Sari-sari stores are a staple in Filipino culture. It’s a business venture that’s easy to manage and doesn’t need a large capital to start from, which makes it a viable source of income for housewives and homeowners alike.
While most Filipinos would start their sari-sari store business by buying things in bulk and just pop a store outside their doorsteps or in front of their houses, there are things and procedures that you need to be aware of and should follow if you want your business to be successful.
Condura refrigerator has been a trusted partner brand of sari-sari store owners for decades now. The brand has not only been providing negosyo-friendly appliances for sari-sari store owners, but it has also been continuously helping and educating business owners on their negosyo journey– from naming your business, securing permits for your store, and finding the correct suppliers.
Some essential factors that a sari-sari store owner should take into consideration include:
Conduct market research to validate your business idea. Check the demand for the product or service that you plan to provide. If you’re planning to start your business within your area, you may ask your neighbors for added insights.
- Name Your Business
Typically, sari-sari stores in the Philippines would just consist of the owner’s name + sari-sari store. You might want to be more creative and unique, so your store gives that certain recall to people.
- Register Your Business
It’s essential that your sari-sari store is registered with the Department of Trade and Industry. Among the perks of being a registered sari-sari store is that you can negotiate better prices and selling terms with your suppliers.
The majority of sari-sari stores are registered as a sole proprietorship, but some are registered as a partnership, especially if it involves two or more owners.
Most local governments have one-stop-shop programs that cater to small business owners, wherein they help you secure business permits and other requirements for you to operate. Just always make sure you have copies of the necessary documents needed for the registration process.
Once you register your business with DTI, your certification will be good for 5 years.
- Pick a Location
Before you decide to place your sari-sari store in front of your house, it’s important to conduct a bit of research first. Are there other sari-sari stores within a 5-kilometer radius? Is my place accessible to people that need to buy essentials? If your place isn’t a marketable location, then it’s best to find a location where there would always be people.
Aim to target a larger market than your neighborhood and scout locations that are usually filled with people like town plazas, schools, public transport terminals, and similar areas with foot traffic.
- Secure Your Business Capital
Another major factor for your sari-sari store is your starting capital, but how much capital would you need? P10, 000 to P15, 000 is an ideal budget to start your sari-sari store business.
Using your savings is a great way to start a business compared to borrowing money or loaning from a bank. If you must borrow funds, make sure to do research and check the bank or credit cooperative that offers the lowest rates for business loans.
- Prepare Your Merchandise
Necessities like food products and toiletries are usually what sell most when the sari-sari store is in a residential area. You can also sell drinks, liquors, and processed food, but you must have the right appliance to store such products, so they are stored and chilled or frozen well.
A good refrigerator is an investment for sari-sari store owners and Condura recognizes that through their negosyo line. The brand offers a variety of refrigerators that’s perfectly suited for your business needs. For sari-sari store owners, in particular, there’s the negosyo refrigerator line, which is designed for home and business use since most sari-sari stores are located at their homes.
Just remember that if you plan to sell liquor and cigarettes, make sure you get permits to sell them.
- Plan Your Pricing
Always research the pricing of competitors and you can do your pricing from there. Base your prices on the suggested retail price of each product. Do not overprice products just because you have a more convenient store location, don’t underprice as well to sell out products.
Read more: Stocking and Pricing Tips for Your Sari-Sari Store
- Create a Management System
Have a system for how you manage your store. Keep a log of business transactions so you can track your revenue and expense flow. Always ask for receipts from your suppliers to keep your business registration files in one folder.
Using a spreadsheet file to log such details can help you with the inventory of your products. Having a business bank account will also help you with cash management and profit flow.
Assess your product list at least once a month to know what you need to sell less of and more of. Listen to your customers. Do they always look for a product that your store doesn’t carry? Maybe you should start selling that product now.
- Promote Your Business
Let the people know about your business! Promote your products in-store and online. You may start by creating a social media page and invite your friends to like and share it. You may also apply your business in local delivery service apps to let your customers avail themselves of your products online.
A few additional tips to keep in mind:
Always maintain cleanliness within your store to attract customers. Keep appliances like your Condura refrigerator or freezer in tip-top shape so it can keep the products you sell fresh.
Never impose a credit system in your sari-sari store. Never treat your sari-sari store as an extension of your house and separate the things that you sell from your home essentials.
Condura provides better home solutions for the Filipino family toward a richer and more successful home life, because Condura, being a Filipino brand, knows the Filipinos’ unique needs well. Check our Ideal Refrigerator Finder and buy the best refrigerator for your needs in the Philippine market!