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Gross Profit Rate - Sari 2x


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@gohuk 

 

you explained it better then me... but we mend the same

 

haha, the notion that a bored Philippino will open a store so he has something to do is about the dumbest thing that i heard today.....or the funniest...not sure..  :yahoo:

well if a 50 p is enough profit a day for them than it is a buss 

the sari across from us has few stock in it barely any drinks and closes early around 6 

there is no way they can make more than 50 piso  profit a day 

also in some areas there is sari next to sari next sari 

i just dont see any one that spends 18 p and makes 2p profit doing it for money sorry 

in a sari that is 

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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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well if a 50 p is enough profit a day for them than it is a buss the sari across from us has few stock in it barely any drinks and closes early around 6 there is no way they can make more than 50 piso profit a day also in some areas there is sari next to sari next sari i just dont see any one that spends 18 p and makes 2p profit doing it for money sorry in a sari that is

 

I don't think you quite understand the plight of a large percentage of the filipino population. It is a poor country and they do what they have to do to survive.  You may sniff at 10, or 50 or several hundred pesos profit in a day, but they see it different and can feed their families. 

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KennyF

7-11 Franchises are quite expensive, all you need to do is to rent a shop at a good location where people can walk in and sell the same products as you did in the sari-sari with some extras and that's it, you just saved yourself a few million pesos.

 

Wow, sounds great.

Pity you didn't get a chance to explain that business gem to the 50,000 and more 7 Eleven franchise holders around the world.

 

KonG (yes, sarcasm Sheldon)

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udonthani

he does have a point though. Branded convenience stores that you see in Filipino cities more and more (only a small number of which are 7/11s) do not tend to offer anything much that the better walk-in sari stores do. And everything tends to be more expensive in them. I almost never use them unless I need to get especially ice late at night, when the walk in saris have closed. The Philippines is still a long way behind Thailand and Malaysia for 7/11s and it is by no means a surefire bet that they will be as popular in the Philippines as they are there. 7/11s can and have failed as a brand, in some countries.

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BFHammer

7-11 Franchises are quite expensive, all you need to do is to rent a shop at a good location where people can walk in and sell the same products as you did in the sari-sari with some extras and that's it, you just saved yourself a few million pesos.

You don't make money without spending some.  Along with buying recognition the most important thing your buying is knowledge.  Knowledge of where to build it, how to run it, what not to do, bulk purchasing power, and someone to call for advise for a "oh shit" moment. 

 

Running a business is pure stress, those peso's spent take a good chunk of that stress away.  Living every single day with paying vendors, employees, costs, and all knowing everything is up to you is very tiring. 

 

I have a profitable construction company, yet a few bad customers put me in a serious cash flow crunch.  A big part of that is I'm the sales/asskicker type and paperwork be damned.  Without that person making sure all the paperwork is complete and in a timely fashion a lot of profit gets wiped out, 2-3x more than what it would have taken to pay someone to manage it.

 

That was a very expensive lesson.  A blueprint of sorts and someone checking on things would have saved me 150k that I've written off in the last couple years.

 

My question is why do a sari store at all?  It seems to be unproductive.  I wouldn't want my wife(if I had one) spending all her time babysitting a store when she could be assisting me or better yet sitting on my lap giving me kisses.  With places like Odesk, Elance why not spend the money training for a world marketable skill like IT, web design, or even quickbooks and sell your time online? 

 

Or in the hot months why not bounce to the states buy fix and flip a house for 35k US? Then go back when it's nice again.

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ThomsonJr

The real truth is that you don't really need to spend those millions of pesos on franchise royalties to have a good running convencience store in the Philippines. All you need is a name and some distinctive colors, then you stock up the shop with the same products the sari-sari stores sell but in bigger quantities and take 7-11 as an example. You'll definitely spend more money on the design, layout, rent and stock compared to a small sari-sari store but you'll be spending way less than opening a 7-11 Franchise. 

especially in the Philippines, 7-11 doesn't truely guarantee you any success, you can just copy the idea and concept of 7-11 with different colors and a different name, you'll save a few million pesos and won't be running into any more risks than running a 7-11 Franchise.

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Bill H

your post really confuses me, since the "money to pay for their daily needs" has to be profit, otherwise when all the stock is gone they will be unable to buy more stock

 

Exactly!!  I helped my first gf's family in a store.  Every time papa saw money in the drawer, he would reach in and take some.  When they ran out of the initial stock there was no money to replace it, so of course they came to the money tree.  I anted up another round, but told them this was the last time.  They didn't believe me.  I'm a man of my word, so when the store ran out of things the money tree was bare and the store went under.  Since then, I've seen similar things happen over and over again.  The typical SariSari store owner has not concept of accounting or bookkeeping so the failure rate is astronomical.

 

Another lesson learned:  Never loan money to a Filipino, you will almost never get it back.

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Bill H

The real truth is that you don't really need to spend those millions of pesos on franchise royalties to have a good running convencience store in the Philippines. All you need is a name and some distinctive colors, then you stock up the shop with the same products the sari-sari stores sell but in bigger quantities and take 7-11 as an example. You'll definitely spend more money on the design, layout, rent and stock compared to a small sari-sari store but you'll be spending way less than opening a 7-11 Franchise. 

