Gross Profit Rate - Sari 2x

[JohnSurrey 544]

My wife has a very small Sari2x... and the other month we started selling rice - a bag of rice costs "us" about 1,650 and we sell it for 38/kg so we make a GP of 250 on a bag - which I think is pretty good...

 

Conservatively, we sell a bag every 5 days so we make about 18,250 p.a. on the 1,650 we invested...

 

I guess our other main products are beer and coke... and then "we" sell a variety of "swak" pak things - like milo, bearbrand milk, coffee etc etc...

 

I was just looking at Greengate Sari2x and I was wondering what GP rates other's were getting on the products they're selling...

 

I'm thinking we really should be selling cakes and stuff like that to go with the beer and coffee in the morning...

[billy 1,691]

My wife has a very small Sari2x... and the other month we started selling rice - a bag of rice costs "us" about 1,650 and we sell it for 38/kg so we make a GP of 250 on a bag - which I think is pretty good...

 

Conservatively, we sell a bag every 5 days so we make about 18,250 p.a. on the 1,650 we invested...

 

I guess our other main products are beer and coke... and then "we" sell a variety of "swak" pak things - like milo, bearbrand milk, coffee etc etc...

 

I was just looking at Greengate Sari2x and I was wondering what GP rates other's were getting on the products they're selling...

 

I'm thinking we really should be selling cakes and stuff like that to go with the beer and coffee in the morning...

 

what i don't understand your math if selling a bag every five days at the end of the month you made 1250 pesos. sounds like you guys are doing great. now if you opened 100 sari saris you would make 125,000 per month if you sold the same quantity in each store. good luck on your robust business. sounds like i'm in the wrong busines

Edited June 16, 2013 by Paul
sorted quoted text.

[panther 845]

john you won,t get rich m8 thats for sure been there done that its not worth the effort IN my opinoin 

[billy 1,691]

you might also want to introduce chocolate milk 

[throttleplate 1,900]

is it me but i cant understand what you are saying

[billy 1,691]

i would put a couple computers in there for internet that will increase your profits ten fold. then your wife can save for a trip to boracay

[udonthani 2,027]

i would put a couple computers in there for internet that will increase your profits ten fold.

LOL. Math is not your strong suit is it. They cannot charge more than 10 pesos or at most 15 pesos per hour. Calculate the revenue yourself, even if they are each occupied 24 hours a day, which they won't be. Probably more like 5 hours, out of every 24, if you are lucky. And then you have maintenance and electricity to pay on top.

[billy 1,691]

LOL. Math is not your strong suit is it. They cannot charge more than 10 pesos or at most 15 pesos per hour. Calculate the revenue yourself, even if they are each occupied 24 hours a day, which they won't be. Probably more like 5 hours, out of every 24, if you are lucky. And then you have maintenance and electricity to pay on top.

 

LOL. Math is not your strong suit is it. They cannot charge more than 10 pesos or at most 15 pesos per hour. Calculate the revenue yourself, even if they are each occupied 24 hours a day, which they won't be. Probably more like 5 hours, out of every 24, if you are lucky. And then you have maintenance and electricity to pay on top.

i was thinking if you hook three computer screens to one computer and use a splitter you can make 3 times the revenue. 

also if you give each customer a glass of chocolate milk you could charge 25 pesos per hour

Edited June 14, 2013 by billy

[KennyF 3,855]

The aim in retail is to make a big margin on stuff you don't sell often and a smaller margin on high turnover goods.

If you buy a big tin of biscuits for 300 pesos, and only sell one a month, you need to add say, 33% and sell it for 400 pesos.

But a packet of biscuits that costs 10 pesos and sells several a day can be marked up just 10% and sell at 11 pesos.

 

In a previous life I had a chain of pet stores and I would sell a specific breed dog book say, that I bought for $5 for $19.95.

Because I sold one of those books only every other blue moon.

Dog food on the other hand like Eukanuba was marked up only 5% to 10% but sold every day.

 

KonGC

[Raven 629]

We are also selling rice, but it´s more as a service...it´s not where the money is. I think what you find in Gaisano...we have it.. Cold Softdrink and Beer...be sure to always have stock cold...yes, as mentioned Zesto Choco Milk and Zesto Juices, cheap bread/cake, medicine, just common things for headache/stomachache, kahoy & gas, small & cheap toys...well, anything, you can sell it all, but it very much depending on your location also. Average gain, I think is 25%.

And yes, there is a lot of work in it.

 

Forgot of cause, cigarettes, charging cellphones, and load (small gain, but you can sell a lot of it)

We have so many things, I can´t even remember it all - and no it´s not a 3-storey building, but 12 sqm + bodega.

Edited June 14, 2013 by Raven

[udonthani 2,027]

i was thinking if you hook three computer screens to one computer and use a splitter you can make 3 times the revenue. 

also if you give each customer a glass of chocolate milk you could charge 25 pesos per hour

sorry but you are dreaming. Pretending that the market is something like it is in the west i.e. if you sell somebody a cup of coffee, then they can go on your internet station - when it is not. Price for internet has nosedived in the Philippines in the past few years and a lot of cafes that were thriving in Cebu city in about 2007 and you could tell were turning a pretty good profit have closed with the buildings being now used for other purposes. The time to get into that, was 10 years ago. I've seen dozens of icoin operated internet stations all over the country. 5 pesos will usually get you 30 minutes, 1 peso, 4, 5, or 6. There's no money in that. And occupancy rates are usually pretty low. Foreigners seem to have trouble understanding, that even 10 pesos is quite a lot of money in the Philippines.

[Edwin 7,415]

How much should it cost to open a successful Sari Sari?

 

Hapinoy offers advice and other services for Sari Sari store owners, most of whom are women.

 

http://www.hapinoy.com/

[KennyF 3,855]

>>> How much should it cost to open a successful Sari Sari?

 

If you wanted to do it right, you should look at a 7 Eleven or Mini Mart franchise.

 

Sooner or later, these 24 hr convenience stores are going to take off in a big way.

There are nearly 7,000 in Thailand already and 15,000 in Japan.

 

KonGC

[smokey 21,914]

dont try to make to much money or you will see the BIR guy... my wife has a cousin with a large store and BIR dinged them 3 million and settled for 900.000p ... now they only sell rice and wine wholesale no more grocery items

[udonthani 2,027]

If you wanted to do it right, you should look at a 7 Eleven or Mini Mart franchise.

while this is true, they do not have to be franchises, like 7 Elevens or Mini Marts. They can just be walk-in saris with a bit of thought, given over to presentation. Input from westerners suffering from Saint Amerikano syndrome and who consider themselves business whizzes even though they are just geriatric bums,  is not necessary. Filipinos are perfectly capable of figuring out how to do it for themselves. The know how to sell to other Filipinos better than westerners do. They might just have a problem, raising the capital. That is where westerners come in most useful.

 

all over the Philippines I'm seizing expanded retail operations where there wasn't anything before. Including Mambajao, where there is at least one quite competent 24 hour convenience store now.

Edited June 16, 2013 by udonthani