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10 sari-sari store benefits to you and community.

Sari-sari stores are a regular fixture in a typical neighborhood in the Philippines. They sell a variety (hence the name sari-sari) of goods such as food (canned goods, noodles, biscuits), kitchen necessities (cooking oil, soy sauce, salt), powdered products (laundry powder, coffee mix, powdered orange juice), drinks (beer, soft drinks), toiletries (shampoo sachets, soap, detergents, toothpaste) to services (payphone, cellphone loading station). Although sales margins may be small, the products you sell are fast-moving and essential in daily life, so they are in high demand, making it possible for you to generate stable, sustainable revenue. But besides making a profit out of your small sari-sari store, there are also other benefits of owning one.

Table of Contents

Your goods serve as your daily household stocks.

Although the primary purpose is to be sold to neighborhood customers, your retail goods on sale can also be part of your household inventory. While this may not sound a good idea for a disciplined entrepreneur looking to grow a business, having readily available commodities within your reach means you don’t have to go out to the supermarket, saving you time and transportation costs.

You make a portion of your home more useful.

If part of your home is located close to heavy foot traffic, like near the entrance of a school, church, or public transport hub, setting up your sari-sari store becomes within the vicinity is a commercially viable option. Once the business grows and is proven to be a commercial success, you have the opportunity to lease out this place should you wish to discontinue your sari-sari store business.

It enables you to become eligible for small loans.

As a small business owner of a sari-sari store, you may qualify for micro-lending programs such as the Hapinoy lending program to grow the business. Your ability to pay off loans at a designated time frame opens up the opportunity to get a higher loan amount.

You get free stuff from distributors and dealers.

Frequent or bulk buyers often get freebies from suppliers such as calendars, pen, kitchen, and dining supplies or extra discounts and free product samples or additional items (think to buy 3 get one free product offers).

You provide employment.

Whether it is your pastime, give the job to an unemployed neighbor, or wish to help an out of school youth resume studies looking after your shop, having a sari-sari store opens up job opportunities, especially those who failed to finish education, seniors, or those with disabilities.

You are the boss.

You can open the shop anytime you want, you can sleep on the job (and be woken up by a familiar ‘pabili po’ alarm clock), and you’ll not get fired. You can choose which items to sell based on your inventory trends, and set the rules ( wala pong utang ).

You can save based on retail earnings.

A sari-sari store business can be one of the investment vehicles that allow you to save money for future use such as emergency expenses, educational funds, or paying the utility bills. As long as you track expenses and are able to manage cash flow to replenish diminishing stock supplies, your sari-sari store business is in good shape.

The business enhances your mathematics skills.

Whether math is your favorite subject or not, owning a sari-sari store maintains your arithmetic skills sharp. Adding up the price of two kilos of rice, a pack of sugar, a dozen 3-in-one coffee, and two shampoo sachets requires additional skills, and deducting change from a P500 bill should keep your math skills in check while making use of subtraction abilities learned in primary school.

Make justification for owning appliances.

You may have planned to buy a juicer or refrigerator, but deemed it’s not so practical at home. Now that you have a sari-sari store, owning them becomes more realistic. Juicers can be used to make fresh fruit juices while the refrigerator will become a useful utility to store ice, soft drinks, ice candy, and whatever item you sell that requires cold storage.

You make your pastime more worthwhile.

Instead of spending the whole day watching television or doing nothing, you have this sense of purpose. You wake up in the morning looking forward to opening your sari-sari store, arrange the goods, explore new business opportunities , interact with neighbors, and earn money at the same time. With discipline and focus, sari-sari store owners have become successful no matter how small their shops may be. Some have claimed the sari-sari store business helped send children to school or get by with daily household expenses. But besides the monetary aspect as a business, we realize that sari-sari stores have brought us many other benefits. Managing this business is a delicate balance between profit and sustainability, an area many similar companies fail to thrive and prosper . Having seen these advantages, hopefully, will develop that motivation to become a successful entrepreneur, no matter how simple or small the sari-sari store business is.

• How Much Does Sari-Sari Store Business Earn?
• How to Grow Your Sari-Sari Store Business
• Why Sari-Sari Store Business is a Bad Idea
• How to Chase Sari-Sari Store Debts
• Top 4 Reasons Why Your Sari-Sari Store Failed

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How To Start and Manage a Sari-Sari Store Business: An Ultimate Guide

Sari-sari stores are an integral part of every Philippine neighborhood. For many Filipinos, sari-sari stores are not only a source of groceries and home supplies but also a great place to meet their neighbors.

According to Philippine tech start-up GrowSari 1 , there are more than 1.1 million sari-sari stores in the Philippines. Thus, they are important parts of the product distribution network in the country.

If you want to start a sari-sari store business yourself, you have to know how you can compete in this highly populated space. This guide will help you decide if a sari-sari store business is for you and teach you how you can earn a profit from running one.

Related: Best Business Ideas in the Philippines [Pandemic-Proof]

Table of Contents

1. overview, 2. capital requirement, 3. competitors, 4. earnings.

• Differences Between a Sari-Sari Store and a Convenience Store or Grocery 

1. Time To Run & Manage It Yourself

2. solid community ties, 3. strict & organized, 1. advantages, 2. disadvantages, a. join business training programs online or in your area, b. learn about your customers.

• C. Study Your Competitors 

D. Decision Time: Is a Sari-Sari Store a Good Fit for Your Situation?

A. set a goal for your sari-sari store, b. choose a location for your sari-sari store, c. create a product list.

• D. Find the Right Suppliers 

E. Do the Math

F. decision time: can you make a sari-sari store work in your location.

• A. Register Your Sari-Sari Store’s Business Name 

B. Register With the BIR

Business permit requirements for a sari-sari store, how to get a business permit for a sari-sari store, how much does a business permit for a sari-sari store cost.

• D. Set Up and Stock Your Sari-Sari Store 

E. Open and Run Your Store

F. maintain a strict record of your inventory and sales, g. promote your store locally & through your network, h. decision time: what should you change to make your sari-sari store profitable, a. break down your goal into smaller goals, b. expand your sari-sari store, c. what success looks like for a sari-sari store, d. decision time: should you continue running your sari-sari store, 1. separate your sari-sari store money from personal use, 2. remember: never sell on credit, 3. for sari-sari stores, success is making your customers feel that it is convenient to shop with you., 4. salesmen will sometimes visit you to push you into carrying their products in your store. try to negotiate a good deal for your store., 5. don’t stop trying to find more ways to reach more customers..

• 1. Is running a sari-sari store still profitable? 
• 2. How much does it cost to start a sari-sari store? 

Sari-Sari Store: The Basics

A sari-sari store is basically a small retail store, often family-owned and run, that carries a variety of basic goods, hence the name “sari-sari” which means “an assortment”. 

They carry anything that they think their community would buy, from candies to beer. And as Filipinos become more reliant on technology, sari-sari stores also begin to sell other necessities such as phone load or e-credits. 

Their primary customers are the people who live nearby, their neighbors. Thus, convenience is the main reason people buy from them.

Typically, sari-sari stores are set up in a family’s home through a small room with a window, usually with railings, that faces the road. 

So, the biggest cost is just stocking up on the products to sell. This can range anywhere from ₱2,000 to ₱30,000 depending on the variety and amount of products. If you are building a dedicated space for your sari-sari store, then the capital you need will increase by a lot.

Your other expenses include government registration , which ranges from  ₱1,890 to ₱6,590 depending on how much a business permit costs in your city or municipality .

The competitors of sari-sari stores include convenience stores, groceries, and other sari-sari stores. 

Sari-sari stores typically add a 10 to 20% markup on their products as their main source of revenue. Though owners usually don’t want to deal with centavos, so they round it up to the nearest peso. 

