success looks something like what’s shown below: 

Their total profit for one month meets their ₱10,000 a month goal. 

Their sales amount to about ₱16,000 per week which is about ₱2,286 per day. With a 20% margin, this amounts to around ₱2,600 net revenue per week or ₱372 net revenue per day. 

After subtracting the other expenses, then they are left with a ₱10,078 profit for the month. They can then use this profit to grow their store further or withdraw it for personal use. 

For you, the number might be different, but as long as it’s a goal that you came up with carefully, then you should consider it a success once you’ve reached it. 

If you are successful, then definitely. If something has changed in your life, then you might want to make adjustments. For example, if you don’t have as much time as before, then you can either hire a part-time employee or change your opening times. 

If you can’t make your sari-sari store profitable, don’t give up too soon. Exhaust every option that you can to make it work. 

However, if you’ve rechecked and adjusted everything that you can about your sari-sari store’s operations and you still can’t find any way to make it work, then there’s no shame in cutting your losses and closing it down . 

Take a break and take care of yourself. The effort you’ve put into your sari-sari store wasn’t a waste. Everything you’ve learned and experienced so far will be something you can use for a future business. 

Tips and Warnings

This also means that if you need an item from the sari-sari store then you also need to pay the store for it, even if you own it. It might be tempting to get what you need for the store at any time, but this is a bad habit that can lead to your store losing money. 

Since you are selling to people you know, such as your neighbors, they might be tempted to pay through “palista” or credit. However, with a sari-sari store’s low margins, one bad debt may mean you lose a day or even a week’s worth of profits. 

In cases where you don’t have a product that a customer is looking for, never say “we don’t have it”, just say it’s “out of stock”. Then, assure your customers that you will have it on the next stocking day.  

Ask for discounts, posters, equipment, and other things that can help sell their products. If their products need to be kept in refrigerators, make sure to take electricity costs into account. You can always decline to carry a product if you don’t think you are getting a good deal. 

Since a sari-sari store is a low-margin business, you have to increase your sales volume as much as you can. 

Frequently Asked Questions

1. is running a sari-sari store still profitable.

Yes, a sari-sari store can still be profitable. However, because the margins are so tight it doesn’t leave much room for error.  

Success is different from person to person. So, it’s up to you what level of profit can be considered enough for your needs. If you have a goal that can’t be met by a sari-sari store’s income, then it might not be worth it for you to run a sari-sari store business at all. 

Related: 100+ Best Franchise Business Opportunities For Every Budget

2. How much does it cost to start a sari-sari store?

Sari-sari stores cost differently depending on how much inventory you want to carry, if you plan to rent and build a space, and if you hire employees. It can cost as little as ₱3,940 and can go up to six digits depending on how much you invest in it. 

Here’s a list of costs that you can expect: 

• Inventory Costs : ₱2,000 to ₱30,000+ 
• Transportation : ₱50 to ₱300+ 
• Rent : ₱0 to ₱10,000+
• Construction :  ₱0 to ₱30,000+
• Salary : ₱0 to ₱10,000+ 
• DTI Registration : ₱230 
• BIR Registration : ₱1,360 
• Business Permit : ₱300 to ₱5,000 

Note that this does not yet include any operational costs that you might have, such as electricity or water utilities.

• Shu, C. (2021). GrowSari, a B2B platform for small stores in the Philippines, adds investors like Temasek’s Pavilion Capital and Tencent. Retrieved 3 April 2022, from https://techcrunch.com/2021/06/21/growsari-a-b2b-platform-for-small-stores-in-the-philippines-adds-investors-like-temaseks-pavilion-capital-and-tencent/
• Training Calendar. (2022). Retrieved 3 April 2022, from https://pttc.gov.ph/webinar/
• Start and Grow Your Business. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/start-and-grow-your-business/
• KAPATID Mentor ME Project. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/kapatid-mentor-me-project/
• Latest Suggested Retail Prices (SRPs) of Basic Necessities and Prime Commodities. (2022). Retrieved 3 April 2022, from https://www.dti.gov.ph/konsyumer/latest-srps-basic-necessities-prime-commodities/
• Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT). (2016).  Joint Memorandum Circular No. 01, Series of 2016 (Revised Standards in Processing Business Permits and Licenses in All Cities and Municipalities)  (p. 5).
• Ramirez, J. (2020). BIR ditches mayor’s permit as a registration requirement. Retrieved 3 April 2022, from https://mb.com.ph/2020/06/15/bir-ditches-mayors-permit-as-a-registration-requirement/
• Package 1: TRAIN. Retrieved 3 April 2022, from https://taxreform.dof.gov.ph/tax-reform-packages/p1-train/

Written by Rod Michael Perez

in Business and Finance , Juander How

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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Sari Sari Store Business: 18 Things You Need to Start

Starting a sari-sari store business requires careful planning and preparation to ensure its success. There are several key factors that must be considered, including capital, location, suppliers, pricing, and a solid business plan. In addition, it’s essential to have a storekeeper, offer a variety of products, maintain proper accounting, and obtain the necessary permits.

Starting a sari-sari store requires an initial investment of capital to purchase inventory, rent a location, and cover other start-up expenses.

2. Location

3. suppliers.

Setting competitive prices for your products can help you attract customers and increase sales. You’ll need to consider factors like the cost of goods, overhead expenses, and the local market.

5. Business Plan

6. storekeeper.

Hiring a responsible and trustworthy storekeeper is crucial to ensuring the smooth operation of your store.

7. Products you’ll sell

Remember to consider the preferences and buying habits of your target market when selecting products to sell in your sari-sari store. By offering a well-rounded selection of products, you can cater to a wide range of customers and increase your store’s profitability.

9. Marketing

10. customer service.

Providing excellent customer service is essential to building a loyal customer base and promoting positive word-of-mouth referrals.

11. Business Permits

12. accounting, 13. offer additional products.

Offering additional products, such as mobile phone load or school supplies, can help increase revenue and attract more customers.

14. Offer seats and shade

15. self-control, 16. financial management.

Developing strong financial management skills, such as budgeting, and cash flow management, , is essential to the success of your store.

17. Store Layout

Tips to manage a successful sari sari store.

Starting a sari-sari store business may seem easy, but it takes more than just having a few products to sell. To succeed in this type of business, you need to follow some basic rules and principles that will help you establish a good reputation and customer base. Here are some tips to help you start and run a successful sari-sari store business:

1. No to credits

3. customer’s buying habits.

If customers are looking for something you don’t sell, say “It’s out of stock” instead of “we don’t sell it.” List down the item that they’re always looking for so you can buy it next time. This will ensure that you can better serve your customers and that they won’t look for another store.

4. Start low

5. maintain the quality of your goods, 6. re-invest and save your profits.

Re-invest your earnings into your business by buying more goods, expanding your store, or hiring a storekeeper. Keep a portion of your earnings as savings to survive on days where you are closed or are having losses.

7. Be friendly

8. offer promos.

As your business grows and earns more, consider expanding your store physically to accommodate more goods or set up a branch elsewhere. Be sure to choose a location with potential customers and plan for scaling as you earn more.

10. Offer Tingi Tingi

11. get only 10% of profits for the day, 12. seasonal items.

Consider stocking up on seasonal items to meet the demand during different times of the year. For example, offer more soft drinks and ice during the summer months.

13. Offer deposits

Video: walang budget pero negosyong sari sari store magpapayaman sa iyo.

In conclusion, starting a sari-sari store business may seem like a simple venture, but it requires a lot of effort and attention to detail. By taking into account various factors such as capital, location, suppliers, pricing, and a solid business plan, you can increase your chances of success.

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The Ultimate Guide to Starting a Sari-Sari Store Business in the Philippines

Table of Contents

Introduction.

Imagine turning a small corner of your home into a bustling hub of community life and entrepreneurship. That’s precisely the magic of a sari-sari store, an essential facet of Filipino neighborhood culture. These quaint little shops do more than just sell goods; they become a cornerstone for local interactions, offering a convenient stop for everyday needs while fostering social ties. Starting a sari-sari store comes with its set of potential benefits—like generating steady income with relatively low startup costs and becoming an integral part of the local community.

However, it’s not without challenges, including managing inventory, dealing with competition, and navigating the intricacies of running a business with limited experience. This guide is your compass to navigating these waters, laying down the groundwork for aspiring entrepreneurs to build a successful sari-sari store that thrives on community spirit and smart business practices.

Chapter 1: Understanding the Sari-Sari Store Landscape

The Role of Sari-Sari Stores in the Philippines

Sari-sari stores, the Filipino term for “variety” or “miscellaneous,” are more than just retail outlets; they are woven into the fabric of local communities across the Philippines. These small, neighborhood stores offer essential goods, from snacks and drinks to household items, often within walking distance for residents. Their importance transcends commerce, as they serve as communal hubs where neighbors gather, share news, and stay connected. In many ways, sari-sari stores embody the bayanihan spirit, providing a support network for local communities.

Difference Between Sari-Sari Stores and Other Retail Formats

Unlike supermarkets or big-box retailers that offer a wide range of products in a large space, sari-sari stores are typically operated out of the store owner’s home and have a much smaller footprint. This setup allows for personalized service and a deep understanding of customer preferences, which large retailers can’t easily replicate. Additionally, sari-sari stores often offer goods in tingi or retail-by-piece, catering to customers who may not have the budget for bulk purchases, a practice not commonly found in larger retail formats.

The Evolution of Sari-Sari Stores in the Digital Age

The digital age has ushered in significant changes for sari-sari stores, with technology offering new ways to manage and grow these businesses. Mobile applications and platforms now enable store owners to restock inventory efficiently, access financial services, and even offer new services like e-loading and bill payments, expanding their role in the community. Despite these advancements, the heart of the sari-sari store remains its close ties to the community, blending tradition with innovation to meet the evolving needs of Filipino neighborhoods.

Chapter 2: Planning Your Sari-Sari Store

Market Research: Understanding Your Community’s Needs

Before diving into the sari-sari store business, conducting market research is crucial. This involves observing the local community to understand what products are in demand, identifying what competitors offer, and pinpointing gaps you can fill. For example, if your area lacks a store offering fresh produce or affordable cooked meals, this could be your niche. Engage with potential customers through casual conversations or surveys to grasp their purchasing habits and preferences.

Location, Location, Location: Choosing the Right Spot

The success of a sari-sari store often hinges on its location. Ideal spots are accessible to a high foot traffic area within the community, such as near schools, churches, or along main residential streets. However, consider the competition; setting up shop too close to another sari-sari store could split your potential customer base. Visibility and convenience to your target customers are key factors in choosing the perfect location.

Crafting a Business Plan: Budget, Forecast, and Goals

A well-thought-out business plan is your roadmap to success. Start by detailing your startup costs, including inventory, permits, and renovations. Then, project your sales, considering the average spending of your customers and the frequency of their visits. Setting clear, achievable goals for growth, such as expanding your product range or offering new services, will help guide your business decisions. Remember, your business plan is a living document that should evolve as your store grows and the market changes.

Chapter 3: Legal Requirements and Registration

Necessary Permits and Registrations

Starting a sari-sari store requires navigating the legal landscape to ensure your business operates within the law. Key permits include a Barangay clearance, a necessity for any business in the Philippines as it certifies your compliance with local regulations. Registration with the Department of Trade and Industry (DTI) secures your business name and protects it legally. You may also need a Business Permit from the local city or municipal office, alongside securing a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR).

Understanding Taxes and Compliance for Small Businesses

Compliance with tax obligations is crucial for the longevity of your sari-sari store. Small businesses in the Philippines are subject to various taxes, including income tax, value-added tax (VAT), or percentage tax, depending on the business’s earnings and size. Regularly updating your books and receipts, and understanding the tax breaks and incentives available to small businesses, can help manage tax responsibilities efficiently. It’s advisable to consult with a tax professional to navigate the complexities of tax compliance and benefit from any applicable small business incentives.

Chapter 4: Setting Up Shop

Store layout and design principles for maximum impact.

The layout and design of your sari-sari store can significantly influence customer experience and sales. Optimize space by ensuring your most popular items are easily accessible. Use clear signage for product categories to facilitate browsing. Lighting should be bright enough to make products appealing but not harsh on the eyes. A clean, organized, and welcoming environment encourages repeat business.

Essential Equipment and Initial Inventory: What You Need to Start

Starting requires minimal equipment: shelves for displaying products, a refrigerator for perishables and drinks, and a secure cash register or money box. Your initial inventory should reflect your market research, focusing on high-demand items in your community, like basic groceries, snacks, and household essentials. Balancing variety and depth in categories where you anticipate regular sales is key.

Sourcing Products: Tips for Finding Suppliers and Negotiating Terms

Building relationships with suppliers is crucial for getting the best prices and ensuring a steady supply of products. Attend trade fairs and join local business groups to network with suppliers. Don’t shy away from negotiating terms that benefit your business, such as discounts for bulk purchases or favorable payment terms. Diversifying your supplier list can also protect your store from stock shortages.

Read next: Side Hustles: These are the Best Ways to Make Money in 2024

Chapter 5: Managing Your Finances

Initial investment: estimating start-up costs.

