Starting a Business in Rice Retailing or Bigasan

Rice Retailing is a profitable business because rice is the staple food in our country. There are many rice varieties that consumers can choose from at low cost The preferred varieties for daily meals are white, long grained, and aromatic. Glutinous or sticky rice (malagkit) are used for native sweets.

Estimated Investment Cost (based on 2009 prices)

A. Basic Equipment

  • Rice boxes, 6 pcs – 12,622.50
  • Scooper – 250.00
  • Pushcart – 600.00
  • Weighing scale – 900.00
  • Sub-Total – P4,250.00

B. Basic Weekly Supplies (from rice farmers/producers)

  • Sinandomeng, 450 kilos @P28.05/kg –   P12,622.50
  • Dinurado, 400 kilos    @34.00/kg -13,600.00
  • Wag-wag, 350 kilos    @25.50/kg -8,925.00
  • Milagrosa, 250 kilos    @25.05/kg -7,012.50
  • Long Grain, 350 kilos    @25.50/kg -8.925.00
  • NFA Rice. 700 kilos    @21.25/kg -14,875.00
  • MalagkH, 50 kilos    @34,00/kg -1,700.00
  • Sub-Total – P67,660.00

C. Packaging

  • Sando Bags,  3000 pcs  –  P450.00

Estimated total investment cost – P72,360.00

D. Cost of Goods Sold

  • Merchandise Inventory Beginning (20%) – P13,622.00
  • Add: Purchases (80%) – 54,486.00
  • Total Goods Available for Sale – 68,110.00
  • Less: Merchandise Inventory, Ending – 13,622.00
  • Cost of Goods Sold – P54,488.00
  • Add: 15% Mark-up – 8,173.20
  • Sales – P62,661.20

Estimated Weekly Income

  • Sales – P62,661.20
  • Less: Cost of Goods Sold – 54,488.00
  • Gross Sales – P8,173.20
  • Less Operating Expenses:
    • Labor (P200 x 7 days x 1 worker) – 1,400.00
    • Water and Electricity (weekly) – 350.00
    • Transportation/Delivery – 500.00

Estimated total weekly income – P5,923.20

Assumptions:

  • 80% of the items are being replenished weekly.
  • 80% of Cost of Goods Purchased is considered sold weekly.
  • 20% of the rice remains In the inventory per week.
  • 15% is the mark-up per item.

Tips:

  • Storage – Bukbok or weevil is a natural enemy of rice because it Is 90% starch. They make rice powdery so make sure the storage or warehouse is managed properly.
  • Observe First-in, First-out Inventory method – Inventory of rice stocks should be kept track. The quality of rice will deteriorate if the storage exceeds three months.

Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)
  • NFA (www.nfa.gov.ph)

Financing Facility

  • People’s Credit and Finance Corp (www.pcfc.gov.ph)
  • NLDC ([02] 914-7290 to 97)

Technical Assistance (Training and Seminar)

  • DOST-STII ([02] 837-2191 to 95, www.stii.dost.gov.ph)

source: dti.gov.ph, photo from untvweb.com

Comments

  1. By Aiza

    Reply

  2. By pg13

    Reply

  3. By Rex Asong

    Reply

  4. Reply

  5. By alfredo sagun

    Reply

    • By Rose

      Reply

      • By Alfredo

        Reply

        • By Alfredo

          Reply

          • By Rose

  6. By Gigi

    Reply

  7. By Gigi

    Reply

    • By Rose

      Reply

  8. By Sharon Patino

    Reply

  9. By Bola

    Reply

  10. By Christine

    Reply

  11. By Marycris Borja

    Reply

    • By Rose

      Reply

  12. By Crisanta

    Reply

    • By Rose

      Reply

  13. By Ivy Ros

    Reply

  14. By jim gonzales

    Reply

    • Reply

      • By alfredo sagun

        Reply

        • By Rose

          Reply

  15. By Raymvnd

    Reply

    • By sharina

      Reply

  16. By irish

    Reply

    • By Rose

      Reply

      • By Beth

        Reply

      • By Diosa Ulit

        Reply

  17. By irish

    Reply

  18. Reply

  19. By MELVIN F. ROJO

    Reply

  20. By Janine Nool

    Reply

  21. By Rice Supplier

    Reply

    • By ANAND

      Reply

      • Reply

    • By Rose

      Reply

  22. By Al Amayun

    Reply

    • By Parkway Merchandise

      Reply

    • Reply

    • Reply

  23. By ronel

    Reply

    • By leonardo

      Reply

    • By Parkway Merchandise

      Reply

  24. By Julie

    Reply

    • By Parkway Merchandise

      Reply

  25. By Jhong Caranto

    Reply

    • Reply

      • By Rose

        Reply

  26. By Myreen gonzales

    Reply

    • By Rose

      Reply

  27. By Elvie Vicente Egos

    Reply

  28. Reply

  29. By Marlon Garcia

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *