Starting a Rice Dealership Business in Rice Retailing (Bigasan) in the Philippines
Rice Retailing is a profitable business because rice is the staple food in our country. There are many rice varieties that consumers can choose from at low cost The preferred varieties for daily meals are white, long grained, and aromatic. Glutinous or sticky rice (malagkit) are used for native sweets.
Estimated Investment Cost (based on 2009 prices)
Basic Equipment
Rice boxes, 6 pcs – 12,622.50
Scooper – 250.00
Pushcart – 600.00
Weighing scale – 900.00
Sub-Total – P4,250.00
Basic Weekly Supplies (from rice farmers/producers)
Sinandomeng, 450 kilos @P28.05/kg – P12,622.50
Dinurado, 400 kilos @34.00/kg -13,600.00
Wag-wag, 350 kilos @25.50/kg -8,925.00
Milagrosa, 250 kilos @25.05/kg -7,012.50
Long Grain, 350 kilos @25.50/kg -8.925.00
NFA Rice. 700 kilos @21.25/kg -14,875.00
MalagkH, 50 kilos @34,00/kg -1,700.00
Sub-Total – P67,660.00
Packaging
Sando Bags, 3000 pcs – P450.00
Estimated total investment cost – P72,360.00
Cost of Goods Sold
Merchandise Inventory Beginning (20%) – P13,622.00
Add: Purchases (80%) – 54,486.00
Total Goods Available for Sale – 68,110.00
Less: Merchandise Inventory, Ending – 13,622.00
Cost of Goods Sold – P54,488.00
Add: 15% Mark-up – 8,173.20
Sales – P62,661.20
Estimated Weekly Income
Sales – P62,661.20
Less: Cost of Goods Sold – 54,488.00
Gross Sales – P8,173.20
Less Operating Expenses:
Labor (P200 x 7 days x 1 worker) – 1,400.00
Water and Electricity (weekly) – 350.00
Transportation/Delivery – 500.00
Estimated total weekly income – P5,923.20
Assumptions:
80% of the items are being replenished weekly.
80% of Cost of Goods Purchased is considered sold weekly.
20% of the rice remains In the inventory per week.
15% is the mark-up per item.
Tips:
Storage – Bukbok or weevil is a natural enemy of rice because it Is 90% starch. They make rice powdery so make sure the storage or warehouse is managed properly.
Observe First-in, First-out Inventory method – Inventory of rice stocks should be kept track. The quality of rice will deteriorate if the storage exceeds three months.
Rice Dealer Business Registration Requirements
Are you Planning to start your own Rice Dealership
Here is a guide how to successfully establish your new business venture
For Single Proprietorship
- Business Name Registration
Visit Department of Trade & Industry (DTI)
Provincial Office where the business is located or log on to http://www.bnrs.dti.gov.ph
Validity: 5 years
Requirements:
•Accomplished Business Name Registration Form [Single Proprietorship/Partnership (Optional)];
•Registration fee of Php300.00 - Mayor’s Permit
Agency: Local municipality where business
is located
Validity: 1 year
Requirements:
•Accomplished Business Permit Application Form
•DTI – Business Name Certificate
•Sketch of the business location
•Barangay Clearance
•Fire Safety Inspection Clearance
•Sanitary Permit (from City Health Officer)
•Lease Contract
•2 pcs. 2×2 colored ID Picture
•Registration fee depends on the type of the business - Tax Identification Number (TIN)
Agency: Bureau of Internal Revenue (BIR) National
Office, Agham Road, Diliman, Quezon City
Tel. nos.: (632) 981.7000 / 981.8888
Email: contact_us@cctr.bir.gov.ph
Website: http://www.bir.gov.ph
Requirements:
•Accomplish Form 1901
•Mayor’s Permit
•Registration Fee of P500.00
Business Registration Requirements - Social Security System (SSS) Certificate
Social Security System (SSS)
Loans and Investment Office
SSS Building, East Avenue, Diliman, Quezon City
Tel. Nos.: (632)920.6401 / 920.6446
Email: member_relations@sss.gov.ph
Website: http://www.sss.gov.ph
Requirements:
•Accomplished R1 Form
•DTI Business Name Certificate
•Mayor’s Permit - Department of Labor and Employment (DOLE) Registration
(with 5 or more employees)
Agency: Department of Labor and Employment
(DOLE)-Labor Standard and Enforcement Division
2nd Flr. Dy International Building, San
Marcelino cor. Gen. Malvar St., Malate, Manila
Tel. nos.: (632) 339.2013. Hotline No.: 527.8000
Email: osec@dole.gov.ph
Website: http://www.dole.gov.ph
Requirements:
•Accomplished Rule 1020 Form
•Lay-out of business location
•Vicinity map
Source: http://www.riceauthority.com/
JSL Co. 