Starting a bigasan business (rice retail) in the Philippines can be a rewarding venture. Knowing that rice is a staple food, ensuring consistent demand, bigasan business might be the ideal business venture that you have been looking for this year.
In this article, we will tackle the basics of getting started in your bigasan business, as well as focusing on simple steps to help you understand the process. Ready to elevate your income? Let’s get started on your journey to becoming a successful bigasan owner!
What is a Bigasan Business? A bigasan is like a small shop that only sells rice. It’s like a mini-grocery store, but it only has rice. You can find different kinds of rice there, like the regular rice you eat every day or special rice for special occasions.
They usually have big bags of rice that they open up so you can see what kind of rice it is and how much it costs. You just tell the person working there what kind of rice you want and how much, and they’ll weigh it out for you.
Bigasans are very common in the Philippines, especially in neighborhoods and communities, because rice is a very important part of Filipino meals.
Read: How to Start a Small Meat Shop Business in the Philippines
How Much to Start a Bigasan Business? Starting a bigasan business in the Philippines can be done with a relatively modest investment. Typically, you can get started with it with a capital investment ranging from ₱50,000 for a basic retailer to ₱300,000 for a franchise.
Here’s a breakdown of the costs you can expect:
Licensing and Registration You’ll need to obtain a license from the National Food Authority (NFA) which typically costs around ₱100 for the application fee and a license fee based on your capital. You’ll also need to register your business with the Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC) depending on your business structure.
Equipment
Essential equipment includes a calibrated weighing scale, white-painted rice boxes, price tags, and a signboard. You can expect to spend a few thousand pesos on these items.
Initial Inventory
The amount of rice you need to purchase will depend on the size of your business and your expected sales volume. You’ll need to factor in the cost of rice, storage, and transportation.
Location
Finding a suitable location is crucial. You’ll need to consider factors like foot traffic, visibility, and rent costs.
While these are the main costs, remember that you’ll also need to budget for operating expenses like utilities, labor, and marketing.
Tips for Keeping Costs Down Start Small
Begin with a smaller inventory and scale up as your business grows.
Negotiate with Suppliers
Build relationships with rice suppliers to secure discounts and favorable terms.
Find Affordable Locations
Consider areas with lower rent costs or explore options like shared spaces.
Utilize Social Media
Leverage free marketing channels like Facebook and Instagram to reach potential customers.
How to Earn Profit in Bigasan Business? A bigasan business makes you money by buying rice in bulk from suppliers, like rice mills or wholesalers, and then selling it to customers in smaller quantities. You can make a profit by adding a little extra money, called a “markup” or “patong,” to the price you paid for the rice.
Here’s a simple example:
Imagine your bigasan business buys a sack of rice for ₱1,000, you can add a ₱200 markup to the price where you can sell the sack of rice for ₱1,200. The ₱200 difference is your profit.
You can also make money by selling different types of rice at different prices. For example, you might sell regular rice for a lower price and premium rice, like “dinorado,” for a higher price.
Where to Find a Rice Supplier? So, let’s say that you do not opt for a franchise and you must find a rice supplier yourself. Your options will include a wholesaler, a rice mill, or a farmer. Below is a list of well-known rice suppliers in the Philippines:
DanJethro Grains
Wil-Lys Cereal Trading : A company in Cagayan that sells lots of different types of rice, even some good enough to export.
JDL Nueva Ecija Rice Dealer (Jorem Palay Buying Station) : They’ve been selling fresh rice from Nueva Ecija for over 30 years.
Primavera Rice Mills
RMR Rice Mill : A popular place for other rice sellers to buy from in Bulacan.
Yes, trying a bigasan business in the Philippines can be a profitable venture, however, it’s important to plan carefully and manage your finances effectively. By understanding the costs involved and taking advantage of cost-saving strategies, you can increase your chances of success.
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Thanks sir for the lecture.