BUSINESS
GETTING INTO THE SARI-SARI STORE BUSINESS
Sari-sari stores isn't just a micro business. It also serves as a landmark for a small community. In some villages or barangays, a typical sari-sari store has a bench outside and it becomes a venue for a few residents to gather around and talk about current events or gossip in their area.
venture into sari-sari stores is because the cost of investment or the capital needed to start it is not that big. One can open his or her sari-sari store with a capital of P10,000 or about ₏210, or even less. It will depend on how big the store will be, how many products will be offered. Sari-sari stores are not just a form of micro business. It also serves as a community landmark of sorts. In some subdivisions or barangays, a typical sari-sari store has a bench set up outside the store and it becomes a venue for a few residents to gather around and talk about current events or gossip in their area. Inevitably, store owners either get to eavesdrop or get involved in the conversation. If the store is ran by a family, the children are then taught the basics on handling money and stocks. �
To put up your own sari-sari store, the factors to be considered are manpower, capital, and the items you are going to offer to the community. Most sari-sari stores sell food and beverage items, while others would add a small selection of toiletries (soaps, shampoos, toothpaste) or laundry supplies. Do your research. Try to ask neighbours or at least observe what they usually buy from nearby groceries and supermarkets. You can also check the items offered in other sari-sari stores. It's normal to offer some of the items that other stores have. If they ran out of say, a particular brand of soda, customers will surely buy from you if you have it on stock. You should also consider the price of the products. Most sarisari stores in a barangay or subdivision usually have the same price for similar products. Just make sure you'll be able to get products from a source that will give you the right markup to gain enough profit. In some cases, supermarkets will be offering discounts on some of their items. This gives sari-sari stores the opportunity to stock up on products without having to go to and buy from a factory or warehouse. If you are going to operate it on your own, a small store is ideal. This will also help you gauge how many items you can handle. If you'll employ help, that means additional expense. To avoid this, you can ask a relative to help out in exchange for an incentive (free drinks or food from the store, perhaps). Once you're settled on what to sell in your store, the next step is to make it a legal business. In most cases, some would say a barangay or subdivision permit is the first one you should get especially if you are just starting. However, people from the city hall will roam around to check on new stores in their jurisdiction and they would usually give a list of the necessary requirements. A store-owner should register his store's name at the Department of Trade and Industry. Once you have the name registered, it will be part of the business registration to be applied at the Business Permit and Licensing Office (BPLO). The trend in local government units nowadays is that the BPLO is already a one-stop shop for business permit applications. For those who plan to sell liquor, a separate permit is needed from the Liquour License and Regulatory Board (LLRB). In some cases, the fees for securing the permits may be different as well as the annual tax rate depending on which city, the location, and size of the store. These can be paid in quarterly or annual basis. Once you've paid the necessary fees, your permits will be released, including a plate (similar to a vehicle plate) which should be displayed in the store at all times. From there, the store can start selling products and owners can use their creativity to make it look appealing to consumers. Many start out by reusing plastic or glass jars as containers for the food items, cigarettes, etc. Laundry detergents, shampoos, toothpaste, and other items in sachets are usually hung along a steel wire like a curtain. Some items are just placed on top of shelves. Beverages, of course, should always be cold or chilled. Sometimes, beverage manufacturers will let you borrow an upright chiller as long as it contains their products. �
#12 2015 | FILIPINO EXPAT MAGAZINE
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