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How much would it cost to live in the Philippines

mugtech :

50,000 pesos a month from a small grocery store is very unrealistic.

I agree. My aunt opened a small grocery / convenience store a few years ago as an extra source of income, despite not knowing anything about running one. She closed it after 6 months. She lost money on the venture.

The store was open 12 hours from around 7am to 7pm for security reasons. But not too far was a convenience store chain that was open 24 hours.

They were hoping that the students of the college across their street would go to their shop. But most of the students were from low-income families. And sometimes students would shoplift. Often bought items by students were school supplies and instant noodles. The store charged extra for hot water heated by an electric kettle.

Refrigerators and freezers (for things like soda, water, ice cream products, etc.) were provided for free by suppliers. But these use up a lot of electricity.  They hired a cashier part time. But they caught him giving in to discounts asked by young and pretty customers.

Then there's the initial cost of building the store: cabinetry, storefront, counters, shelves, flooring, painting, etc., including fees for city permits, DTI license, BIR registration, printed invoices and receipts, etc.

I think if my aunt really thought things over before starting the store, such as just getting a self-bought energy efficient refrigerator / freezer, better floor plan to avoid shoplifting, included cheap meals for students, and just managed the store herself, i.e. not hiring employees, she probably would have had an average of PhP20k profit per month, not  PhP30k to PhP50k.

A well-managed sari-sari store could earn the same depending on location (near a gathering place like a park, basketball, town plaza, barangay hall, no nearby competition, the neighbors have kids and are ok with cheap brands / non-brand items, etc.), if it's well-managed (self-run, no credit, no family members getting free stuff, inventory sourced from wholesalers). One can also do "re-packing" (my assistant did this at one time) where you buy bulk items, and re-package them in small plastic bags, such as garlic, candies, chlorine grains, etc., which you can sell at your store or to other sari-sari stores.

FilAmericanMom :
mugtech :

50,000 pesos a month from a small grocery store is very unrealistic.

I agree. My aunt opened a small grocery / convenience store a few years ago as an extra source of income, despite not knowing anything about running one. She closed it after 6 months. She lost money on the venture.

The store was open 12 hours from around 7am to 7pm for security reasons. But not too far was a convenience store chain that was open 24 hours.

They were hoping that the students of the college across their street would go to their shop. But most of the students were from low-income families. And sometimes students would shoplift. Often bought items by students were school supplies and instant noodles. The store charged extra for hot water heated by an electric kettle.

Refrigerators and freezers (for things like soda, water, ice cream products, etc.) were provided for free by suppliers. But these use up a lot of electricity.  They hired a cashier part time. But they caught him giving in to discounts asked by young and pretty customers.

Then there's the initial cost of building the store: cabinetry, storefront, counters, shelves, flooring, painting, etc., including fees for city permits, DTI license, BIR registration, printed invoices and receipts, etc.

I think if my aunt really thought things over before starting the store, such as just getting a self-bought energy efficient refrigerator / freezer, better floor plan to avoid shoplifting, included cheap meals for students, and just managed the store herself, i.e. not hiring employees, she probably would have had an average of PhP20k profit per month, not  PhP30k to PhP50k.

A well-managed sari-sari store could earn the same depending on location (near a gathering place like a park, basketball, town plaza, barangay hall, no nearby competition, the neighbors have kids and are ok with cheap brands / non-brand items, etc.), if it's well-managed (self-run, no credit, no family members getting free stuff, inventory sourced from wholesalers). One can also do "re-packing" (my assistant did this at one time) where you buy bulk items, and re-package them in small plastic bags, such as garlic, candies, chlorine grains, etc., which you can sell at your store or to other sari-sari stores.

From what I have seen the gross profit in such stores is about 10%, so it would take 200k a month in sales to give 20k in gross profit, not a very likely event.  Even with 20k gross profit, the net is less because of overhead expenses.  This would involve working 84 hours a week. The stores I have seen might make 10k on a good month, most much less.

mugtech :

From what I have seen the gross profit in such stores is about 10%, so it would take 200k a month in sales to give 20k in gross profit, not a very likely event.  Even with 20k gross profit, the net is less because of overhead expenses.  This would involve working 84 hours a week. The stores I have seen might make 10k on a good month, most much less.

You're right. I forgot to factor in the extra cost for rent of a commercial space versus a residential. It's 10k profit on a good month.

Hi James

If you contact me it would be great I am in Florida also and have able the same dreams as you except I have a child already 8mos old. And my heart is 31years with me being the reverse of 27 (72) lol. I would like to know the area that you live in for that value per month. Where we live in Taguig cost me 10,000php per month rent,5,000php per month electric and water. Food goes up and down when I am home I like to cook so food can run 6,000php in that month,plus trying to help the family sometimes with about 5,000per month and our Yaya gets 4,000 per month she is a live-in

snappo wow looks like your a big spender, most foreigners come here to live cheaper than back home but go for it, be carefull throwing your money around, philippines is number one place for failed projects by foreigners,

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