Are you ready to begin your sari-sari store business? Many Filipinos want to try putting up a sari-sari store, as it is one of the businesses that always stand the test of time — despite any economic downturn, calamity, or national challenge. However, many are afraid to begin because they feel like they don’t have the necessary information that will allow them to feel confident in running a successful sari-sari store. Where should they put up their business? What type of negosyo refrigerator should they get when there are many refrigerators in the Philippines? What should they sell and how should they price their goods?
There’s no more need to worry, as we’ll give you the four steps to be able to run a successful sari-sari store business!
Step 1: Surveying the area
The location is a vital aspect when putting up a sari-sari store business. Most store owners put up a sari-sari store near or adjacent to their homes, as this is most convenient. However, also consider if the location is right in terms of the number of potential customers that you may have. Will there be enough people passing by? Is the place in a safe area of the community? Will your sign be seen easily? Will you need to pay rent? How many competitors do you have in your immediate vicinity?
All these questions need to be answered, as location decisions have a huge impact on revenue. You can also generate more questions for yourself so that you can be more thorough when deciding if a location is right for you. Questions can be placed in four categories.
- Customers – Generate questions regarding the number of possible customers, their demographics, and their spending habits.
- Staff – Will you need to hire additional help? Where will they be from? How much will you pay them?
- Other logistical concerns – Check if the area is safe, has access to major roads, if it is prone to floods or other natural disasters, and if there are sufficient facilities in and around the area.
- Cost – Will you need to pay rent? How much?
Step 2: Knowing the basic needs of the community
Before being able to sell the basic needs of the neighborhood, sufficient market research is required. As they say, knowledge is power, and before you can proceed to sell anything, you need to know and understand your target market. This way, you can know not only about your customers but also know of the brands that they already trust.
Aside from being able to provide what they need, you will also be able to stay more focused. When running a sari-sari store, you may become tempted to sell as wide a range of products as possible, but getting to know your neighborhood and target market will let you stick only to selling the products that the community really would want to buy.
The term “market research” may seem daunting, but you don’t need to conduct surveys or formal studies to know more about your community. If you already have a location, just take a quick tour of the neighborhood and its surrounding barangays. Take a look at the stores that are already in the area. Who do they cater to? Which products sell more? You can also go around and talk to some members of the community so you will gain a better idea regarding what you can sell.
You can also use existing research. Check online regarding what products most sari-sari stores sell. Research on the goods that are always needed in households. You can also try to reach out to online groups and forums to be able to talk with other small retailers.
Step 3: Pricing Correctly
Though a lot of Filipinos want to get into the sari-sari store business, not everyone is ready to take the plunge, as some are daunted by the idea of pricing. However, this can be relatively easy since most products already have a suggested retail price, which many sari-sari stores follow.
You can veer away from the SRP, of course, and determine your own mark-up, or tubo. It is always a good idea to check your competitors’ prices to determine if you have a good mark-up percentage. If some set a lower mark-up, then you should consider setting similar prices at first, just to set competitive pricing. You can set your mark-up at a higher percentage when you gain more customers and have established yourself as a seller.
When you’re only starting, however, you can set prices a little lower than the competition, just to attract initial customers.
If your store is close to convenience stores, you should note that they usually set higher prices because of many factors, including being open 24/7, having air conditioning, and hiring security guards. This means that if your sari-sari is near a convenience store, your prices should be set a lot lower.
Also, a good thing to take note of is that you should find manufacturers who can sell you wholesale items at a lower price. The lower your wholesale costs, the more freedom you have in adjusting your suggested retail price. You should also always check if the item already has an SRP indicated on the packaging.
Step 4: Finding the best suppliers
Finding the best suppliers will lead to reduced expenses and an increase in profit. If you can find quality goods that sell for a low price, then that means that there will be better chances for you to create more revenue. Also, keep your eyes peeled for wholesale items that you can resell.
However, finding the best suppliers doesn’t only pertain to the items that you will sell. You also need to find the best suppliers for all your materials and other needs. One of the important things is to find a good supplier for your appliances, as you need to buy those that will not lead to a hefty monthly utility bill, or cause you headaches due to repair costs.
As you begin to sell frozen goods, you should also have the best refrigerator and freezer for your negosyo. A Condura refrigerator is your best choice as Condura not only offers top-of-the-line products, but also service with malasakit. What better way to run a very Filipino business than to partner with a company that keeps the Filipino first, and does so with excellence and passion?
Click here to view our products, so that you can be on the way to starting your dream sari-sari store business!