Your initial investment will cover the cost of securing permits, purchasing initial inventory, acquiring necessary equipment, and any renovations to your space. Create a detailed list of these expenses to form a clear picture of the capital required to launch your sari-sari store.

Pricing Strategy: How to Price for Profit While Remaining Competitive

Pricing must strike a balance between being competitive and ensuring profitability. Research local market prices and consider your costs, aiming for a markup that covers expenses while attracting customers. Regularly reviewing and adjusting prices in response to market changes and cost variations is essential.

Keeping the Books: Basic Accounting for Sari-Sari Store Owners

Basic accounting involves tracking all financial transactions, including sales, expenses, and profits. Maintain a ledger or use accounting software tailored for small businesses. Regularly updating financial records helps in monitoring the health of your business, planning for taxes, and making informed decisions for growth and sustainability.

Chapter 6: Operations and Best Practices

Inventory Management: Streamlining with GrowSari

Effectively managing your inventory is crucial to prevent overstock and understock situations. Leveraging GrowSari , sari-sari store owners can access tools for efficient inventory tracking and ordering. This platform allows for real-time visibility into stock levels, helping to make informed decisions about when to reorder supplies. GrowSari’s technology simplifies inventory management, ensuring you have the right products at the right time to meet customer demand.

Customer Service: Building Loyalty and Repeat Business

Prioritizing excellent customer service fosters loyalty and encourages repeat business. Personalize your interactions, remember regular customers’ preferences, and respond promptly to feedback. This approach not only builds a strong rapport with your community but also sets your store apart from competitors.

Credit Management: Handling “Utang” Effectively

Offering credit is a common practice but requires careful management to maintain healthy cash flow. Establish clear credit policies and maintain accurate records of all transactions. This balance of generosity and prudence ensures you can offer this convenience without jeopardizing your store’s financial stability.

Incorporating GrowSari into your inventory management practices not only enhances operational efficiency but also supports better customer service and credit management by freeing up time and resources that can be dedicated to these critical areas.

Chapter 7: Marketing and Growth Strategies

Community Engagement: Becoming a Neighborhood Staple

Fostering a strong relationship with your community is not just beneficial; it’s a cornerstone of your sari-sari store’s success. By participating in local activities and supporting community causes, you do more than increase your store’s visibility; you weave your business into the fabric of daily life, becoming a trusted and valued community ally. This involvement transforms your store from a simple point of purchase to a cherished local institution, deepening customer loyalty and encouraging the kind of word-of-mouth that no amount of advertising can buy.

Digital Marketing: Leveraging Social Media

Expanding on the importance of leveraging social media for digital marketing:.

Utilizing social media platforms allows for a direct and engaging way to connect with your customer base, advertise your products, and share exclusive promotions. An active online presence not only helps in attracting new customers but also ensures your sari-sari store remains a vibrant topic of conversation within the community. Through consistent and creative posts, you can build a loyal following, turning casual browsers into regular patrons, fostering a sense of belonging and community around your brand.

Expanding Your Services with GrowSari

• Integration with GrowSari : Embrace GrowSari to modernize your sari-sari store. This platform enables you to efficiently manage inventory, access a broader product range, and dive into e-commerce.
• Broadening Market Reach : Through GrowSari, offer additional convenient services like e-loading and bills payment, drawing in more customers and enhancing your store’s value.
• Adapting to Digital Trends : GrowSari exemplifies the shift towards digital solutions in the sari-sari store sector, ensuring your business stays competitive and relevant.

Incorporating GrowSari into your business model not only streamlines operations but also positions your sari-sari store for sustainable growth and success in the digital age.

Chapter 8: Overcoming Challenges

Common pitfalls and how to avoid them.

A key challenge for new sari-sari store owners is managing inventory efficiently—too much leads to waste, too little to lost sales. Implementing a simple inventory management system can help. Another pitfall is failing to adapt to customer needs and market trends. Regular feedback collection and market research are vital. Additionally, underestimating the importance of record-keeping can lead to financial disarray. Establishing straightforward bookkeeping practices from the start is crucial.

Case Studies: Success Stories and Lessons Learned

Learning from others can pave the way for your success. Consider the story of a sari-sari store that diversified its income by offering bill payment services, significantly increasing foot traffic and sales. Another case involved a store implementing a loyalty program, enhancing customer retention. These examples highlight the importance of innovation, customer focus, and adaptability in overcoming challenges and achieving business growth.

Chapter 9: Looking to the Future

Trends affecting sari-sari stores (e.g., e-commerce integration).

The digital transformation is reshaping the sari-sari store landscape, with e-commerce and online payment platforms becoming increasingly prevalent. Integrating digital services allows stores to expand their customer base beyond the neighborhood, offering convenience and a broader range of products and services. Adaptation to digital trends is not just beneficial but necessary for staying competitive and relevant.

Planning for Growth and Sustainability

Sustainable growth involves careful planning and continuous improvement. Diversifying your product and service offerings can open up new revenue streams, while investing in technology can streamline operations and improve customer satisfaction. Building a strong community presence and focusing on customer loyalty also contribute to long-term success. Regularly assessing business performance against your goals and being open to pivoting your strategy based on market feedback are key to ensuring your sari-sari store not only survives but thrives in the future.

In wrapping up this comprehensive guide on starting a sari-sari store, we’ve covered the essentials from understanding the landscape, planning, legalities, setting up shop, to managing finances, operations, marketing, overcoming challenges, and planning for the future. Here’s a quick recap:

• Conduct thorough market research and choose a strategic location.
• Navigate legal requirements and secure necessary permits.
• Design your store for maximum impact and manage inventory wisely.
• Develop a solid pricing strategy and maintain accurate financial records.
• Prioritize customer service and consider expanding services to increase value.
• Stay adaptable and leverage digital trends for growth.

Embrace the journey of starting your sari-sari store with confidence. Armed with knowledge and a clear plan, you’re ready to become a vital part of your community’s daily life. Take that leap, and transform your entrepreneurial dream into reality.

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How To Start a Successful Sari-Sari Store Business in the Philippines

Published: Sep 19, 2023

Sari-sari stores in the Philippines are more than just convenient shops. These stores are an integral part of Filipino culture. Known for their accessibility, these handy corner stores have also become places where neighbors can share stories, laugh, and become friends.   

For folks dreaming of running their own business, starting a sari-sari store is a great idea. You don’t need a lot of money to set one up, and it’s also good for the local economy. These stores adapt to what the neighborhood loves, so they’re always fresh and exciting.  

If you want to open a sari-sari store, you’ll need to understand how to compete in this saturated market. This blog offers some tips to keep in mind to maximize profits in your sari-sari store business and achieve success.  

What is a Sari-Sari store?  

A sari-sari store is a small-scale business similar to convenience stores. These small outlets are a staple in almost every neighborhood, especially in street corners. 

From the word  ‘sari-sari, ’ these shops have a bit of everything. From snacks to household essentials, you really won’t need to go far for your needs.  

Most sari-sari stores are located right from the store owner’s home and are owned by private individuals. Large screens or steel-barred windows display the wide array of commodities. Some of these often include canned goods, candies, chips, and cigarettes. Meanwhile, essentials like sugar, salt, cooking oil, or rice are commonly stored in cans or sacks.  

There’s also a tiny window where customers can receive their requested commodity. For aspiring sari-sari store owner, it’s a venture worth considering as it offers a gentle entry into the world of entrepreneurship.  

Benefits and Challenges of a Sari-Sari Store Business  

Benefits  .

• Simple setup   A sari-sari store is a business you can get started with in a matter of days. This is due to its straightforward setup and low capital requirements. It’s also a great starting experience for people looking into entrepreneurship. If successful, this venture can expand into a larger retail store, translating into bigger profits.  
• Improved community relationship   As a neighborhood shop, this means that your sari-sari store becomes the go-to place for surrounding families’ daily necessities. Not only do you earn income, but you also strengthen the bonds you have with your neighbors.  
• Salary and rent savings   Starting a sari-sari store business helps you save money on salary and rent. You can simply establish your store from home and run it with your family. This significantly cuts down cost you would have otherwise spent on office space or employees.  

Challenges  

• Crowded market   Because it’s so easy to start a sari-sari store business, the competition can be tough. Add to that the fact that you may also have to compete with grocery stores who offer the same services. You’ll need to figure out how to establish customer loyalty and keep them coming back to your store.  
• Reputation for poor-quality products   There’s a stigma surrounding sari-sari stores for selling low-quality commodities. This is likely due to some owners not properly managing their inventory system. Negligent owners tend to leave products too long in the sun, or even allow them to expire. However, this is all avoidable with proper inventory management system and care.  
• Low sales volume, low margin   Convenience is the main selling point of the business. This is why sari-sari stores only add minimal profit margin to their prices to remain competitive. They also don’t sell goods in bulk, so they need many repeat customers to stay profitable.  

8 Tips to Have a Successful Sari-sari Store  

The success of your sari-sari store mainly depends on the variety and availability of products you sell to customers. It’s also helpful to invest in eye-catching design that can attract more customers to your store. Here are some sari-sari store ideas to achieve success in your business venture.  

1. Conduct thorough research on product prices before purchase  

It’s  vital to research the prices of the products prior to buying them. Make  it a  habit to compare prices online. You can also ask other owners the amount they usually charge for certain store products. This way, you get an idea of what the price should be. This also helps ensure that you  don’t  overcharge customers or lose out on profits.

2. Offer a wide product variety  

Customers are more likely to keep returning to your store if you have products not sold elsewhere. Consider including non-food items like toiletries or grocery staples like snacks, drinks, condiments, canned goods, and hygiene products.  

3. Include seasonal items  

Try switching up your product offerings on special occasions or seasons. For example, you can offer cold treats like ice cream during the summer months. Doing this will draw in customers looking for something refreshing. You can also add school supplies and items at the start of the school year to attract parents and students.  

4. Offer quality customer service  

Providing  excellent customer service is one of the most  important factors  in your store’s success. This business is more than just selling;  you’ll  need to serve your customers well, too. Many business owners overlook this aspect, but you  shouldn’t .  

That said, you should always be welcoming and cheerful when serving customers. Make it a point to be helpful and pleasant. You can also get to know them on a personal level. These help promote loyalty to your store business.  

5. Keep track of your money  

Keeping track of your expenses and income while running a sari-sari store is important. You can start by keeping a record of all the money that comes in and goes out of your store. This will help you understand where your money is going and manage your store more effectively.   

You can start by separating your personal and business expenses, as simply as taking note of your revenue. As a sari-sari store owner, you must know your money's inflow and outflow. Seeing where every single peso goes will help you manage your store better.  

6. Manage your Inventory System  

Keep an eye on your stock, especially if you have perishable items. With proper inventory management system, you'll have all your products organized and under control - helping you avoid any unexpected profit losses.  

7. Always say “Out of stock”  

If a customer asks for a product you don’t have in stock, it’s better to tell them that it’s currently out of stock rather than saying you don’t sell it. This way, you can keep track of what your customers are looking for and order those products in the future. By doing this, you can increase your profits by selling more of what your customers want.  

8. Have self-control  

Don't think of your sari-sari store as your personal food storage. Many sari-sari store owners make this mistake. It's important to be strict that the items you keep for selling are separate from your own groceries. Don't use the store goods for your personal use.  

Items that Sari-sari Store Should Have  

• Snacks   Customers often look to sari-sari stores for snacks and quick bites. You must always have stocks of biscuits, chips, candies, or other common snacks eaten during meriendas.  
• Beverages   Beverage items like soft drinks and juices tend to sell quickly and are popular items for a sari-sari store. They also generate good profit, which makes them ideal for retail.  
• Household items   Sari-sari stores are great avenues to sell basic household items like cleaning supplies. These often have higher prices than food and beverages, which means they offer more profit margins for your business.  
• Non-food items   Non-food items like hygiene products and toiletries can be a great source of income for your store. Customers often buy these essentials every day. It would be beneficial to offer these items, especially since they’re more convenient and accessible as opposed to going to a supermarket.  
• Medicine   Most people usually rely on sari-sari stores to get the medicines they need. Include a decent selection of over-the-counter medicines for common ailments or sickness.  
• Dessert   Offering dessert products is an effective way to attract customers. People usually look for sweet snacks after eating, so make sure you always have dessert in stock in your sari-sari store.  

Wrapping it up  

Starting a sari-sari store is a great idea, but it has its challenges. These stores are essential in Filipino communities, offering convenience and a chance to connect with neighbors.  

By following these tips, you can have a successful store that benefits both you and your neighbors.  

What is  Peddlr ?  

Peddlr  is a POS mobile application for all business owners – sari-sari stores, milk tea stands, coffee shops, Shopee and Lazada sellers and more. It's free to download, free to use, and works even without an internet connection. With Peddlr, you can easily manage and track your business performance and inventory system.  