Differences Between a Sari-Sari Store and a Convenience Store or Grocery

• Convenience stores and groceries are bigger in size and carry a larger amount of products than sari-sari stores. It’s also rare for sari-sari stores to have a frozen or refrigerated food section, aside from a few cold drinks. 
• Sari-sari stores usually have cheaper prices than modern convenience stores. This is because convenience stores have air-conditioning and salary costs that are especially high when they are open 24/7. Meanwhile, groceries are usually cheaper than sari-sari stores since they buy in bulk and sell a larger volume. 
• Convenience stores and groceries are usually only located on maid roads where there is a lot of traffic. Sari-sari stores can be found in almost any location including side streets or even inside subdivisions. 

What Qualities Are Ideal for People Who Want To Run a Sari-Sari Store?

Certain qualities will help you start and manage a sari-sari store much more smoothly. If you have any of the following traits, then you might see success easier than others. 

Because of low margins, people or families who have the time to run the sari-sari stores themselves will be able to save on hiring an employee. Lowering your costs as much as you can also mean you can keep your prices competitive. 

People and families who have or can build a good relationship with their neighbors and community have an advantage since they can help drive traffic and sales to the store. 

Again, because of the low margins, people who are strict in managing their inventory and writing down records are more likely to succeed. It’s equally important to strictly never sell on credit as well. One bad stock or debt and a day’s worth of profits can be wiped out immediately. 

Advantages & Disadvantages of a Sari-Sari Store Business

Compared to other kinds of businesses, the sari-sari store has unique advantages, especially for a newbie entrepreneur. These include: 

• Easy to start. With a low capital requirement and a simple setup, the sari-sari store is a business that you can begin in just a few days. It’s also a good starting point for people who want to experience running a business, and if successful, grow into a bigger retail store. 
• Save on rent and salary. If you run a sari-sari store in your home by yourself or with help from your family, then you can save on costly rent and salary expenses. 
• Strengthen relationship with community. Being the friendly neighborhood sari-sari store means you are the go-to place of the nearby families for their daily necessities. This helps you build stronger relationships with your neighbors. 

However, due to its nature of being easy to set up, it also has its own share of disadvantages. These include: 

• High competition. Since almost anyone can start a sari-sari store, it means that there is stiff competition. Not to mention that you also have to compete with convenience stores and groceries. You have to learn how to keep your clients coming back to your store. 
• Low margin, low sales volume. Because convenience is the main selling point of sari-sari stores, they only add a small markup to their prices to remain competitive. They also don’t sell in bulk so they need to have as many repeat customers as they can. 
• Reputation of poor-quality products. There is a negative reputation that sari-sari stores carry poorer quality products. This is likely due to some owners not taking care of their inventory well by exposing them to the sun or air or letting products expire. This can be solved through proper storage and inventory management. 

How To Start and Manage a Sari-Sari Store Business: A Step-by-Step Guide

This guide is divided into 4 different phases. At the end of each phase, you will have to make a crucial decision. This is to emphasize that while sari-sari stores are easy to set up, it’s not easy to succeed. 

Phase 1: Training & Research

In this phase, your goal is to learn the basics of business so that you can determine if running a sari-sari store is a good fit for your situation. 

You have to learn a bit more about the basics of running your own business before you can properly evaluate if running a sari-sari store is for you. Many organizations, private and government, provide free business training programs and seminars. Here’re are some examples: 

• The Department of Trade and Industry (DTI) partnered with the Philippine Trade Training Center (PTTC) to provide seminars and training programs 2 , both locally and online. You should ask your local DTI branch or LGU if they currently have a program for you. They also have an online resource 3 for MSMEs regarding how to make a business plan. 
• Go Negosyo, by the non-profit organization Philippine Center for Entrepreneurship (PCE), provides free one-on-one mentorship around the country through their KAPATID Mentor ME program 4 . You can follow their Facebook page for updates. 
• TESDA has an e-learning program called “ Start and Improve Your Business ” that teaches the basics for people who want to start their own small business . 
• Hapinoy is a social enterprise that teaches sari-sari store owners the best practices of running their own store. They are not present in all Philippine provinces yet but you can follow their Facebook page for updates. 

Take note, however, that some programs are only available on a per-schedule basis. So, while waiting, you may want to read up in advance through the various videos and resources available online.

Regardless if you start a sari-sari store or not, what you learn can still be useful when starting other kinds of businesses. 

A sari-sari store’s main customers will be the people nearest to them, meaning your neighbors and community. There’re a few things you should find out about them to get an idea if they’ll shop at your sari-sari store or not. These include: 

• When and where do they buy their food and home goods? 
• What kinds and brands of products do they buy? 
• How much do they spend on a shopping trip? 
• What is their daily commute like? Will they pass by the location you want for your store? 

You can do this very informally while just chatting with your neighbors. This information will help you decide if a sari-sari store can fit your customers’ shopping habits or not.

For example, some people like to buy in bulk so that they can save money. If most of your neighbors are like this, then a sari-sari store may not be the best fit in your area.

However, there’s still an opportunity if there are products that your neighbors prefer to buy in “ tingi ” or small amounts. For example, they may purchase food in bulk but only buy non-essential goods, such as cigarettes or beer, per piece. 

C. Study Your Competitors

If there is a competitor in your area, then you’ll be fighting over the limited number of customers that you can reach. You should pay a visit to their store and find out: 

• What are the brands or products that your competitors are selling? 
• What are the prices of their most popular products? 
• What are their opening and closing times? 

If there’s a product that your neighbors want but is not available from your competitors, then that’s an opportunity for you. 

For sari-sari stores, convenience is the main reason people will buy from your store over others. So, when studying your competition, you need to find out what is inconvenient about the other options available. If you make it more convenient to shop with you, then you’ll get more customers. 

Using what you learned from your training, as well as what you researched about your customers and competitors, you should now have a better idea if a sari-sari store will work or not. 

• Will I have any potential customers? 
• Are there products that my potential customers will buy frequently? 
• Are my potential customers unsatisfied with the competitors? 

If your answers to the questions above are a ‘No’ then don’t get hung up on the idea of starting a sari-sari store. You can use what you’ve learned and researched so far to start another business instead. Click here to get business ideas.

If you think there is an opportunity for your sari-sari store to succeed, then it’s time to begin planning how your store will do just that. 

Phase 2: Planning

In this phase, your goal is to back up your decision to run a sari-sari store with actual numbers. By doing this, you can check if it will become profitable and if it is worth the effort. 

Tip : The steps you go through in this phase are all part of making a sari-sari store business plan . It’s not a requirement, but if you ever need a sari-sari store business plan for getting a loan or an investment, then all you need to do is create a formal document covering the details of each step in this phase.

The first thing you need to do is to set a goal that your business, the sari-sari store, must meet. Most of the time this is a monetary goal. An example would be “I want to earn ₱10,000 a month through the sari-sari store.” 

When setting a goal, just remember a few things: 

• Make it personal . This way, it’s important for you that the goal is achieved. 
• Make it realistic. If you have a big goal, break it down into smaller goals. So, you can keep yourself motivated as you make progress. 
• Set a deadline. This will force you to work hard and smart. 

Your goal will also be an important factor in deciding if you’ll run a sari-sari store or not. So, write it down and don’t forget it. 

Using your research earlier about your customers, you have to choose a location where it’s convenient for them to buy from you.  

Most sari-sari stores are run in the owner’s home to save on rent and to keep prices low. However, if your home is located in an out-of-the-way area, then your customers may not frequent you. 

To find out if your home is enough, then you need to: 

• Know what the foot traffic is like in the area . Is the number of people passing by a lot? What time do they pass by? 
• Learn what kinds of people are passing by. Are they students or office workers? Depending on the type of person, the products they buy will be different. 
• Find out if your store will be visible to the people passing by. If not, then you might need to add a large signage or another visible landmark. 
• Check the locations of your competitors. Are you near a mall, convenience store, or supermarket? You want some distance from them since it’s difficult to directly compete with these business establishments.

