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May 16 2006

Ideal Capital to Set-up a Grocery Store

Posted by: Leo in News, Tips & Articles 2,299 Views

Question:

I am planning to put up a mini-grocery store by June. I just want to know if my budget of P350-400K will be enough as start-up to purchase most common grocery items?

Answer:

The amount will depend on how big is your store area and how much variety you plan to carry. If you will be buying by the case, the average prices is around P500 for light items and about P1000 for the more expensive ones. Given your budget, you can have 300-400 types of items which I think will give a wide enough variety for your customers to choose from.

Take into consideration the type of customers you will be serving so limit your variety particularly the sizes to their needs and what they can afford. Eg. if you are into the bigger families with bigger income, they may go for the bulk or big packs, but if the neighborhood is low
income, you will have to go for the sachet and other small sizes.

If you can’t get directly from the manufacturer, get in touch with distributors who can deliver the goods to you and they may also offer discounts or credit terms. Your alternative would be wholesalers. Try checking out Suy Sing Commercial (www.suysing.com - though the site seems to have disappeared at the moment), they sometimes offer cheaper prices than the manufacturers and also delivers for a minimum amount (25k?), the only drawback is that you have to pay in cash.

One of the top products you can sell are cellphone cards and eload service.

Keep your overhead low as these will kill the business if you don’t watch your cashflow.

Get a good accountant who keeps track of the government laws and regulations, both BIR and City government, as this will affect your tax filing and payments. If you miss out on one, you have to pay the penalties. Keep your records straight. This will save you a lot of headaches in the long run.

Good luck on your business.

The Manager
Purity Supermarket
www.purity.ph


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3 Responses to “Ideal Capital to Set-up a Grocery Store”

  1. 3
    Leo Says:
    June 25th, 2008 at 12:10 pm

    @mai, one of the best source is buy&sell magazine, you can find a lot of suppliers offering different products on a wholesale basis.

  2. 2
    mai Says:
    June 24th, 2008 at 2:42 pm

    hello! i just opened a convenience store (2 actually) and i want to be able to sell wholesale grocery items… where do i go to get really affordable items so i can sell them wholesale? for now, i am only buying from makro and no dealers/distributors has come to offer assistance or products. help!

    thanks!

  3. 1
    Leo Says:
    October 11th, 2007 at 5:29 pm

    GRG Says: 4/23/2007 08:01:00 AM

    Good day!

    Thank you for the helpful informations about grocery store set-up. Would like to check also about terms / procedures / conditions about product consignment. Im thinking of putting a mini-grocery store or mini-supermarket…

    thank you…

    Ms. G of Makati

    Eu-Leh Says: 4/23/2007 02:53:00 PM

    Hi Ms. G,

    Once you have your own retail store/mini-mart in operation, lot of suppliers will mostly agree on consignment or credit basis, and you don’t have to look for them, they usually come to you to offer their products.

    Regards,
    Leo

    Anonymous Says: 4/24/2007 05:48:00 AM

    Good Day!
    I have a grocery store with 3 check-out started 4 years ago. I want to know more how to run effectively run the store. I believe there a lot more I need to know like negotiation from suppliers, marketing, etc.

    Would appreciate very much if anyone could help me.

    Thanks.

    Bobby

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