Here are some of the useful features that you can access through the Peddlr app:  

FREE Point-of-sale system (POS)  or a mobile cashier system  

FREE Credit Reminder   – send SMS to your customers for free to collect credit/debts easily  

FREE Inventory Manager/Tracker  - take control of your product inventory  

Loading and Bills Payment Services  – enjoy rebates and cashback  

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FILIPINO BUSINESS HUB

How to Start a Sari-Sari Store Business in 2023

A Sari-Sari Store is a small retail shop commonly found in the Philippines that sells a range of household and grocery items such as snacks, canned goods, beverages, and other necessities for everyday living. “Sari-Sari” in Filipino means variety or assortment – hence why this type of store is given its name due to its wide selection of goods.

Sari-Sari Stores have long been an integral part of the Philippine retailing landscape. Established as a means for Filipinos to earn income by selling goods directly to local communities, these stores have become an indispensable component of Filipino life – providing easy access to essential goods at a price everyone can afford.

This article’s goal is to provide a step-by-step guide on launching and operating a successful Sari-Sari Store business in 2023. It will address essential aspects such as the benefits of starting such an endeavor and the necessary steps to start one up. When readers complete this guide, they should have the knowledge to launch and operate such a venture successfully.

Table of Contents

Understanding the nature of sari-sari store business.

• Characteristics of Sari-Sari Stores Sari-sari stores are small neighborhood retail outlets that sell snacks, canned goods, toiletries, and other household essentials at competitive prices. Often located in residential areas or along busy streets for easy accessibility to the communities they serve, these shops are known for providing convenient service at competitive rates with personalized attention from staff members who know exactly what customers need.
• Target Market and Customer Profile A sari-sari store business typically targets its target market as the local community within its immediate surroundings, serving families, students, commuters, and others who need quick and convenient access to necessities. Therefore, understanding customer needs and preferences is integral for success in any sari-sari store business venture.
• Advantages and Disadvantages of Sari-Sari Store Business One significant advantage of starting a sari-sari store business is its low start-up costs, making it an accessible and viable option for aspiring entrepreneurs. Furthermore, their products meet daily needs within their communities, putting them in constant demand. Unfortunately, earnings potential in such businesses is generally limited as profit margins tend to be low; in addition, they face stiff competition from similar shops nearby.

Aspiring entrepreneurs who plan to open a sari-sari store business in 2023 should fully understand its unique characteristics to increase their chances of success. We will explore below why opening such an enterprise would make for a sound investment decision.

What Type of Business is Sari-Sari Store?

• Micro-Enterprise Business Sari-sari stores can be classified as micro-enterprises because they are generally small-scale businesses operated independently by families or small groups of people. Owners usually take an active part in running the store, from purchasing inventory to overseeing sales and finances.
• Retail Business Sari-sari stores can also be considered retail businesses because they sell goods and products directly to consumers; however, unlike larger chains, they typically provide a limited selection of items that meet immediate community needs.
• Community-Based Business Sari-sari stores are an integral part of Philippine culture and communities nationwide. Not only are they an economical source of everyday necessities, but they’re also social hubs where locals gather, chat, and exchange news and stories of life happening nearby – thus becoming more than simply businesses but an integral component of life itself.

In the next section, we will discuss why the sari-sari store is a good business and what makes it unique.

Why Sari-Sari Store is a Good Business Venture?

Sari-sari store businesses have long been attractive for Filipinos looking to launch small-scale businesses. Here are some reasons why starting such an endeavor could be wise:

• Low Capital and Operating Costs One of the primary benefits of running a sari-sari store business is its minimal initial capital requirement and operating costs; you can start up your store for just a tiny investment and gradually build your inventory and customer base over time. Furthermore, operating costs are minimal as stores can usually run from their owners’ homes or rented spaces in their communities.
• High Demand and Profit Margin Sari-sari stores fulfill daily needs within their communities, making them highly sought-after businesses. Customers come in to purchase necessities like food, toiletries, and household products at competitive prices that provide higher profit margins than retail prices in markets.
• Flexibility and Adaptability Sari-sari store business can offer tremendous flexibility and adaptability; you can quickly adapt your inventory based on customer demand and the season and offer additional services like cellphone loading or bill payment to attract more customers.
• Social and Economic Impact Sari-sari store businesses also make an invaluable contribution to the community by creating employment opportunities and contributing to the local economy. Furthermore, it fosters an atmosphere of belongingness by serving as a gathering point for neighbors and friends alike.

Given all these considerations, it is no surprise that the sari-sari store business remains an attractive choice among Filipinos seeking to start their venture.

Starting Your Own Sari-Sari Store Business

Market research and planning.

• Conducting a feasibility study to determine the potential profitability of the business
• Identifying your target market and analyzing their buying behaviors
• Researching your competitors and their prices, products, and services
• Creating a business plan that outlines your goals, strategies, and financial projections

Business Registration and Permitting

• Registering your business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC)
• Obtaining the necessary permits and licenses, such as Barangay Clearance , Mayor’s Permit, and BIR Registration
• Complying with the tax and labor laws and regulations

Choosing a Location and Setting Up the Store

• Selecting a strategic and accessible location that has high foot traffic and minimal competition
• Renting or leasing a space that is suitable for your store’s size and layout
• Designing and renovating the store’s interior and exterior, including the shelves, displays, signage, and lighting
• Installing the necessary equipment and facilities, such as a point-of-sale (POS) system, cash register, refrigerator, and security system

Stocking and Inventory Management

• Identifying the best-selling and profitable products that cater to your target market’s needs and preferences
• Establishing relationships with reliable and quality suppliers who can provide you with consistent and affordable inventory
• Maintaining a sufficient inventory level and avoiding overstocking or understocking
• Implementing an inventory management system that tracks your sales, stock, and orders

Pricing and Profitability

• Setting competitive and profitable prices that reflect the market demand, product quality, and overhead costs
• Calculating the cost of goods sold (COGS) and the gross profit margin (GPM) to determine the profitability of each product
• Implementing pricing strategies, such as bundling, discounts, and promotions, to attract and retain customers
• Regularly review and adjust your prices and profitability based on market trends and competition.

Customer Service and Marketing

• Providing excellent and personalized customer service that fosters loyalty and word-of-mouth referrals
• Offering a variety of payment options, such as cash, credit cards, and mobile payments, to accommodate different customer preferences
• Creating a brand identity and value proposition that resonates with your target market’s values and aspirations
• Developing a marketing plan that includes various channels, such as social media, print ads, and flyers, to reach your target market and promote your products and services.

Challenges and Solutions in Sari-Sari Store Business

• Competition and Market Saturation While the sari-sari store business can be profitable, it has challenges. One of the biggest challenges is the high level of competition and market saturation. In most areas, several sari-sari stores are already operating, making it difficult for new businesses to enter the market. To overcome this challenge, aspiring entrepreneurs should consider offering unique products or services, improving the store’s location or accessibility, and implementing effective marketing strategies to attract customers.
• Security and Safety Concerns Sari-sari stores are often located in areas with high crime rates, making them vulnerable to theft and robbery. To address this concern, store owners should invest in security measures such as CCTV cameras, alarm systems, and strong locks. They should also ensure that the store is well-lit and visible from the street to deter criminals from targeting the store.
• Financial Management and Record-Keeping Financial management is a crucial aspect of any business, including a sari-sari store. Store owners should keep accurate records of their sales, expenses, and inventory to track the financial health of their business. It is also essential to create a budget and stick to it, as well as to monitor cash flow to ensure that the business has sufficient funds to operate and grow.
• Innovation and Diversification Another challenge for sari-sari store owners is to keep up with changing consumer demands and trends. To stay competitive and relevant, store owners should consider introducing new products and services, expanding their product lines, and adopting innovative technologies such as cashless payment systems. Diversification of the business, such as offering additional services like bill payments or reloading services, can also attract more customers and increase revenue.

Final Thoughts

Starting a sari-sari store business in 2023 is an excellent decision for entrepreneurs seeking to enter the marketplace with minimal capital and high potential return. This business model has long been part of Filipino culture, thriving despite challenges and competition.

In this article, we explored the nature and characteristics of the sari-sari store business and its advantages and disadvantages. Additionally, we covered what type of business venture this type represents and why it would make an excellent venture.

To successfully open a sari-sari store business, you must conduct market research and planning, register the business with all necessary permits, select an ideal location, manage inventory and pricing correctly, offer superior customer service, and market your store effectively to bring customers.

Although starting a business can provide plenty of rewarding opportunities, it also presents its unique challenges, including competition, safety and security concerns, financial management needs, innovation needs, and innovation processes. But with the proper mindset, skillset, and solutions in place, you can overcome these hurdles to find business success.

Running a sari-sari store business is an ideal opportunity for entrepreneurs looking for entrepreneurial ventures. Through hard work and determination, you can establish a thriving enterprise that meets your family’s needs and contributes to economic development in your community.

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14 Things You Need to Start A Sari Sari Store Business

The first thing you need when starting a sari sari store is money. You can get it from your own pocket or by getting a loan from banks or your relatives.

Either way, you need money. But just how much capital do you need to start a profitable sari sari store?

This depends on your capacity.

But for first time business owners, it’s recommended to just start small and test the waters first. As with any business, you don’t want to over-extend your reach to the point that you can’t get it back.

What this means is that you need to assess the risks first before investing in a business. A lot of store owners started with just a few thousand pesos but eventually grew them into a successful store!

If you want to earn some money while at home so you can acquire some capital, why not try online freelancing? Since you’re just at home, you can work and earn money with just a computer/laptop and internet connection!

Read this if you’re interested: 7 Steps to Start Working at Home in the Philippines

2. Location

The next most important thing or arguably the most important one is the location.

You can’t set up a store in the middle of a field and expect your business to be booming, right?

Unless of course, your customers are birds.

But on a serious note, your location usually will make or break your business.

Ideally, you need to run your store in locations where there are many people such as:

• Highways/Main roads
• Near terminals

If these locations aren’t available to you, you may set up your sari sari store even in a small street.

Just make sure that you’re not near another store. This will ensure that you’ll get all the customers to yourself!

3. Suppliers

It might be more convenient to just buy your goods from the groceries at first.

However, if you want to survive longer – buy straight from suppliers.

As you know, buying from suppliers will allow you to save more money so you can provide the lowest prices!

Establish good terms with your suppliers and you may even secure a credit line, discounts and more!

Another important thing to consider is the prices of your products.

It might be tempting to sell them at low prices at first. But that’s not a good idea if you have a lot of competition around the area.

Do a research and keep note of their prices. This should give you an idea on what to price your products.

But if you don’t have a lot or any competitors at all, you may sell your goods at a higher price than usual.

5. Business Plan

Don’t worry, this may sound complex but it isn’t.

This is usually created by medium to large businesses when starting out.

Most sari sari stores don’t have a plan at all. This is one of the reasons why they fail.

To truly establish your store on a good foot, you need a plan.

A business plan for a sari sari store could just include these simple things:

• A summary of what your business is all about (name, location, goods etc.)
• Your marketing strategies
• Some things to keep in mind

Ideally, you just need this to have a direction for your business.

“If you fail to plan, you are planning to fail” – Benjamin Franklin

6. Storekeeper

Having someone who will manage your sari sari store business is crucial.

You don’t want to delegate this task to someone you don’t trust.

If you don’t have time to do it yourself, you can ask your family, friends or relatives to do it.

Just make sure that they’re well-compensated and they’re doing their job well.

If they’re inexperienced, you need to teach them the basics at the very least.

For instance, they need to have basic math knowledge which will help them to serve customers faster.

This will also ensure that your business will not go bankrupt.

7. Products you’ll sell

If you’re starting with a limited budget, you should consider selling basic needs first.

This includes goods such as:

• Vinegar and Soy Sauce
• Laundry powder

Of course, the basic needs you’ll sell depends on where your store is located.

If it’s near a hospital, you may need to sell some diapers, first-aid kits and more.

But if it’s in a regular neighborhood, then you can sell the common necessities that we need.

Your sari sari store design is also crucial in establishing your business.

You need to categorize your goods accordingly and set a space dedicated to each of them.

This will ensure that your customers can see the products easily.

It will also allow your storekeeper to easily navigate through the goods to better serve the customers.

That’s why it’s a good idea to plan the design of the space and to maintain the organization and cleanliness of it.

9. Marketing

A sari sari store is still a business no matter how small.

As with every business, you need to exert some effort into marketing it.

This means that you can put up banners or tarpaulins around your area.

Or you can go the classic route of the word of mouth.

Advertise your store through your neighbors, friends and relatives!

10. Business Permits

A lot of sari sari store businesses don’t register their business in BIR or DTI.

Some say it’s a hard work or it’s just another expense that will eat up their small income.

But that’s not exactly the case!

BIR tax-exempts minimum income earners. But you still need to register for TIN and to file annual tax returns.

Because if your sari sari store business is registered, you can enjoy a lot of advantages.

One is that suppliers and other entities will see your store as a legit business. This allows you to secure a more advantageous place and you can get discounts.

You can also access other government support that will allow you to grow your business!

11. Accounting  

Don’t be intimidated by this word!

This can be as simple as just taking note of your revenue and expense.

Ideally, you should have a ledger in a notebook to list out all of your inventory, profits and expenses.

But if you’re comfortable around a computer, you can use spreadsheets to do computations much faster.

This will also allow you to easily access and save your files unlike notebooks where you can misplace it.