While renting a space in a more favorable location is an option, it’s not really recommended for beginners. With a sari-sari store’s low margins, it may be difficult to earn enough to cover rent expenses. 

Based on what you learned about your customers, you now have to create a list of products that you will sell in your sari-sari store.  

It may sound difficult to do, but if you just focus on what kind of customers you’ll have, you’ll be able to create a list much more easily. 

For example, if you are located inside a subdivision, your customers are mostly households. So, food and home essentials are perfect products for your market. 

Meanwhile, if you are near an office, then your customers could be people who are taking a break from work. So, you can stock up on merienda items, such as coffee or instant noodles. If there are a lot of smokers, then sell cigarettes. 

If you are near a school, then it’s a good idea to stock up on what students like or need. These include candies, snacks, and school supplies. 

When you are creating your product list, remember to: 

• Be conscious of your customers’ budget . Don’t sell expensive brands if you don’t think they can afford them. 
• When you carry popular brands, make sure to check the prices of the competition . You should aim to have the same or lower price unless the competition is inconvenient to visit. In those cases, you can add a little premium to your prices. 
• Avoid choosing problematic products , such as those with a short expiry date or those that spoil due to heat. One product going bad can wipe out your whole day’s earnings. 

If you really have no idea where to start, then you can check DTI’s list of basic necessities and prime commodities 5 . However, just choose the ones that you think your customers would need or like. 

Your product list does not have to be perfect. You can always adjust what you stock after you have opened and received feedback from your customers. 

D. Find the Right Suppliers

Now that you have a product list, it’s time to find a place where you can stock up on your products. Here are some ideas on where you can find products to sell: 

• Wholesalers. These are stores that normally sell their products in bulk so you can get your stock at a cheaper price. Puregold is an example of a nationally known wholesaler. However, there are many other wholesalers across the Philippines. You’ll probably know better the name of the one that is nearest to you. 
• Supermarkets. This is not the ideal place to get your products. They typically sell at higher prices than wholesalers, so you’ll have lower margins. However, if you just need to restock quickly to meet a customer demand then you can use it as an alternative. 
• Direct from Manufacturer. You can contact a manufacturer or the distributor in your area to see if they are willing to sell their products to you at prices cheaper than a wholesaler. Although, once your sari-sari store is more established, it’s not uncommon to get a visit from a salesperson offering you good deals as well. 
• Sari-Sari Store Apps. There are also dedicated apps, such as GrowSari , for the sari-sari store owner. Each app would have different features. GrowSari, in particular, promises to sell products to sari-sari store owners at distributorship prices. However, their app is not available in all Philippine provinces yet. 
• Online Marketplaces. If you want to add some uniqueness to the products in your sari-sari store, then you can add some from online marketplaces such as Shopee or Lazada. However, you have to know exactly what your customers would want so you don’t waste the delivery fee. 

Feel free to take your time and explore your supplier options. This is where most of your capital will go, and it will affect every crucial part of your sari-sari store. 

You don’t have to buy your products just yet. You can just take note of the prices so that you can properly compute if you can make a profit or not. 

Here are a few tips on selecting a supplier: 

• You should already have information about the prices of your competitors. The suppliers you choose should make it possible for you to compete with a reasonable 10% to 20% markup, otherwise, you should look for other options. 
• Don’t forget to treat transportation costs as part of the cost of your products . Ideally, your suppliers should be nearby, so you don’t have to spend too much on transportation. However, if you buy products in bulk then you can spread out the cost across the different products you carry. 
• Lastly, choose suppliers that have a solid reputation and a reasonable return policy . Bad suppliers may attempt to trick you into purchasing expired or poor-quality goods. Due to low margins, you don’t much room for errors. 

At this point, you should have enough information to see if you can make a profit from starting a sari-sari store or not. 

To do that, you need to do a computation like the one below. You can make it as detailed as you want, but here is a basic example: 

In this example, let’s assume that you don’t want to stock up on too many items, so you choose only a small amount of the essentials. 

• Step 1 : List down the cost per unit of each of the products you want to stock. You can make it more detailed than the one in the example above by listing each item or brand. 
• Step 2 : Write down the quantity of each of the products you want to stock. 
• Step 3 : Multiply the cost per unit and quantity to get the total cost of each brand or type of product you want to stock. 
• Step 4 : Add up all the costs of your products to get the total. 
• Step 5 : Multiply the total costs of your products by the markup or “patong” you want to add to your products. In this example, a 20% markup was used. 
• Step 6 : List down an estimate of your other expenses. These may include transportation, rent, salary, electricity, and water. In this example, the sari-sari store owner is not paying rent or salary. Note that you may encounter other expenses later, such as taxes. 
• Step 7 : Subtract the total of your other expenses from your markup. The number you end up with is your income if you sold all of the products. 

After doing your computations, you now have to make another crucial decision based on the information you have. Answer the questions below to see if a sari-sari store makes sense or not. 

• Can you beat your competitors? 
• Can you sell the whole quantity of goods that you plan to stock in a reasonable amount of time? 
• Did the potential income make sense based on the goal you want to reach? If the income will not help you reach your goal, you might want to explore other ways of earning income instead. 

It’s not easy to answer these questions, so you might want to do a trial run first. This should help you build confidence that you are making the right decision. 

Once you decide that this is really something you can do, then you have to be committed to it for the long run. The next steps will take a lot of effort and incur additional expenses. 

Phase 3: Business Registration and Launch

At this point, it’s about time to turn your plans into a reality. To do that, you have to start your business right and work hard every day to earn enough to at least cover your business’s expenses. 

A. Register Your Sari-Sari Store’s Business Name

To start your business right, you have to register with the required government authorities. By registering properly, you can legalize your business and take advantage of government programs for micro and small businesses. 

Usually, the first step in the process is to register your business name. However, for sari-sari stores, this step is optional 6 if you will just use your given name. 

However, if you want to use a business name, then you need to register with the government . You can just keep the business name simple such as combining “your name” with “sari-sari store”. For example, “Lydia Bautista’s Sari-Sari Store”. 

For a sari-sari store, it’s recommended to register as a sole proprietorship with the DTI. You can do this easily by visiting a local DTI office or one-stop shop. DTI registration is also available online . 

Please note that the fees you have to pay will depend on the business scope that you will choose. For sari-sari stores, you can just choose “Barangay” as the scope, so you only have to pay ₱200 plus a documentary stamp fee to register. 

Next, you have to register with the BIR by visiting the revenue district office (RDO) with jurisdiction over the city or municipality where your store will be located, or by using their online registration system. Note that you can do this at the same time as getting your business permit 7 from your city or municipal office. 

Since you are a sole proprietorship, you have to fill up BIR form 1901 . You can check your RDO code at our updated list . 

You can ask the BIR staff if there are tax exemptions for sari-sari store owners. If there are none, you can expect to pay the following: 

• Annual registration fee (ARF): ₱500  
• Documentary stamp tax: ₱15  
• Certification fee: ₱15 
• Registration of books of accounts: ₱800 
• Sales Invoice: ₱30 

In total, you have to pay ₱1,360 to complete your registration with the BIR.  

Under the TRAIN law, you are exempt from paying taxes as long as your sari-sari store is not earning more than ₱250,000 annually 8 . However, you still have to file your papers monthly, quarterly and annually to comply with the required procedures. 

C. Get a Business Permit for Your Sari-Sari Store

Does a sari-sari store need a business permit? Yes. Sari-sari stores are considered micro-business and you will need to get a business permit as part of the government registration requirements. 

