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Gross Profit Rate - Sari 2x


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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.

That would be a nightmare!

Yes, the tindera should be filipino/a, but behind should be a westerner or Chinese to make it successful.

It´s not solved by raising capital once..but it´s a constant need ´cos they will eat it up or their family will.

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>>> 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 convenienc

I don't think that is true at all. Filipinos in general are not that snobby apart from the small number of urban types and the small number that are relatively rich and who may get ideas above their n

John,   Read all Whippy's posts, he's writing a lot of sense.  Expatriates do not, in the main, understand the Filipino market.  Sari sari stores and carinderias are some of the most competitive sma

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John,

 

Read all Whippy's posts, he's writing a lot of sense.  Expatriates do not, in the main, understand the Filipino market.  Sari sari stores and carinderias are some of the most competitive small businesses in this country.  Here are some of my observations after six years of operating a carinderia with small sari sari outlet on the side.

 

  • Price is the dominant factor in the 'street markets.'  If by applying business mark-up rules your prices are slightly higher than the competition (even though you may believe you are offering better 'value') then your customers will vote with their feet.
  • You have to price your goods the same (or less if you want to start a price war or put the squeeze on the competition) as the other outlets in the locality.
  • Given equality of price, Filipinos will nearly always use the nearest sari sari.  Your market is therefore limited to the number of people in your immediate locality.  It becomes difficult to grow.
  • Avoid promotions in all their forms - special limited term offers, 'free' drink with every internet-hour, three-for-the-price-of-two, etc.  They cause you a lot of bother; they invariably lose money; the 'new' customers you attract will leave as soon as the promotion ends and move onto your competitors promotion.  In summary: loss leaders do not work in this type of market. 
  • Look at the range of goods on sale at your competitors.  Most of them have been at it a long time and have found out empirically what sells and what does not.  You may be successful in introducing new products but beware of imagining that your customers have the same taste as yourself.
  • Avoid perishable items if at all possible.
  • You can get away with charging more than the cap price for soft drinks and beer if you serve them cold.  Filipinos accept that there is an overhead associated with running a fridge/freezer.
  • Home made ice using filtered water and plastic bags (about 8 x 20 cm) is a good seller and helps to defray the cost of that fridge/freezer.
  • Consider a 'phone and home deliveries for people within, say, 500 M for a small charge of, say, 5 PHP.

I have omitted observations relevant to the carinderia business where quality and size of portion play an important role.

 

PS. I forgot to mention opening hours: they must match or be better than the competition and you must be consistent .

Edited by GoHuk
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here is our little sari we have here 

it is inside the house with siting outside and 4 pc for a cafe 

post-14916-0-85158700-1371375751_thumb.jpgpost-14916-0-10871700-1371375775_thumb.jpg

 

was going to add more but to big :(

 

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Knowdafish

John,

 

Read all Whippy's posts, he's writing a lot of sense.  Expatriates do not, in the main, understand the Filipino market.  Sari sari stores and carinderias are some of the most competitive small businesses in this country.  Here are some of my observations after six years of operating a carinderia with small sari sari outlet on the side.

 

  • Price is the dominant factor in the 'street markets.'  If by applying business mark-up rules your prices are slightly higher than the competition (even though you may believe you are offering better 'value') then your customers will vote with their feet.
  • You have to price your goods the same (or less if you want to start a price war or put the squeeze on the competition) as the other outlets in the locality.
  • Given equality of price, Filipinos will nearly always use the nearest sari sari.  Your market is therefore limited to the number of people in your immediate locality.  It becomes difficult to grow.
  • Avoid promotions in all their forms - special limited term offers, 'free' drink with every internet-hour, three-for-the-price-of-two, etc.  They cause you a lot of bother; they invariably lose money; the 'new' customers you attract will leave as soon as the promotion ends and move onto your competitors promotion.  In summary: loss leaders do not work in this type of market. 
  • Look at the range of goods on sale at your competitors.  Most of them have been at it a long time and have found out empirically what sells and what does not.  You may be successful in introducing new products but beware of imagining that your customers have the same taste as yourself.
  • Avoid perishable items if at all possible.
  • You can get away with charging more than the cap price for soft drinks and beer if you serve them cold.  Filipinos accept that there is an overhead associated with running a fridge/freezer.
  • Home made ice using filtered water and plastic bags (about 8 x 20 cm) is a good seller and helps to defray the cost of that fridge/freezer.
  • Consider a 'phone and home deliveries for people within, say, 500 M for a small charge of, say, 5 PHP.

I have omitted observations relevant to the carinderia business where quality and size of portion play an important role.

 

PS. I forgot to mention opening hours: they must match or be better than the competition and you must be consistent .

Good advice. The most successful Sari-Sari store I have seen also sells bottled gas, charcoal, and wholesales Coke and beer. It is also a walk in establishment that has at least 4 employees (family) manning the place all the time. It has put MANY though college! It easily stomps the other 3 sari-sari stores that are within easy walking distance, even one that is larger. 