12. Offer Additional Products (Load, School Supplies etc.)

Aside from goods, your sari sari store business can profit from additional products.

This can include:

• School supplies
• First-aid kits
• Medicines (Non-subscriptions)
• Ice candies and other desserts

Look for items that a lot of customers are looking for that you don’t already have.

Or you can create your own products that you can test out in your store!

Related: How to Earn Money in GCash (Ultimate Guide!)

13. Offer seats and shade

A lot of sari sari stores don’t know that having seats and shade can indirectly increase profit!

There are a lot of people that look for temporary resting places and what could be more convenient than your store?

This way, you can sell them refreshments and other goods that they may be interested in.

It doesn’t even need to be a wide area, just a simple chair and a shade will do in most cases.

Just make sure that your customers won’t sit in there forever because it could irritate your other customers.

14. Self-control

Before starting a sari sari store business, you need to warn your self and your family first.

Treat your store as a business and not as your own stockpile of goods.

To do this, separate your own grocery from your store’s goods.

And makes sure that you don’t get food from your sari sari store every so often.

If you’re the storekeeper, control the urge to eat your own stocks! You should always go to your store after eating so that you won’t be tempted.  

13 Tips to Manage A Successful Sari Sari Store

Plenty of Filipino households have a sari sari store. In fact, almost every street nowadays has at least one!

But why are there so many sari sari stores closing down? Is it because of low customers or others?

Whatever the reason is, you need to know these secret tips that only the highly successful sari sari store business owners know!

1. No to credits

“Palista nalang muna, bayaran ko sa katapusan.” These are the common phrase we use or hear all the time.

But did you know that the worst mistake you can do when starting your store is to allow store credits?

Yes, it may sound like a good way to build your reputation and business early on but it will damage you in the long run. Tons of businesses not just sari sari stores have turned to ruins because of this.

But if you’re still not convinced, here are the reasons why you shouldn’t allow this:

• Debts are hard to collect.
• You won’t have sufficient cash flow for your next purchases.
• Sometimes, customers may even hold a grudge when you collect their debts.
• There’s something called “bad debts” where there will always be a small percentage of money that you can’t collect.

If those still don’t scare you, I don’t know what will. So, if you’re planning to start your sari sari store business soon, don’t allow credits.

The First in, First Out principle is used by most businesses worldwide. But in small businesses such as sari sari stores, this isn’t common knowledge.

There are still some who don’t know this principle which allows them to lose money every week!

So, what exactly is this? How does it work?

It’s as simple as it sounds. This only means that you should sell the goods as you buy them. For instance, a customer is looking for a can of sardines. Then, you need to sell the inventory that is the oldest first.

Following this will ensure that your products will stay fresh and you won’t have any losses due to expired food.

3. Customer’s buying habits

Here’s another tip, if customers are looking for something but you don’t sell them, just say “It’s out of stock” instead of saying “we don’t sell it”.

Then, list down the item that they’re always looking for so you can buy it next time. This will ensure that you can better serve your customers and that they won’t look for another store.

This is something I observed that not a lot of sari sari stores in our area don’t implement this trick.

They would simply say that they don’t have those products which forced me to look for it in other stores. Even after some time, they still didn’t include the product in their store.

4. Start low

It’s easy to get excited especially if this is your first business. But it’s important to understand that you can start even with just hundreds in your pocket!

In fact, it’s recommended to do so in order to test your market first. Even if you don’t have a physical store at first, you can start by setting up something at the front of your house and going on from there.

Lots of people started this way and now they’ve grown their businesses to new heights.

5. Maintain the quality of your goods

Another thing to keep in mind is the quality of your products.

A sari sari store business isn’t a passive income business where you just leave it expecting it to earn in itself.

This is a business so you should treat it as such. This means keeping everything in top-notch quality. If you see some of your products that have gone bad, don’t try to sell them to your customers!

Also, this means keeping everything clean. I remember buying a canned product from a store which had dust all over it. Although it wasn’t expired, it’s still an indication that the storeowner doesn’t clean the store. This alone turned me off so imagine what it will do to your customers.  

6. Re-invest and Save your profits

For a lot of Filipinos, their sari sari stores are their first business that they venture into. Because of this, it becomes easy to adopt a mentality where you should reward yourself.

Buying things for yourself from your profits isn’t necessarily a bad thing. In fact, I encourage you to do so every so often. But if you’re just starting out, you need to re-invest your earnings into your business.

This might mean:

• Buying more goods
• Expanding your store
• Hiring a storekeeper

Aside from that, you should also keep a portion of your earnings as savings. This will allow you to survive on days where you are closed or are having losses.

7. Be friendly

It may not look like it, but your sari sari store is a business. Therefore, you need to treat it as such.

This means that you should not only establish your business as a means to sell products. Businesses are about serving your customers.

Greet, smile and talk to your customers as much as you can. You won’t notice but doing so will have a positive impact to your customers.

If you’re not the storekeeper, you should train them to be friendly. It doesn’t cost anything but it gives back so much!

I remember buying from a sari sari store nearby and the lady was so slow to assist me. She even ignored me and scrolled for about 30 seconds on her phone before noticing me. Needless to say, I complained about this to my family and they now know.

As you can see, bad experiences like these spread like wildfire especially in a small neighborhood.

Another thing you can do to provide exceptional customer service is by providing doorbells or service bells. Just by the cheap but quality ones you can find around.

And trust me when I say that your customers will thank you for this!

8. Offer promos

Sometimes, it doesn’t hurt to offer promos once in a while. This would even encourage your customers to buy more and spread the good news!

You can offer something like free P30 load for every 1 tray of egg purchased or others.

Whatever it is, be sure that you won’t be losing out on money. On the other hand, you also have to make sure that your customers will see the incentive enough that they will avail of the promo.

When your sari sari store business starts to earn more, you should consider scaling.

What I mean by this is expanding. You can try to physically expand your store to accommodate more goods.

Or you can set up a branch of your store somewhere else. But you need to take note of the location and the number of people that can be your potential customers.

But overall, you need to put up your store with the objective of scaling as you earn more. This will ensure that your business stays relevant.

10. Offer Tingi Tingi

Sari sari store started as a means for Filipinos to buy things in “tingi tingi”.

This means that they like to buy cooking oil in plastics and sold in P5, P10, or more. There are plenty of other items that you can offer in small packs. You just need to listen to the requests of your customers and you’ll get a good idea of what those are!

11. Get only 10% of profits for the day

Most sari sari store business owners just get a certain amount of the revenue they get per day.

For instance, they get a P400 sales one day and then they get P100 from that revenue. This may look fine at first glance but this is already 25% of the total profit you got on that day!  

What if you don’t have a lot of sales on a certain day, would it still be profitable to get P100?

What you should do instead is just get a certain percentage of your total sales for the day as your profit say 10%. So, if you earned P400 in a day, you should only get P40.

Doing so will allow you to have a steady flow of cash which will ensure the profitability of your business.

12. Seasonal Items

Another good thing to keep in mind as a store owner are seasonal products.

For example, when it’s summer, it’s a good idea to have a lot of soft drinks, ice, and other beverages you can sell. This will allow you to supply the huge demand for these products because they’re in “season”.

13. Offer deposits

Lastly, you should also put deposits on bottles. This is because those bottles cost you money!

Often times, customers would be too lazy to bring back their bottles to stores. So to combat this, you need to give them something in return such as some coin incentives.

Final Thoughts

There you have it, I hope these tips can help you start your own sari sari store business.

It may be a long road but as long as you keep in mind these things, your business will surely prosper!

How about you, do you own a sari sari store or are planning to? Share your thoughts below. I’d love to hear from you!

Read these next:

• Food Cart Business: Beginner’s Guide (Plus Top 9 Ideas)
• Pisonet Business: Everything You Need to Know!
• How to Start a Car Wash Business in the Philippines

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

Fresh Posts

Hi, good day. I just scrolled up then I found you’re content. I empress the thought you’ve posted. I agree all of the reality of the words in the blog. I may not one of good talking or saying comments but I amazed from you’re economic business plan management. Hope to see more things around…happy mini sari-sari store owner.

Thank you very much for reading my posts! 🙂 Glad you liked it.

Keep posted, will write more blog posts soon!

• Pingback: Pisonet Business: Everything You Need to Know! - Peso Hacks

I rarely read a blog unless I happen to see something that pertains to something I am highly interested in or need knowledge on. With your great business plan and advices this idea might be a big help for me on how to manage my small sari sari store. 😊😊

Have a great day ahead and God bless

thank you mr. Writer

Thanks very much for the kind words! 🙂 I’m glad that this blog post can help you manage your sari sari store. Thanks and Godbless! Feel free to read the other helpful blog posts around here.

• Pingback: Food Cart Business: Beginner’s Guide (Top 9 Ideas) - Peso Hacks

If you are looking for a distributor, please feel free to contact me. I am from Suysing Commercial Corporation. Thanks!

We are in Cabuyao Laguna. Where are you located? We have had our store for a couple of years and recently increased our size.

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How to Start a Sari-Sari Store

Do you dream of starting your own business but don't know where to begin? Have you considered starting a Sari-Sari store?

Before we dive into the nitty-gritty of starting your own patok na negosyo in the form of a Sari-Sari store, let's first define what it is.

A Sari-Sari store is a small, family-owned convenience store that can be found on nearly every corner in the Philippines. These stores offer a variety of products at affordable prices and are a staple of Filipino culture.

If you're interested in starting your own Sari-Sari store, keep reading our comprehensive guide on how to get started.

Planning Your Dream Sari-Sari Store

The first step in starting your own Sari-Sari store is to do some planning. This includes identifying your target market and location, determining your capital and budget, and researching the legal requirements and permits needed to start a business.

When it comes to identifying your target market, consider the location of your store. Is it in a residential area or near a school? Knowing your target market will help you determine what products to sell and how to market your products. Finally, research the legal requirements and permits needed to start a business. This includes obtaining the following:

• Business permit
• Registering your business
• Clearance from local government agencies

Setting up Your Own Sari-Sari Store

Once you've completed the planning stage, it's time to set up your store. You'll need to find a suitable location, purchase the necessary equipment and inventory, and set up a system for accounting and inventory management.

When choosing a location for your store, consider foot traffic and accessibility. Is your store easy to find? Is it in a visible location? These factors can greatly impact the success of your business.

Next, purchase the necessary equipment and inventory. This includes shelves, refrigerators, cash registers, and of course, products to sell. Don't forget to keep an eye on the expiration dates of products and restock items as necessary.

Finally, set up a system for accounting and inventory management. This will help you keep track of your sales, expenses, and inventory. Consider using technology such as point-of-sale systems to make this process easier.

The Cost of Starting a Sari-Sari Store

The cost of opening a Sari-Sari store in the Philippines can vary depending on a number of factors, such as location, size, and the types of products you plan to sell.

Here are some of the costs you can expect to incur when starting a Sari-Sari store:

• Rental fees for your store location
• Initial inventory of goods to sell
• Cost of permits and licenses required to operate a business
• Display racks, shelves, and other store fixtures
• Cash register or point-of-sale system
• Security equipment such as CCTV cameras
• Utility bills such as electricity, water, and internet
• Staff salaries (if you plan to hire employees)

The amount of capital needed to start a Sari-Sari store can range from as low as ₱10,000 to ₱50,000 or more, depending on the size of your store and the type of goods you plan to sell. It's important to carefully consider your budget and plan your expenses to ensure that you have enough capital to cover your initial costs and sustain your business until it becomes profitable.

Starting Your Own Sari-Sari Store With SariSuki

Through SariSuki , you can start your own Sari-Sari store without shelling out a large capital to invest. SariSuki is here to help you out in not only building your own business, but also your dreams!

Look no further than SariSuki! As the first and largest Philippine-based community-selling platform, SariSuki aims to uplift communities by improving access to quality and affordable essential goods. 

With a 5,000-strong network of Community Leaders (CLs), SariSuki is dedicated to creating a more efficient Philippine supply chain ecosystem by directly sourcing produce from farmers and manufacturers. And now, you can become a part of this exciting mission by starting your own digital grocery store as a SariSuki Community Leader. You can have the opportunity to build a better Philippines today with us!

If you want to start your own Sari-Sari store using SariSuki, here are the steps you can follow:

• Visit the SariSuki website at https://www.sarisuki.com/ and click on "Become a C ommunity Leader" at the top right corner of the page.
• Fill out the registration form with your personal information and provide a valid government ID.
• Attend the Community Leader training conducted by SariSuki to learn more about the platform, its products, and services, and how to manage your online Sari-Sari store.
• Once you have completed the training, you can start ordering products from the SariSuki website and receive them through their distribution network.
• Create an online store on SariSuki where you can display your products and manage your inventory.
• Promote your online store through social media and other means to attract customers and increase sales.
• Manage your store by monitoring your inventory, processing orders, and delivering products to your customers.

By using SariSuki, you can leverage its platform to access a wide range of quality products, connect with other Community Leaders, and take advantage of their distribution network to receive your products easily. Starting your own Sari-Sari store through SariSuki can be a convenient and cost-effective way to become an entrepreneur and promote community development near you.