You can ask the staff at your local city or municipal hall if there are any exemptions for a sari-sari store business. However, if there are none, then you need to go through the regular procedures. 

• Barangay Business Clearance – you can get this from the barangay hall with jurisdiction over the place where your sari-sari store will be located. 
• Community Tax Certificate (CTC) or cedula – you can get this from your city, municipal, or barangay hall. 
• Ph otos of the exterior of your sari-sari store – applicants need to submit printed copies of these photos.  
• Sketch or vicinity map of your store’s location – you can also use a screenshot from Google Maps.
• Original and a copy of your DTI Business Name Registration Certificate .
• Copy of your contract of lease (if you are renting the location). 
• Go to the municipal or city hall with jurisdiction over your place of business and obtain the official checklist of requirements for business permit application. You may use the above list as a reference but keep in mind that requirements may change without further notice, hence the need to verify it with the personnel at the city or municipal hall.
• Get a copy of the business permit application form from the city or municipal hall. You may also get a copy of it online, if available.
• Notarize your business permit application form. 
• Submit the business permit application form along with the other requirements. 
• Pay the assessment fee. 
• Once everything is in order, the staff will tell you when you can claim the business permit for your sari-sari store. Just go back on the scheduled date. 

It depends on the city or municipality. It varies wildly as it can cost anywhere from ₱300 to ₱5,000.  

Please note that the business permit is something that you have to pay for either quarterly or annually. So, make sure to consider that cost as part of what you need to cover with your sari-sari store’s income. 

D. Set Up and Stock Your Sari-Sari Store

Once your government registrations are done, the next step is to actually set up your sari-sari store. It’s also the time to buy the items on your product list so you can begin selling them to your customers. 

It’s up to you if you want to spend money on construction to make your store look more appealing. However, you can always do it slowly and spend as you earn. 

There are a number of things you should do to optimize your sari-sari store’s setup. These include: 

• Ensure that the most popular brands and products are easy to see from far away. One trick you can use is by lining up the same or similar products like how they do it in a supermarket. This will improve the visibility of these products and will attract customers to your store. 
• Ask your suppliers for posters, signs, and other things you can use to promote products . Place them where they can be easily seen. This will also help let your customers know that you are carrying those brands. 
• Make it clean and organized . It’s tempting to just place your posters and stock wherever there is space; however, people who are walking by won’t know where to look if it looks cluttered from the outside. 
• When organizing your sari-sari store’s products, you should make it easy for you to get the earliest stock . The way you organize your products should follow the “First In, First Out”(FIFO) system. This means that you should always sell the stock that you bought earlier or has the nearest expiry date. 
• Check with your local city or municipal office if you can get a license to sell regulated products , such as cigarettes and alcoholic drinks. 

You can also set up your store as a gathering place for people in your community by adding chairs or tables. This can be beneficial in attracting customers. However, you should be careful that it doesn’t attract a bad crowd, such as drunkards, that could scare off your other customers. 

After setting up your store, you can now open it and start selling your stock. Don’t expect to be successful overnight. There’s still a lot more work to do to make your sari-sari store profitable, including: 

• You should decide on what your opening and closing times are according to the foot traffic in your sari-sari store’s location. 
• Remember, a customer with a good experience has a higher likelihood of coming back to your store. So, try to build a good relationship with your customers as much as you can. 
• During times when there aren’t many customers, you can keep yourself productive by doing online marketing, organizing your stock, or updating your records . 

For now, just do things slowly so you don’t overwhelm yourself. After you get a feel for running the sari-sari store, the next thing you should aim for is to reach your sari-sari store’s breakeven point. 

The breakeven point is when “You are selling enough to cover your business’s expenses”. This should be your very first monetary goal. You should cover everything that you’ve spent so far, including the government registration fees. 

In order to do this, you have to work hard in the next steps. 

One of the most common reasons that sari-sari stores close is because of bad inventory management. Just one product that expires, becomes damaged, or gets lost can lead to a day’s worth of income disappearing.  

This is why you should be very very strict in managing your inventory.  

For a sari-sari store business, proper inventory management involves the following:

• Make sure to record everything , from the inventory to the cash, coming in and out of your sari-sari store. You can use a computer, phone apps, or a ledger for this. 
• With a proper record, you can see which products are selling faster than the others. This way, you can plan and stock your store accordingly . Your goal is to avoid any “out of stock” issues when your customers drop by to shop. 
• Always keep track of expiry dates . As mentioned before, when selling your stock, make sure to sell the ones you bought earlier or have the nearest expiry date first. 
• Store your products properly . You want to keep them away from excessive heat, pests, and theft. 
• Never get any product from the sari-sari store without paying for it . It’s true that you own the stock, but you should separate the sari-sari store’s finances from personal use. Make sure your family also abides by this rule. 
• Never sell on credit . “Palista” is the enemy of small businesses like the sari-sari store. Debts can not only wipe out your income but also lead to the closure of your business. 

Below is a sample inventory and sales record. We’ve also created a FREE inventory and sales record template that you can download to make your own. 

It might look complicated at first but once you get the hang of it, it becomes much easier. Let’s break it down into smaller parts. 

• Step 1 : Write down the period of time that the inventory and sales record will cover. It can be daily, weekly, or monthly depending on your needs. Since you are just starting out and don’t have much sales volume yet, “weekly” is a good starting point. You can do “daily” once your sales have increased significantly. 
• Step 2 : List down all of the products that you will have for sale. Make sure to include details such as their brand, variant/flavor, and size. If you are selling items in “tingi”, then what you will write is the size in “tingi”. 
• Step 3 : Write down the starting quantity of your products. Since you just opened, the starting quantity for all your products is zero. After the week is finished, create a new record where your starting quantity is how much of each product you have at the end of the week. 

• Step 4 : List down the cost of each product that you stocked. If you are selling it in “tingi”, you write how much it cost you per piece. 
• Step 5 : Write the quantity of each product you stocked. 
• Step 6 : The template will automatically compute how much was spent on each type of product. This is the quantity multiplied by the item cost. At the bottom, you’ll see the total purchase cost. This should be equal to the amount shown on the receipt from your shopping trip. 

• Step 7 : List down the selling price for each item you have. 
• Step 8 : As you run your store, you can write down how much you’ve sold of each item in this column. If you find it difficult to update while running your store, you can always just write it down on paper first and transfer it to the template at the end of each day. 
• Step 9 : As you update your sales, the template will also automatically update how much your sales are for each item. You’ll find the total sales for the period at the bottom.

• Step 10 : In ‘Bad Stock’, input how many of each type of product got damaged, went unpaid, or got lost. 
• Step 11 : This part is automatically updated as you input the quantity of your sales and bad stock. Here you’ll see how much of each product that you should still have on hand. Make sure to check every day if your records match the real-life scenario in your store. 

• Step 12 : Once the week has ended, you just need to copy what you’ve made so far and change the date for the next week. You can copy the product description, item cost, and selling price. However, you need to remove the quantity to have a clean record for the week. If you are purchasing a new product, simply add a new row to the product description. 
• Step 13 : Lastly, you need to copy the ‘Current Stock on Hand’ from the previous week and make it your new starting balance. 

As you’ve seen from the example above, it takes a lot of effort to strictly maintain your inventory and sales record. However, seeing the numbers makes you understand the value of each of the products you sell. That’s why everything in your inventory should be taken care of properly. 

Once you are open, you can freely promote your business. There are many ways to do this, and you can be as creative as you can. 

Here are some ideas: 

• Visit your neighbors and share the news . If you did your research properly, you should already know what products they would be interested in. Tell them that you have those products available if they ever need them. Don’t give out free stuff though, they might take it for granted. 
• Join social media groups or chats for your subdivision or area. You’ll usually find these on Facebook. You can announce that your store is now open, and you can also post updates like telling them about any new products that you carry. 
• Ask your barangay hall if there are any local events coming up . You might be able to find an opportunity to promote your sari-sari store there if they will also allow you to sell your stock during the event. 