 

People like buying from people that they know and are friendly. A relationship is one of the reasons a customer will choose you over the competition. 

Edited by Knowdafish
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billy

here is our little sari we have here 

it is inside the house with siting outside and 4 pc for a cafe 

attachicon.gifIMG_0900.JPGattachicon.gifIMG_0904.JPG

 

was going to add more but to big :(

looks good what is your gross sales per day?

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looks good what is your gross sales per day?

sadly not enough to make a living 

the location is not the best 

but its a good starter buss for my wife 

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billy

sadly not enough to make a living 

the location is not the best 

but its a good starter buss for my wife 

well good luck stick with it. 

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Topper

Saint Amerikano syndrome

:rofl:   Whippy....where do you come up with this stuff?  Funny!

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Contango

>>> 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

Where i was staying in Fort Bonifacio recently there were four 7/11 stores within 2 blocks of my Condo, all doing great business with the 24/7 hours that the call centre workers work...notice to that they're pricing was all very competitive selling most items very cheap, lots of cheap easy microwave foods too...in some parts of the country the convenience store revolution has begun. Edited by Contango
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udonthani

John,

 

Read all Whippy's posts, he's writing a lot of sense.  Expatriates do not, in the main, understand the Filipino market.  Sari sari stores and carinderias are some of the most competitive small businesses in this country.  Here are some of my observations after six years of operating a carinderia with small sari sari outlet on the side.

 

  • Price is the dominant factor in the 'street markets.'  If by applying business mark-up rules your prices are slightly higher than the competition (even though you may believe you are offering better 'value') then your customers will vote with their feet.
  • You have to price your goods the same (or less if you want to start a price war or put the squeeze on the competition) as the other outlets in the locality.
  • Given equality of price, Filipinos will nearly always use the nearest sari sari.  Your market is therefore limited to the number of people in your immediate locality.  It becomes difficult to grow.
  • Avoid promotions in all their forms - special limited term offers, 'free' drink with every internet-hour, three-for-the-price-of-two, etc.  They cause you a lot of bother; they invariably lose money; the 'new' customers you attract will leave as soon as the promotion ends and move onto your competitors promotion.  In summary: loss leaders do not work in this type of market. 
  • Look at the range of goods on sale at your competitors.  Most of them have been at it a long time and have found out empirically what sells and what does not.  You may be successful in introducing new products but beware of imagining that your customers have the same taste as yourself.
  • Avoid perishable items if at all possible.
  • You can get away with charging more than the cap price for soft drinks and beer if you serve them cold.  Filipinos accept that there is an overhead associated with running a fridge/freezer.
  • Home made ice using filtered water and plastic bags (about 8 x 20 cm) is a good seller and helps to defray the cost of that fridge/freezer.
  • Consider a 'phone and home deliveries for people within, say, 500 M for a small charge of, say, 5 PHP.

I have omitted observations relevant to the carinderia business where quality and size of portion play an important role.

 

PS. I forgot to mention opening hours: they must match or be better than the competition and you must be consistent .

that is worthy of a topic header in its own right. He hasn't numbered them, which makes it easier, for other people to reference each one.

 

Avoid promotions in all their forms - special limited term offers,

'free' drink with every internet-hour, three-for-the-price-of-two, etc. 

They cause you a lot of bother; they invariably lose money; the 'new'

customers you attract will leave as soon as the promotion ends and move

onto your competitors promotion.  In summary: loss leaders do not work

in this type of market.

 

absolutely spot on. It just confuses them and ultimately makes them suspicious. It's gimmickry, and most people dislike it. Avoid it. Compete on price and service level and don't bother with promotions. It might work for SMART and GLOBE, but it won't work for you.

 

You may be successful in introducing new products but beware of imagining that your customers have the same taste as yourself.

 

that old story. The amount of failed restauarants that have been set up, by kanos that were not a seller, but was a frustrated customer unhappy he wasn't getting his daily Swedish meatballs so decided to set up himself.

 

Filipinos are not interested in silly Swedish meatballs. It has to be bola bola. No excuses.

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He hasn't numbered them, which makes it easier, for other people to reference each one.

 

I didn't number them because I didn't want to give them any kind of rank - but I take your point.

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billy

i don't know if people are noticing but there are at least thirty  7-11 stores that opened in cebu in last 12 months if not more. there prices are about 10% higher then grocery store

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i don't know if people are noticing but there are at least thirty  7-11 stores that opened in cebu in last 12 months if not more. there prices are about 10% higher then grocery store

 

Same is happening here in Manila but there is still a difference between them and sari sari stores.  7-11s tend to be the 'corner' stores in commercial areas whereas the sari sari stores are placed in residential areas.

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Headed that way

:rofl:   Whippy....where do you come up with this stuff?  Funny!

 

Oh that is easy, England is packed with Perverted Britannica Misers who simply must have some sort of mental diversion to make it through the day while tending the ice cream truck route.  Making up Whippy statements gives them something to do besides ogle the underage girls.   That said, isn't wonderful that England has such a surplus of talent that even their ice cream truck drivers are business experts?

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