 

especially in the Philippines, 7-11 doesn't truely guarantee you any success, you can just copy the idea and concept of 7-11 with different colors and a different name, you'll save a few million pesos and won't be running into any more risks than running a 7-11 Franchise.

 

Unless the franchise gives you access to suppliers who sell products to you at much lower rates.  If that were the case if might be worth looking into.  However, I agree, you can copy the concept without paying the franchise fee and probably be better off.

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smokey

The real truth is that you don't really need to spend those millions of pesos on franchise royalties to have a good running convencience store in the Philippines. All you need is a name and some distinctive colors, then you stock up the shop with the same products the sari-sari stores sell but in bigger quantities and take 7-11 as an example. You'll definitely spend more money on the design, layout, rent and stock compared to a small sari-sari store but you'll be spending way less than opening a 7-11 Franchise. 

 

especially in the Philippines, 7-11 doesn't truely guarantee you any success, you can just copy the idea and concept of 7-11 with different colors and a different name, you'll save a few million pesos and won't be running into any more risks than running a 7-11 Franchise.

 

The real truth is that you don't really need to spend those millions of pesos on franchise royalties to have a good running convencience store in the Philippines. All you need is a name and some distinctive colors, then you stock up the shop with the same products the sari-sari stores sell but in bigger quantities and take 7-11 as an example. You'll definitely spend more money on the design, layout, rent and stock compared to a small sari-sari store but you'll be spending way less than opening a 7-11 Franchise. 

 

especially in the Philippines, 7-11 doesn't truely guarantee you any success, you can just copy the idea and concept of 7-11 with different colors and a different name, you'll save a few million pesos and won't be running into any more risks than running a 7-11 Franchise.

try finding the stock .... there will be road blocks every step of the way ,, join the group and share or perish 

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BFHammer

A bunch of folks keep trying to do that here in the states. 3 gas stations by me have changed ownership 4-5 times in the last 7 years because they keep attempting to do it as "mini mart" while they sit next to BP, Holiday, or Kwik Trip. 

 

Their places are always shabby and look like the 70's so who would pick them over the nice clean super stations?  The coffee is cold instead of hot, the snacks are more expensive and often some crap brand you never heard of.

 

People think they can save a few bucks reinventing the wheel and all they usually do is give themselves a heart attack from stress and lose every penny because learning how not to fail was already paid by the franchises in blood and sweat.  Paying a little more for less stress and a proven system is well worth it. 

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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

 

 

7-11 Is bad, and i actually dislike their land-grab here in Cebu. Cause they are more expensive and besides looking 'clean' don't offer anything more then what you need. So as a good consumer i just walk past them towards the next establishment that sells what i need.

 

Thoughts on building a general merchandise store, if you do it correctly. With decent personal and sell products everyone needs you might be able to grow big. Truly depends on your location. I have seen stores in the province that are very big and sell about anything just because there is no to limited competition (Good plus on it is, they also supply all the smaller 'neighboorhood' sari's, just because there is no gaisano etc). Figuring that most of us on this forum are probably in Cebu or the vicinity then you get the problem of competing with a shitload of other sari'saris.

 

My dibs, unless you have the will power to sit and do your bookkeeping every evening yourself don't bother with it, the most succesfull sari's i've seen all have a somewhat educated owner and a 'shopkeep'. But the owner is doing her bookkeeping and stocks every single night (by hand, painstakingly i guess). It's a good income for them i guess but not sure if the average foreigner wants to do a lot of handson work for such little returns.

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Davaoeno

 

Branded convenience stores that you see in Filipino cities more and more (only a small number of which are 7/11s) do not tend to offer anything much that the better walk-in sari stores do

 

probably true - but you have a sense of value and search for deals - the average filipino knows for a fact that branded is always a better deal - even if it costs more.   How embarrassing being seen going to a sari sari when there is a branded outlet close by !!   Better to be seen as a branded consumer than a kuriput sari sari consumer !

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tokyoman

Sali Sali's should be selling CONDOMS.....

 

A Money maker and it will help the country

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udonthani

probably true - but you have a sense of value and search for deals - the average filipino knows for a fact that branded is always a better deal - even if it costs more.   How embarrassing being seen going to a sari sari when there is a branded outlet close by !!   Better to be seen as a branded consumer than a kuriput sari sari consumer !

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 normal ordinary station in life courtesy of being involved with foreigners. I guess we've all seen girls acting like they are a character in some kind of glamourous movie just because they've been taking what would normally for them be an unaffordable taxi cab once or twice a day for a week like they see people on the television doing. But they are not typical. Most of them will not want to spend 10% more on the same packet of noodles or a 3 in 1, in exchange for walking past a security guard and into an airconditioned shop. Filipinos are very price sensitive, which is not surprising seeing as their incomes are usually so low.

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smokey

Sali Sali's should be selling CONDOMS.....

 

A Money maker and it will help the country

get a grip no children means so dosh when your old..... Social security and fun at the same time..... 

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