It might be hard to find time to do promotions especially when you are running the store at the same time. However, during times when there aren’t many customers, you can use the time to promote yourself online. 

After a few months of running your sari-sari store, you should be able to determine if your plan is working or not. If the plan isn’t working, it’s time to take a moment and evaluate what you are doing. 

Check your numbers. Are there areas in your sari-sari store’s operation that you should adjust? 

• If you think that your margins are too low, you can raise your prices. But if that isn’t an option due to the competition, then you can try lowering your costs by finding new suppliers or buying in bulk. 
• Are your products selling slowly? You should check if the products you are carrying fit the needs of your customers. You can also promote yourself more or check if your opening time matches the time when there is high foot traffic. 
• Do you have any products that go bad or get lost? You should be stricter in your inventory management. 
• Are customers coming back to your store? If not, then you should find out why and solve that problem before it’s too late. 

Here’s an example of an adjustment you can learn by checking your numbers: 

In this example, the original flavor of the Vienna sausage is outselling the spicy flavor. It’s quite possible that your customers prefer the original flavor. If that’s the case, then the adjustment you should make is to stock less of the spicy variant. 

However, maybe the reason is that they don’t see the spicy variant on your shelves and that’s why they don’t purchase it. If that’s the reason, then you need to make sure that the spicy variant is visible in your sari-sari store. 

Here’s another example. 

Above, you can see that the records show one bad stock of a high-value item that costs ₱135. Since you can no longer sell that product, it’s a huge loss for your sari-sari store, especially with your low margins. Find out why it happened and make sure to learn from your mistakes. 

These are just some examples of what you can encounter. There are many other scenarios where the numbers will show problems in your store that you can make adjustments to. 

Remember, your first goal for this phase is to sell enough to cover your expenses, from the cost of products to the government fees. Once you reach that goal, then you can start expanding and thinking about increasing your profits. 

Phase 4: Growing Your Sari-Sari Store

After reaching the breakeven point in the previous phase, it’s now time to grow your sari-sari store and earn larger profits. 

Once you’re in this phase, you’ll probably have a better idea of what works or what doesn’t work in your community. In phase 4, you need to use everything you’ve learned to reach the goal you’ve set from the very start. 

If you have just reached the breakeven point, it’s hard to believe that the goal of “I want to earn ₱10,000 a month through the sari-sari store” will ever come true. 

That’s why it’s a good idea to break down your big goal into smaller goals. For example, a ₱10,000 a month goal can be broken down into: 

• ₱2,500 after 3 months 
• ₱5,000 after 6 months 
• ₱7,500 after 9 months 
• ₱10,000 after 12 months 

It’s up to you how you break down your goal. However, make it realistic by using the data from your records. Once you have your smaller goals listed down, you can continue to make the adjustments you’ve learned from the previous phase to make your store more profitable. 

To get closer to your goals, you may want to start exploring ways how to expand your sari-sari store. You can get as creative as you want, as long as you think of your customers first. 

• Expand your product range if you think there are products that your customers would buy that you do not carry yet. For example, if there is a substantial increase in the number of babies in your community, you might want to start carrying diapers. 
• Expand the size of your store if your customers are doing most of their grocery shopping with you rather than going to supermarkets. Just be careful not to overstock. 
• Expand the reach of your store by offering delivery to customers who live farther away. Only offer this if you can make time for it. Set a clear set of rules so your customers’ expectations match your capabilities. 
• Consider adding a “pabili” or personal shopper service. If you have customers in your area who are always busy and don’t have time to shop for groceries themselves, then they might be interested in a “pabili” service. You can just charge a premium for it and do it at the same time you buy stock for your sari-sari store. 

Just a word of warning. Sometimes you can get too excited about trying out new ideas that you push to do them without considering the cost. Whenever you have an idea, sit down first and write down its advantages and disadvantages . This way, you can make an informed decision. 

It is up to you to say what success looks like for you based on the goal you’ve set at the start. If you think the profit you are earning is worth the time and effort that you’ve put into the sari-sari store then continue to work hard to grow it. 

Based on the examples we’ve used so far in this guide, success looks something like what’s shown below: 

Their total profit for one month meets their ₱10,000 a month goal. 

Their sales amount to about ₱16,000 per week which is about ₱2,286 per day. With a 20% margin, this amounts to around ₱2,600 net revenue per week or ₱372 net revenue per day. 

After subtracting the other expenses, then they are left with a ₱10,078 profit for the month. They can then use this profit to grow their store further or withdraw it for personal use. 

For you, the number might be different, but as long as it’s a goal that you came up with carefully, then you should consider it a success once you’ve reached it. 

If you are successful, then definitely. If something has changed in your life, then you might want to make adjustments. For example, if you don’t have as much time as before, then you can either hire a part-time employee or change your opening times. 

If you can’t make your sari-sari store profitable, don’t give up too soon. Exhaust every option that you can to make it work. 

However, if you’ve rechecked and adjusted everything that you can about your sari-sari store’s operations and you still can’t find any way to make it work, then there’s no shame in cutting your losses and closing it down . 

Take a break and take care of yourself. The effort you’ve put into your sari-sari store wasn’t a waste. Everything you’ve learned and experienced so far will be something you can use for a future business. 

Tips and Warnings

This also means that if you need an item from the sari-sari store then you also need to pay the store for it, even if you own it. It might be tempting to get what you need for the store at any time, but this is a bad habit that can lead to your store losing money. 

Since you are selling to people you know, such as your neighbors, they might be tempted to pay through “palista” or credit. However, with a sari-sari store’s low margins, one bad debt may mean you lose a day or even a week’s worth of profits. 

In cases where you don’t have a product that a customer is looking for, never say “we don’t have it”, just say it’s “out of stock”. Then, assure your customers that you will have it on the next stocking day.  

Ask for discounts, posters, equipment, and other things that can help sell their products. If their products need to be kept in refrigerators, make sure to take electricity costs into account. You can always decline to carry a product if you don’t think you are getting a good deal. 

Since a sari-sari store is a low-margin business, you have to increase your sales volume as much as you can. 

Frequently Asked Questions

1. is running a sari-sari store still profitable.

Yes, a sari-sari store can still be profitable. However, because the margins are so tight it doesn’t leave much room for error.  

Success is different from person to person. So, it’s up to you what level of profit can be considered enough for your needs. If you have a goal that can’t be met by a sari-sari store’s income, then it might not be worth it for you to run a sari-sari store business at all. 

Related: 100+ Best Franchise Business Opportunities For Every Budget

2. How much does it cost to start a sari-sari store?

Sari-sari stores cost differently depending on how much inventory you want to carry, if you plan to rent and build a space, and if you hire employees. It can cost as little as ₱3,940 and can go up to six digits depending on how much you invest in it. 

Here’s a list of costs that you can expect: 

• Inventory Costs : ₱2,000 to ₱30,000+ 
• Transportation : ₱50 to ₱300+ 
• Rent : ₱0 to ₱10,000+
• Construction :  ₱0 to ₱30,000+
• Salary : ₱0 to ₱10,000+ 
• DTI Registration : ₱230 
• BIR Registration : ₱1,360 
• Business Permit : ₱300 to ₱5,000 

Note that this does not yet include any operational costs that you might have, such as electricity or water utilities.

