With over a hundred million population, the Philippines is a massive market of consumer commodities, especially daily household need such as food. Grocery stores provide easy access to the products required by the public.
Back in 2012, we have opened a modest grocery store in Montalban, Rizal. Our small business began as a sari-sari store. Thinking of the potential of earning more, we have upgraded it to a small grocery shop where we offer both wholesale and retail.
Discussed below are the essential elements to be considered in opening a small grocery store.
Where to put up your store is a really crucial factor to consider. In our case, we opened our grocery in our house font. It’s located inside a large subdivision. Our advantage was since the public marketplace is far from our location, people can spare money for fares if they buy from us.
You have to hold licenses to operate your business. You only need to visit your municipal or city hall to get these permits. You will be guided accordingly with a step by step procedure. This involves getting clearances from the Barangay, DTI, sanitary department, PNP, and Bureau of Fire Protection.
Focus on the basic needs at the outset. Then listen to your customer’s suggestions on what they require and provide if it’s viable. Keep a complete collection of goods at all times. A one-stop store will draw in more customers. Maintain a good number of stocks to keep a constant flow of commodities.
The primary concern of a grocery store is where to get the stocks to sell. Getting the supplies from a wholesaler or from big grocery chains such as SM Supermarket, Robinsons, or Puregold is the common practice of sari-sari stores.
As a grocery store, you have to get your stocks directly from a distributor. Companies such as Procter & Gamble, Unilever, Fortune Cigarettes, Nestle, etc., have a distributor responsible for supplying the wholesalers. Here you can get huge discounts for purchasing in bulk. Through this, it will be hassle-free as goods are being handed over to your storefront.
Getting a Contract with Distributors
I’ll pass you a tip on how to get a contract from product distributors. Go to the nearest market (palengke) in your locality and observe the delivery vans while they are unloading their goods to the shops. Then approach and speak to the driver/trucking staff and ask for their office contact. Tell him that you have a store and you want to purchase their products. A sales representative will visit your store, and a contract will be checked upon.
On a regular basis, the distributor will unload products at your storefronts. You can receive a consignment contract with them where you can agree on convenient payment terms. We had 7 days to pay the product unloaded by Procter & Gamble, where we only issued post-dated checks.
Wholesale or Retail?
As you get your supplies directly from a distributor, you have a good discount with your products. This implies that you will earn more from selling retail, and makes it flexible to sell through wholesale.
This is a critical part of your business. Like any other well-established company, you have to select the best tindera. She should be a people person with excellent communication and interpersonal skills. And the most important of all she has to be honest and can be trusted in handling money.
If you can handle the day to day operations is better than employing someone. With a small customer base coverage, the success of a grocery is based on a good relationship with customers, mostly your neighbors.
To keep your business secure from theft (by customers or even employees,) it is advisable to install a CCTV in your store. It is the best deterrent to a thief and excellent protection for your investments.
Maybe the most common problem of business is competition. We can look at it as both an advantage and a disadvantage. If you have a competition, you will strive to keep at the top of the game.
The entrance of popular grocery chains such as Puregold Jr and Savemore literally killed the small grocery stores that can’t keep up with the fierce competition. Unfortunately, our business has become a casualty of this urbanization.
EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.
Chat with me
I have ventured into an e-commerce business (online selling) that you might also be interested in setting up. You can visit our website at colibers.com, where you can have a chat with me (just select Contact Us), and I will be more than willing to entertain your questions regarding this post and e-commerce.
Categories: Business Ideas