Marketing and Promoting the Store

Now that your store is up and running, it's time to start marketing and promoting it!

Develop a unique selling proposition that sets your store apart from others in the area. Consider offering promotions or discounts to attract customers. And don't forget about social media. Use it to promote your store and connect with potential customers. Promoting your Sari-Sari store is essential to attract customers and increase sales. Here are some ways to promote your Sari-Sari store in the Philippines:

• Word-of-mouth: Spread the word about your store to friends, family, and acquaintances. Encourage them to recommend your store to others.
• Social media: Use social media platforms like Facebook, Instagram, and Twitter to promote your store. Share photos of your products, post updates about sales and promotions, and engage with your customers.
• Flyers and posters: Distribute flyers and posters in your local community. Place them in public areas like community centers, schools, and markets.
• Discounts and promotions: Offer discounts and promotions to attract customers. For example, you could offer a discount for first-time customers or a buy-one-get-one-free deal on certain products.
• Partner with other businesses: Partner with other businesses in your community to promote each other's services. For example, you could partner with a nearby bakery to offer a discount on bread when customers buy from your store.
• Online marketplaces: Consider selling your products on online marketplaces like Lazada, Shopee, or SariSuki to reach a wider audience.
• Loyalty programs: Implement a loyalty program to reward customers who frequently purchase from your store.

By using a combination of these methods, you can effectively promote your Sari-Sari store and attract more customers.

Managing and Operating Your Sari-Sari Store

Managing and operating a Sari-Sari store can be a challenging task. Hire and train employees if necessary, and implement a system for restocking and inventory management. Keep records of sales and expenses and regularly analyze your financial reports to see where you can make improvements.

Here are other things to consider for your Sari-Sari store management and operations:

Managing and operating a sari-sari store requires effort and dedication. Here are some important things to keep in mind:

• Keep track of your inventory: It's crucial to monitor your stock levels to ensure that you don't run out of popular items. Create an inventory system and regularly update it to know which items are selling well and which ones need to be restocked.
• Keep your store clean and organized: Maintaining a clean and organized store creates a good impression on customers and encourages them to keep coming back.
• Provide excellent customer service: Treat your customers with respect and kindness, and make sure to address their needs and concerns promptly. Good customer service can lead to loyal customers who will recommend your store to others.
• Set reasonable prices: Research the prices of the products you want to sell and set your prices accordingly. Be mindful of your profit margins, but also keep in mind the purchasing power of your target market.
• Keep up with trends: Stay updated on the latest products and trends in your area to attract more customers. Offer new and exciting items in your store to keep customers interested.
• Manage your finances: Keep track of your income and expenses to ensure that you are making a profit. Set a budget for your store and stick to it.

You Own Sari-Sari Store Awaits!

Starting a Sari-Sari store may seem overwhelming at first, but with the right planning and execution, it can be a profitable business venture. By conducting market research, choosing the right location, obtaining the necessary permits and licenses, determining your product line, setting your prices, advertising your store, and keeping it clean and organized, you'll be well on your way to running a successful Sari-Sari store.

Frequently Asked Questions

How much is the cost of opening a sari-sari store in the philippines.

The cost of opening a Sari-Sari store business in the Philippines can vary depending on several factors such as location, size, and inventory. Generally, the cost can range from around PHP 10,000 to PHP 50,000 or more. This can cover expenses such as rental fees, licenses and permits, initial inventory, and basic equipment such as shelves, a cash register, and a refrigerator. However, the actual cost can also depend on whether you plan to start a physical store or an online one. Starting an online Sari-Sari store through SariSuki as a Community Leader, you can enjoy building your own on a lower cost and less requirements.

How do I promote my Sari-Sari store?

There are several ways to promote your Sari-Sari store. These include word-of-mouth, social media, flyers and posters, discounts and promotions, partnering with other businesses, online marketplaces, and implementing loyalty programs. These methods can help attract more customers and increase sales for a Sari-Sari store.

What products should I start selling in my Sari-Sari store?

The products you should sell in your Sari-Sari store can depend on several factors, such as your location, target market, and competition. However, here are some popular and essential products that you can consider selling in your Sari-Sari store in the Philippines:

• Snacks and chips: This can include popular local snacks like chicharron and choco pie.
• Cigarettes: Selling cigarettes is a common and profitable item in Sari-Sari stores.
• Drinks: This can include bottled water, soft drinks, and energy drinks.
• Basic household items: This can include soap, shampoo, toothpaste, laundry detergent, and toilet paper.
• Confectionery: This can include chocolates, candies, and gum.
• Personal care items: This can include sanitary napkins, diapers, and tissue paper.
• Canned goods: This can include popular Filipino canned goods like corned beef, sardines, and tuna.
• Rice and other grains: Selling rice is also a staple in Sari-Sari stores.
• Mobile load: Selling mobile load credits can be a convenient service for customers.
• School and office supplies: This can include notebooks, ballpens, and pencils.

These are just some examples of products you can sell in your Sari-Sari store. It is also essential to assess the needs of your community and adjust your inventory accordingly.

How can I start my own Sari-Sari store using SariSuki?

To start a Sari-Sari store using SariSuki, you need to visit our website and click on "Become a Community Leader" to fill out the registration form and provide a valid government ID. Attend our training to learn how to manage your online store, order products from their website and receive them through our distribution network. Create an online store, promote it through social media, manage your store by monitoring inventory, processing orders, and delivering products to customers. SariSuki offers a convenient and cost-effective way to become an entrepreneur and promote community development.

What are the most important things that I should remember when starting my own Sari-Sari store?

Here are some important things to remember when starting your own Sari-Sari store:

• Know your market: Understand the needs and preferences of your target market, such as the products they need and the prices they are willing to pay.
• Stock up on essentials: Make sure to always have essential products in stock, such as rice, canned goods, snacks, and toiletries.
• Manage your inventory: Keep track of your inventory and make sure to restock popular products regularly. This will help you avoid stock shortages and lost sales.
• Keep your store clean and organized: A clean and well-organized store can attract more customers and make it easier for them to find what they need.
• Offer promotions and discounts: Offering promotions and discounts can attract more customers and increase sales. Consider offering discounts for bulk purchases or first-time customers.
• Build relationships with your customers: Get to know your customers and build relationships with them. This can lead to repeat business and positive word-of-mouth.
• Be honest and transparent: Always be honest and transparent with your customers about your products, prices, and promotions. This can help build trust and credibility with your customers.

By keeping these things in mind, you can start and run a successful Sari-Sari store that meets the needs of your customers and contributes to the growth of your community.

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• Wed. Sep 25th, 2024

Business Diary Philippines

Small business startup ideas and money making guide

How to Start a Sari-sari Store Business

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.

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

III. Projected Income

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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How to build the perfect work from home setup, how to start selling your homegrown produce, how to work faster and more efficiently from home, 33 thoughts on “how to start a sari-sari store business”.

sari sari store is very beautiful business plan .kailangan ng big capital.

very informative tips…i was really inspired…just waiting for a good timing…i'll cross the bridge to get in there thanks..

guys dili nako kabalo himo business plan

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

it is big help for me,i want to discover more ideas for this kind of business.thanks.

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 [email protected] thanks

another idea…a good start…

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.

Thanks for the post.I got some tips!

if they do not sell alcohol and cigarettes it's ok.

why do some brgy allow brgy permit only with sari sari stores? no dti/mayors permit na

Thank you i learned this a lot specially how to start sari sari store

Ask lang po what do you mean by 40% weekly purchase for 3 weeks?

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

Thanks for the good idea,its helpful!!

Thank u so much for this guide and tips, i'll have this sari sari store someday..

Thank you for this information sobrang naka tulong to sakin para sa business na gagawin ko

Thank u it helps me. To learn more

now i will plan to build my own business someday..it start in this.

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.

Saan po ba may guide kung paano mag-keep ng ledger for saro-sari store?

pm me sir.. how to start a distributor in aim global..so i can assist you po so i can discuss about all aim global po

TRy nyo po ang leveraging system na business TULAD nang AIM GLOBAL PM ME How to start this business add me .www.facebook.com/aimtedericalanes

Ggawin ko ito balang arw

Thanks for everything…someday i will try one of your suggestion if i have the capital to put up a business.

nice tips,thanks a lot

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 🙂

thank u for the knowledge …it help me a lot.

Thank you so much for sharing this knwledge!

if i plan to be a distributor of these items mentioned above, where i can find it? what company i should go first? thank you

thank you for this. additional learning for fresh enter in entrepreneurship

do u know how much it will cost to get your sarisari store licensed?

i like betong..congratiolation..

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8 Doable Sari-Sari Store Tips to Maximize Your Revenue & Profit

By  Yesh Quijano     July 9, 2024       min read

Running a sari-sari store business is common in the Philippines, but making it profitable takes more than just putting products on shelves.

As a sari-sari store owner, do you know how to meet your community's needs and keep them coming back? Let's dive in!

Table of Contents

8 Tips To Have A Successful Sari-Sari Store Business

Running a sari-sari store can be both rewarding and challenging . Here are some practical tips to help you increase your profits and ensure steady growth:

Make sure your inventory matches the demand  (Dapat swak ang paninda sa hanap ng customer)

Understanding what your customers need is important. Selling basic or essential products that are in high demand ensures fast turnover.

Observe which items sell out quickly and keep those well-stocked. You'll save money and space by avoiding products that don't sell fast.

Ask your regular customers for their preferences and adapt your inventory accordingly. This will help you stay relevant and meet their needs effectively.

Pro Tip: Take note of products that customers are looking for but are not in stock, then buy those in your next grocery run. You can also offer alternative brands to what they are looking for.

Keep track of your stock levels  (Bantayan ang stocks para 'di ma-sold out)

Keeping an accurate record of your supply is necessary for avoiding shortages or overstocking. Use a simple notebook or a spreadsheet to track your store's inventory.

Update it daily to show what goes in and out. Proper stock management helps you avoid losing sales due to out-of-stock items and minimizes waste from expired goods.

Integrate technology if possible, like inventory management software, to automate tracking and gain detailed insights.

Invest in a marketing strategy.  (I-promote and tindahan gamit ang Facebook)

Even a small corner store will benefit from marketing.

Simple strategies, like setting up a Facebook page or setting up posters to promote new items or special deals can make a big difference. 

Word-of-mouth is also powerful, so provide exceptional service to encourage people to spread the word.

Separate personal and business expenses

It's easy to mix personal and business finances, but this muddles your understanding of your income, profits, and losses. Maintain separate records for personal and business expenses.

Open a separate bank account for your sari-sari store to better manage your cash flow. This discipline helps you see the true financial health of your business and plan more effectively.

Pro Tip: If a bank account is out of the question, using GCash and Maya to separate your personal and business cash flows should do the trick.

Maintain competitive prices  ('Wag masyadong mahalan ang presyo)

Pricing can make or break your sari-sari store. Look around and see what competitors are charging and keep your prices in line with or slightly below competition.

You can also offer discounts strategically on popular items to drive traffic to your store.

However, avoid reducing prices too much to the point of losing profit. This is a very common mistake, especially for inexperienced store owners.

A price war is a race to the bottom of the barrel. Everybody loses.

Win at customer service (Bawal masungit!)

Good customer service creates loyal customers who will return and recommend your store to others. Greet your patrons with a smile and be helpful.

Assist them in finding what they need, suggest alternatives, offer personal opinion, and thank them for their purchase.  This simple yet effective approach builds a strong relationship with your customers.

Address complaints or issues promptly and politely, ensuring that they leaves satisfied.

Reward the most loyal customers.  

Loyal customers are the backbone of your business. Indeed, according to this  Forbes article , loyal customers have 67% more order value than new customers.

Show them your appreciation by offering special discounts, freebies, or loyalty cards.

A points system where customers earn rewards for repeated purchases can also keep them coming back. Small gestures can go a long way in building long-lasting relationships and increasing customer retention.

Pro Tip: Unlock perks of bonuses if a customer achieves certain milestones (e.g. 5,000 spending in a month). Perks like a credit line or special discounts go a long way to retain a  suki .

Do you have a credit line? Collect debt via text or Facebook message.  ('Wag mahiya maningil)

Allowing credit or  utang  can be a double-edged sword. It can increase revenue, but you also risk non-payment from certain members.

Here are a few things you can do:

• Get their contact details  - before you allow credit, collect information like their name, address, contact number, and Facebook account.
• Collect debt before the 15th and 30th of each month.  This ensures that repayment of store debt will be prioritized over other financial obligations.
• Only open a credit line for the most loyal customers.  And remember, a credit line is a privilege, not a right, so don't be afraid to take them away from delinquent debtors.

Boosting your sari-sari store profit doesn’t have to be complicated

Running a sari-sari store can be both rewarding and challenging. Use these eight, doable tips to make your store more successful!

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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9 keys to your sari-sari store business success.

Many smaller sari-sari store vendors establish their business to augment their family income and provide a direct supply of household necessities as among the benefits of setting up shop. No wonder many such shops have dwindling supplies, empty shelves, and discontinued the business after less than a year. Unpaid customer debts or amounts consumed by the family have been the usual culprits.