• Shu, C. (2021). GrowSari, a B2B platform for small stores in the Philippines, adds investors like Temasek’s Pavilion Capital and Tencent. Retrieved 3 April 2022, from https://techcrunch.com/2021/06/21/growsari-a-b2b-platform-for-small-stores-in-the-philippines-adds-investors-like-temaseks-pavilion-capital-and-tencent/
• Training Calendar. (2022). Retrieved 3 April 2022, from https://pttc.gov.ph/webinar/
• Start and Grow Your Business. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/start-and-grow-your-business/
• KAPATID Mentor ME Project. Retrieved 3 April 2022, from https://www.dti.gov.ph/negosyo/kapatid-mentor-me-project/
• Latest Suggested Retail Prices (SRPs) of Basic Necessities and Prime Commodities. (2022). Retrieved 3 April 2022, from https://www.dti.gov.ph/konsyumer/latest-srps-basic-necessities-prime-commodities/
• Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT). (2016).  Joint Memorandum Circular No. 01, Series of 2016 (Revised Standards in Processing Business Permits and Licenses in All Cities and Municipalities)  (p. 5).
• Ramirez, J. (2020). BIR ditches mayor’s permit as a registration requirement. Retrieved 3 April 2022, from https://mb.com.ph/2020/06/15/bir-ditches-mayors-permit-as-a-registration-requirement/
• Package 1: TRAIN. Retrieved 3 April 2022, from https://taxreform.dof.gov.ph/tax-reform-packages/p1-train/

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated April 18, 2022 12:57 PM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

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The function of sari sari store and its retail

• Category: Business and industrial
• Words: 3718
• Published: 04.15.20
• Views: 2275

The pervasiveness from the neighborhood sari-sari store and its retail approach in low-income residential communities in the Korea remains an unexplained neoclassical puzzle. How can such micro-enterprises continue to work despite diminishing market stocks and shares from extra competition? What explains the relativity in the traditional-trade shops and its “tingi system to Philippine lifestyle? Sari-sari retail outlet is a tiny phenomenon in the vast Filipino cultural and economic scenery and one of the legendary and well known signs of this amazing archipelago in Southeast Asia.

It can be discovered throughout just about every city, every single neighborhood, for almost every corner of any kind of street, in residential areas and even in the poorest squatter communities. Is it doesn’t oldest and smallest sort of store in the country. Thus, Sari-Sari store as well as retail technique known as “tingi or ravage system enjoy a unique role in Filipino culture and a common essentiality of everyday life for the Filipino persons.

Retailing identifies the sale of merchandise coming from a fixed location, whether it is an actual location just as a down-town dress store or electronic location such as an online computer store.

Retailer may be the term used to mean those businesses associated with retailing which is often called store or retail store. Establishments that distribute solutions or community utilities to a large populace are also called a retailer. Retailing is considered a crucial part of the total distribution approach of manufacturing internet marketers. Retailers buy large quantities of products on hand from companies, suppliers, importers, or wholesalers and then sell inventory in smaller volumes to clients. Hence, they can be at the end in the supply cycle. Shopping, and also the buying of goods and services, is a term often associated with retailing. Thus, buyers are usually called shoppers.

Retailing is usually categorized by the kind of products. Food products will be ontop in the list. Including all form of foods be it fresh or perhaps processed things. Second is a hard or durable items also known as hard-line retail. This consists of all kinds of appliances, gadgets, furniture, sports, etc . They are the goods that do not quickly wear out and offer utility with time. Soft goods which contain clothing, attire, and other textiles are the last category. These are generally the products that are consumed following one use or have a restricted period (typically under 3 years) in which you may use all of them. 2

There are several types of retail outlets. Malls are very huge stores supplying a huge range of soft and hard merchandise; often endure a resemblance to a number of specialty retailers. A retailer of these kinds of store bears variety of categories and features broad selection at normal price. They offer considerable customer support. Discount shops tend to give you a wide array of goods and providers, but they contend mainly on price provides extensive assortment of merchandise by affordable and cut-rate prices. Normally stores sell less fashion-oriented brands. Warehouse shops offer cheap, often high-quantity goods piled on pallets or steel shelves. Selection stores ” these provide extremely cheap goods, with limited assortment. Mom and pop is known as a retail outlet that may be owned and operated simply by individuals. The range of products are very selective and few in numbers. These kinds of stores are noticed in local community often happen to be family-run businesses. The square feet area of the store depends on the store holder. Specialised stores target a particular category and provide advanced of service to the customers. A pet store that specializes in selling puppy food can be regarded as a specialty shop. However , top quality stores as well come under this file format. General store is a country store that supplies the key needs for the local community. Convenience stores happen to be essentially seen in residential areas. They provide limited amount of merchandise by more than average prices using a speedy peruse. This store is ideal for urgent and immediate purchases mainly because it often works together extended several hours. Hypermarkets offer variety and huge volumes of exclusive merchandise at low margins. The operating expense is comparatively less than other selling formats.

Supermarkets are self-service stores consisting mainly of grocery and limited products on non-food items. Malls have a variety of selling shops at a single store. They accord with goods, food and entertainment within roof. E-tailers wherein buyer can shop and order through net and the items are dropped at the client’s doorstep. In this article the stores use drop shipping technique. They agree to the repayment for the product but the buyer receives the item directly from the manufacturer or a wholesaler. This file format is ideal for customers who will not want to journey to retail stores and are interested in house shopping. Snack Machines happen to be automated device wherein consumers can drop the money in the machine and get the products. 3

Retailing inside the Philippines encompasses a whole range of venues including sari-sari shops (mom and pop stores), sidewalk suppliers, wet and dry market segments (produce and dry goods), groceries, supermarkets, hypermarkets, stockroom and discount clubs, significant malls, nearby mall stores and shops, and convenience stores, that are also known as c-stores (Omana, 2003). Largely, the Philippine selling industry can be fragmented, good results . the inroads of foreign retailers, the industry may see some standard of consolidation (Lugo, 2002).

The lifeblood of Philippine selling is the large network of small unique stores known as sari-sari retailers. Sari-sari shops make up 90% of the stores. These traditional-trade stores rule in countryside places in the Philippines. Sari-sari means various kinds, referring to the products that are available in many of kinds and sizes, from goodies, detergent cleansing soap, toothpaste, canned goods, caffeine, soft drinks and ice-cold beer, instant canton noodles to a load for your cell phone.

The informal retail sector in the Philippines portrays a wide array of small-scale production that may be usually managed by persons or households. The sari-sari store can be described as retailing operation which let us the consumer order goods inside their exactly necessary amounts. These types of stores allow the consumers buy items and items by the unit rather than the whole parcel. This approach known as “tingi or escarcelle purchasing provides low-income earners who make an effort to buy food in whole package deal. A sari-sari store is usually allocated in a portion of the owner’s home. Filled in this location are the display room, inventory room, and a small doing work place. Orders are made by using a broad windows with the customers remaining outside the store. Products are viewed in a significant screen-covered or perhaps metal banned window before the shop. Candies in recycled jars, refined goods and cigarettes are often displayed whilst cooking petrol, salt and sugar are often stored in the back of the store. Many items are hung through the ceiling or perhaps on the surfaces to save space. Frequently a big signboard is definitely drawing the interest of the consumer, bearing the first, the last name or perhaps initials of the owner, every now and then with appearing names. Generally speaking, alongside the store name, prominent advertising materials of the main supplier, generally a cigarette brand, softdrink company or beer brewer is published. Wooden desks and benches are set up in front of the shop for all their patrons; this kind of hangout (tambayan) offers a shelter from the hot sun during day time and provides refuge from your tropical rain fall. It is a place where you can fulfill friends and neighbors and catch up within the local gossip (chismis) surrounding the block any time you like.

These humble grocery stores (tindahan) have been up and around for many years, it is believed that the 1st stores date back more than 500 years ago. Sari-sari stores shot to popularity when the Philippine-Chinese trade was initiated through the Sung Empire Period. It served as trading posts in many regions. Those wandering variety shops became stationary and this marked the beginning of its prominence. Sari-sari retail store is consequently a piece from your past, it really is still present today but it will surely be presently there in the future.

