Dess’ Sari – Sari Store: A Case Study

A Final Requirement in GESS 015,

Economics with Land Reform, Taxation and Cooperatives

Submitted By:

Group 5

Ma. Antonette B. Martinez, BS Accountancy / 2nd Year

Rachel Anne Ferrer, BS Accountancy / 2nd Year
Francis DJ. Obinga, BS Information Technology / 3rd Year
Rico Cañete, BS Information Technology / 3rd Year

Submitted To:

Jesusa Manalo
Faculty In Charge

1st Trimester, SY 2017 – 2018

 “Dess’ Sari-Sari Store”

I. Introduction

a. History, Location & Rationale

Dess’ sari-sari stored opened on July 14th, 2008. It is owned by Mrs. Daisy

R. Bernabe, 58 years old, a housewife and a mother of 6 children. Dess’ sari-sari

store is a retail store which sells variety of goods bought by consumers in small

quantities unlike in wholesale stores that sell products in bulk. It opens from 7:00

am – 10:00 pm every day. The store is located at Silver Road, Pilar Village, Las

Piñas City. She chose this location because it is exactly located at her family’s

house. They occupy a small part of their garden area for the business.

Mrs. Bernabe decided to start a business so she can help her husband with

the finances of the family. Her husband's salary is just enough for their children's

education, including their allowances and other house expenses. Furthermore,

she decided to start this kind of business just to somewhat give herself a

recreation whenever her husband is at work and her children are at school. She

says, “What I like about it the most is that I still have a quality time with my

family….”
 b. Statement of the Problem

This study aims to answer the following questions:

1. What is the type of business and its advantages/ disadvantages as

experienced by the owner?

2. What are the processes and decisions made in production and other

operational activities by the business?

3. What are the common observations in the consumption of the product or

service?

4. What are the problems encountered and how were they solved?

5. What principles/concepts in Economics were observed in the operation?

6. What are the lessons learned in the case study?

II. Methodology

The type of our research is a case study. Case studies are based on an in-

depth investigation of an individual, group, or event to explore the causes of

underlying principles. Furthermore, a case study is a research methodology

commonly used in social sciences. Conducting case studies are very important and

helpful especially if it’s relevant to the society. Our subject, Economics with Land

Reform, Taxation and Cooperatives is considered as a social science because it

uses scientific method to explain and further understand the behavior of individuals,

groups, and organizations.

Participation/Role of Each Member

Our case study was made by some of the members of Group 5. We started on

September 25, 2017 until the end of the week brainstorming with what should be the

contents of our questionnaire. After the construction of questionnaire which can be

seen on the section of Appendices in our case study, Francis DJ. Obinga and Rico

Cañete began searching for potential respondents. Our target respondent is initially

a sari-sari store owner near PWU. Finally, we settled on Dess’ sari-sari store which

is found in Pilar village, Las Piñas city. Lastly, Antonette Martinez, Rachel Anne

Ferrer and Rico Cañete all helped prepare the case study in MS Word while Francis

DJ. Obinga prepared the case study in MS Powerpoint.

Data Gathering Procedure

The members of the group made a survey which was used as an instrument to

gather data needed for this study. The process done to follow this method are as

follows:

1. Construction of the questionnaire

2. Interview with target respondent

3. Input of collected information

4. Interpretation of gathered data

III. Results, Analysis, Interpretation

Mrs. Daisy Bernabe is a mother of six (6) children and a housewife. She is 58

years old and the owner of Dess’ sari-sari store. She officially started her own

business on July 14th, 2008. According to Mrs. Bernabe, she wanted to help her

husband with the finances and other expenses of their family. She decided to put

the store at the garden area of their house in Pilar village, Las Piñas city to manage

the store easier. Furthermore, she shared that with this type of business, she can

still spend quality time with her family.

The type of business and its advantages/ disadvantages as experienced by

the owner

The type of business Mrs. Bernabe has falls under sole proprietorship since

she is the only owner of Dess’ sari-sari store. The advantages of being a sole owner

is that decisions are made quicker and easier because she doesn’t have to consult

with any partners of her business. Income is also higher because as sole owner, she

and her family are the beneficiaries of the profits gained in her sari-sari store. On the

contrary, there are also some disadvantages to having a sole proprietorship

business. One is that, as sole owner, business take up too much of her time because

she, of course, has to monitor the store the whole time everyday though it is made

easier with the help of her children and the store being located at the garden area of

their house. She agrees that capital may have been raised easier if she had any

partners to her business. Furthermore, Mrs. Bernabe concurs that having a family-

owned business can stir issues among family members so she mostly manages it.
Processes and decisions made in production and other operational activities

by the business

Mrs. Bernabe raised a capital of 30,000-50,000 pesos to start her business.

