Starting a Sari-Sari Store Business

Sari-sari stores are small neighborhood retail outlets that dot the urban and rural landscape. They allow procurement of necessities within easy walking distance avoiding the need for transportation. Sari-sari stores account for 90% of the retail outlets in the Philippines. They have been around to make money for countless small proprietors. It is a business worth considering for a gradual entrepreneurship take off.

Estimated Investment Cost (based on 2009 prices)

I. Products

a. Drygoods (quantity, cost/piece,  cost):

  • Sardines (big),    30    @P28.00 –    P 840.00
  • Sardines (small),    30   @12.00 –    360.00
  • Corned beef,    30    @26.00 –    780.00
  • Tuna,    30    @28.00 –    840.00
  • Pineapple juice,    30    @20.00 –    600.00
  • Creamer /sachet),    60    @2.50 –    150.00
  • Egg,    48    @5.00 –    240.00
  • Catsup,    20    @25.00 –    500.00
  • 3 in 1 coffee,    120    @4.00 –   480.00
  • Food mix enhancer,    48   @2.00 –    96.00
  • Choco powdered drink (sachet),    72    @4.50 –    324.00
  • Iced tea powdered juice,    48    @9.00 –    432.00
  • Orange powdered juice,    24    @9.00 –   216.00
  • Evaporated milk,    20    @22.00 –    440.00
  • Sinigang mix,    46    @10.00 –    480.00
  • Lechon sauce (in pack),    48    @9.50 –    456.00
  • Cooking oil (small),    48    @11.50 –    552.00
  • Cooking oil (big),    36    @24.50 –   882.00
  • Sugar, 48 @9.00 – 432.00
  • Fish sauce,    48    @11.00 –  528.00
  • Vinegar in plastic park,    48    @4.50 – 216.00
  • Soy sauce in plastic pack,    48    @6.00  –  288.00
  • Noodles in plastic cups,    30    @15.00  –  450.00
  • Candies,    300   @0 .50  –  150.00
  • Noodles (pancit canton),    72   @7.50  –  540.00
  • Noodles (soup),    72    @6.50  –  468.00
  • Tomato sauce,    20    @13.00  –  260.00
  • Meat loaf,    25    @55.00  –  1,375.00
  • Batteries (biq),    30     @25.00   – 750.00
  • Batteries (small),    30   @ 11.00  –  330 00
  • Diaper Subtotal,    60   @6.00  – 360.00
  • Subtotal – P14,599.00

b. Toiletries:

  • Shampoo,    96    @4.00   –            384.00
  • Conditioner,    96    @4.00 –   384.00
  • Body soap,    30    @28.00   – 840.00
  • Toilet tissue,    60    @9.00   – 540.00
  • Toothpaste In sachet,    60    @9.00 –   540.00
  • Sanitary napkin,    48    @4.00  –  192.00
  • Subtotal –  P2,880.00

c. Laundry Products:

  • Deterqent powder,    72   @ 10.00 –   720.00
  • Detergent bar soap,    72    @8.50  –  612.00
  • Subtotal        –    P1,332.00

d. Drinks

  • Bottled softdrinks,    144    @7.00  –  1,008.00

e. Others

  • E-Load, 7 @1,000.00 – 7,000.00

Total –            P 26,819.00

II. Cost of Good Sold

Particulars Goods E-Load
Initial purchase P19,819.00 P7,000.00
Add: 40% Weekly Purchase for 3 weeks replenishment of goods 23,782.80 21,000.00
Total Cost of Good Sold 43,601.80 28,000.00
Add: 20% Mark-up 8,720.36 5,600.00
Total P52,322.16 P33,600.00

III. Projected Income

Particulars Goods E-Load
Sales (P52.322.16x 80%) P41.857.73 P26,880.00
Less: Cost of Sales 34,881.44 22,400.00
Net Sales 6,976.29 4,480.00

Total Net Sales – P11,456.29
Less: Operating expenses

  • Water and electricity – 400.00
  • Labor – 3,000.00
  • Transportation – 200.00
  • Miscellaneous – 2,180.00
  • Total operating expenses – 5,780.00

Total estimated net income – P5,676.29

Assumptions:

  • 40% of the items are being replenished every week
  • Mark-up of 20% per item
  • 80% of total goods are considered sold per month
  • 20% of the goods remain in the inventory per month

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)

Financing Facility

  • People’s Credit and Finance Corp. (www.pcfc.gov.ph)

source: dti.gov.ph, philservicecorp.com

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