A sari-sari retail store is mainly a retail procedure. Thus, Sari-sari store owners produced retail tactics that will provide the requires of their buyers. In a low-income community, simple necessities can be purchased in single-use packets (tingi), allowing everybody to purchase the goods they need at reasonable prices.

Eras before the dawn in the big companies, piecemeal purchase choices like sachets dominated. Throughout the mid-16th century, the time following Spaniards ended up in the Thailand, early documents state that ravage marketing was obviously a common workout among retailers which supplies the Filipinos with their basic requirements. According to American anthropologist William Holly Scott in the book Barangay: Sixteenth Century Philippine Traditions and World, packaged hands sugar or perhaps kalamay amongst goods had been sold in small packages, together with wild fruits, nuts, back garden vegetables, and medicinal herbal remedies. Scott adored the cleverness of the local people who also had tiny weighing weighing machines for rare metal lattice that they used to acquire as repayments for products sold. The term “alig-ig was used for the practice of buying small provides at a time. Piecemeal selling in that case became a retail practice which was then the local sari-sari store owners. They have a tendency to practice repackaging different types of goods in smaller quantities in small daily news packets, banana/coconut leaves, or reusable jars and bottles and bought at a very low price. This selling technique became a endurance technique for the natives might be famine and scarcity soon after the World War II. Actually decades after, piecemeal order maintains to become a habit among Filipinos. on the lookout for “¦. Tingi literary means retail selling, by the part, as each time a pack of cigarettes is sold. But a Sari-sari storeowner would rather reserve the use of the terms to the situation where the pack is definitely opened and the cigarette supports are sold individually¦. Goods sold in tingi contact form are: cigs which are bought by the pack, opened and sold by sticks; turmeric, which is cut and retailed by small slices; bug coils, bought per field of doze or 18 andsold by the individual coils; vegetables just like squash and sponge ankylosé, which are broken into many parts; biscuits, bought by the can easily and marketed by the piece; fruits like watermelon, papaya and blueberry, bought whole and divided into smaller pieces; bond daily news bought by simply ream and resold by sheets; and cotton, actually in rotate form and repacked in to smaller lots¦. 

Making one’s item in smaller and more affordable packs to increase market discernment is known as sachet marketing. It really is commonly linked as a device for infiltrating the market in the bottom of the economical pyramid. Sachet marketing is famous and successful in the Israel not just as a result of prevalence of poverty nevertheless because of several critical elements like the existence of a full distribution network known as sari-sari stores.

Part by part purchase alternatives like sachets give a modern way of advertising consumer goods. Redesigning, repackaging and reselling a product within a smaller deal at an affordable price will be included in the technique of sachet marketing. It does not just involve the physical product but as well the whole promoting system. Selling products in micro packs are known to international companies in a booming economy like the Korea. Most Filipinos (nearly 90%) buy products in mini sizes. This demonstrates that sachets are fast being approved simply by consumers throughout socio-economic strata in emerging markets.

Several multinational companies inside the Philippines such as Uniliver, Proctor & Bet, and Nestle produced low-priced micro bags for daily needs just like shampoo, soaps, cigarettes, and foods. These types of sachets will not depict the most economical way of buying products but they come to the basic essentials of the Filipinos in terms of low purchase price. The wide variety of the products was retailed through the neighborhood sari-sari stores.

There are several factors that help the success of sachets or perhaps micro bags. In Thailand, the small sari-sari stores help the syndication of goods. Sachet packs are definitely the enactment of “tingi system also known as advertising in price tag. Retail stores probably would not literally endure without the sachets of products. A good distribution anchor should be well-planned in terms of tertiary selling. One factor contributing to ravage marketing accomplishment is an extensive network of corner shops that will take the products.

“¦. the identified top three factors favoring sachets will be affordability or minimal cash-out for the consumers, moveability or the convenience of the smaller packs, and environment of serving that makes it possible for control over intake. All the 8-10 executives, irrespective of product category, agree that sachet marketing has been successful in the Thailand because of the low cash-out for the customers, given the “total idea of cost and volume for their quick needs. It can be adjusted to get promotional make use of, as well as for sustaining the presence of their particular brands amongst a wide spectrum of consumers across income groupings. Due to moveability and cost, products in small provides are made accessible in practically all kinds of outlets ” from mammoth wholesalers to ambulant peddlers ” going through all segments of the culture. It is accurately this versatile distribution channel, whether it is considered systematic or not, that actually works as the substratum to get the powerful existence of sachet marketing in the Korea. 

Saccage have for a few decades right now, been marketed by firms as a technique to increase trials and marketplace penetration especially in the economically underprivileged societies in the emerging market segments. Very often the presence of an economic underclass is thought to be a necessary prerequisite for the powerful implementation of sachet web marketing strategy. Our fresh theoretical construction, grounded inside the relevant books, is also coherent with the the latest business practices. We find that sachet online strategy does not need the frequency of lower income, and the important success factors are an intensive retail circulation, favourable socio-cultural factors, higher perceived benefit by the buyers, and technology to reduce product packaging costs.

Sachet economy identifies the practice, especially in poorer communities, of getting consumer products such as detergent, shampoo, powder milk, or perhaps beverages in single-use packages. A sachet economy encourages the consumption of little units of the product which is appropriate for buyers with very little money readily available. “I think the Korea is a gibecière economy in the sense that many Filipino consumers have got enough getting power to buy sachet bags of almost anything at all,  Fin L. Terosa, senior economist at the School of Asia and the Pacific (UA&P) explained. 17 “I think low household spending budget or purchasing power is liable for the apparent sachet economic climate. Economies undertake a escarcelle economy because of the inability to allocate more cash for regular-priced items,  Mr. Terosa said further more. 18 Financial experts observed that both equally local and foreign business people adjusted their particular packaging based on the needs in the people, especially those who are part of the lower income line. The indegent cannot afford large items, thus investors manufactured their products, mostly in sachets so as to bring more income from their store as their primary consumers.

Research shows that practically 50 % of the country’s population of almost 80 million belongs to the poverty line. For this reason, business experts described the prevailing situation as identifiable to a “sachet phenomenon. The devaluation of peso contributed to this kind of economical upheaval. The greater the sobrecarga devaluates, the greater sachet items are becoming introduced by the business sector.

Businesses -big and small- have resorted to product downsizing in a variety of ways as well as for various causes. Producers might openly and legitimately downsize during unclear times, when ever customers are cautious and are not within a spending mode/mood and will want to stick to a bare-bones price range. They would downsize in order to promote to low-income markets that they otherwise more than likely be able to reach with their greater, more expensive deals. Low-income Filipino earners would rather buy “tingi-tingi packs which sari-sari shops, market vendors and itinerant peddlers are masters of. Thus, basic food products like sugar, self defense, flour, preparing food oil, powdered milk, coffee, vinegar, soy sauce, seafood sauce, so many others are now sold in little sachet packages. Similarly, other basic necessities like laundry detergent, dish washing the liquid, bath cleansing soap, shampoo, tooth paste, and cooking fuel have been completely packed in smaller sizes.

