Running a sari-sari store business is common in the Philippines, but making it profitable takes more than just putting products on shelves.
As a sari-sari store owner, do you know how to meet your community's needs and keep them coming back? Let's dive in!
8 Tips To Have A Successful Sari-Sari Store Business
Running a sari-sari store can be both rewarding and challenging. Here are some practical tips to help you increase your profits and ensure steady growth:
Make sure your inventory matches the demand (Dapat swak ang paninda sa hanap ng customer)
Understanding what your customers need is important. Selling basic or essential products that are in high demand ensures fast turnover.
Observe which items sell out quickly and keep those well-stocked. You'll save money and space by avoiding products that don't sell fast.
Ask your regular customers for their preferences and adapt your inventory accordingly. This will help you stay relevant and meet their needs effectively.
Pro Tip: Take note of products that customers are looking for but are not in stock, then buy those in your next grocery run. You can also offer alternative brands to what they are looking for.
Keep track of your stock levels (Bantayan ang stocks para 'di ma-sold out)
Keeping an accurate record of your supply is necessary for avoiding shortages or overstocking. Use a simple notebook or a spreadsheet to track your store's inventory.
Update it daily to show what goes in and out. Proper stock management helps you avoid losing sales due to out-of-stock items and minimizes waste from expired goods.
Integrate technology if possible, like inventory management software, to automate tracking and gain detailed insights.
Invest in a marketing strategy. (I-promote and tindahan gamit ang Facebook)
Even a small corner store will benefit from marketing.
Simple strategies, like setting up a Facebook page or setting up posters to promote new items or special deals can make a big difference.
Word-of-mouth is also powerful, so provide exceptional service to encourage people to spread the word.
Separate personal and business expenses
It's easy to mix personal and business finances, but this muddles your understanding of your income, profits, and losses. Maintain separate records for personal and business expenses.
Open a separate bank account for your sari-sari store to better manage your cash flow. This discipline helps you see the true financial health of your business and plan more effectively.
Pro Tip: If a bank account is out of the question, using GCash and Maya to separate your personal and business cash flows should do the trick.
Maintain competitive prices ('Wag masyadong mahalan ang presyo)
Pricing can make or break your sari-sari store. Look around and see what competitors are charging and keep your prices in line with or slightly below competition.
You can also offer discounts strategically on popular items to drive traffic to your store.
However, avoid reducing prices too much to the point of losing profit. This is a very common mistake, especially for inexperienced store owners.
A price war is a race to the bottom of the barrel. Everybody loses.
Win at customer service (Bawal masungit!)
Good customer service creates loyal customers who will return and recommend your store to others. Greet your patrons with a smile and be helpful.
Assist them in finding what they need, suggest alternatives, offer personal opinion, and thank them for their purchase. This simple yet effective approach builds a strong relationship with your customers.
Address complaints or issues promptly and politely, ensuring that they leaves satisfied.
Reward the most loyal customers.
Loyal customers are the backbone of your business. Indeed, according to this Forbes article, loyal customers have 67% more order value than new customers.
Show them your appreciation by offering special discounts, freebies, or loyalty cards.
A points system where customers earn rewards for repeated purchases can also keep them coming back. Small gestures can go a long way in building long-lasting relationships and increasing customer retention.
Pro Tip: Unlock perks of bonuses if a customer achieves certain milestones (e.g. 5,000 spending in a month). Perks like a credit line or special discounts go a long way to retain a suki.
Do you have a credit line? Collect debt via text or Facebook message. ('Wag mahiya maningil)
Allowing credit or utang can be a double-edged sword. It can increase revenue, but you also risk non-payment from certain members.
Here are a few things you can do:
- Get their contact details - before you allow credit, collect information like their name, address, contact number, and Facebook account.
- Collect debt before the 15th and 30th of each month. This ensures that repayment of store debt will be prioritized over other financial obligations.
- Only open a credit line for the most loyal customers. And remember, a credit line is a privilege, not a right, so don't be afraid to take them away from delinquent debtors.
Boosting your sari-sari store profit doesn’t have to be complicated
Running a sari-sari store can be both rewarding and challenging. Use these eight, doable tips to make your store more successful!