Starting with the renovations of the area where her store had been installed to the

purchase of goods to be sold. She mostly purchases her products at the SM mall

near her house because she says it’s very convenient for her since they have carts

to place large number of goods she buys for her store. She also buys at the plaza

near her house some wholesale products like cigarettes, peanuts, cheap snacks and

candies because they are sold much cheaper than in malls. According to Mrs.

Bernabe, she adds at least 10% markup price in the products that she sells in her

store which is enough to gain a reasonable profit and to cover the expenses made

by the business like transportation expenses when buying goods.

Mrs. Bernabe’s sari-sari store is considered a retail business. Unlike in

wholesale business, retail stores offer products in small quantities. Retailing is

entirely different from wholesaling. The wholesale stores sell variety of products that

are bought by retailers in large quantities. One of the main differences between

wholesale and retail is in the price of the goods. The wholesale price is always lower

than the retail price. This is mainly because the retailer has to include many other

costs while selling the goods. Furthermore, the retailer adds expenses made in the

business like transportation expenses especially when Mrs. Bernabe buys her

products for the store. A wholesaler does not worry much about all of these aspects

which prompts him to sell goods at a lower price.

Common observations in the consumption of the product or service

There are some things Mrs. Bernabe noted with the consumption of her

products. An example is that when the soft drinks and cigarettes increased in price,

at first, its rate of consumption became slower than normal but after only a short

time, they could tell that their customers have adjusted to the prices and the rate of

consumption of the said products are back to normal again. Another is that

regardless of the shift in price of ‘coffee mix’ in sachets, Mrs. Bernabe observed

that it is still easily sold to the market. She believes that it helps that Filipinos are

fond of drinking coffee. Lastly, she states that her canned sardines are slack in the

market since it takes a month to sell all her canned sardines.

Problems encountered and how they were solved

Unfortunately, she encountered problems in her business. One is that some

customers tend to bargain with the price of the products they want to purchase. As

much as possible, Mrs. Bernabe doesn’t allow it since it will diminish what little

markup price she added in her products.

Another problem she previously encountered is that her neighbor built up her

own sari-sari store. Mrs. Bernabe decided to upgrade hers until she noticed that her

competitor is copying her ideas and what her children could think of for her store.

Unfortunately, she lost her market at that time. After some time, her neighbor was

not able to pay her rent expenses so she was forced to dislodge in the house she

was renting.
Principles/concepts in Economics observed in the operation

An article entitled “10 Principles of Economics” (2011) states that one of the

principles of Economics is that people respond to incentives. Mrs. Bernabe chooses

to buy most of her products at SM Southmall near her village rather than at the

plaza which is just a few blocks from her house. She prefers it that way because

SM Supermarkets offer better services like having carts to place large amounts of

goods. However, Mrs. Bernabe opts to buy some products that are easily sold to

the market at the plaza since wholesale offers are much cheaper at the plaza.

Mrs. Bernabe observes that the shift in price of the soft drinks and cigarettes in

her store did not greatly influence the rate of consumption by the customers or if it

does, it was only at first. ‘Coffee-mix’ in sachets are also quickly sold to the market

regardless of the changes in price. According to Parikh (2010), one type of price

elasticity of demand is inelastic demand. Inelastic demand is when the percentage

change in quantity demanded is less than the percentage change in price. This

shows that the said products are inelastic.

Furthermore, another concept observed is the existence of competition. Mrs.

Bernabe had a competition during the year 2014. The competitor offered better

offers like cheaper prices to the customers in their area. She says that because of

her neighbor’s attempt to overshadow her business, she lost her market at that

time.
IV. Lessons Learned

Studying economics is very essential to the society. Businesses contribute a

lot in the economy so it is only necessary to study how our money can come and go.