“¦Smaller merchandise sizes allow consumers to manage through usage-economization, and delay substitution or elimination of the item. For example , single-usage bouts of hair shampoo or tooth paste permit the occasional usage (e. g. particular occasions) between low-income consumers who happen to be known to convert to ordinary bath/laundry soap instead of shampoo and to salt rather than toothpaste. Down-sizing could motivate trial usage by lessening monetary risk, as well as maintain brand devotion by reinforcing consumers who have are hiyang or sanay tothe manufacturer through the repair of usage¦

Corinna T. De Leon, “Consumer trends inside the Philippines: Promoting in a Deteriorating Economy,  Historical Perspective in Customer Research: Nationwide & Worldwide Perspective (1985), 173-181. Hiyang pertains to it tends of Filipinos to develop a sense of unique match ups with a particular product, and sanay means a rely upon the product borne of regular usage above Lime (Roberto, 1982a). Furthermore smaller product packaging may be specifically convenient for housewives who also, as the purchaser of household merchandise, have to satisfy the varied preferences of j-he members with the typically large Filipino home without repressing her expense consciousness. Small packaging models conform to the regular tingi-tingi system of small spot outlets named the “sari-sari store which in turn sell cigarettes by the keep, vinegar by cup, and a lot of household items repackaged in small plastic-type material bags. Downsizing seems to be the right response to the consumers dependence on tighter control of cash items. As such down-sizing could reduce the stress of purchase events for the majority of Filipino consumers who, in belonging to the low-income segment, are very vulnerable to anxiety¦

For a lot of Filipinos, size does matter these days ” the smaller, the better, because then they are able to afford to buy that. With the throw-away income of Filipinos diminishing almost daily, various families right now find ordering in large quantities just out of the question, and consumer-goods suppliers seem to have got introduced micro-marketing, also known as the make-it-small-and-snappy advertising tactic or perhaps the sachet marketing strategy, just inside the nick of the time.

Open seven days a week with an average of 14 hours a day, the small village stores enjoy an extremely significant economic and social function in city centers, town slums, countryside townships and small barrios.

A sari-sari store shows a vital role in Philippine overall economy. The sari-saristore allows people of the community easy access to basic products at low costs. In the Philippines, numerous people earn just enough to give food to them throughout the day, so they can only afford what they dependence on that day time. Sari- sari stores stick to the concept of tingi or retail so that a customer can buy ‘units’ of the item rather than complete package. This really is convenient for those who cannot buy the whole bundle or do not require much of that.

BIBLIOGRAPHY

I. Catalogs

Garcia, Marita and Every Pinstrup- Andersen. The Preliminary Food Selling price Subsidy Plan in the

Philippines: the impact on cash flow, food consumption, and nutrition position.

Buenos aires D. C.: International Food Policy Exploration Institute, 1987.

Markides, Constantinos C. Game-changing Strategies: Tips on how to create fresh market space in

established companies by damaging the rules. San Francisco, CA: John Wiley & Sons

Newman, Toby J. and Peter Cullen. Retailing: Environment and Businesses. Singapore: Seng Lee Press, 2002.

Panopio, Isabel S i9000. and Realidad Santico- Rolda. Society and Culture. Quezon City: Katha

Creating Inc., 06\.

Schelzig, Karin. Poverty inside the Philippines: salary, assets, and access. City Manila: Cookware Development Traditional bank, 2005.

Silverio, Simeon G. The Neighborhood Sari-sari Store. Quezon City: Commence of Filipino Culture, Accademia de Manila University, 75.

II. Journals

Ang, Rodolfo and Paul A. Sy-Changco. “The Trend of Gibecière Marketing: Lessons to be learned from the Philippines.  American Marketing Association Conference Proceedings 18 (Summer 2007), five.

De Leon, Corinna Capital t. “Consumer developments in the Israel: Marketing within a Deteriorating Overall economy.  Historic Perspective in Consumer Study: National & International Point of view (1985), 173-181.

Kuang- Jung, Chen. “The Sari-sari store: Informal Retailing in the

Philippines.  Journal of Small Business Managing 35. 5 (October 1997), 88-91.

Markides, Constantinos C. and Jamie Anderson. “Creativity is insufficient: ICT-enabled Tactical Innovation.  European Log of Development Management on the lookout for. 2 (2006), 135- 136.

Munoz, Draw J., Peter Raven, and Dianne HB Welsh. “Retail Service Top quality Expectations and Perceptions among Philippine Small/Medium Enterprises.  Journal of Developmental Entrepreneurship (June 2006), 146-147.

Sy-Changco, Joseph A., Pornpitakpan Chanthika, Ramendra Singh, and Celia M. Bonilla. “Managerial ideas into Escarcelle marketing Strategies and Popularity in the Philippines.  Asia Pacific Log of Marketing and Logistics 23. 5 (2011), 755-756.

3. Online Options

Anonymous (2008). Tingi-Mentality: Benefit or Bane?. Retrieved from http://jfernando.i.ph.

Confidential (2010). The Sachet Economic system in the Philippins and its Invisible Costs. Recovered from http://www.icyte.com/saved/www.articlesbase.com/367498.

Magna Kultura Foundation. Leaving you Sari-sari retailers in the Israel. Retrieved from http://www.multiply.com/search/?l=1&show_interstitial=1&u=%2Fjournal%2Fitem&q =Empowering+Sari+Sari+Stores+In+The+Philippines&from=magnakultura.

one particular

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What is sari-sari store?  

A sari-sari store is a type of small retail store commonly found in the Philippines. It serves as a place where people can buy everyday goods in small quantities. These stores play a vital role in providing economic sustenance to low-income communities, serving as a hub for both economic and social activities. Sari-sari stores are not only a source of income for the owners, but they also create employment opportunities and supply daily necessities. They are often utilized by manufacturers as distribution channels for their products, particularly in targeting the base of the economic pyramid. The presence of sari-sari stores in a community creates a discursive space for informal social control and acts as a myopticon, where people's day-to-day dealings are reported and brought under the gaze of the entire community. The financial behavior of sari-sari store owners is influenced by various demographic factors, such as age, sex, family income, and educational attainment.

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Sovremennik" cinema square, Elektrostal Live Cam

Sovremennik" cinema square, elektrostal.

Live webcam shows the square in front of the cinema «Sovremennik» in real time. The camera is installed on the house number 18 on Mir Street in the city of Elektrostal, Moscow Region, Russia. The live camera is aimed at the monument to I.F. Tevosyan, which is located on the square of the Sovremennik cinema. The intersection of Tevosyan Street and Mir Street is in the field of view of the web camera. Therefore, this live camera can help assess the workload of this section of the road and the presence of congestion at the intersection. The main entrance of the school №13 and the pedestrian crossing in front of it also on the broadcating.

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Geographic coordinates of Elektrostal, Moscow Oblast, Russia

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Coordinates of elektrostal in degrees and decimal minutes, utm coordinates of elektrostal, geographic coordinate systems.

WGS 84 coordinate reference system is the latest revision of the World Geodetic System, which is used in mapping and navigation, including GPS satellite navigation system (the Global Positioning System).

Geographic coordinates (latitude and longitude) define a position on the Earth’s surface. Coordinates are angular units. The canonical form of latitude and longitude representation uses degrees (°), minutes (′), and seconds (″). GPS systems widely use coordinates in degrees and decimal minutes, or in decimal degrees.

Latitude varies from −90° to 90°. The latitude of the Equator is 0°; the latitude of the South Pole is −90°; the latitude of the North Pole is 90°. Positive latitude values correspond to the geographic locations north of the Equator (abbrev. N). Negative latitude values correspond to the geographic locations south of the Equator (abbrev. S).

Longitude is counted from the prime meridian ( IERS Reference Meridian for WGS 84) and varies from −180° to 180°. Positive longitude values correspond to the geographic locations east of the prime meridian (abbrev. E). Negative longitude values correspond to the geographic locations west of the prime meridian (abbrev. W).

UTM or Universal Transverse Mercator coordinate system divides the Earth’s surface into 60 longitudinal zones. The coordinates of a location within each zone are defined as a planar coordinate pair related to the intersection of the equator and the zone’s central meridian, and measured in meters.

Elevation above sea level is a measure of a geographic location’s height. We are using the global digital elevation model GTOPO30 .

Elektrostal , Moscow Oblast, Russia

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