If you plan to stock food supplies bought in bulk at discount for family use, you might as well stock it at the storeroom and don’t bother setting up the sari-sari store because starting a business with such a mentality is doomed to fail. If you have a similar mindset, perhaps you need more discipline in running the business, so cash capital to replenish supplies will be available, and the store can sustain its operations.

But there are also small sari-sari stores that thrive — someone’s store in Cebu earns P2,000 a day even with only P14,000 capital money — thanks to the dedication of their owners.

The following tips are practical and should be a reminder to small business owners, not only sari-sari store operators. They are characterized as focusing on the business and practicing discipline.

Table of Contents

Treat the store as if it’s not yours

As you work for the shop owner , you will be careful with the day’s inventory, cash flow, and earnings. You’ll have to do accounting and ensure that cash on hand matches the value of items sold. If you treat it as your store, you or other family members can easily take anything to consume and use without being liable (not paying) for it.

It may be an excellent convenience for the family’s needs, but it’s a terrible model to adopt as a business. As a result, your shop supplies will eventually dwindle and be unable to get replenished because your cash flow is missing its revenue for the unpaid items you or other family members took.

Therefore, always think as if you’re working for an employer and you’re accountable for the sales revenue. That way, you’ll be motivated to get things right day after day without fail.

Start selling with the basic needs of a neighborhood

Starting your neighborhood sari-sari store , if you have small capital money, say less than P10,000, you aim to sell your goods and them fast. One reason is that unless you do market research, you don’t know precisely what people nearby buy frequently. For example, if the store is near the church, perhaps you can include candles and matches, and if in the middle of a subdivision, cellphone loading, canned milk, and laundry powder.

This approach also helps roll your capital faster and allows you to grow your business and quickly establish a customer relationship.

You can then expand your product range once you have established a trend of popular products and often-asked ones that are not yet displayed. You may also list items you don’t currently sell (see #4 on how to deal with customers on this matter) and consider them for your next round of replenishing supplies.

Take only profits of the day

With a plan to grow the business and roll part of your earnings for capital expenditure, it’s prudent to be disciplined on how you account for your day’s revenues. If, on average, your markup price is 10% of goods you sell minus expenses — transportation and labor costs over a certain period — it’s not too difficult to calculate how much your profit is on a given business day.

So if you earn P1,500 daily, you can only take 10% off P1,500 (P150) as profit and reserve P1,350 to replenish your store inventory. Taking only profits not only preserves the rest of your money to restock your inventory, you also realize how big or small, your profit is and be more motivated to improve your earnings.

It’s “Out of stock,” not “We don’t sell them”

You may be managing a “sari-sari” store, but, understandably, it’s not that literally “sari-sari”;  it cannot sell everything, from certain shampoo brands to milk varieties. But instead of saying “we don’t sell them” or implying that your store is far from a complete one-stop-shop, which creates an impression that other items this customer might look for later are unavailable, tell customers you ran out of stock.

Of course, if this item is not expected to be sold from your sari-sari store known for snacks, condiments or toiletries, such as spark plugs or USB chargers, you can tell the customer you don’t sell them, so they won’t expect they’ll be available on a future store visit. Otherwise, note if such missing items should be part of your next products to replenish your shelves.

Pack certain products in smaller quantities/portions

Some customers are used to buying smaller pieces (tingi-tingi in local dialect) instead of standard sizes — she wants P5 cooking oil instead of the P60 1-liter pack. No wonder shampoo, powdered detergent, and powdered milk packaged in sachets and tipid packs are often found in neighborhood sari-sari stores.

Some of these items can be repacked into smaller pieces so they can be sold cheaply. This includes P5 packs of soy sauce, garlic, or cooking oil. While pepper, garlic, and similar items are also sold prepacked in smaller pieces at supermarket dealers, your profit margins may become very small. A better option might be buying bulk from your wholesaler instead of the supermarket to get better deals.

Some of the items you can pack in smaller quantities.

• Cooking Oil

However, it also takes time and additional equipment (plastic containers, weighing scales, etc.) to prepare them, so ensure you have enough resources to do the job while operating the store.

Ensure sari-sari store product quality

As many of the items are fast-moving consumer goods, the shelf life may also be limited. So make it a point to review the expiry date of your products. Make sure that the first to arrive in your shop are also the first to be disposed of. To increase shelf life, store certain items in the desired environment.

• Frozen meat has to be stored at freezer temperatures of around -18C.
• Do not expose goods to direct sunlight — chips, biscuits,
• Prevent the infestation of ants on sugar and sweet snacks by using repellant chalk.
• Avoid accidentally puncturing the seal of powdered goods should you use push pins or thumbtacks to display items like powdered milk, 3-in-one coffee, or instant noodles. If you can, don’t use push pins, staples, or thumbtacks.
• Immediately discard chips that lose crispness, rotten tomatoes from the fresh ones or any other unpleasant items to a customer’s eyes (and taste).

Take note of seasonal items and upsell

Some products are sold more quickly during specific periods of the year. During the rainy season, you may stock up more on instant noodles, champorado mix, or a wider variety of choco and coffee products. Also, note that people tend to be lazy and decide to skip a visit to the market for their usual grocery shopping, so anticipating weather patterns can yield even more profits.

During fiestas, you can stock new cases of beer, soft drinks, packs of spaghetti sauce, cheese, or any other items that might run out in a household as visitor numbers swell. Remember to charge deposits for bottles to ensure they have compensated adequately once they are not returned.

For hot summers, expand your cold drinks on offer. Besides your steady supply of soft drinks, add energy drinks, ice candy, lemonade, and other cold refreshments your target customers look for.

If customers aren’t used to seeing these products on your shelf, you can promote them even when customers come to buy another item. If they purchase the usual daily two-kilo rice supply, upsell them with new varieties that are highly relevant and may even bring them more value.

No credits. Period.

Without even you mentioning it, the store’s premises should shout the slogan to discourage customers from taking goods without paying upfront. Every earned peso counts on your daily profits in such a low-margin shop.

Such a habit of allowing customers to take your product on credit will drive you out of your sari-sari store business .

You might hear rude comments from some people who are used to this habit, but for the sake of the survival of your sari-sari store business, it makes a lot of sense to discourage credit. Without capital money to buy fresh inventory, you cannot fill the empty shelves, depriving others of buying from your store and instead switching to a competitor.

Be friendly to all your customers.

It’s not purely a business relationship between the sari-sari store owner and his or her customers. There should also be a personal touch. After all, they are mostly your neighbors who patronize your business, so small talk should be fine.

Put a genuine smile on your face to express appreciation for their business, no matter if it’s just a piece of candy bought by the naughtiest boy around. A friendly attitude pays off big, uniquely when customers cannot distinguish price differences between you and your competitors.

Always be ready to serve them. Customers are typically put off if the storekeeper is away from the store and needs to shout to get her or his attention.

Being friendly does not mean you’ll fall for their whims: Pwede pautang? Walang tawad, kumare? Say thank you and ensure they get the right product quantity/volume, correct spare change, if any, and served promptly even with a crowd of customers around.

Does a sari-sari store earn profit?

The answer to the question depends on who you ask. Ideally, yes, that is why they exist and continue to serve the neighborhood. Your sari-sari store profit may be small at the beginning. But once you track your revenue growth, you’ll know which items sell fast, and which items are most profitable and focus on them by perhaps supplying more stocks or placing them on the more prominent shelf.

Meanwhile, you’ll also know which items don’t sell or have minimal markup and perhaps decide not to put them as priority merchandise. Sari-sari store margins are often thin.

Therefore, to keep the business growing, focus on products that sell faster, so no matter if the profits are minimal, the money keeps “rolling” and allocated to replenish new stocks. If fresh capital from loans is infused, then much better. But only do so if the loan interest is lower than your markup.

Otherwise, you might get caught in a 5-6 loan scheme, a vicious cycle that could shut down your business as you focus more on repaying loans and less on growing your business.

No matter the size of your sari-sari store business, there are always challenges — competing shops nearby, lack of inventory skills, neighbors who want credits, and inflation.  But the above tips should help to guide you to grow your business, despite these challenges.

• How Much Does a Sari-Sari Store Earn?
• 10 Benefits of Managing Your Own Sari-Sari Store
• Why Sari-Sari Store Business is a Bad Idea
• How to Register Your Sari-Sari Store Business
• How to Chase Sari-Sari Store Debts

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10 Steps in Starting a Sari-Sari Store Business

• 2 years ago
• Blogs , Finance , Home Living , News & Updates

Sari-sari stores are small retail outlets found in almost every neighborhood and, in some cases, on every street corner in the Philippines. If you’ve been thinking of starting a sari-sari store business at home, this guide may help get you started. Read this article for more details.

Most sari-sari stores are owned by private individuals from the store owner’s home. Commodities are displayed in front of the shop in a large screen-covered or steel-barred window. Candies, canned goods, and cigarettes are frequently displayed, whereas cooking oil, salt, and sugar are commonly stored in sacks or cans. There is also a tiny window where the customer’s requested commodity is displayed. It is a venture worth considering for a gradual introduction into entrepreneurship.

Sari-sari stores are a staple of every Filipino neighborhood. Sari-sari stores are not only a source of snacks, groceries, and home supplies for many Filipinos but it is also great meeting place for their neighbors. If you want to open your own sari-sari store, you must understand how to compete in this crowded market. This article will help you determine if a sari-sari store business is right for you and how to make money from one.

Read also: 10 Small Business Ideas You Can Get Started at Home

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

1. make a plan.

This may appear unnecessary to some, but having a clear vision for where your business should go will benefit you in the long run. Key details such as an overview of your marketing and sales strategy will keep you on track and point you in the right direction.

Don’t worry, this may appear complicated, but it isn’t. This is typically created by medium-sized to large-sized businesses when they first begin.

The majority of sari-sari store businesses have no plan at all. One of the reasons they fail is because of this. A plan is required to get your store off to a good start.

A simple business strategy for a sari-sari store could include the following items:

• A synopsis of your company’s mission (name, location, goods etc.)
• Your marketing approaches
• Some things to remember
• Ideally, you only need this to have a business direction.

2. Business capital

Sari-sari stores are typically set up in a family’s home through a tiny room with a window facing the road, usually with railings. It is critical to consider your startup capital or business fund. You can use your own funds or borrow from a local credit union or lending institution. Make sure not to borrow money with a 20% interest rate. A P10,000 startup capital may be sufficient to purchase the basic commodities.

A decent start in this business costs around P50,000, while other owners start with as little as P30,000. To be honest, a few thousand pesos in the capital can get a sari-sari store up and running with a good variety of sweets, cigarettes, and other fast-moving goods. Capital money of P70,000 to P100,000 will be reasonable enough to supply a wide variety of products and goods with ample stocks to spare for those with loftier visions and well-financed ventures.

So the most expensive part is simply stocking up on products to sell. Depending on the variety and quantity of products, this can range from 2,000 to 30,000. If you are constructing a dedicated space for your sari-sari store, the amount of capital required will skyrocket.

3. Sari-sari store business registration

You must conduct your business legally. And, like any other business, you must abide by laws and local ordinances. Fortunately, the process is not as time-consuming as the requirements for larger businesses or corporations. And, especially at the start of the year, most local government units now have One-Stop-Shop programs for processing business permits.

Here are the documents that are commonly required from you to process and submit for the easier processing of your business permit registration:

• Clearance of the Barangay
• Certificate from a Food Handler’s Seminar (if you will sell cooked food)
• Clearance from the police
• Identification Number for Tax Purposes
• Social Security Number
• Pag-IBIG Fund
• Registration of a Business Name
• Mayoral or City Office Business Permit

Take a trip to your municipal or city hall first and enquire if they have a one-stop shop service for faster business registration. If not, ask them for a list of the requirements for registering a sari-sari store business. This is because the requirements differ depending on where you live.

Finally, while Minimum Income Earners are tax-exempt, the BIR still requires tax-exempt individuals to file for TINs and annual tax returns. This is a government requirement that we must comply with.

4. Cost of building materials and labor

A tiny 16-square-meter floor area can already accommodate a spacious sari-sari store and therefore would only cost between P48,000 and P50,000 to construct, based on the P3,000 per square cost estimate factor. With a capital of P80,000 and a sari-sari-store construction cost of P48,000, P32,000 remains for merchandise capital.

Indeed, a decent space large enough for an improvised retail display area in a reasonably densely packed neighborhood can already do the job and save construction costs. However, for those who intend to stay in this business for the long haul, a good store appearance will instill confidence and trust in their target customers.

5. Location

Most sari-sari stores are located directly outside the owner’s door, right in front of their home. This allows the owner easy and convenient access to the store. While this is not entirely incorrect, other spots in the area should also be considered. The goal is to reach a wider market than your neighborhood, to attract more people. Your business’s location will usually make or break it.

Ideally, you should operate your store in densely populated areas such as:

• Neighboring busy streets
• Highways and main roads
• Transportation terminals
• Adjacent schools
• Other high-traffic areas

If none of these options are available to you, you can set up your sari-sari stores on a small street. Just make sure you’re not too close to another store. This ensures that you will have all of the customers to yourself!

