What are the INs and OUTs of a Mini-grocery business?

[BLINGBLING]

Has anyone of you know or experienced putting up a Mini-grocery? Magkano ba ang capital na kelangan para dito say, a 50-100sqm space..or yung tipong mga 2-4 counters na mini grocery..What is the expected ROI for this kind of business?..and what are the pros and cons of running one?..TIA for your inputs..

Para kasing maganda kung nasa ganung business ka para di kana magpapanic-buying kung may emergency..hoarding nalang!

[oldblue]

I talked with the 7-eleven people once. one of its main officers eh kababata ko.

dun ko na laman na grabe pala ang i-require sayo i-manage ang ganito type of biz. pilferage is the biggest problem both external and internal. it ruins the inventory and it creates distrustful atmosphere among your employees

pero kung ikaw yun tipo na manager 24/7 sa shop mo, baka puwede siguro. pero ako rule out ko na'to sa business.

pero meron sila isang biz within the 7-eleven na pumapatok ngaun, I'm eyeing this very much hehehe

[BlueBimmer]

4 counters for a 100sq mtr grocery is too much...2 counters tama lang.

[BLINGBLING]

regarding the issue of pilferage, inventory control for a grocery is also one aspect i'd like to know about..for me, next to the hardware business parang ito yung next na mahirap ma-control ang stocks..i'm exposed to the warehousing(material issuance) practices in the manufacturing industry but i want to see how different will that be from a grocery set-up..

[Sarsi]

some inputs in this kind of business.

for 100 sq.m space
1. what type of store, is this walk in type or over the counter?
2. is warehouse included in 100 sq.m

for check out counter, 2 is enough, but this alone will cost you arund 100k if you go for the POS type, cash register is cheaper at around half the cost of POS.

inventory control, usually average of 2 weeks to 4 weeks for fast moving products for non food, maximum 2 weeks for food items as it expires. the inventory excludes the stocks available in the selling area.

ROI is around 2-3 years, initial investment for the inventory would be around 2.5- 3 million for that space.

Suppliers usually will give you 15-30 day terms, except for the big suppliers like P&G and Nestle that only gives a maximum of 7 days.

Discount ranges from 2 to 5%, depends on the suppliers. Wholesalers like ultra mega and suysing gives cheaper price for the products but you have to pay in cash.

PM for more Q's

[BLINGBLING]

Sirs rr, BB and ob, thanks for the inputs..

i'm planning(but not in a hurry) to put up a walk-in type of store with aisles complete with cold stocks and dry goods..warehouse space is not yet included in the 100sqm..(actually, i only realized it when sir rr asked abt it..hehe)..

how about the ref and freezer, do they come with the supplied goods?or still part of the capital investment..

what is the difference bet a point-of-sale system and a simple cash register?

aren't most of the grocery items available on consignment basis?(pardon my ignorance but this can be crucial to the operation when sales are slow) If not, what is done to the unsold items(old stock) then?

(sorry, i'm a bit shy to make a pm)

[Sarsi]

Sirs rr, BB and ob, thanks for the inputs..

i'm planning(but not in a hurry) to put up a walk-in type of store with aisles complete with cold stocks and dry goods..warehouse space is not yet included in the 100sqm..(actually, i only realized it when sir rr asked abt it..hehe)..

how about the ref and freezer, do they come with the supplied goods?or still part of the capital investment..

what is the difference bet a point-of-sale system and a simple cash register?

aren't most of the grocery items available on consignment basis?(pardon my ignorance but this can be crucial to the operation when sales are slow) If not, what is done to the unsold items(old stock) then?

(sorry, i'm a bit shy to make a pm)

there are companies/suppliers that provide refs/freezers, e.g. purefoods,swift, selecta, yakult, coke,pepsi et al., but usually it will take some time before they can provide you this. better if you have your own, so that you will not be obliged to meet their skyrocketing quota for the unit they lend to you.

Point of sale
1. easy access to your inventory in shelves and warehouse. (provided that all incoming stocks to your warehouse are inputed to your system)
2. you will know what products are selling or not. It's a big risk if you get this information from merchandisers and your people, it's best if you have numbers to prove any claims regarding this matter. Even salesman will say that their products is fast moving just to make a sale/bookings from you.
3. Less mistake for the prices of each product you are selling, since the price of the product needs to be inputted to the system. Also you're cashier's doesn't have to spend lots of time to memorize all the prices of all the products in your store. A typical mini grocery has at least 20,000 skus inside the store.
4. You have access to your sale, in terms of peso value, anytime. you don't need to go to your cashier and make a manual count of the money there. this will also minimize the shortage/kupit of your cashier since you can review every transactions.

CASH REGISTER
entries here are generalized- broken down into few classifications of all products,usually beverages, bakeries, snacks, et al. you cannot get any information here. it's like a big sized calculator with print out calculation where all you can see is the total amount of the things a consumer bought.


Most suppliers give only a maximum of 30 days term. No supplier of FMCG give consignment basis nowadays. If a you have any unsold items/old stocks in your store, you may request some budget(in terms of tie ups/bundlings, price off,even monetary) from your supplier. In most cases they will support you because it will incur more cost to them if you obliged them to pull out their expired/old/slow moving products to your store. If you would read my first post here, maintain your inventory level to maximum og 4 weeks to non food products and 2 weeks for food items.


Hope this helps :smoke:

[GmZ]

Mahirap magmonitor ng stocks pag wala ka inventory system, meron naman POS software na nagmomonitor na ng inventory. pero sa case namin, hindi computerized ang inventory both warehouse and stores mismo. sanayan na rin, pero gusto ko i-computerized warehouse namin. kelangan marami ka sources sa products, kung saan mura dun ka kukuha. kuha namin sa isang POS kasama na lahat, 95k. baka mga 5-7M capital na kelangan mo.

RR, supermarket din ba kayo? terms namin sa P&G and Nestle 15days eh. Pwede naman kumuha rekta sa supplier kaso meron kelangan na quota eh.

[Sarsi]

Mahirap magmonitor ng stocks pag wala ka inventory system, meron naman POS software na nagmomonitor na ng inventory. pero sa case namin, hindi computerized ang inventory both warehouse and stores mismo. sanayan na rin, pero gusto ko i-computerized warehouse namin. kelangan marami ka sources sa products, kung saan mura dun ka kukuha. kuha namin sa isang POS kasama na lahat, 95k. baka mga 5-7M capital na kelangan mo.

RR, supermarket din ba kayo? terms namin sa P&G and Nestle 15days eh. Pwede naman kumuha rekta sa supplier kaso meron kelangan na quota eh.

Wala po kami supermarket, connected po ako sa isang multinational FMCG dati, quezon province ka ba sir, ano supermarket ka dun? hehehe

[GmZ]

Wala po kami supermarket, connected po ako sa isang multinational FMCG dati, quezon province ka ba sir, ano supermarket ka dun? hehehe

uhm, what's FMCG? yes, sa quezon province ako, pm ko sayo name ng supermarket namin. consultant ka ba ng FMCG? big time!