There are a lot of factors that can make or break the business. A typical small business in the Philippines, the sari-sari store, requires discipline, attention, and focus.
The number one reason why most owners put up sari-sari stores is because they want some nice profit while providing the daily needs of the family. Yet, most of these fail and become bankrupt in less than a year. Here are some tips to make your sari-sari store successful.
You should consider the store as if it’s not yours.
Buy what you want to take in the store with your own money. Consuming your goods will make you lose your initial capital, no matter big it is. The problem is not that you take from your stocks but that you don’t pay for it. In simpler terms, you have to make yourself pay your credit even if it is your store because you are spending away your capital.
Take only 10% or less from your daily income
You should only take 10% of your profit for each day. Make a plan on how to do this because this is very important on how to manage your gains. The common misconception of most store owners would be taking away a definite amount each day. This is, in fact, effective if you’re talking about a business that doesn’t have “poor days” or those days where you have meager sales. The problem would be cutting on your capital. Some stores use a computerized program to compute their gains for the day. You could also solve this manually by using a calculator and taking 10% off your daily sales. This is used to prevent you from taking too much from the profit.
Do not overprice
Your customers would probably be your neighbors, and both of you would probably be going to only one supplier. They know how much your product costs. Much more so that we have technology with advertisements always saying the product SRP. You have to think of how much your prices should be. Enough to make a profit as well as affordable that your customers will still buy. Be reasonable with your quotation. Keep in mind also those products which use electricity. The only time you could probably overprice will be if you are in a remote area. It is because they have no other choice and because of the transportation expenses.
Stock up on the basics
Start by basics first and observe what your customers want to buy the most and which they don’t, so you have an idea of how many you will buy for your store. Some of these are cigarettes, bottled drinks and beverages, toiletries, canned goods, noodles, cooking aids, sachet products, and snacks.
The store must always be open
People will ever want to buy in one store only, and if you let them down, they would have to go to another store. If your store is often out of stock or still closed, customers tend to skip your shop because you have lost credibility as a store.
Maintain product quality
Don’t ever try selling expired products; you will lose your customers that way. Always clean your store, and protect it from rats and insects. Wipe off dust regularly.
Repack items into smaller, more affordable packages
If you have already established your store, you can start repacking large amounts of items into smaller amounts. Most of these are sugar, salt, and other cooking aids. Just make sure you do it in a clean and sanitary manner so that people would still buy from you.
Identify seasonal favorites.
On hot months, invest in refreshing drinks and beverages and expand your selection. On cold months, invest in canned goods and noodles. Also, stock up on insect repellents and emergency rations like flashlights and matches. Toiletries are always in demand, and so are cooking aids.
Don’t allow credits
Unless, of course, it is you or your immediate family and closest friends or those people whom you trust to pay for it on time as a whole. Some people would say they will pay but will not pay on time. This also makes stocking up harder because you could lose your capital.
Stack the old stock on top
Put your old stock in front or up high so that it will be the first to go when somebody buys it.. this is a standard in every market.
Be kind to your customers
It is mostly the patronage of customers that make your business grow, so be sure not to lose them. If possible, do not let them wait, or else they will have to find another store.
Follow the techniques because they are tested and proven. Keep on growing your business using discipline, attention, and focus.