Having your own business is a good way to earn profit. It is important to know what

goods are marketable or easily sold to continue generate revenue that’s why

economics is very helpful since it help us determine how the society responds to

different products and circumstances. Businesses with the help of economics let us

figure out how to satisfy unlimited human wants and needs with limited resources.

Furthermore, we learned that it is important to know which goods are elastic

and inelastic since a convenience store offers a variety of products, mostly basic

needs of individuals, so that owners would be prepared especially when there’s an

inflation. Inelastic is an economic term used to describe the situation in which the

quantity demanded or supplied of a good or service is unaffected when the price of

that good or service changes while elastic is a term used in a situation where the

quantity demanded or supplied of a good or service is noticeably affected when its

price changes.

Lastly, we were able to understand that having a sari-sari store has also its

advantages. They’re the type of business that can be placed near your house since

the main customers will be your neighbors and you can still spend quality time with

your family unlike other huge and more complicated business wherein it requires a

lot of your time and sometimes stimulates issues among the members of the

business.
V. References

“10 Principles of Economics.” (2011, March 27). Retrieved from

http://wiki.ubc.ca/10_Principles_of_Economics

“Definition of Case Study.” (n.d.). Retrieved from

http://www.pressacademia.org/case-studies/definition-of-case-study

“Difference Between Wholesale and Retail.” (n.d.). Retrieved from

http://www.differencebetween.net/business/difference-between-wholesale-

and-retail/

Parikh, V. (2010, April 22). Types of price elasticity of demand. Retrieved from

http://www.letslearnfinance.com/types-of-price-elasticity-of-demand.html
 VI. Appendices

a. Questionnaire used

PROFILE

Directions: Please fill out the form by either ticking the space provided, or by

supplying the information needed.

Name:

Sex: Male Female

Age:

Status: Single Married

Separated Widow/Widower

Source of Income?

Are you the breadwinner of your family?

 SURVEY QUESTIONNAIRE

1. When did you start your business?

2. What is the exact location of your business? Why did you choose this location?

3. Why did you choose to start a business?

4. What type of business do you have? Is it a personal business, family-owned or a

partnership? Who mostly manages it?

5. What difficulties do you face in this type of business?

6. How much capital is needed to start a business like yours?

7. What type of goods do you usually buy for your store?

8. Where do you usually buy your products? Why did you choose that place to purchase

your products?

9. What goods you have often increase in price? Were they still quickly sold or not?

10. What problems have you encountered in your business? How were they solved?

11. Do you have any other business or work aside from your sari-sari store?
12. Do some buyers still bargain with the price of the goods that they want to purchase?

Do you allow them? If yes, what type of goods are they?

13. What goods are often bought in your store regardless of the price?

14. What goods are slack to the market?

Advantages and Disadvantages of Sole Proprietorship

SA – Strongly Agree A – Agree D – Disagree (D) SD – Strongly Disagree

SA A D SD
Statements
1. Being the sole owner of the business take up too much of
your time.
2. It’s easier and quicker to make decisions for the business
when you’re the only boss and doesn’t have to consult with
other partner/s.
3. It’s harder to start a business without partner/s.

4. It’s easier to raise capital with partner/s.

5. Income is higher when you’re the sole owner of the
business.
6. Does having a family-owned business stimulate issues
among family members?

Thank you so much for your time!

 b. Survey Results

PROFILE

Name: Daisy R. Bernabe

Sex: Male Female

Age: 58

Status: Single Married

Separated Widow/Widower

Source of Income? Sari-Sari Store

Are you the breadwinner of your family? No

SURVEY QUESTIONNAIRE

1. When did you start your business?

I started my business last 14th of July year 2008.

2. What is the exact location of your business? Why did you choose this location?

This store is located at Silver Road, Pilar Village, Las Piñas City. I chose this location

because this is exactly located at our house and I just took a small part in our garden

area for my business.

3. Why did you choose to start a business?

I decided to start a business so that I can help my husband to finance our family. I am

a housewife; a mother of 6 children and my husband's salary is just enough for my

children's education, including their baon and house billings. And I also decided to start

this kind business just to somewhat give myself a recreation whenever my husband is

at work and my children are at school and what I like about it the most is that I still have

a quality time with my family.

4. What type of business do you have? Is it a personal business, family-owned or a

partnership? Who mostly manages it?

My business is a sari-sari store. It is a personal business and I am the one who

manage it since the very beginning. I am using my planner to record all of the ins and

outs of this business.

