Sari-Sari Store Business Guide
Here is a step-by-step guide to start a sari-sari store business in the Philippines, including initial investment options, supplier tips, customer management, and sales strategies.
What you’ll learn in this sari-sari store guide
This sari-sari store business guide for the Philippines explains capital options, supplier strategies, pricing, credit control, and customer loyalty so you can run a sustainable neighborhood store.
To go deeper, you can also read our Mini Convenience Store Business Guide and explore tools like the Electricity Calculator and Stock Management System to plan expenses and inventory.
Plan Your Business Smartly
Define your store's mission, target market, and product mix. Decide whether you want a small convenience store or a mini-grocery style setup. Planning helps you stay competitive and organized in a crowded neighborhood.
- Decide on your ideal customer: students, workers, families, or neighborhood households.
- List the top 20–30 items you want to always have in stock (fast-moving essentials).
- Think about operating hours, household help, and whether you will run the store full-time.
Recommended Tools for Your Sari-Sari Store
You can use free demo tools from BusinessMindedPinoy to estimate expenses, track inventory, and plan pricing for your sari-sari store. These are optional, but they can make your planning and daily monitoring much easier.
Expenses and Electricity
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Electricity Calculator – estimate your monthly kuryente cost based on your lights, freezer, fan, and
other appliances.
https://electricity-calculator.businessmindedpinoy.com/
Inventory and Pricing
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Stock Management System – track how many pieces you have per item, re-order points, and weekly
inventory audits.
https://stock-management-system.businessmindedpinoy.com/ -
Product Costing Calculator – compute costs and suggested selling prices for bundled items or new
products you want to try.
https://product-costing-calculator.businessmindedpinoy.com/ -
Rice Store Calculator – if you plan to sell bigasan-style rice, this tool helps you plan markup,
pricing, and profit per sack.
https://rice-store-calculator.businessmindedpinoy.com/
Prepare Capital and Budget
Decide your starting investment. This will determine the size, inventory, and product variety of your store.
Include budget for:
- Initial inventory (fast-moving items first)
- Basic fixtures: shelves, display racks, counter, storage containers
- Signage, lighting, and small tools (calculator, notebook, price tags)
Secure Permits
Register with your local barangay for a business permit and with BIR for tax compliance. Also consider DTI registration for your business name when applicable.
- Barangay business clearance
- Mayor's / Business Permit from LGU
- BIR registration and official receipts (OR) when required
- DTI registration for your business name (for sole proprietorships)
Location, Setup, and Initial Inventory
Choose Store Location and Setup
- Pick a visible and easily accessible spot near regular foot traffic.
- Ensure safety: secure grills, proper lighting, and clear visibility from inside your home.
- Arrange shelves so fast-moving and high-margin items are at eye level.
Buy Initial Inventory
Focus first on basic commodities and fast-moving goods, then expand as you learn your customers' preferences.
- Rice, canned goods, noodles, sachet coffee, sugar, salt, soy sauce, vinegar
- Snacks, biscuits, soft drinks, water, juices
- Toiletries and household essentials (soap, shampoo, detergent)
Suppliers, Monitoring, and Bulk Deals
Monitor prices regularly and source deals from different channels to protect your margins.
Where to Buy for Bulk Discounts
- Wholesale supermarkets like Super8 and local warehouse-type markets
- Online marketplaces like Lazada and Shopee for promos
- Sari-sari store inventory platforms like GrowSari or DigiTindahan for financing and bulk discounts
- Negotiate with local suppliers for better rates based on volume and consistency
Monitoring and Buying Strategy
- Check prices and promos weekly (online and in-store).
- Group items by category to spot bargains and plan shelf space.
- Set reorder points for fast-selling products to avoid stockouts.
- Buy in bulk only for high-turnover items or those with long shelf life.
Utang Policy and Credit Control
A poor credit (utang) policy can kill your cash flow. Protect your business with clear and firm rules.
- Post a visible “No Utang Allowed” policy to discourage casual credit.
- Only extend credit to loyal customers (suki) with a clear repayment schedule.
- Keep detailed records of all credit transactions (notebook, spreadsheet, or simple app).
- Follow up politely but firmly to collect outstanding debts.
Customer Relations and Loyalty
Strong relationships turn occasional buyers into loyal, repeat customers.
- Greet customers warmly and offer help in finding what they need.
- Remember names and usual orders of regular buyers.
- Handle complaints calmly and fix issues quickly.
- Offer occasional small freebies, discounts, or loyalty rewards to encourage repeat purchases.
- Ask for feedback on products they want to see in your store.
Bulk Selling and Sales Strategies
Use bulk discounts and simple upselling techniques to increase your average sales per customer.
- Offer tiered discounts (e.g., 5% off for 5 items, 10% off for 10+ items).
- Promote these discounts using simple handwritten signs or on social media.
- Train family or staff to suggest add-on items politely (e.g., coffee with bread, soft drinks with snacks).
- Use bulk discounting to clear slow-moving inventory before it expires.
💰 Initial Investment, Store Types, and Markups
| Investment (PHP) | Suggested Store Type | Initial Inventory Focus | Suggested Markup* |
|---|---|---|---|
| ₱10,000 | Basic Neighborhood Kiosk | Sweets, cigarettes, snacks, basic condiments | 20–30% |
| ₱30,000 | Small Sari-Sari Store | Snacks, canned goods, beverages, toiletries | 20–35% |
| ₱50,000 | Expanded Sari-Sari Store | 30k level + frozen goods and more variety | 15–30% |
| ₱100,000 | Mini Grocery / Sari-Sari Store | Wide variety including household essentials | 10–25% |
📌 Final Reminders
This guide covers setting up your sari-sari store efficiently and profitably, with practical tips on budgeting, sourcing, credit control, and customer engagement to help ensure success in the competitive retail landscape of Philippine neighborhoods.
Start small, monitor your numbers, and grow based on real customer demand. The goal is a steady, healthy cash flow that supports your family while building long-term neighborhood loyalty.