6. Suppliers

It may be more convenient to purchase your goods from the grocery store at first. If you want to live longer, however, buy directly from suppliers. As you are aware, purchasing from suppliers allows you to save more money, allowing you to offer the lowest prices! Maintain good terms with your suppliers, and you may be able to obtain a credit line, discounts, and other benefits.

7. Merchandise

If you’re starting with a small budget, consider selling basic necessities first. This includes goods and products such as:

• canned goods
• condiments (e.g. salt, sugar, soy sauce, etc.)
• and the like, as well as snacks for all ages.

You can also stock up on cigarettes and liquor, but keep in mind to obtain the necessary permits. Meanwhile, if your business is close to a school, you can sell inexpensive snacks, refreshments, sweets, and school supplies. Furthermore, in this day and age when everyone has a cell phone, offering a cellphone load is a must. If it’s near a hospital, you might need to sell diapers, first-aid kits, and other items.

After all, the basic necessities you’ll sell are determined by the location of your store. However, if it is in a regular neighborhood, you can sell the common necessities that we require.

Finally, it is always best to simply ask your customers. You can begin with the items listed above, but I strongly advise also asking them personally what else they recommend.

8. Selling Price

Find out how much your product is selling for in your area and simply match it. Do not immediately enter a price competition but instead, advertise your items at a lower price.

In fact, if you have a more suitable location, you can sell it for a slightly higher price. And if you provide good service, most customers are more likely to be attracted to your store than others with grumpy salespeople.

9. Accounting in business

Monitoring your business transactions is critical to the success of any company. Even if you are not an accountant, you must have a bookkeeping system in place to record your revenue and expenses.

Traditional ledger notebooks will suffice for a sari-sari store. However, it is recommended to create a computer spreadsheet to make calculations and projections faster and easier.

10. Quality customer service

One of the most important factors in the success of your sari-sari store is to provide excellent customer service. A sari-sari store business is more than just selling; it is also about serving your customers. This is something that many business owners overlook, but you should not.

You and your sales team should always be cheerful and eager to serve your customers. Be pleasant and helpful. And get to know them on a personal level. This promotes loyalty.

Advantages & Disadvantages of a Sari-Sari Store Business

1. it’s simple to get started..

The sari-sari store is a business that can be started in a matter of days due to its low capital requirements and simple setup. It’s also a good starting point for people who want to gain business experience and, if successful, expand into a larger retail store.

2. Rent and salary savings.

You can save money on rent and salary if you run a sari-sari store out of your home or with the help of your family.

3. Improve the community’s relationship.

Being the friendly neighborhood sari-sari store means you are the go-to place for the daily necessities of the surrounding families. This allows you to form stronger bonds with your neighbors.

Disadvantages

1. there is fierce competition..

Because almost everyone can start a sari-sari store, competition is fierce. Not to mention competing with convenience stores and grocery stores. You must figure out how to keep your customers returning to your store.

2. Low sales volume, low margin.

Sari-sari stores only add a small profit margin to their prices to stay competitive because convenience is their main selling point. They also do not sell in bulk, so they need as many repeat customers as possible.

3. Poor-quality product reputation.

Sari-sari stores have a bad reputation for selling low-quality goods. This is most probably due to some owners not properly caring for their inventory by exposing it to the sun or air or allowing products to expire. This is avoidable with proper care and inventory management.

Is a Sari-Sari Store Business Suitable for Your Situation?

You should now have a better idea of whether a sari-sari store will work or not based on the above guidelines and what you researched about your customers and competitors.

• Will I have any prospective customers?
• Are there any products that my prospective customers will purchase frequently?
• Are my prospective customers unhappy with my competitors?

If you answered ‘No’ to the above questions, don’t get too worked up about opening a sari-sari store. Instead, you can apply what you’ve learned and researched so far to start another business. If you believe your sari-sari store has a chance of succeeding, it is time to start planning how your store will do. If you believe your sari-sari store has a chance to succeed, now is the time to start planning how it will do so.

Many Filipinos choose to leave their regular jobs in order to feel what it is like to be their own boss. Many of them aspire to be entrepreneurs because it allows them to receive full rewards for their efforts, set their own hours, and make critical decisions for their businesses.

So if you have a novel idea inspired by your hobbies and passions, research how to turn it into a home business. These concepts can be applied to BRIA Homes’ affordable houses and lots, as well as condominiums. Before attempting to solve the problem of how to launch a small business in the Philippines, you must carefully research and forecast a variety of elements to ensure that your business will thrive.

BRIA Homes, a leading housing developer in the Philippines, seeks to bring affordable house and lot, and condominium units closer to ordinary Filipino families. BRIA Homes find joy in completing projects in a timely manner. It employs new home-building technologies in all projects to reduce construction time while maintaining quality.

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Top 10 Sari-Sari Store Business Tips in the Philippines

If there is a retail unit that is highly identified with the Philippines, it would be the sari-sari store. They are found almost everywhere in the Philippines—neighborhood, street corners, and even in a few gated subdivisions. The sari-sari store is the personification of the Philippines’ small business industry; it is the original Filipino convenience store.

There are several reasons why Filipinos get into the sari-sari store business:

• Low start-up capital. 93% of sari-sari store owners set up shop outside their homes. They spend on doing minor renovation work to create access to storage facilities inside the house. The initial inventory for a week’s worth of goods may start for as low as Php 10,000.
• Cash business. The sari-sari store is a straight cash payment business. There are no credit or debit card payments, and checks are not accepted. It generates cash sales every day.
• Convenient. This business is perfect for a “lola” or for stay-at-home parents who watch over their children.
• Low-risk approach to retail. People who plan to get into the retail business can use the sari-sari store as a low-risk approach to gain experience.
• Accepted retail concept. It does not need to be heavily marketed and promoted because this type of store is an accepted concept in the Philippines.

A sari-sari store can be a good source of income if managed properly. On average, a sari-sari store can average a net profit margin of 20%. We’ve heard stories of families who were able to send their children to college with the earnings from a sari-sari store business.

Unfortunately, many sari-sari stores close because of poor management. When your business is located in a community where familiar names and faces make up the majority of your market, the sari-sari store becomes victim to use and abuse.

Here are top 10 valuable tips that you should use to manage a successful sari-sari store business in the Philippines.

Table of Contents

1. Register the store as a legit business

Many sari-sari stores are informal businesses. They are not registered as a formal organization, and they do not pay taxes. Thus, economists have long regarded sari-sari stores as benchmarks of the informal sector.

However, registering a sari-sari store as a formal organization is a good idea because being a legitimate business has benefits.

• Suppliers can give you low pricing.
• Suppliers can extend your credit.
• Diversifying your business can be easy because many suppliers would prefer to deal with legit businesses.
• Service providers can give you low pricing.
• Government agencies can provide support in funding, marketing, and promoting their services.

You can register your sari-sari store business with the Department of Trade and Industry or DTI.

Related:  How to Start a Small Business at Home in the Philippines

2. Respect the store as a source of income

One of the biggest problems that affect the profitability of a sari-sari store business lies to the fact that the store is established close to home.

Store owners may even actually live in the house where the sari- sari store business is located!

For instance, many family members and friends often view the sari-sari store as a refrigerator or personal stock room where they can help themselves to what they want. The poor sari-sari store proprietor, who is held back by the traditional beliefs on close family ties, allows himself to be victimized and abused over and over again.

Over time, his inventory has diminished because of pilferage and not because of sales. He has to draw from savings to keep the business going. Unmitigated, the vicious cycle continues until the store shutters for good.

The store owner should make it clear to everyone in the community that the sari-sari store is a business in which he has invested. It is a source of livelihood that should be respected.

3. No to credit!

Another problem that affects the profitability of sari-sari store business is credit. Filipinos are generous people by nature. We are not comfortable turning away family and friends who need basic commodities but cannot afford to pay at the moment.

The naïve store owner decides to compromise his cash flow by extending credit to customers, especially the regular ones. The store owner creates a “list” to note down the details of the item that was purchased on credit.

Unfortunately, stocks move fast in a sari-sari store business. If you don’t have a supplier arrangement, you have to pay cash for your stocks. By extending credit, the store owner has negated the cash-generating ability of the sari- sari store. Eventually, he draws from his pockets to pay for his stocks.

Secondly, customers with credit terms hardly pay on time. They simply patronize another sari-sari store until they have the money to pay back the owner of the first store. In some cases, credit ends up as unearned revenues .

Do not extend credit when you run a sari-sari store business! Doing so is not part of customer service! I’ve interviewed some store owners saying that a little amount is not a problem. However in business, a little can go a long way. When the information that you allow credit terms gets out, the flood gates will open.

Family and friends who expect credit because of close ties abuse the relationship. They don’t respect you any more than they respect your business. If they insist, go back to tip #2.

4. Increase added value

Offer your customers various cost-saving options. The first thing you need to do is to list down the items with the highest profit margins and use these to sell your slow moving items.

For example, if instant coffee has the highest profit margin and evaporated milk is the slowest moving item, package these items together every payday weekend.

You can also do a customer loyalty program. For example, for every Php 1,000 total purchase, a customer can get free cell phone load worth Php 30. This represents only a 3% discount, but for the customer it creates great value and encourages increased spending.

5. Maintain records

If you want to know if your business is making money, you should always maintain proper records. You don’t have to be an accountant to track your business expenses and income. Take time to update records daily.

Maintaining records also helps you organize and manage the business properly. If the city government and the tax collection agent pay you a visit, you should have your records available immediately.

6. Buy from wholesalers

Many sari-sari store owners buy their stocks from retailers. Thus, their profitability becomes limited because not only retailers add on their margins to the merchandise but you also end up paying for the packaging costs.

A good option is to buy from wholesalers who are authorized as distributors by the manufacturers. The markup is low, and you can use your own packaging.

If your volume of purchases is not enough to be accommodated by a wholesaler, opt for generic over branded items from the retailers and use your own packaging when selling in your store.

7. Offer variety

The standard inventory of items sold in a sari-sari store is as follows:

• Canned goods
• Instant coffee
• Powdered drinks
• Instant sauces
• Cooking oil
• Instant noodles

Experiment with various items that are not commonly found in a typical sari-sari store. Here are a few ideas:

• Mosquito repellant during summer
• School items by May
• Handy umbrellas during rainy season
• Diapers for infants and adults

Survey the competition located within 5 kilometers from your store. Do an inventory of what they have and offer in your store what they don’t have.

8. Be different

You don’t have to follow the traditional business model of a sari-sari store. Develop ideas that will make you different and stand out from the rest. Here are a few suggestions:

• Set up a small area for Internet use.
• Open up an eatery beside the store.
• Offer laundry services.
• Offer newspapers and magazines.

In accordance to tip #1, a registered business acquires many advantages. You can avail of a lease-to-own arrangement plan from a computer retailer for your PC in case you want to have a small area for Internet use. The payment can be generated internally from sales.

If you have the capital and if your space merits it, you may even put up a lotto station!

9. Observe quality control

If you want to maintain customer loyalty, always make sure that the products you sell are of good quality. Here are some tips:

• Never expose instant noodles and chips under direct sunlight to preserve crispiness.
• Keep rice stored in air-tight containers and elevated from the ground.
• Line the floor area bordering your shelving tiers with cockroach chalk.
• Check the quality of your vegetables and discard spoiled ones.
• Clean bottled drinks thoroughly before putting them inside the refrigerator.
• Avoid using thumb tacks or staplers to display items in sachet form.
• Practice first in first out or FIFO method.
• Keep the store clean at all times. Get rid of food debris and garbage from the vicinity of the store.

10. Never run out of stock!

One of the worst things that can happen in a retail business is to run out of stock. In retail, running out of stock is a mortal sin; it is unforgivable. Customers will remember you for it.

Therefore, performing a daily inventory of your store items is important. Keep track of fast-moving items and make sure that these are replenished when you are at 40% of your par stock levels.

Sari-Sari Store: Our jeepney but without its mechanical flaws!

A sari-sari store can become a profitable business but only if you manage it as a professionally run retail establishment.

Further reading:  How to Start a Sari-Sari Store with Small Capital in the Philippines

It has the standard features of a convenience store business model with the absence of credit extension facilities as the biggest differentiator. The possibilities of taking the humble sari-sari store to another level are limited only by your creativity and imagination.

An innovative concept was the “Rolling Store” model introduced by former President Joseph E. Estrada in 1999. Inaugurated as “ERAP stores,” these stores were initially designed for the purpose of selling rice. Since then, entrepreneurs have adapted this concept for the sari-sari store and food retail.

Despite the arrival of foreign convenience store franchises, the sari- sari store will continue to thrive because it is part of our cultural DNA. The sari-sari store is like our jeepney but without its mechanical flaws!

Roel Manarang is a seasoned entrepreneur who helps businesses succeed through design and digital marketing. With over 10 years of experience, he has assisted 170+ global companies. Roel is the founder of Workroom , a digital marketing company, and Tycoon Philippines , an acclaimed business and finance blog. Find him on LinkedIn .