5. What difficulties do you face in this type of business?

Last year 2014, my neighbor had a tenant and that tenant decided to put up a sari-sari

store. So I decided to upgrade my business by adding packed breakfast and meryenda

for our market but my business competitor is just simply copying my ideas and I lost

my market that time. Until my competitor was not able to pay the rental so they were

forced to dislodged in the house. To sum up this thought, I think that the difficulties

every sari-sari store owner faces is that when your neighbor decided to put up a

business that is exactly alike to yours. Even if it is 2 streets away from your business,
 it can cause so much loss in the market because every customer finds and buys

convenience.

6. How much capital is needed to start a business like yours?

Capital that you need is around 30k-50k because you will be needing woods for the

cabinets. Also paint for aesthetic. And in this business, you need to have a complete

goods to attract more customers.

7. What type of goods do you usually buy for your store?

The type of goods that I usually sell are canned goods, coffee, chocolate, milk in a

sachet, powdered juices, biscuits, candies, soft drinks, toiletries, laundry soaps, etc.

8. Where do you usually buy your products? Why did you choose that place to purchase

your products?

I usually buy most of my products from SM Southmall because it is just a tricycle away

from my house and it is very convenient for me because I use carts so that I don't have

to carry all the products that I purchased but I also buy some of the goods for my store

at the plaza near my house which offers wholesale for products like cigarettes, peanuts,

cheap chichiryas and some candies.

9. What goods you have often increase in price? Were they still quickly sold or not?

I recently increased the price of the soft drinks and the cigarette because the price of

it got adjusted from my retailer so I also need to adjust the price so that I can still
 have profit from it. Well at first, it is a little bit hard to sell those items/products that

increased the price, but now, I can tell that my customers are already used to the new

price.

10. What problems have you encountered in your business? How were they solved?

As I have said earlier, the problem that I have face so far is that when your neighbor

have the same business as yours. I think you just have to put a little more 'gimmick',

buy more products depending on what your market needs and just keep the faith.

11. Do you have any other business or work aside from your sari-sari store?

I used to have a Billiard business before where they get to play on our Billiard table

and they have to just pay for the 'Tong'. I also took my garage for that business but I

decided to close it because most of the players are men and I don't want my daughters

to be exposed in that kind of environment.

12. Do some buyers still bargain with the price of the goods that they want to purchase?

Do you allow them? If yes, what type of goods are they?

There are some buyers who wants to bargain with the price of goods, but I don't allow

it because in the first place I also cannot bargain the price from SM and besides the

price of my products are not that expensive. But there were actually a time when my

customer lacked 1php for the ice water (water in a plastic bag) which costs 3php each

and I just accept her 2php for it because my conscience can't take it because she looks

thirsty that time.

13. What goods are often bought in your store regardless of the price?

I think that would be the coffee mix in a sachet, even though the price increased,

customers are still buying it because I believe that Filipinos are fond of drinking

coffee.

14. What goods are slack to the market?

I think that would be the sardines because it takes me a month to sell all of my

canned sardines product.

Advantages and Disadvantages of Sole Proprietorship

SA – Strongly Agree A – Agree D – Disagree (D) SD – Strongly Disagree

Statements SA A D SD

1. Being the sole owner of the business take up too much of


your time.
2. It’s easier and quicker to make decisions for the business
when you’re the only boss and doesn’t have to consult with 

other partner/s.
3. It’s harder to start a business without partner/s. 

4. It’s easier to raise capital with partner/s. 

5. Income is higher when you’re the sole owner of the


business.
6. Does having a family-owned business stimulate issues

among family members?
c. Pictures of Respondents and the sari-sari store

Kristene Bernabe (left), the youngest daughter of the Bernabe family and Mrs.
Bernabe (right), Kristene’s mother and the store-owner, is beside her. The
sari-sari store can be seen behind them.

Ada Bernbabe (left), another daughter of Mrs. Bernabe (right). They are inside
the sari-sari store.
The front part of the sari-sari store. As it can be seen at the left side of the photo,
Mrs. Bernabe recently invested in a Coffee/ Hot Chocolate vending machine.

Ada Bernabe, one of Mrs. Bernabe’s daughters can be seen at the left side of
both pictures with Antonette Martinez, the interviewer, after the interview.