The sari-sari store is one of the most well-known businesses in the Philippines. It is found in practically every neighborhood and usually operates from the front of the owner’s residence. It sells basic household items such as canned goods, chips, sachet toiletries, instant noodles, 3-in-1 coffee, condiments, and cleaning supplies in small quantities (referred to as tingi in Tagalog). It’s easy accessibility and tingi selling system make it popular among middle- and low-income consumers, who cannot afford to buy commodities in bulk.
The popularity of the sari-sari store has taught in many people the belief that it is easy to establish and operate one. A proprietor simply has to set up a stall in front of his house, fill it up with grocery products, and the shop will bring in huge profits immediately. Unfortunately, this is not always the case―many sari-sari stores close just months after their opening.
Some stores fail to identify the items that sell well in their location. As a result, they are unable to provide customers the things that they need. Customers, in turn, regard these stores as unreliable and buy somewhere else. The loss of customers reduces the stores’ profits to the point that these will certainly fold up.
Other shops overprice their goods. This practice separates customers and drives them to look for stores that offer more reasonable prices. They may even report improper e establishments to the authorities. Overpricing complaints can lead to the cancelation of permits and licenses, business closure, fines, and imprisonment.
How to Stock the Right Products for Your Sari-Sari Store
Selling the correct merchandise is one way of ensuring the success of your sari-sari store. With the right items, you will be able to supply your customers with the things they need, whenever they need these. They will therefore consider your store as dependable and will patronize it. Strong customer support translates to more earnings and rapid commercial growth.
Below are ways to stock the right products for your sari-sari store:
Analyze the Location of Your Shop
Determine the establishments that are close to your outlet. If your store is located near or within a subdivision, then you definitely should peddle household goods. If you can afford to do so, you can also try selling rice. Customers will surely gather at your shop because they are aware that you have what they need to properly run their homes.
If your outlet is near a school, then it should offer snacks, school supplies, and prepaid cellphone load. Snacks serve as an affordable baon, while having school supplies at hand. It allows students to complete their projects without having to go to the mall to buy materials. Since most students now own mobile phones, selling them prepaid load will increase your income.
Sell Seasonal Items If Possible
Some products are in demand during certain times of the year. Selling these goods can thus make your store stand out from its competitors. The summer season in the Philippines can be extremely hot―help your customers beat the heat by selling them soft drinks, juices, ice cream, ice drops, and ice candies. During the enrollment period, vend school supplies like pencils, ball pens, notebooks, and pad paper.
In the rainy season, people are looking for items that will help them prepare for storms. Address this demand by selling canned goods, instant noodles, bottled water, batteries, matches, candles, mosquito coils, and mosquito repellent lotion. Christmas and fiesta time call for costly meals and drinks. Capitalize on these occasions by offering beer, wine, and ready-to-cook meats like tocino, longganisa, bacon, and ham (just see to it that you have the necessary permits to sell liquor).
How to Set the Right Prices for Your Sari-Sari Store’s Goods
Proper pricing is another way to make your sari-sari store successful. You earn considerable profits without taking advantage of your customers or violating laws and regulations. You thus avoid penalties and lawsuits that can secure your business. Your shop will not only grow; you will also gain a reputation for being a trustworthy entrepreneur.
Below are ways to come up with the right prices for your sari-sari store’s products:
Identify How Much Your Competitors Charge for Their Items
When your outlet is still starting, it can be tempting to overprice your merchandise to obtain quick profits. However, you must remember that your customers were not born yesterday. They likewise buy from other stores and are hence familiar with the costs of the commodities that you are selling. Once they find out that your products’ rates are too high, they will reject your shop and even file complaints against you.
A better pricing strategy would be to find out your competitors’ goods and prices. Buy your noodles in bulk from a wholesaler so that you can afford to impose a lower markup rate. This approach makes your store profitable without you resorting to overpricing.
Premium pricing is a strategy that involves selling better-quality items at higher prices. Once your customers see that your products are of higher quality than those offered by your competitors, they will readily pay the extra cost. Your customers will get the impression that since your goods are of better quality, they will generate added value and therefore deserve higher prices. For example, buy delicious and healthy snacks and sell them at an affordable price. You can also do free taste so that your customers can appreciate it more.
Under the economy-based pricing model, goods are sold to large numbers of customers at low prices. Since many people buy the shop owner’s items on a regular basis, he or she still manages to make a profit despite the low cost of his or her products.
This pricing model is ideal for your outlet if it is located in a well-populated area. Take advantage of the high volume of people going to your store by selling your merchandise at prices lower than those offered by your competitors. Seeing that your goods’ prices are low, customers will frequently buy from your shop, resulting in even more sales. But make sure that your revenues are enough to cover your operational expenses.
The value-based pricing strategy prices commodities based on how much people are willing to pay for these. If customers consider an item as valuable and will gladly buy it for a high cost, then the seller will earn more.
You should consider adopting this strategy when vending seasonal items. When there is a high demand for a particular product, people will readily purchase it for a bigger price. During Christmas, sell ham, pasta, liquor, and soft drinks at prices higher than those of your competitors. However, avoid overpricing your goods, as doing so will make your customers buy from another store.
Shop from the Supplier
As much as possible, purchase your commodities directly from the supplier. They do not include transportation and repackaging expenses when pricing their goods. Consequently, they can charge lower rates for their products. Buying from them enables you to put a higher markup on your items while keeping costs competitive.
Want to know other pricing tips? Read How to Manage and Maximize Your Sari-Sari Store’s Profits
Focus on the Customer
Regardless of its small size, a sari-sari store is still a business. Just like any other business, you should run it in such a manner that it meets your customers’ needs and it earns their trust. Achieving these objectives will ensure that your shop will thrive in the years to come.
To guarantee the freshness of your goods, regardless of the season, invest in Condura Negosyo Pro refrigerators, freezers, and chillers. These properly cool large amounts of food and beverages without consuming large amounts of power. A fresh inventory and low energy expenses mean more profits that can be used to expand your outlet.
Condura provides various refrigerators, freezers, and beverage coolers for households and businesses. To know more about our products, call us at (02) 8863-5555 or 1800-10-888-8888 (toll-free number for PLDT subscribers) or click here.