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Characteristics of Successful Franchisee Business

How to start and operate a sari-sari store successfully.

Do you want to earn income but don’t have time to get employed? Owning a sari-sari store can be the option for you. There’s no need to leave your kids as you can start the business right in your home.

Consider some strategies and tips that can help you start and succeed in your venture.

While it is considerable to start your sari-sari store at your home, but it would be much better to consider other strategic locations such as near to schools, town plazas, busy streets and areas with good foot traffic.

• Business capital

Your starting capital or business fund is very important to consider. You can use your own money or borrow from local credit cooperative or lending institutions. Make sure not to borrow money that charges 20% interest.  A startup capital of P10,000 can be sufficient to buy the basic commodities.

• Business registration

For your business to operate legally, make sure to secure all the permits and requirements mandated by the local ordinances. For easy processing of your business permit you’ll need cedula, barangay clearance, police clearance, TIN, SSS number, business name registration, Food Handler’s Seminar Certificate.

• Target customers

To attract more customers, make sure to provide convenience more than the products that you sell. Providing good customer service will make them come back or patronize your store.

• Merchandise

Sell merchandise that are top sellers on your location. If you’re on a residential area, most likely you’ll sell products needed for everyday use. Sell products viable to your location and ask your customers for items they want you to sell.

To get the lower costs of items that you can sell, the best thing to do is to establish good relationship with suppliers. You can save a lot if you’ll buy merchandise directly from suppliers rather than buying them in supermarkets.

• Selling price

It’s not advisable to sell your merchandise at cheaper price. Instead, match your selling price with other stores in your area.

• Business accounting

Monitor your business transaction so that you’ll have idea about your expenses and revenue.

It’s important to separate your personal money from your business’ income. As much as possible, you should save a fraction of the profits to sustain the growth of your business.

• Quality customer service

Providing quality customer service is one of the important factor for your sari-sari store to succeed.

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How to Start a Sari-Sari Store Even with a Small Capital

More Filipinos prefer buying basic commodities from the neighborhood sari-sari store than the grocery store at the mall because of a number of reasons, including the ready availability of various goods you can buy at just a few pieces and the mere fact that you don’t really have to take much effort to buy at the sari-sari store than go all the way to the mall.

This is the reason why a sari-sari store is a good type of business to start in the Philippines for just about anyone, whether for OFW or not.

First, learn the ropes. You just can’t start a business without knowing the basics of running one. Of course, you must also know basic computing but this can be easily assisted by a trusty calculator; so make sure to buy one.

To build a sari-sari store, you need to have a place that is easily accessible to customers. Most sari-sari stores are built in with the entrepreneur’s home. You can simply knock off a wall from your house to have a storefront or build an extension at the side of the house.

Next, make sure there is someone who can man the store throughout the day – you or a trusted family member. As the business grows, you can hire a few more hands to help you out.

Plan what goods you want to sell in your store. You might want to start with non-perishable goods, especially when you are first starting out and the neighbors are yet to learn that your store existed in the neighborhood.

Find a supplier. This could be merchandise agents from various brands or a store selling goods at discounted prices. Compare the prices they offer for best profit.

The prices of the commodities in your store should be enough to give you a decent profit without being too high that you just might turn your customers away. It is a good idea to be updated with the prices of goods being sold in the market, in the grocery stores, and in the other sari-sari stores in the area.

Observe the trends and change the products you sell accordingly. If there are items that do not sell well with your customers, stop buying those and find other interesting alternatives. It might be a bit difficult at first but you’ll get the hang of it. Soon, you will be able to predict which items will be a hit with your customers and which ones are likely to stay on the shelf for months.

Even if you start off with a small capital, you can improve your business with hard work and determination. As much as possible, do not use the money you earn from the store to buy things you don’t need (such as gadgets) or even to fund the household budget as you might end up with no funds to buy goods to sell.

Roll the profit/capital. Soon, you will find yourself with much larger profit which you could now easily use for other needs in the home.

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Israeli Bulldozers Flatten Mile After Mile in the West Bank

Videos from Tulkarm and Jenin show bulldozers destroying infrastructure and businesses, as well as soldiers impeding local emergency responders.

By Erika Solomon Lauren Leatherby and Aric Toler

Source: Reuters

Over two weeks, Palestinians watched as Israeli military bulldozers tore up mile after mile of their streets and alleys, sewage seeping into the dusty ruts left behind.

The people of Tulkarm and Jenin, the two West Bank towns that were the focus of Israel’s latest military raids, said they had never before experienced such a scale of destruction.

Residents pointed to one video that shows an Israeli armored bulldozer flattening a decorative roundabout and nearby vegetation.

Visual evidence analyzed by The New York Times supports accounts from residents about the damage from Israel’s latest raids. Videos filmed in Tulkarm and Jenin show bulldozers destroying infrastructure and businesses, and soldiers impeding local emergency responders.

“We watched their bulldozers tear up streets, demolish businesses, pharmacies, schools. They even bulldozed the town soccer field, and a tree in the middle of a road,” said Kamal Abu al-Rub, the governor of Jenin, a governorate in the northern West Bank. “What was the point of all of this?”

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Palestinians killed in Israeli airstrikes

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Perm Krai, Russia

The capital city of Perm krai: Perm .

Perm Krai - Overview

Perm Krai is a federal subject of Russia located in the east of the European part of the country, in the Volga Federal District. Perm is the capital city of the region.

The population of Perm Krai is about 2,557,000 (2022), the area - 160,236 sq. km.

Perm krai flag

Perm krai coat of arms.

Perm krai map, Russia

Perm krai latest news and posts from our blog:.

1 August, 2018 / Berezniki - the City of Sinkholes .

12 October, 2017 / Northern Urals: Manpupuner Plateau and Dyatlov Pass .

3 March, 2016 / Winter in Perm city - the view from above .

18 January, 2016 / Holy Cross Cathedral on the White Mountain in the Perm region .

3 September, 2015 / The giant sinkhole near Solikamsk tripled .

More posts..

History of Perm Krai

For the first time the word “perm” was mentioned in “The Tale of Past Years”, a fundamental source in the interpretation of the history of the Eastern Slavs created in the early 12th century. Perm were one of the peoples who paid tribute to the Kievan Rus. They were found by the first Russian expeditions to the Urals, to the north of the Kama River basin. Later, in Russian chronicles, this territory was called Old Perm or Perm Vychegodskaya.

Unlike Perm Vychegodskaya, the land along the upper reaches of the Kama River became known as the Great Perm. This name is often found in the written monuments of the 14th century. In the 14th - 17th centuries, the Great Perm included extensive lands along the Kama from its origins in the west to the Ural mountain range in the east, and from the upper reaches of the Pechora River in the north to the Chusovaya River in the south.

Novgorod merchants were the first ones who got interested in the Great Perm (furs and tributes). In the 14th - the first half of the 15th centuries, the Grand Duchy of Moscow began to encroach on the lands in the upper Kama. In the early 15th century, the first Russian settlements were founded in the Great Perm.

More Historical Facts…

In the second half of the 15th century, after the Novgorod Republic ceased to exist, the area became part of the united Russian state. Russia significantly expanded its borders to the east and gained access to new natural resources.

In the 17th century, the town of Sol Kamskaya (Solikamsk) became an important center of military, economic and cultural assimilation of the Middle Urals in the north. In the south-east, the newly constructed town of Kungur played the same role. In the first quarter of the 18th century, about 46,000 people lived on the territory of Great Perm, about 65% of them were Russians.

Until 1727, the Middle Urals was part of Siberian gubernia with the center in Tobolsk, then Perm was part of Kazan gubernia, and, from 1781, by order of Catherine II, the Perm region ruled by a governor-general was formed.

It remained the main mining area of the Russian Empire until the end of the 19th century. There were more than 110 mining plants producing cast iron, iron, steel. For a long time, it was the main provider of copper. Salt production was also developed. In the east of the Urals large deposits of platinum were discovered. By the end of the 19th century, gold mining grew twice.

The 20th century was marked by intense growth of the local industry: engineering structure became more complex and rich. During the Second World War, more than 120 plants were evacuated in the Western Urals. Such branches of industry as chemical, non-ferrous metallurgy, oil-processing developed intensely; oil deposits prospecting began; a number of pulp and paper mills was concentrated in the region; new towns grew on the basis of new industries.

In 1938, Perm Oblast was formed. In 1940-1957, it was called Molotov Oblast. In Soviet times, the Komi-Perm Autonomous District was part of Perm oblast. In 1993, with the adoption of the Constitution of Russia, it became an independent subject of the Russian Federation.

In 2003, a referendum was held in which the residents of Perm Oblast and the Komi-Perm Autonomous District supported the unification of the two regions into one. In 2005, these two administrative regions ceased to exist and the united Perm Krai was formed.

Beautiful nature of Perm Krai

Chamomile field in Perm Krai

Author: Igor V. Kuznetsov

Perm Krai nature

Author: Vasiliy Mitryushin

Perm Krai scenery

Author: Sergey Timofeev

Perm Krai - Features

The territory of Perm Krai is located in the basin of the Kama River, which provides access to 5 seas (the Caspian, Azov, Black, Baltic, and White). The length of Perm krai from north to south is 645 km, form west to east - 417.5 km.

The climate is temperate continental. Winters are long and snowy. The average temperature in January is minus 18.5 degrees Celsius in the north-east and minus 15 degrees Celsius in the south-west, in July - plus 18.6 degrees Celsius.

The largest cities and towns are Perm (1,043,000), Berezniky (134,700), Solikamsk (91,000), Chaikovsky (81,300), Kungur (63,600), Lys’va (58,800), Krasnokamsk (51,000), Chusovoy (42,700). The national composition according to the 2010 Census: Russians (87.1%), Tatars (4.6%), Komi-Permians (3.2%), Bashkirs (1.3%), Udmurts (0.8%).

Perm Krai is rich in various natural resources: oil, natural gas, coal, mineral salts, gold, diamonds, bog iron ore, peat, limestone, precious and decorative stones, construction materials. One of the largest deposits of potassium salts in the world - Verkhnekamskoye - is located here. It occupies about 1,800 sq. km., the thickness of salt-bearing layers reaches 514 m. Forests, mostly coniferous, cover about 70% of the territory.

This region is one of the most economically developed regions in Russia. The basis of the local economy is highly developed industry. The main branches are as follows: oil, chemical and oil chemical, ferrous and non-ferrous metallurgy, wood processing. All potassium fertilizers in Russia are produced here.

Attractions of Perm Krai

The most famous museum in Perm Krai is the Perm Art Gallery that has the world-famous collection of Perm wooden sculpture and one of the richest in Russia collections of masterpieces of Russian icon painting. The museum of local lore in Perm has a number of interesting exhibits telling about the nature of the Kama region, its rich historical past from prehistoric times to the present day.

Not far from Perm, on the high bank of the Kama River, you can find “Khokhlovka” - an architectural and ethnographic museum covering an area of 42 hectares. The museum has unique wooden buildings of the 17th-19th centuries. Every summer, various folk festivals are held in the territory of this open-air museum.

In the south-eastern part of the region, in the town of Kungur, there is a unique natural monument of nationwide importance - Kungur Ice Cave. This is the only cave in Russia adapted for excursions. The old town of Kungur, founded in 1663, is a historical town with about 70 monuments of architecture.

Solikamsk is one of the oldest towns in the Urals. There is a unique museum of salt here. The town’s architecture reflects the techniques of Moscow architecture of the mid-17th century and the local tradition dating back to pagan times.

There is a number of interesting places along the Chusovaya River connected with many historical events, well-known figures of Russian history (Ermak, Stroganov, Demidov, Emelyan Pugachev). On its way the river crosses several mountain ranges, therefore, on its banks there are many picturesque rocks.

There are several architectural monuments in the towns of Osa, Usolye. Belogorsky Monastery and Gubaha Ski Resort are also worth mentioning.

Perm krai of Russia photos

Pictures of perm krai.

Winter in Perm Krai

Author: Boris Busorgin

Village in Perm Krai

Paved road in Perm Krai

Perm Krai views

Wooden church in the Perm region

Author: Nadezda Shklyaeva

Church in Perm Krai

Village in the Perm region

Author: Sergey Bulanov

Churches in Perm Krai

Cathedral in Perm Krai

Orthodox church in the Perm region

Author: Andrey Omelchenko

Winter in Belogorsky Monastery in Perm Krai

Author: Craciun Alexandru

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Postcards from Gulag

Photographs from the remnants of the gulag archipelago, watchtower, perm-36, perm krai.

Perm-36 is allegedly the only Gulag camp that has been turned into a museum. While this is not strictly true (there are other former camps that have been partly preserved) and Perm-36 is heavily reconstructed, the museum has conserved an important part of the Soviet camp system, especially from its latter era after the death of Stalin. Perm-36 camp operated from the 1940s until the last days of the Soviet Union, and it was meant mainly for the political prisoners and dissidents. Among the dense forests of Russia near the Ural mountains stands a solitary watchtower of the former camp. Behind it, inside the zona , one finds relics of the barracks, but somehow the tower itself, a symbol as poignant as barbed wire, communicates the utter isolation of Gulag victims.

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